Premium Essay

Airasia

In: Business and Management

Submitted By moulik
Words 1485
Pages 6
Term Papers and Free Essays
Browse Essays
Read full version essay Pest Analysis On Airasia
Pest Analysis On Airasia
Print version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!.
Join Essays24.com and get instant access to Pest Analysis On Airasia and over 30,000 other Papers and Essays

Category: Miscellaneous

Autor: anton 12 May 2011

Words: 1354 | Pages: 6

1.0 Introduction

Purpose

The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage.

Background on AirAsia

AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel.

2.0 External Environment Analysis

2.1 Political

Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively...

Similar Documents

Premium Essay

Airasia

...Introduction: AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. AirAsia creates values through the following vision and mission. AirAsia’s vision is to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Whereby, their mission is to create a globally recognized ASEAN brand, attain the lowest cost so that everyone can fly with AirAsia and maintain the highest quality product, embracing technology to reduce cost and enhance service levels. EXECUTIVE SUMMARY AIR ASIA Strategic management has played a key role in the success of many business organizations in the world......

Words: 2789 - Pages: 12

Premium Essay

Airasia

...currently operates scheduled domestic and international flights to 80 destinations (including subsidiaries routes) across 25 countries and with over 400 daily flights covering Indonesia, Malaysia and Thailand and for international routes mostly from Kuala Lumpur to Australia, Bangladesh, Brunei, Cambodia, China, France, Iran, India, Japan, Laos, Myanmar, New Zealand, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, the United Kingdom and Vietnam. Air Asia’s main hub is at Kuala Lumpur International Airport as well as the head office of the company and its affiliated airlines, Thai Air Asia and Indonesia Air Asia, have hubs in Suvarnabhumi Airport and Soekarno-Hatta International Airport.In this assignment,we will obtain information about AirAsia more. TASK A: DEFINITION OF MARKETING #1: * “Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. Source: Chartered Institute of Marketing (CIM) (http://www.studymode.com) DEFINITION OF MARKETING #2: * "Marketing is human activity directed at satisfying needs and wants through exchange process." Source: Philip Kotler (http://www.learnmarketing.net/marketing.html) COMPARISON   All two definitions mention specifics of marketing and give an a concept about marketing today. One important thing,...

Words: 4252 - Pages: 18

Premium Essay

Airasia

...Company Background and analysis of AirAsia This report conducts an analysis of AirAsia, the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom, a government owned- conglomerate. On 2 December 2001, the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest Airlines and proposed to start a Low-Cost Carrier but the government refused to issue a new license and requested Tony to buy an existing airline. Hence Tune Air set up by Tony and his investors bought Air Asia for a token sum of RM1. Before 2001. AirAsia failed to attract enough passengers from Malaysia Airline to establish its own stand in the market. The turning point for AirAsia was in 2001 subsequent to its purchase by Tony Fernandes. Tony Fernandes enrolled low-cost airline experts to restructure the business model of AirAsia. He invited Connor McCarthy, formerly the director of the group operation Ryanair, to join his executive team. In the late 2001, AirAsia airline was re-launched in Malaysia as trendy, no-frills operation with three B737 aircraft as a lowfare, low-cost domestic airline. AirAsia’s simple slogan “Now Everyone Can Fly” has won the heart of customer’s. AirAsia’s profit for the second quarter (i.e.,ending 31 december 2004) was reported RM 44.4 million, which is a 323......

Words: 3704 - Pages: 15

Premium Essay

Airasia

...AirAsia Berhad (284669-W) Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity,...

