E-Commerce Strategies for Airasia
AIR ASIA E-COMMERCE STRATEGIES
Low cost per average seat kilometer
AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.
Low distribution cost
AirAsia focus on Internet bookings and ticketless travel allowed it to lower the distribution cost.
Attractive ticket price
With the average fare being 40-60% lower than its full-service competitor, AirAsia has been able to achieve strong market stimulation in the domestic Malaysia air market (Thomas 2003). For instance, the fare for the trip from Kuala Lumpur to Penang on AirAsia starts from 39 ringgit. Comparing to trip by bus charge 40 ringgit and 80 ringgit by car. The effect of attractive low fare is more travelers switching from bus to air, similar case as Ryanair in Europe.
Good Management Team
AirAsia value proposition is more sophisticated than Ryanair placing equal emphasis on brand reputation and customer service/people management, by a senior advisor to AirAsia’s top management team. AirAsia pursue a Ryanair operational strategy, Southwest people strategy and an EsyJet branding stategy.
AirAsia is the best organizations among others s because of their :-
Xpress Boarding
AirAsia practices a free seating policy. This policy has enabled them to consistently achieve a turnaround time of 25 minutes for all of their flights.
They now offer, as an option, the choice of seats through Xpress Boarding. Xpress boarding allows guests to board on aircraft first, and choose a seat of their liking-be it a window seat, asle seat, front of aircraft or next to the lavatory. This service has proven to be exceptionally popular for time hungry
Low cost per average seat kilometer
AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.
Low distribution cost
AirAsia focus on Internet bookings and ticketless travel allowed it to lower the distribution cost.
Attractive ticket price
With the average fare being 40-60% lower than its full-service competitor, AirAsia has been able to achieve strong market stimulation in the domestic Malaysia air market (Thomas 2003). For instance, the fare for the trip from Kuala Lumpur to Penang on AirAsia starts from 39 ringgit. Comparing to trip by bus charge 40 ringgit and 80 ringgit by car. The effect of attractive low fare is more travelers switching from bus to air, similar case as Ryanair in Europe.
Good Management Team
AirAsia value proposition is more sophisticated than Ryanair placing equal emphasis on brand reputation and customer service/people management, by a senior advisor to AirAsia’s top management team. AirAsia pursue a Ryanair operational strategy, Southwest people strategy and an EsyJet branding stategy.
AirAsia is the best organizations among others s because of their :-
Xpress Boarding
AirAsia practices a free seating policy. This policy has enabled them to consistently achieve a turnaround time of 25 minutes for all of their flights.
They now offer, as an option, the choice of seats through Xpress Boarding. Xpress boarding allows guests to board on aircraft first, and choose a seat of their liking-be it a window seat, asle seat, front of aircraft or next to the lavatory. This service has proven to be exceptionally popular for time hungry