AIR ASIA AIRLINES COMPANY COMPANY BACKGROUND AirAsia was established by a Malaysian conglomerate in 1993 and commenced operations in 1996. In 2001‚ due to the airline heavily in debt‚ AirAsia was bought by Tony Fernandes of Tune Air Sdn. Bhd from DRB-Hicom. Tony took up the RM40million debt as part of the purchase. In 2002‚ AirAsia generates a profit and launching new routes from its hub in Kuala Lumpur. In 2003‚ the airline opened a second hub at Senai International Airport‚ Johor Bahru and launched
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AirAsia: “Now Everyone Can Fly” I. Introduction AirAsia is a Low-fare airline company owned by Anthony Fernandes. The company had its beginnings since 2001 and has been growing rapidly ever since. Within two years‚ AirAsia has proven that low-fare airline models such as Southwest’s‚ Ryanair’s‚ and easyJet’s model would fare well in the Asian marketplace. Its success has even spawned numerous imitators and competitors. But the question still remains‚ can the low-fare model continue to succeed
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Part 2 1.0 Introduction AirAsia‚ a famous low cost airline in Asia‚ as Malaysia second National Airline‚ provides a different type of service to benefit all citizens and worldwide travelers. Low cost airlines generally have several differentiate to the traditional carriers. For example‚ low cost airline implement ticketless travel‚ online ticket‚ no free food and beverages and etc. AirAsia provides low airfares flight to the travelers‚ offering 40%-60% lower than other airline. This low airfares
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SUCCESS STORY OF AIRASIA The business world is a tough one. Unless one is lucky enough to establish itself in the market that has very few competitors‚ every business usually have a very rough time. And in today’s scenario‚ where there is high level of competition not only on the local‚ regional‚ and national front‚ but also from global enterprises‚ the business world has become a place where it is difficult to even get by. The airline industry too is one of the toughest and most challenging
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Man‚ 2005) Welcome to AirAsia! AirAsia Berhad (AirAsia) is a one of the public listed on the Main Market of Bursa Malaysia in November 2004.
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budget no-frills airline. However‚ his application for a license from the Malaysian government was rejected. [edit] Launching AirAsia It was through Datuk Pahamin A. Rejab‚ the former secretary-general of the Malaysian Domestic Trade and Consumer Affairs Ministry that Fernandes got to meet up with the then Prime Minister‚ Tun Dr. Mahathir Mohamad in October 2001. AirAsia‚ the heavily-indebted subsidiary of the Malaysian government-owned conglomerate‚ DRB-Hicom‚ was losing money speedily. Instead
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its hub in Kuala Lumpur International Airport at breakneck speed‚ undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US $0.27). In 2003‚ AirAsia opened a second hub at Senai Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary‚ added Singapore itself to the destination list‚ and commenced flights to Indonesia. Flights to Macau started in June 2004‚ while flights to Mainland
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Analysis Strengths The achievement that AirAsia received in 2012 is the world’s best low cost airline (AirAsia Berhad‚ 2013). The strength of AirAsia is that‚ they are leading low cost airline in today’s world and have good company strategic management with a successful story in the airplane industry. Their operational strategy that they have formulated at the beginning is consistent with their company’s objectives and was well conducted. Due to this‚ AirAsia able to create strong brand equity and
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Blue Ocean of Airasia: introduction Blue oceans might provide profitable high-growth for companies with new competitive advantages. Many companies over the worldhi have created blue oceans but these blue oceans only remain in a short periods and quickly become red oceans. Kim and Maugne claimed in their book that in order to have sustainable competition advantages‚ blue oceans should be different attached by low cost. However‚ the fact shows that innovations are expensive so it is difficult to
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Introduction of AirAsia In Malaysia‚ there are 3 main airlines which are Malaysian Airline (MAS)‚ AirAsia‚ and Firefly. AirAsia Berhad is starting its operation in November 2004‚ which is listed on the main board of Bursa Malaysia. It start developing a low cost airline model (LCC) in Asia since 2001‚ it has grown from a domestic flight in Malaysia for more than 55 destinations served for 5 leading airline hub in Malaysia which are Thai AirAsia‚ Indonesia AirAsia‚ Philippines AirAsia and Japan AirAsia. AirAsia
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