Report on Air Asia

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TABLE OF CONTENTS
1.0 Executive Summary3
2.0 Introduction4
2.1 Air Asia background4
2.2 Vision-Mission of Air Asia5
2.3 Marketing Strategies6
2.4 Product and Services8
3.0 Mega Environment9
3.1 Social/Culture9
3.2 Technology10
4.0 Task Environment12
4.1 Customer/Client12
4.2 Competitor14
5.0 Recommendation16
6.0 Conclusion16
7.0 References17

1.0 Executive Summary

The organization chosen is Air Asia Berhard (From now on it will be known as Air Asia). The parts consist of company background, vision-mission, marketing or strategies products or services, mega elements, task elements and conclusion and recommendation. In introduction, company background of Air Asia has been highlighted. Air Asia was bought by Tony Fernandes for the sum of RM 1 in 2001 (www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AA Corporate 2007b.pdf). In 2002 Air Asia became a remarkable profit making organization and Asia’s first low cost carrier. Air Asia’s vision and mission describes measures taken to entertain their customers and the plans of Air Asia to develop their future. Different marketing strategies have been shown, on the measures Air Asia maintains the low cost strategy with the same level of services as compared to other airlines. Marketing mix shows the strength of Air Asia in the market and their market share as Air Asia is the market leader at KLIA. Air Asia has number of products and services which are internationally grown throughout the years to cater to customer’s needs. Among them are Travel Information, Booking Services, Air Asia Go, Air Asia credit cards, Air Asia Insurance, Air Asia Courier, Air Asia RedTix, Red Megastore and Air Asia café.

Social/Culture and Technology of Air Asia have been discussed under the category of Mega Environment and Customer/Client and Competitors of Air Asia have been discussed under Task Environment. The environments explain how Air Asia has developed the LCC strategy with satisfying and consistent passenger growth.

Recommendation shows how Air Asia can overcome their weakness in future and different ways to improve the airline by providing good quality above the expectation of customers. New opportunities and future strength of Air Asia are discussed in the conclusion, where Air Asia is investing in a new terminal due to high demand of customers.

Charts, graphs, SWOT analysis, pictures of services provided are also shown in the report to develop a thorough understanding about the organization.
2.0 Introduction
2.1 Air Asia background
History
The airline was founded in 1993 by government owned DRB-Hicom and started operations on 18 November 1996. On December 2, 2001, the heavily-indebted airline was purchased by Tony Fernandes's company Tune Air Sdn Bnd for the token sum of RM1. Fernandes proceeded to engineer a remarkable profit, and, in 2002, launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting Malaysia Airlines with promotional fares as low as RM1($0.27). Air Asia has been expanding rapidly to become an award winning and largest low cost carrier in Asia. In 2003, Air Asia opened a second hub at Senai International Airport in Johor Bahru and launched its first international flight to Bangkok. Air Asia has since started a Thai subsidiary, added Singapore itself to the destination list, and commenced flights to Indonesia. Flights to Macau started in June 2004, while flights to Mainland China (Xiamen) and the Philippines (Manila) started in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai Air Asia. On August 2006, Air Asia took over Malaysia Airlines' Rural Air Service routes in Sabah and Sarawak, operating under the Fly Asian Xpress brand. The routes were transferred back to new Malaysia Airlines subsidiary in East Malaysia, from...
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