Topics: Airline, AirAsia, Low-cost carrier Pages: 6 (1735 words) Published: October 21, 2013

Companies Profile:
Air Asia:
Was established in 1993, with a goal of making flying possible for everyone. Since 2001 AirAsia has risen to become the world’s best LCC, with a very large route network. AirAsia continues to pave the way for low cost flights through its innovative business selections. Vision:

To be the largest low cost airline in Asia.
1- To be the best company to work for where employees are treated as a part of a big family. 2- Create a globally recognized brand.
3- Achieve the lowest cost so that everyone can fly with AirAsia. Values:
1- Safety.
2- High Aircraft Utilization.
3- Low fare-No Frills.
4- Streamline operations.
5- Point to point network.
6- Offering a wide range of distribution channels to make booking and traveling easier. About the CEO:
Tan Sri Anthony Francis Fernandes, Malaysia’s entrepreneur and the founder of Tune Air Sdn.Bhd, famous with his great reputation of team management and dealing with employees and coworkers, rose when he amazingly converted AirAsia from a failing government linked commercial airline, into a highly affordable airline public company. As well as, he convinced Malaysian Prime Minister, Tun Dr.Mahathir Mohamad in mid-2003, to open skies agreements with neighbouring Thailand,Indonesia and Singapore.
Where Do We Fly?

Today AirAsia is boasting a large fleet of aircrafts flying to over 61 domestic and international destinations. It flies 108 routes and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. AirAsia is known as ‘’Ryanair’’ of the Far East because it focuses on providing convenient and affordable air travel for the mass middle-class market.
1- The Environmental factors that have contributed to the early success of AirAsia:

A) Micro Environmental actors:
The first micro environmental actor that have contributed is the competition, where the firm gained a strategic advantage by positioning their offerings against competitors’s offerings. For example; AirAsia offered savings up to 60% compared to MAS prices. Adding to the threat of new competitors is moderate due to high capital requirements. Another micro environmental actor is their marketing intermediaries, especially the company’s tag line ‘’Now everyone can Fly’ made a lot of promotion, as well as the brand name. One of the company’s micro environmental strength that have contributed is its strong management team. AirAsia was supplied with only 2 Boeing 737s serving the domestic market. Based on studies the demand on LCC is increasing and this is helping in the rise of AirAsia, and making it a low cost leader In Asia.

B) Macro Environmental forces:
The macro environmental forces that helped in the rise of AirAsia includes trends in, first, the technological environment, which is the most dramatic force in changing the market place, here the increased media coverage on LCC, helped consumers understand the no-frills concept, even so the internet also provided AirAsia the opportunity to reach more customers through online booking, whereas on the other hand it consumed a lot, since it is a high operational cost, affecting the economic environment. The economic environment that consists of factors that affect consumer purchasing power also gave a hand, especially when here was a rise in incomes. The cultural environment, took part when people started accepting the idea of traveling to nearby countries, and this signifies to secondary beliefs and values. As well as the demographic environment contributed, due to Asia’s geographical structure, has made air travelling viable, efficient, and a convenient mode of transportation....
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