Air Asia Case Study

Air Asia is a carrier which was built up in 1993 and began its operations on November eighteenth, 1996. On 2nd December 2001, the vigorously obligated carrier was obtained by Tony Fernandes, proprietor of Tune Air Sdn Bhd for the token whole of RM1 (Jusmpstart Malaysia, 2011). As a feature of the buy, Tony likewise took up the RM40million obligation. In any case, under the initiative of Tony Fernandes, today, Air Asia is a world renowned ease carrier that works broad systems both locally and globally. Air Asia is set to take minimal effort travelling to an all new high through their rationality of 'Now Everyone Can Fly' (Fernandes, 2004). Their vision is to be the biggest ease aircraft in Asia and serve the 3 billion individuals who are right
The organisational culture in Air Asia is demonstrated through Tony Fernandes' own identity. The organisational members of Air Asia are treated with care, and prides themselves on building a solid people oriented corporate society, whereby employees are encouraged and motivated to seek after their passion in their job (UKEssays.com, 2015). For instance, Tony Fernandes has build a culture in the organization that has no chain of importance, a family like environment whereby anybody can stroll up to him, and address him about anything such as work recommendation or a football match that happened yesterday (Govindasamy, 2009). There is no limits or obstruction between the CEO and his staff from all level. In the workplace, he has this idea whereby all the staff whether it is showcasing, fund, building, lodge team or pilot will have the same workplace cooperating in one office, to him this helps the association impart all the more effortlessly (Fernandes,
Taking a gander at the financial conditions, rapid economic growth, and urbanization in countries like China, India, Japan and South East Asia are expanding popular for low cost air travel (Brandon, 2014). An economic upswing would ultimately imply in high living standards of individuals and drives the demand for low cost air carriers like Air Asia (Brandon, 2014). Besides that, despite firm rivalry from Malaysian Aircraft (MAS), Air Asia's steady low cost carrier offering low-priced tickets and few in-flight aid are picking up fascination in the area (Anton, 2011). For example, Air Asia X is a wing of the organisation, Air Asia, which has grown tremendously 12%, revenue passenger kilometres (RPK) increased by 17% and load factor was maintained at 75% over the years with a strong financial statement and has appreciated a time of monetary solidness in Asia (TheBorneoPost.com, 2011).This showed an increase in earnings for the firm. Therefore, the capacity of Air Asia to develop is contrarily influenced even with the nearness of rivalry. However, with the implementation of the 6% GST by the government, and the implementation of the 6% passenger service charge on domestic and international air tickets reduced the demand for air travel in Malaysia (themalaymailonline.com, 2015). These two value climbs diminished interest for air go as less individuals burn through cash on