...Strengths AirAsia is the low cost leader in Asia. AirAsia has the opportunity to lead all theflight and also having the first move advantage as a first low cost airline in Asia.With the help of AirAsia Academy, AirAsia has successfully created a “low-costairline mentality” among their workforce. The workforce is very flexible and highcommitted and very critical in making AirAsia the lowest cost airline in Asia. Inthis new advertisement, one of our ‘C’ is cheap. This is ‘C’ is represent the cheapword. By enlarging one of this ‘C’, we can attract more customer attraction. Secondly, another ‘C’ is comfortable. On late of the 2010, AirAsia X hascooperation with Japan and has the new name which is call as JETRO. Forexample, while minimizing costs, AirAsia introduce a Premium Flat Bed Seat thatreclines to the full-flat position and also has a power socket, and a screen forprivacy. This is especially suitable for the long-haul guests. Besides that, AirAsiaalso introduce a new design that is ‘fixed-back shell’ seats. This type of seats cangive better personal space management, so that customers are not disturbed whenthe customer in front leas back. This can be done by do not letting the seat reclinebackwards, but it also can achieve the same recline-angle by the seat bottomgliding forward and the seat back moving along too.The company pursues costreductions, but makes no compromise on travels comfort for passengers. Next, the third ‘C’ is clean. The flight of AirAsia is good in condition...
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...The aim of this paper is to discuss how low cost carriers will continue to impact the airline industry in 2012 and beyond. We will look at the history of the budget airline industry and their consumer targets. As well as analyse what marketing strategies they use that have allowed them to grow so much. A low cost carrier is an airline category defined primarily by low fares but also by a focus on reducing operating costs by eliminating complexity and charge for product elements which go beyond the basic product: the flight. The first budget airline company Southwest Airlines was launched in 1971 in Dallas Texas and turned profitable in 1973. According to the e-magazine Airline Business (2012) research, Southwest Airlines is the biggest domestic airline in USA and is the biggest budget airline in the world by revenue. Ryanair is the second largest low cost carrier with its launch in 1990 In the UK followed by EasyJet and Virgin. In 2001 Ryanair and Easyjet started to offer connections between two airports outside their home which was only possible due to a political decision allowing airlines to turn from more governmentally controlled transport providers to private companies on a free market. LCC became popular since the 1990s because of the low-fares and no-frills service. Compared to the full cost carriers (FCC), more people chose to fly with low cost carriers because they can fly domestically and to more countries. Furthermore, LCC tend to have scheduled flights and...
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...station Busaras. A one-way ticket for an adult costs 6 Euros and 10 Euros for both...
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...Pricing strategies of low cost airlines Keith J Mason Air Transport Group Cranfield University K.Mason@Cranfield.ac.uk 1. Introduction Low cost airlines such as EasyJet, and Ryanair have developed quickly in the European market in the last five years. The UK market has seen the most dramatic development where by the summer of 2001, these carriers accounted for over 22% of the short haul capacity from London and were present in 58% of the 128 short haul routes operated from this city (source: OAG, 2001). During a five-year period from 1997, the seat capacity offered from London has risen by 17%, and virtually all of this rise (95.4%) was attributable to the low cost carriers. The low cost carriers have both penetrated and grown these markets, principally by garnering a consumer perception that the fares offered are very low. This perception has been developed in no small part by extensive advertising and effective use of public relations. For example, Ryanair has offered fares as low as one penny (plus taxes), and therefore it is not surprising that there is great media coverage of these carriers, which in turn generates more interest in the services. Both Ryanair and EasyJet have been very effective in using media coverage of their legal wrangles with traditional carriers such as British Airways and Lufthansa to promote their services and low fares. While the media has helped these airlines communicate their message of low fares to the public...
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...Introduction: ‘Picture extracted from http://centreforaviation.com/analysis/the-airasia-japan-joint-venture-stumbles-can-lccs-survive-in-japan-114191’ Company: Air Asia Berhad Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia’s largest low fare, no frills airlines. Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai Air Asia and Indonesia Air Asia fly from Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively. AirAsia operates with the world's lowest unit cost of US$0.023 per available seat kilometres (ASK) and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a crew productivity level that is triple that of Malaysia Airlines, and achieves an average aircraft utilisation rate of 13 hours a day. It is currently the main customer of the Airbus A 320 which has been operational since 2013. The first unit of the plane arrived on 8 December 2005. Air Asia’s Values The emphasis of this assignment is to Identify how Air Asia can attain its vision and reach its identified target customers by the use of S.T.P strategy...
