Proposal

To:   Yvonne Lee
Date: 18 January 2011
Subject: Research proposal
Proposed Research Topic: AirAsia to expand its Direct Operation Services to China.  
Introduction: Founded in 1996, AirAsia Berhad is a Malaysia-based low-cost airline; operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. AirAsia has 4 direct operation service, managed by – AirAsia Malaysia (AK), AirAsiaX (D7), AirAsia Thailand (FD), AirAsia Indonesia(QZ). (Airasia.com, 2011, Internet) . China is still an open field for low-cost airlines. Spring Airlines, a private Chinese start-up carrier based in Shanghai, is the only budget airline in the country and only operates domestic flights. (China Daily, 2009, Internet)

Purposes:   To justify why AirAsia should established a direct operation service at China; rather than managing all its operation at China from Malaysia through AirAsia Malaysia(AK) and AirAsiaX(D7).

Justification of Research:   It is time for AirAsia to directly exploit the potentials of affordable air travel at China. AirAsia flies to 7 China cities; namely Chengdu  (D7), Guangzhou (AK), Guilin (AK), Haikou (AK), Hangzhou  (D7), Shenzhen (AK) and Tianjin  (D7). All current flights to China are handled by AirAsia Malaysia (AK) and AirAsiaX (D7).   (Airasia.com, 2011, Internet) They’re anticipated to have greater potential in China as there are many local cities with a high population each as well as a rising middle class population. Having a direct operation at China will enable AirAsia to effectively exploit the potentials of affordable air travel at China beside help in cost saving of doing an outside management. Besides, the growth of China middle class, the liberalization of aviation sector of China is another reason for AirAsia to have its own direct operation in China. (China Daily, 2009, Internet)

Scope and Conclusion :   In conclusion, we will engage in analysing the geographic location and how... [continues]

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