As you all know, MAS and AirAsia now are fighting over who has the best and cheapest campaign. Everyday we can see on newspaper MAS offering flying to various locations at RM0. The next days AirAsia shoot back with other location with free seats or 99 cents fares.
AirAsia flight offers out with a special promotion Now Everyone Can Fly n 2010. AirAsia also offer flight and tour packages.. The price of flight fares between MAS and AirAsia, AirAsia is cheaper than MAS.
AirAsia wants to be the lowest short-haul airline in every market it goes in. To achieve the goal, it has some strategies such as lean cost structure, different ways of promotion, keeping safety, satisfying customers and developing human resources. AirAsia always tries to keep the operations simple and efficient to keep costs low. According to Fu Sen, an ex employee of Awair- the airline company bought by AirAsia , the tickets that have been booked online can printed by the customers or the customers can just remember the booking code and show their identity card for checking-in, so Air Asia can also save some amount of money that it should spend on thick ticket material. AirAsia also providing food, snacks and beverages on the plane, so customer can just buy what they want. By implementing this strategy, AirAsia can gain more profit from the sales of the food and beverages because it sells the products higher prices than supermarket or restaurant. Also according from Fu Sen, AirAsia also tries to keep the costs low by recruiting only members of workers needed and selecting only capable and hardworking workers, so each worker will have works to do and the company does not have to pay those workers who are not efficiently.
One of suggested strategies for AirAsia is to create image of safe and cheap airlines. AirAsia has to emphasize cheap price and safety in its marketing campaign, because nowadays what people find is mostly cheap but unsafe flights. So, by proving and maintaining the...
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