1.0 Introduction AirAsia (AA) is a renowned low cost carrier that offers short and long haul flights based in Malaysia. AA has expanded rapidly since 2001 and has been awarded as the World’s Best Low-Cost Airline in 2008‚ 2009‚ and 2010. One of the reasons for their success is by their strategy formulation‚ implementation‚ and control over the macroenvironment‚ discussed in this report‚ in terms of political‚ economic‚ social‚ technological‚ and natural forces‚ by turning risks into opportunities
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------------------------------------------------- Image via Wikipedia . I read an article about Tony Fernandes‚ the CEO of AirAsia‚ in The Economist today that got me thinking. Thinking about the last few articles I’ve written about United Airlines‚ RyanAir and Southwest Airlines – on how they make money off their customers – what what works and what doesn’t. There’re a lot of airlines in the US and Europe can learn from Tony Fernandes and AirAsia (+ Azran and AirAsiaX). Here’s how the article in The Economist ended. “Mr Fernandes
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On its website AirAsia has listed down several justification on its need to build a new airport for its own purpose.[8] Among them are:- Passenger capacity - Although the current LCC Terminal in KLIA is currently undergoing construction to enable the terminal to handle 15 million passenger a year‚ AirAsia expects that the terminal will only hold the passenger growth for only one year. The company anticipates to handle 25 million passenger through the terminal on 2013 which a short fall of over
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for everyone. Since 2001 AirAsia has risen to become the world’s best LCC‚ with a very large route network. AirAsia continues to pave the way for low cost flights through its innovative business selections. Vision: To be the largest low cost airline in Asia. Mission: 1- To be the best company to work for where employees are treated as a part of a big family. 2- Create a globally recognized brand. 3- Achieve the lowest cost so that everyone can fly with AirAsia. Values: 1- Safety
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Gim Chuan Marcus (J0704245) Name of Tutor (T01) XXX BUS 488 Strategy - T01 Question 1 AirAsia‚ which is one of the earliest low cost carriers (LCC) in Asia‚ has become a LCC since 2001. So far‚ it has expanded its network from Malaysia to Thailand to Singapore‚ Macau and even the Mainland China in 2006. In short‚ AirAsia “jumped out” from an intra-Malaysia and Thailand market to a “real AirAsia” in the continent. Thus‚ what are the possible core competencies to ensure that there is quantum
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objectives before setting a price‚ the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully‚ then its marketing mix strategy‚ including price‚ will be fairly straightforward. AirAsia is introduced as Asia’s first low-fare‚ no-frills airline in 2002‚ according to its tagline “ now everyone can fly”‚ this positioning required charging a low price. Besides‚ marketing mix strategy which is price is only one of the marketing mix
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capabilities (i.e. cost and efficiency optimization/utilization) as a low-cost carrier (LCC) airline. Analysis The airline industry as a whole is quite competitive with multiple players and various elements effecting the industry environment. AirAsia has developed a specific set of resources and core competencies that it has exploited in order to become the leading short-haul LCC in South East Asia. AirAsia’s strategy employs cost and efficiency optimization by utilizing its key resources; thus
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AirAsia needs no introduction in ASEAN‚ where it is the leading low-cost carrier‚ connecting people and places across 132 routes‚ 40 of which are offered by no other airline. In 2010‚ the Group‚ which includes affiliates AirAsia Thailand and AirAsia Indonesia‚ reinforced its leadership position with two remarkable milestones: flying its 100 millionth guest and breaking the RM1 billion profit barrier. From an airline with two aircraft plying six routes in Malaysia in January 2002‚ AirAsia has soared
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has captured a lot of benefit from globalization‚ and AIRASIA is one of the most successful companies in the air industry. AIRASIA was founded by a government owned organization DRB-Hicom in 1993 and started operation on 18 November. However‚ it was not successful and fallen in heavily-indebted until the end of 2001 when AIRASIA was purchased by Tune Air Sdn Bhd for the token sum of one ringgit. With promotional fares low as RM1 (US $0.27)‚ AIRASIA has turned profit in 2002‚ and since that time it became
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International Business & Economics Research Journal – December 2005 Volume 4‚ Number 12 AirAsia In The Malaysian Domestic Airline Market: Empirical Analysis Of Strategy Mok Kim Man‚ (Email: mkimman@ums.edu.my)‚Universiti Malaysia - Sabah‚ Malaysia Jainurin Bin Justine‚ (Email: Jainurin@ums.edu.my)‚ Universiti Malaysia - Sabah‚ Malaysia ABSTRACT This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. Firstly‚ the paper will provide a general
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