The Strategy of Airasia - Essay

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The Strategy of AirAsia
I believe almost every Asian traveler heard about Air Asia, not because of it's service or quality, but it's lowest fare airline. Well, most of the time cheap doesn't mean good or quality, there is risk we have to bear. In this case, we talk about depart on time.

Just last month alone, I've been traveled with Air Asia for 4 times, with 2 times delayed of more than 1.5 hours. The delay rate was 50%! You can imagine how bad it is. They just don't want to make the delay more than 2 hours in order to compensate me some money. Well, this is the risk we all familiar with Air Asia, but we pay a lot lesser. Fine. I'm not talking about this common issue today, as I've a post comment about their services before. I just want to express my unfortunate on last month.

Complaint is no longer a fresh news for Air Asia
When we talk about Air Asia, we talk about low fares. In order for Air Asia to continue to offer us low air fares, it must keeps its cost as low as possible while making profit. Okay, from what I observed, below's are how they keep their costs "low".

1) Higher volume
When they offer low fares to the consumers, especially when everyone, including business people and family are trying to save money due to economy situation, their businesses will getting better and better. And this can also be advantage to the occupancy rates of the flight, with the same destination.

2) Early Bird Promotion
You must have noticed how often Air Asia promotes their lowest fares ticket from time to time. Even though it's really cheap, but when there is a volume, they can collect your money first and make use of it for other investment or pay debts for greater return. Great.

RM9.99 & pretty stewardess are no longer a fresh advertisement from Air Asia. 3) Build low cost terminal
They build low cost terminal nearby those busy terminal for their advantages. Not only they can save the sum of airport tax, they can dominate the shoplots rental in...
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