Words: 68088 - Pages: 273

Premium Essay

Airasia

...STRATEGIC ANALYSIS OF AIRASIA THE BEST LOW-COST CARRIER AIRLINES IN THE WORLD ASSIGNMENT FOR MICROECONOMICS FACULTY OF ECONOMICS AND BUSINESS NATIONAL UNIVERSITY OF MALAYSIA BY: IWAN BUDHIARTA P-46048 MALAYSIA – 2009 I. INTRODUCTION A low-cost carrier (also known as a no-frills or discount carrier) is an airline that offers low fares but eliminates all “non-essential” services. The typical low-cost carrier business model is based on: * a single passenger class * a single type of airplane (reducing training and servicing costs) * a simple fare scheme (typically fares increase as the plane fills up, which rewards early reservations) * free seating (which encourages passengers to board early) * direct, point to point flights with no transfers * flying to cheaper, less congested secondary airports * short flights and fast turnaround times (allowing maximum utilization of planes) * "Free" in-flight catering and other "complimentary" services are eliminated, and replaced by optional paid-for in-flight food and drink. Simple Product A typical low cost airline product is extremely basic. It focuses on getting passengers from point A to B, cutting out all the “extras”. This means there are no meals, drinks or snacks served free on board. In certain airlines, these may be purchased on request. The aircraft have Narrow seating to permit greater capacity. Low cost airlines offer all-economy flights, with no additional space......

Words: 7295 - Pages: 30

Free Essay

Airasia

...eight years ago when it began operations, AirAsia had just two planes and a host of obstacles - Sars and the Sept 11 terrorist attacks included - preventing it from taking off. Today, the Malaysia-based budget airline boasts a fleet of 80 aircraft that ply over 122 routes, with 480 flights to more than 65 destinations daily. Group CEO Tony Fernandes has been instrumental in building the AirAsia brand. Known for its strong marketing and branding culture, AirAsia was recognised as one of Malaysia's 30 Most Valuable Brands in 2008, and also made it to US-based business magazine Fast Company's top 50 list of most innovative companies in the world last year. THE BOLD AND THE CREATIVE Explaining the reason behind AirAsia's strong marketing culture, Kathleen Tan, its regional head of commercial, said: "Marketing reflects brand attitude and personality. We're bold, inspired and we encourage out-of-the-box thinking. We do things differently and do not submit to mediocrity." She revealed that AirAsia's creative marketing input comes not only from its marketing team, but from staff, including pilots, engineers and ground crew. She said: "When somebody comes up with a pioneering idea, we don't shoot it down and say: 'Oh, that's unconventional.' Instead, we play with the idea and find the best way to employ it to advance our brand or introduce new products and services." CONQUERING THE WORLD In 2007, the new low-cost, long-haul affiliate of AirAsia was...

Words: 647 - Pages: 3

Premium Essay

Airasia

...BA 423 Production and Operation Management Assignment Question: Critical Decision on AIRASIA Student name : Nithiasanthi a/p Peralakan Segi id : SCKL- 00039055 UIU id : 300411603 Lecturer : Ms Azreen Date of submission : 4th April 2016 Table of Content 1.0 Introduction 2.1 AirAsia 2.2.1 Background 2.2.2 Operations 2.2.3 Destinations 2.0 Ten Critical Decisions in Operation Management related to AirAsia 3.2 Service and Product Design 3.3 Quality Management 3.4 Process and Capacity Design 3.5 Location 3.6 Layout Design 3.7 Supply Chain Management 3.8 Inventory Management 3.9.4 Just in Time (JIT) and Lean Operation 3.9.5 Material requirement planning 3.9 Scheduling 3.10.6 Aggregate planning 3.10.7 Short Term Scheduling 3.10 Human Resources, Job Design 3.11.8 Job Rotation 3.11.9 Job Enlargement 3.11.10 Job Enrichment 3.11 Maintenance Introduction Operational management is a core field that should be focused more in order to have an efficient and all around sorted out operation. These days, a considerable measure of organizations have effectively adjusted numerous ideas in operation management like Service and Product design, Product and Capacity Design, Location Strategies, Inventory Management and numerous more keeping in mind the end goal to have in the best and most......

