Service Operational Management of Air Asia

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Air Asia

Background

AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. (Wong. P.M, 2009) (http://www.skcs.hk/AirAsia.pdf )

Major Challenges
* Increasing competition because of increasing number of low cost airline competitors, and aggressive competition against the large or traditional airline companies * Customer decrease because of poor economy

* Rising of the fuel prices
* Higher labor cost
* Inadequate infrastructure
* Route and flight utilization
* Safety and security issues of aircraft crash or being attacked (et all)

Competitive Advantages: Graph

Image: AirAsia competitive Advantage- low cost (et all)

Competitors

According to the business times news stated that, on the sudden drop of AirAsia's share price upon the announcement of the new low-cost airline, Malindo Airways. Thus Malindo is one the topper competitor of AirAsia Airline. (Air Aisa’s barrier…away, 2012) (http://www.btimes.com.my/Current_News/BTIMES/articles/20120914211153/Article/index_html ) Another top competitors would be Malaysia Airline, Vietname Airline, Jet star. (Horton. W, 2012)...
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