PEST and SWOT analysis of AirAsias international business operations 1.1Background AirAsia was set up by Dato’ Tony Fernandes in 2001. In December 2001‚ Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air)‚ an airline holding company then bought over AirAsia. Now‚ AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The leading low fare airline in the Asia - AirAsia has been expanding rapidly since
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STRENGTHS WEAKNESSES Article taken from WSJ dated Wednesday May 02‚ 2012 “AirAsia Flies Better Without Flag Carrier” • largest budget carrier (Economy of scale) • Very strong management team • Very good in strategy formulation and execution (Economy of scale) • Strong brand equity - AirAsia’s brand name is well established in Asia Pacific (Learning Curve) • Cost advantage (Economy of scale) • Market share leadership- AirAsia is the low cost leader in Asia (Economy of scale) • International alliances
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Why Collabration Take Place Between Mas and Airasia MALAYSIA AIRLINES SYSTEM AND AIRASIA AIRLINES COLLABORATION TAKES PLACE. TABLE OF CONTENTS QUESTIONS 1:- Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries‚ specifically in airline business are attempting to improve their services to draw new passengers and travellers
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Talent Solutions Case Study AirAsia Business Challenge Company Profile AirAsia‚ the leading and largest low-cost carrier in Asia‚ services an extensive network of 85 destinations. Within 10 years of operations‚ it has carried over 152 million guests and grown its fleet from just two aircraft to 106. The airline today is proud to be a truly ASEAN (Association of Southeast Asian Nations) airline with established operations based in Malaysia‚ Indonesia‚ Thailand‚ Philippines and
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PRINCIPLES OF MARKETING DMK0013 ASSIGNMENT 1 Topic: COMPANY CASE STUDY (AirAsia: The Sky’s the Limit) INSTRUCTION: 1. Answer the questions as per attached. 2. Mode: Individual 3. The format of the assignment shall be in accordance with the following description: Font : Arial Size : 11 Spacing : 1.5 Text : Justified 4. Assignment shall be at least 10 pages. 5. The cover page shall be in RED colour and the template is as per attached. 6. Ideas or texts
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Company Background and analysis of AirAsia This report conducts an analysis of AirAsia‚ the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom‚ a government owned- conglomerate. On 2 December 2001‚ the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest
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Group Members: |Issuer | |ANBALAGAN A/L SUBRAMANIAM |Local Fund Investors | |TEH GUAN HONG |GOPALAN NAGAPA | |TANG KIN HENG |FALIQ RIZAL BIN MADZRI | |MOHD NIZAM BIN MOHD ARSHAD
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Value Chain Analysis of AirAsia The value chain analysis is used to evaluate the value of each particular functional activity that is added to the organisation’s products or services as seen in Diagram 1 [pic] a) Logistics This involves all areas of receiving‚ storing of inputs when producing outputs. So far‚ AirAsia only operates on a single type of aircraft‚ the Boeing 737-300. Based on a report published by Aero Connections in 2004‚ that particular model was the best selling commercial
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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
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AirAsia was initially launched in 1996 as a full-service regional airline offering slightly cheaper fares than its main competitors. Unable to stimulate the market or attract enough passengers‚ the company was beset with major financial troubles. In 2001‚ Tony Fernandes reinvented the airline to model Southwestern’s no-frills/low cost design and with only three B737 aircrafts was able to quickly create one of the most profitable airlines in the world. Economies of Scale – Economies of scale exist
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