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...The Low Cost Airline: AirAsia A study of opportunities, challenges and critical success factors LGT 3007 Air Transport Logistics [pic] Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States, where it was pioneered in the 1970s by Southwest Airlines, the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel, online ticket sales, no international offices, no frequent flyer points, no free food and beverages, no inflight magazines, no club lounges, use of secondary city airports. Not all low cost airlines have these features, and not all airlines that have some of these features are low cost airlines. For example, Virgin Express is a low cost airline, but it still offers complimentary coffee and inflight magazine, and they are based at Brussels primary airport. Case Study—AirAsia Story of AirAsia Air Asia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia. Their vision is "Now Everyone Can Fly" and their mission is to provide 'Affordable Airfares' without...
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...of the company's strategic direction and focus. Mission Statement Indigo airlines aims to become the number one leader in the low cost airline industry of India, offering the best service and ensuring highest standards of quality at low cost to the customer. Goals and Objectives Non- Financial Indigo airlines aim to attain the utmost rank of customer satisfaction in terms of the service and products offered by the firm. The management ensures that the highest standards of quality are in place at every level to ensure 100% customer satisfaction. Financial The financial goal for the firm is to ensure highest rate of return for the investors and the stakeholders and increasing the profit by following steps. Effective costing of products Cost cutting Increasing the market share by 25% Core Competencies / Competitive Advantage The strengths for indigo airline in the current market situation are the price tag of the tickets and the fact that it has been awarded many times in 2009 as one of the best low cost airlines. The recession was extreme and most of the people who were using services from jet airways and kingfisher came down to low cost airlines (financial express).The market almost doubled for the low cost airlines as in the times of recession companies wanted to cut costs so most of -the official travel (Domestic) was done through low cost airlines. Indigo airlines are a low cost airline and because of that when they earned in...
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... Government regulates Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval of government at the five airports which is Langkawi International Airport, Penang International Airport, Kuching International Airport, Terminal 2, Kota Kinabalu International Airport and the low-cost carrier terminal (LCCT) at KLIA. Air Asia is not happy with the Ministry of Transport and Malaysia Airports (MAHB) decision and trying to ignore as it can increase their cost and some more...
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...Reema Badlani Yogesh Badlani AIR ARABIA Air Arabia operates one aircraft type, the Airbus A320 and it is one of the few low fares airlines that has a young fleet. Air Arabia’s aircraft are all configured with a single cabin and offer customer comfort with the largest seat pitch in the market - that of 32 inches in comparison to 29 and at the most 31 inches offered on most airlines in the region. The A320 is the preferred choice in the single-aisle market, known for its wide seats, aisles and overhead stowage that holds 10% more carry-on baggage, as well as the technological innovation that brings enhanced performance and reliability. Air Arabia ’s A320 also provides passengers the option of in-flight entertainment with a selection of audio and video channels on both short and long haul flights. Spacious, airy and appealing - that is the opinion of the passengers who have regularly voted the A320 family into the top spot for comfort in the single-aisle airliner category. From cabin comfort, technology and efficiency, the A320 class of aircraft are renowned for setting standards. Air Arabia operates one aircraft type, the Airbus A320 and we are one of the few low cost carriers that have brand new aircraft. Air Arabia’s aircraft are all configured with a single cabin and offer customer comfort with a spacious seat. From cabin comfort, technology and efficiency, the A320 aircraft are renowned...
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...Factors influencing customer preferences while choosing between budget airlines Applied Research Project Report On Factors Influencing Consumer Preferences while choosing between Budget Airlines Submitted in partial fulfilment of the requirement of Global Masters in Business Administration(GMBA) Information Technology Specialization Submitted by Zarine Susan George GNOV10IT066 Under the guidance of: Mr. Thanneermalai Lakshmanan 1 Factors influencing customer preferences while choosing between budget airlines DECLARATION I hereby declare that the contents of this report titled “ Factors Influencing customer preferences while choosing between budget airlines” is the result of the study carried out by me. I declare that this is my original work and has not been published anywhere before. This Project Work has been carried out for the sole purpose of submission in partial fulfilment of Global Masters in Business Administration (GMBA) in Information Technology Management at S P Jain Center of Management, Dubai-Singapore. The above is true to the best of my knowledge and information. Name : Zarine Susan George(GNOV10IT066) Signature: GMBA Batch 10, Hyderabad road Singapore 2 Factors influencing customer preferences while choosing between budget airlines Acknowledgement I would like to express my sincere thanks and gratitude to all those who helped make this project a reality. This project has been an extremely enriching experience both in terms...