Words: 4272 - Pages: 18

Free Essay

Airasia

...Abstrak. Introduction – Air Asia Berhad Pengenalan - Air Asia Berhad Air Asia is a Malaysia Low Cost Carrier Airline Company which was founded in 2001 by Tony Fernandes. Air Asia adalah Kos Carrier Rendah Malaysia Airline Syarikat yang diasaskan pada tahun 2001 oleh Tony Fernandes. It was the first successful and is one of the largest low cost airlines in Southeast Asia. Ia adalah yang pertama berjaya dan merupakan salah satu daripada kos terbesar syarikat penerbangan rendah di Asia Tenggara. Also, it has become Malaysia first international low cost carrier. Selain itu, ia telah menjadi Malaysia antarabangsa pertama penerbangan tambang rendah. Air Asia Company's simple philosophy 'Now Everyone Can Fly' has successfully positioned itself in customers' mind where majority of the customer would choose Air Asia as their choice of transport. Semua falsafah mudah Air Asia Syarikat 'Sekarang Boleh Terbang' telah berjaya meletakkan dirinya dalam minda pelanggan di mana majoriti pelanggan akan memilih Air Asia sebagai pilihan mereka pengangkutan. In add, Air Asia succeed through the company's effective and efficient operational. Di tambah, Air Asia berjaya melalui operasi yang berkesan dan cekap syarikat. The company provides a totally different type of service in line with the nation's goal which is to benefit all people and worldwide travellers. Syarikat menyediakan jenis yang sama sekali berbeza perkhidmatan selaras dengan matlamat negara yang memberi manfaat kepada semua......

Words: 2604 - Pages: 11

Premium Essay

Airasia

...The Indian government allowed a foreign direct investment of 49% in February 2013 and subsequently Air Asia India began operations in India on 12 June 2014 with Bangalore as its primary hub. In 2013, the carrier said it would steer clear of Delhi and Mumbai, and instead focus on growing traffic in smaller cities, such as Bangalore and Chennai. AirAsia cited congestion, competition and the high landing charges in the two biggest Indian airports as reasons to avoid the political and financial capitals. It will fly on relatively uncharted routes. In October, AirAsia hopes to connect Bangalore with the Northeast. Believe in network strategies that don't involve existing heavy-flying traffic or a lot of historical trend. I rather study the latent potential and long-term growth opportunity," says he. He wants to tap the traffic emanating from smaller cities like Srinagar, Indore and Raipur. And it wants to replicate its successful low-cost model, which has fetched it handsome returns in Southeast Asia. This requires Chandilya to keep costs on a tight leash, go for innovative route planning, offer attractive fares to first-time travellers and tap ancillary revenues. The cost-consciousness is reflected in the route plan too. For instance, the company chose to kick off operations in Bangalore, Chennai and Kochi because it already has a presence in these markets through its international flights and, therefore, it did not have to spend much on creating brand awareness. The new routes......

Words: 929 - Pages: 4

Premium Essay

Airasia

...1.0 Introduction Purpose The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis 2.1 Political Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like......

Words: 282 - Pages: 2

Premium Essay

Airasia Opportunity

...The AirAsia Group is a multi-national airline group headquartered in Kuala Lumpur, Malaysia. The group now operates a network of low-cost carrier's including AirAsia, AirAsia X, AirAsia Philippines, Indonesia AirAsia, Thai AirAsia, and AirAsia Japan. Opportunity In recent years, rapid economic growth resulted in a burgeoning middle class within Asia’s large population. For the Indonesia AirAsia, Indonesia has 12 million people who travel by air every year against 3 million passengers who fly everyday in the United State. It would call for at least a 5-6-fold increase in capacity. It points to a huge opportunity for AirAsia. The attractiveness of budget airlines is primarily their low ticket prices, which can be as low as 10-20% of those charged by full-service airlines. AirAsia differentiates its no frills product by offering less features at substantially low fares. However, this strategy will become generic with the entry of low cost carriers waiting in the wings. At that stage, low cost competition will each need to try and “be different”. Limited product differentiation is an opportunity, but must be approached with extreme caution. Anything (like frills) that adds costs and reduces price competitiveness is a bad trade-off. Airasia has the provision of in-flight food and drinks, and online sales of hotel, car, and holiday reservations, as well as travel insurance, and corporate travel services, with its own branded credit card; further increasing brand awareness and......

