Air Asia was taken over by Tony Fernandes when the global economic crisis happened in 2001. It was restructured into the first no-frills and low cost carrier (LCC) in Asia. It is now the award winning with the largest operation low fare in Asia. The approach is to be easy to book, pay and fly and most of the seats are sold through online, this is in line with its motto ‘Now Everyone Can Fly’. Not only in Malaysia, Air Asia expanding the business to neighboring countries such as Indonesia and Thailand years later.
Air Asia is using the same aircraft in order to keep the cost low especially on maintenance.
Air Asia is innovative and aiming to be the largest low cost airline and it is proven in 2007 that Air Asia is the first airline in Malaysia to offer internet check in. Air Asia is committed to serve passengers comfortably by offering luxury experience with low cost.
With time, Air Asia launched Air Asia X which offers long haul flights and evolved to become integrated service provider who offers travel insurance, hotel, car rentals and other travelling products.
Air Asia is offering competitive advantages comparing to its competitor in airline industry; unfortunately, the competition appears when the other airlines are offering low fare even though the segmentation markets are difference. The marketing strategy is aggressive by doing advertising, events and other promotional products. 2. Case Analysis
a. Define the Problem :
The competition is one of the major challenges that Air Asia is facing. Other airlines (in this case Malaysia Airlines) are lowering the price even though targeted market is different. With the increase of fuel price and higher labor cost, Air Asia has to keep the ambition of being low cost but high quality and innovative airlines. One of Air Asia mission is to be globally recognized as ASEAN brand.
b. Outside concept that can be applied :
Air Asia position themselves as