Section 1: Company Background
In the past, domestic air routes were limited to only few players; such as Thai Airways, Bangkok Airways, Air Andaman, and Phuket Air. Prime Minister Thaksin Shinawat announced the opening of Thai air routes in 2002 and this has induced a lot of airlines to enter the market, especially low cost airlines, which have already been widely and well accepted in scores of countries. In Southeast Asia, at that time, Air Asia Malaysia was considered as one of the most well known budget airlines and operating in many Asian countries. After long-going negotiating process with local companies, on November 12, 2003, Air Asia Malaysia agreed to enter the partnership with Shin Corporation Public Ltd., in forming Thai Air Asia Limited. Using the catchy and effective slogan of "Now everyone can fly", Thai Air Asia has completely changed the new ground of airline industry. People no longer look at flying as an expensive choice of transportation, rather one of the economically justified ways of traveling to domestic and international destinations.
Air Asia has considerate advantages over other airlines in many ways. Firstly, its experience of being in this industry for long time contributes to the already established service standard, operational expertise, infrastructure readiness, as well as bargaining power with suppliers. According to the survey done by www.lowcostairline.org, the travelers ranked Air Asia as number 8 of their most favorite low cost airlines. Secondly, Shin Corp, local partner, is very powerful business entity as it has highly diversified portfolio and many strategic business units in media industry. This gives Air Asia the competitive edge in terms of creating awareness of the brand and budget airline industry as a whole. There was a big buzz when Air Asia offered incredibly low airfare in the first 3 months. Moreover, because both giants, Air Asia Malaysia and Shin Corp, have great financial
Bibliography: Newspapers  "Phuket Air opened the new destination: Hud Yai-Phuket-Ranong" in Manager newspaper, January 19, 2004 [Available online].  "Nok Air cut price!" in Matichon newspaper, June 19, 2004 [Available online].