Airasia : the Sky's the Limit

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Topic: COMPANY CASE STUDY (AirAsia: The Sky’s the Limit)


1. Answer the questions as per attached.

2. Mode: Individual

3. The format of the assignment shall be in accordance with the following description: Font:Arial
Size: 11

4. Assignment shall be at least 10 pages.

5. The cover page shall be in RED colour and the template is as per attached.

6.Ideas or texts taken from articles, books or websites shall be acknowledged by inserting footnotes.

7.Date of Submission: 18 JANUARY 2013

*If you have any difficulties in submitting the assignment according to the date given, you may come and discuss with me.

Company Case (Chapter 2; Page 118/119)
AirAsia: The Sky’s the Limit

AirAsia was the first airline in Asia to introduce the budget no-frills concept to the region. They provide an alternative for price-sensitive customers. Launching in the aftermath of terrorist attacks in 2001, the airline found that the fact that customers were unwilling to undertake long-haul flights meant there was increased demand for shorter-haul journeys. Increased Internet access also served to increase sales. A key success factor has also been collaboration with partners. Rising fuel prices and other costs have threatened to undermine the low-cost model used by the airline, but the use of fuel hedging and fuel surcharges have been used to combat this threat. Alliances are also important and AirAsia has been working closely with Jet Star since 2010.

a) What are the micro and macro environmental factors that have contributed to the early success of AirAsia? b) Discuss the micro and macro factors that would affect AirAsia’s performance in the current competitive environment described in the case? c) By focusing on low prices, has AirAsia pursued the best strategy? Why or why not? d) Given AirAsia’s...
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