Words: 1378 - Pages: 6

Premium Essay

Airasia Analysis

...PEST and SWOT analysis of AirAsias international business operations 1.1Background AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our philosophy of ‘Now Everyone Can Fly’, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As AirAsia continuously......

Words: 3109 - Pages: 13

Premium Essay

Airasia Training

...AirAsia Bhd (AirAsia) announced yesterday that it had signed with CAE, a global leader in flight training solutions, a joint venture agreement to set up a world-class aviation training centre that would offer state-of-the-art training for airlines throughout Asia. The signing was witnessed by the Deputy Minister of Higher Education of Malaysia, Datuk Saifuddin Abdullah. The centre, to be aptly named the Asian Aviation Academy, was the initial effort and a part of the joint venture between AirAsia and CAE which formed the company Asian Aviation Centre of Excellence Sdn Bhd. The establishment of the training centre would positively contribute to AirAsia’s vast expansion plans by providing highly skilled and certified personnel required for the airline’s fast growing fleet and operations. The facility would provide AirAsia and other airlines training services for pilots, flight attendants, engineers, ramp handlers, guest services staff and aviation management. Pilot training programs at the centre would be available from July 1, and non-pilot training programs would commence on October 1 this year. The training centre would be located at what is now the AirAsia Academy, a short distance from the Low-Cost Carrier Terminal in Sepang, Selangor in Malaysia. Tan Sri Dr Tony Fernandes, group chief executive officer (CEO) of AirAsia, said, “The Asian Aviation Academy reflects AirAsia’s commitment towards developing the aviation industry in Asia. “The new centre will offer......

Words: 503 - Pages: 3

Premium Essay

Airasia Leadership

...Introduction AirAsia Group, a well-known low-cost airline around the Asia, which ownsby a parent company name “Tune Group”. This company was actually founded by “DRB-Hicom”, which is a company own by Malaysia’s government back in 20th December 1993 and started their operations on 18th November 1996. Unfortunately, the company’s performance not doing very well for few years until it was 2nd December 2001, the day that this airline taken over by Tony Fernandes, the CEO of Air Asia Group. Since then, Tony Fernandes performance was astonishing, he brought the airline back to life, and they even start making profits since year 2002 and launched their airline hubs in that particular year too. They even beat down their competitor which is used to monopoly Malaysia’s carrier service. Due to the extraordinary performance of the airline, they expanded their business in Thailand by placing a subsidiary at there. Now, we may easily found subsidiary airlines of AirAsia Group in India, Indonesia, Philippines, and even Japan. Their headquarters is currently located at Kuala Lumpur International Airport 2, Malaysia. At the year ended of 2014, there are more than 10,000 employees that still working within the organizations. Nature of business of AirAsia Group is simply focusing on providing low-cost airline services. But their values to the customers are, “Safety conscious, Caring, Passionate, Full of integrity, and Hardworking but keeping the Fun within.” Vision of AirAsia Group is to......

Words: 3617 - Pages: 15

Premium Essay

Airasia Strategic

...asia------------------------------------------------- the AirAsia Company strategic management: “ How AirAsia can be a leader in the lowest cost carrier in the airplane industry” August 31, 2009catatanraufmenduniaLeave a commentGo to comments 1.0 Introduction “Without a strategy the organization is like a ship without rudder, going around in circles”. (Joel Ross and Michael Kami) Nowadays, the competition among airplane industries is very tough. According to Daniel Chan (2000), with just about two years to go to the turn millennium, air wars over Asia are hotting up, with some of the world’s biggest airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their competitors. To compete with their competitor in the business environment, a company needs to make a strategy to achieve their long terms objective and can be successful for doing their business. Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management, because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their business. Regarding this issues, the strategic management becomes important due to the following reason such as globalization to survival their business,......

Words: 6436 - Pages: 26