1. STRATEGY IS KEY: a) What is the macro and industry environment in the South East Asian region for the entrance of new budget airlines? What opportunities and challenges are associated with that environment? The South East Asian region offers huge opportunities for the entrance of new low-fare airlines. Analyst revealed that low fares are often the deciding factors for budget-conscious travelers in Southeast Asia. This region represents a huge population‚ which offers low-fare airlines a
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Malaysia Airlines Introduction Malaysia Airlines‚ the country’s national carrier‚ was first incorporated as Malayan Airways Limited (MAL) on 12 October 1937. It was a joint initiative of the Ocean Steamship Company of Liverpool‚ the Straits Steamship of Singapore and Imperial Airways which led to a proposal to the Colonial Straits Settlement government to run an air service between Penang and Singapore. On 2 April 1947‚ MAL took to the skies with its first commercial flight as the national airline
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place-tourism-using airlines such as Airasia). Increase of products/ services - By producing more and variety of services to attract consumers/ customers to try something new and to be more confident to use the service from the organization. - In 2012‚ Asia’s largest low-cost carrier confirmed another 100 Airbus A320 which further acknowledges its dominance in Asia to have a record 475 narrow bodies on order with Airbus. - This such order is part of the AirAsia Group’s regional strategy to continue
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International Airport 2. AirAsia is very first budget or low cost carrier (LCC). It is co-founded in Malaysia by two prominent entrepreneurs‚ Mr. Tony Fernandes and Mr. Kamaruddin Meranun‚ which have spotted business opportunity arising from the inexistence of the much needed affordable air travel service in Asia. Mr. Fernandes and Mr. Meranun acquired the then loss-making full carrier AirAsia in 2001 from a government-owned company and transformed it into a profitable LCC. Current AirAsia imitates the low-cost
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airlines in Asia to hire female pilots. He says that his staff are his best asset and that he constantly uses their suggestions to improve and innovate within the company. For a low-cost airline‚ turnaround time is a crucial element. The more time AirAsia planes are in the air‚ the more revenue can be garnered. Innovative procedures and systems contributed towards the company having one of the fastest turnaround times (25 minutes) in the world . The credit for those successes lays squarely with their
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brought forward the launch date to mid-March 2013 with domestic destinations. The airline only operates Economy and Business class. Background The entry of AirAsia from Malaysia in the home turf of Lion Air has encouraged the Indonesian airline to enter Malaysian market with a subsidiary airline. AirAsia’s subsidiary Indonesia AirAsia‚ in partnership with its parent firm‚ attempted to buy Indonesian carrier Batavia Air to gain foothold in the Indonesian market‚ but the deal didn’t go through
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SWOT ANALYSIS Strengths Low cost operations Aggressive‚ focused and effective management Simple business model that provides low prices Penetrate and stimulate to potential markets Multi-skilled staff means efficient and incentive workforce and reduced staff More seats per aircraft Single type fleet minimize maintenance fee Brand name Weakness Service resource is limited by lower costs Non-central location of secondary airports Brand is vital for market position and developing it
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1. (a)What are the derivative instruments that the company uses? Overall utilization of derivative instruments by AirAsia is for both purposes of hedging and held for trading. For instance using certain derivative instrument to hedge a particular or contingent risk associated with a recognized asset and liability and highly probable forecast transaction. Derivative instrument are recognized at fair value when parties are entered into contract and subsequently are measured at their fair value
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SWOT analysis of AirAsia Strengths Firstly‚ Air Asia has indeed a strong management team. This is clearly known as it has very strong links with the governements and airline industry leaders.This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials. For example‚ Shin Corp (formerly owned by the family of former Thai Prime Minister - Thaksin Shinawatra) holds a 50% stake in Thai AirAsia. This has helped
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2010).Nowadays‚ the competition among airline industries is very challenging as more low-cost airlines were blooming. Besides that‚ they were also facing the challenges from those well-known airlines such as MAS. Therefore‚ a research regarding AirAsia- World’s best low-cost airline was conducted in order to investigate the company. The main objective for this assignment is to evaluate the effectiveness of existing market mix which were being employed on the target segments of the business and
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