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...AirAsia BERHAD MARKETING PLAN No. | CONTENTS | PAGE | 1.0 | Executive Summary | 1-2 | 2.0 | Introduction | 3 | | 2.1 Background and History of AirAsia | 3-4 | | 2.2 Vision Statement | 5 | | 2.3 Mission Statement | 5 | | 2.4 Objectives | 5 | 3.0 | Environmental Analysis | 6 | | 3.1 PESTEL Analysis | 6 | | 3.1.1 Political Factors | 7-8 | | 3.1.2 Economic Factors | 8-9 | | 3.1.3 Social Factors | 9-11 | | 3.1.4 Technological Factors | 11 | | 3.1.5 Environmental Factors | 11-12 | | 3.2 PORTER's 5 Forces Model Analysis | 12 | | 3.2.1 Threats of New Entrants | 12-13 | | 3.2.2 Threats of Substitute | 13-14 | | 3.2.3 Bargaining Power of Buyers | 14-15 | | 3.2.4 Bargaining Power of Supplier | 15 | | 3.2.5 Competitive Rivalry | 16 | 4.0 | SWOT Analysis | 17-18 | | 4.1 Strengths | 19-27 | | 4.2 Weaknesses | 28-31 | | 4.3 Opportunities | 31-34 | | 4.4 Threats | 34-36 | 5.0 | Marketing Objectives | 37-46 | 6.0 | Marketing Strategy | 47 | | 6.1 Target Market | 48 | | 6.1.1 Behavioral Factors | 48 | | 6.1.2 Demographic Factors | 49-50 | | 6.1.3 Psychographic Factors | 50-51 | | 6.2 Marketing Mix | 52 | | 6.2.1 Product | 52-54 | | 6.2.2 Price | 54-55 | | 6.2.3 Place | 55-57 | | 6.2.4 Promotion | 57 | | 6.2.5 People | 58 | | 6.2.6 Performance | 58 | ...
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...Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity, passion and a commitment to excellence...
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...business philosophy is also help to avoid the any commercial mean that is harm to the organization and not so easy to let others company outside follow the pace of progress of AirAsia. AirAsia, as a company that no need any other introduction in ASEAN, where connecting people and places across 132 routes, 40 of which are offered by no other airline. AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. From an airline with two aircraft plying six routes in Malaysia in January 2002, AirAsia has soared in the last nine years to cover 65 destinations in 18 countries. Today, employing more than 8,000 staff and with a market capitalisation of just over RM7.06 billion (as at 31 December 2010), it is the only Truly ASEAN airline, serving the region’s 600 million population from 10 hubs in three countries - Kuala Lumpur, Kuching, Penang and Kota Kinabalu in Malaysia; Bangkok and...
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...Annual Report 2010 Annual Report 2010 welcome on board. AirAsiA BerhAd AnnuAl report 2010 A Promise mAde, A Pledge KePt When AirAsiA stArted out As A loW-cost Airline in 2002, We pledged to mAke Air trAvel AffordAble for everybody. todAy, nine yeArs doWn our corporAte journey, We knoW We hAve kept to our initiAl promise. in october 2010, we flew our 100 millionth guest, a young, newly married indonesian housewife who was going to visit her husband working in india. Just as we made her travel dream come true, we are delighted to have done the same for more than 100 million guests. We have kept our fares down thanks to our disciplined focus on keeping our operating costs the lowest among the world’s airlines. We offer a million free tickets every year. While enabling everyone to fly, we are also connecting people to places that were never connected by air before. We have achieved our Vision of being the largest low-cost airline in Asia, serving those who previously had no access nor the means to enjoy air travel. We have done this by staying close to our Mission of: • • • being the best company to work for, treating each Allstar as a member of our extended AirAsia family creating a globally recognised ASEAN brand maintaining the highest quality product, embracing technology to reduce costs and enhance service levels Central to our promise is our great team of Allstars who have proven time and again that hard work, creativity, passion and a commitment to excellence...
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...Ahmad Mark Neal This case details the rise and expansion of AirAsia in South-east Asia. The company employed a business model for low-cost airlines that was originally developed by Southwest Airlines in the United States and subsequently employed with great success by European companies such as Ryanair and EasyJet. The case thus documents the successful application of a western business model in a previously unexploited Asian environment, and raises issues about knowledge transfer, and the sustainability of such a model in the face of increasing competition and market turbulence. In this way, this case raises issues of innovation, adaptation, strategy and sustainability within the Asian context. Keywords: Low-cost airlines, Budget airlines, Business model, Knowledge transfer, Innovation, Asian entrepreneurship ‘Now everyone can fly’—AirAsia had been drumming South-east Asians to take to the skies by making air travel affordable to the masses. In October 2004, AirAsia successfully attracted over USD 200 million in fresh capital through an Initial Public Offer (IPO) of its shares.1 In December 2004, it announced its decision to purchase up to eighty Airbus A320s (Defence-aerospace 2005). Arguably, AirAsia not only enabled many ordinary people to travel by air, but also stirred up competition and encouraged the formation of several low-cost airlines in South-east Asia (SEA). The financial market recognized its impressive financial performance, and Morgan Stanley Capital International...
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