Air Asia

Topics: AirAsia, Airline, Low-cost carrier Pages: 10 (5258 words) Published: November 6, 2014

INTRODUCTION :AirAsia Berhad is a Malaysian low-cost airline headquartered in Kuala Lumpur, Malaysia. It has been named as the world's best low-cost airline, and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to 78 destinations spanning 25 countries. Its main hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai AirAsia, Indonesia AirAsia, Philippines AirAsia,  HYPERLINK "" \o "AirAsia Japan" AirAsia Japan and  HYPERLINK "" \o "AirAsia Zest" AirAsia Zest have hubs in Don Mueang International Airport,  HYPERLINK "" \o "Soekarno–Hatta International Airport" Soekarno–Hatta International Airport, Clark International Airport, Narita International Airport,  HYPERLINK "" \o "Ninoy Aquino International Airport" Ninoy Aquino International Airport andMactan-Cebu International Airport respectively. AirAsia's registered office is in  HYPERLINK "" \o "Petaling Jaya" Petaling Jaya, Selangor while its head office is at Kuala Lumpur International Airport. AirAsia was established in 1993 and began operations on 18 November 1996. It was originally founded by a government-owned conglomerate, DRB-Hicom. On 2 December 2001 the heavily indebted airline was bought by former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes turned the company around, producing a profit in 2002.  AirAsia's CEO Tony Fernandes subsequently unveiled a five-year plan to further enhance its presence in Asia. Under the plan, AirAsia proposes to strengthen and enhance its route network by connecting all the existing cities in the region and expanding further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India. The airline will focus on developing its hubs inBangkok and Jakarta through its sister companies, Thai AirAsia and Indonesia AirAsia. With increase frequency and the addition of new routes, AirAsia expects passenger volume to reach 18 million by the end of 2007. TANGIBILITY SPECTRUM :TangibleDominantIntangibleDominantSoft DrinksDetergentsAutomobilesCosmeticsAdvertisingAgenciesAirli- nesInvestmentManagementConsultingTeachingFast-foodOutletsFast-foodOutlets AirAsia comes under the category marketing mix of “MAJOR SERVICE WITH ACCOMPANYING MINOR GOODS AND SERVICES” where the offering consist of a major service along with additional services or supporting goods. (eg: airline passengers – some tangibles such as food and drinks, ticket stub, magazines, etc) Marketing Mix : Air Asia as a brand concept be similar to or is associated with service stipulation, the 8Ps method adopted for service marketing may be competently espoused for its advertising. The 8Ps are: Product – This refers to the stuff or services to be offered by the company. In the case of Air Asia, their services is about low-priced airline services, thus the need for constant review should be bear in mind in order to meet the changing customer expectations. Place –Air Asia are considering the issue regarding availability of services needed by the target market, i.e., current and prospective clients. As seen, Air Asia are now doing the online booking and online ticketing in which clients can avail the services of Air Asia.  Aside from this, the company was also committed in extending their services all over Asia. Price – In terms of price, Air Asia fees were priced competitively and guaranteed at low price. Promotion – Air Asia's most effective ways to communicate to the various target groups to stimulate greater awareness, interest and patronage are...
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