Company Analysis: AirAsia

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Company Analysis: AirAsia
AirAsia is one of the best low-cost airlines in the world. It sets twelve hubs in Malaysia, Thailand, and Indonesia. (AirAsia,??)The company employs more than 8,000 staff. The company still has ordered 475 aircrafts and 114 had been already delivered. (The Business Times Singapore, 2013) By the 2013, it owns 117 aircrafts and 87 per cent of them are in a balance which is the highest rate among all the airlines in Asia. (The Business Times Singapore, 2013) AirAsia now flies 132 routes which cover 65 destinations in 18 countries and over a decade operation it has serviced over 180 million passengers. (Malaysian Government News, 2013) Although AirAsia is so successful, its competitors such as Air Deccan, Cebu Pacific, and Tiger Airways are not far behind. (Coursebook)

In 2001, a young Malaysian government-linked airline, AirAsia, was bought by Tony Fernandes and his three partners. (Coursebook) As its powerful competitor, Malaysia Airline System, had already dominated the domestic high-end market, the company decided to focus on the domestic low-cost market. (Coursebook) To achieve its low-cost target, the company applied the budget, no-frills airline policy and this was the first time for Asia airlines. (Coursebook) In 2003, the Malaysia government signed an open-skies agreement with its neighbour countries and AirAsia got the landing rights in Indonesia, India, Thailand, and Singapore. (Coursebook) In 2007, a new brand AirAsia X was born and it was the first time AirAsia went into the long-haul budget carrier market; only two years later, the company’s revenue was tripled to $290m. (Gatsiounis et. all, 2009)

Like what it shown in its slogan ’Now everyone can fly’, AirAsia keen on offering its customers affordable ticket price and high standard service; Fernandes, (cited by Air Transport World, 2012) who is the founder of AirAsia, points out that these two characteristics make the company so successful. Especially during the...