Topics: AirAsia, Airline, Low-cost carrier Pages: 22 (4056 words) Published: November 5, 2013

Case Study of Air Asia (Economic Perspective) |
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Case Study of Air Asia (Economic Perspective)
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Introduction of Air

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Air Asia since its foundation in 2001 with the vision to

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make “Everyone can fly” by focusing on the low cost aviation business sector through Air Asia’s own innovative solutions, efficient processes and a passionate approach to business as initially proposed and still

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facilitated now by the company’s original founder and the current CEO of the group, Tony Fernandes, it has

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successfully paved a viable way for its continual development in the aviation business. And now base in its headquarter, Kuala Lumpur, Air Asia has expanded its route network by connecting more than 20 countries and regions with the recently open flights connecting Tokyo and Paris though still the intra Southeast Asia middle to short distance flights still are the core business of the group, below is the route map of Air Asia flights originated from Kuala Lumpur, Malaysia.

Figure 1 Route map started from Kuala Lumpur
Source: 2011


Milestones achieved by Air Asia

Air Asia started to build its renowned brand as a quality low cost airline from the construction of its brand equity in the domestic market, for example in the single year of 2003 it had win the title of “Developing Airline of the Year 2003”, “CEO of the Year (Tony Fernandes)”, “the most popular website for online shopping in the 11th Malaysia” and so on; and since the next year, 2004, Air Asia had shown the fast growth trend and the potential to take the leadership in the Malaysian aviation industry and it win the “Market Leadership Award, 2005 Airline”, “Asia Pacific Low Cost Airline of the Year 2004” and other honors. And in the years of 2007, 2009, 2010, Air Asia were all awarded the “World’s Best Low Cost Airline” (Smith & Milligan 2011, p.53) and at the same period Air Asia had become the one of the most fast growing listed company and exhibited the power to be one of the best and most popular airlines in both the domestic and the international aviation industry. In October 2010, eight and a half years after the humble start of its business operations with just two aircraft and 200 staff, Air Asia had achieved the milestone of having carried more than 100 million passengers to become the continent’s largest low-cost carrier (LCC) in terms of passenger numbers ( 2010).


Organizational structure



Case Study of Air Asia (Economic Perspective) |

Organizational structure is the formal apparatus through which organizations accomplish two core activities: the division of labor and the coordination of work (Mintzberg 1979, p.2). And for the group of Air Asia, it has a number of functioning subsidiaries and partners in the group hierarchy with a joint effort to perform the tasks in the large business. The following figure shows the corporate structure and principal operating companies for Air Asia. And regarding the core business, Air Asia has three major strategic partners with which long term coorporation relationship have been built: Air Asia X (Focusing...
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