Marketing Case Study: Airasia

5.1.1 Low Operating Cost As we all know, AirAsia Berhad (AirAsia) is famous of its low-cost airfare. AirAsia is controlling excellently for parts of operation and distribution which both helping with keeping costs. Low cost principle that applied by AirAsia by eliminating provision of in-flight services that will definitely reduce the burden of high facility and overhead costs (Zhu, 2015). For instance, no frill or no luxury products will be installed inside the aircraft which means no free food and beverage and entertainment will be provided for the passengers. AirAsia has also practices simple boarding process with online reservation or online buying ticket to cut down the cost (Berhad, 2015). Thus, it won the “World’s Best Low Cost Carrier” award from Skytrax for 7 years in 2007, 2009, 2010, 2011, 2012, 2013, 2014 and 2015 (AirAsia, 2015). Obviously, its reputation even reverberates worldwide with its slogan “Now Everyone Can Fly” that attains the dreaming of everyone to travel around any corner of the word. By this strategy, AirAsia should able to set up business in Taiwan as its low cost budget airlines could benefit Taiwan passengers to save money for travelling.
5.1.2 Simple Product
AirAsia would only provide single-class seating instead of segregation of the passengers according to first-class, premium class, business class and economic class. There also has a simple design on the AirAsia’s aircraft. Mechanics and engineers are in charge to specialize in a single type of the aircraft. People like mechanics and engineers can improve their skills and gain experiences and even save a lot of time through this specialization. In the meantime, it can help the company to save the cost rather than for its employees to attend the training to improve the design and quality of the aircraft if they want to have some modification and innovation on the aircraft. (Shah,