Air Asia - Essay

Topics: Low-cost carrier, Airline, Southwest Airlines Pages: 3 (806 words) Published: November 23, 2011
Background
AirAsia is a Malaysian-based airline company. It is the largest low-fare, no-frills airline and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. It targets on low to medium income level of customers with low-cost strategy thus it becomes the low cost leader in Asia. Its company slogan is “Now Everyone Can Fly”. AirAsia was established in 1993 and commenced operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. It has several subsidiaries: Thai AirAsia, Indonesia AirAsia, VietJet AirAsia, AirAsia Philippines, AirAsia Japan and an associate company Air Asia X.

SWOT analysis
Strengths
• Air Asia has a very strong management team with strong links with governments and airline industry leaders. This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials. For example, Shin Corp (formerly owned by the family of former Thai Prime Minister - Thaksin Shinawatra) holds a 50% stake in Thai AirAsia. This has helped AirAsia to open up and capture a sizeable market in Thailand. With their strong working relationship with Airbus, they managed to get big discount for aircraft purchase which is also more fuel efficient compared to Boeing 737 planes which is being used by many other airlines

• AirAsia’s brand name is well established in Asia Pacific. Besides the normal print media advertising & promotions, AirAsia’s top management also capitalised on promotions through news by being very “media friendly” and freely sharing the latest information on Air Asia as well as the airline industry. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals (medical tourism), Citibank (AirAsia Citibank card) has created a very unique image among travellers. Alliance with Galileo...
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