Comparative Analysis (Airasia - Southwest Airlines)
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AirAsia Company
1. Company Background: AirAsia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia. The story of emergence of AirAsia is similar to Ryanair, since both carriers underwent a remarkable transformation from a money-losing regional operator to a profitable, low cost airline. AirAsia was initially launched in 1996 as a full-service regional airline offering slightly cheaper fares than its main competitor, Malaysia Airlines. Before 2001, AirAsia fail to either sufficiently stimulate the market or attract enough passengers from Malaysia Airlines to establish its own niche market. The turnaround point of AisAsia is in 2001, while it was up to sale and bought by Tony Fernandes. Tony Fernandes then enrolled some of the lending low-cost airline experts to restructure AirAsia’s business model. He invited Connor McCarthy, the former director of group operation of Ryanair, to join the executive team. In late 2001, AirAsia was re-launched in Malaysia as a trendy, no-frills operation with three B737 aircraft as a low-fare, low-cost domestic airline.
2. Industry Background:
2.1. Vision Statement: 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.
2.2. Mission Statements: • To be the best company to work for whereby employees are treated as part of a big family. • Create a globally recognized ASEAN brand. • To attain the lowest cost so that everyone can fly with Air Asia. • Maintain the highest quality product, embracing technology to reduce cost and enhance service levels.
2.3. Strategic objectives: The
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AirAsia Company
1. Company Background: AirAsia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia. The story of emergence of AirAsia is similar to Ryanair, since both carriers underwent a remarkable transformation from a money-losing regional operator to a profitable, low cost airline. AirAsia was initially launched in 1996 as a full-service regional airline offering slightly cheaper fares than its main competitor, Malaysia Airlines. Before 2001, AirAsia fail to either sufficiently stimulate the market or attract enough passengers from Malaysia Airlines to establish its own niche market. The turnaround point of AisAsia is in 2001, while it was up to sale and bought by Tony Fernandes. Tony Fernandes then enrolled some of the lending low-cost airline experts to restructure AirAsia’s business model. He invited Connor McCarthy, the former director of group operation of Ryanair, to join the executive team. In late 2001, AirAsia was re-launched in Malaysia as a trendy, no-frills operation with three B737 aircraft as a low-fare, low-cost domestic airline.
2. Industry Background:
2.1. Vision Statement: 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.
2.2. Mission Statements: • To be the best company to work for whereby employees are treated as part of a big family. • Create a globally recognized ASEAN brand. • To attain the lowest cost so that everyone can fly with Air Asia. • Maintain the highest quality product, embracing technology to reduce cost and enhance service levels.
2.3. Strategic objectives: The