...Introduction of Air Asia AirAsia is Asia’s largest no-frill and hassle-free airline which based on the low cost carrier (LCC) concept in Malaysia. Dato’ Sri Dr. Tony Fernandes introduced this low cost concept with his believe of “Now Everyone Can Fly”. In year of 1993, AirAsia was established and started its operations on 18 November 1996. Mr. Tony Fernandes’s company Tune Air Sdn Bhd purchased this heavily in debt airline which was originally founded by a government-owned conglomerate DRB-Hicom for the price of RM1 in the year of 2001. Dato’ Sri Dr. Tony Fernandes also took up the RM40 million debts as part of the purchase. Dato’ Sri Dr. Tony Fernandes and his group settled the airline's debts quickly and started to focus on rebranding and relaunching AirAsia as a low-fare carrier. Before this airline company purchased by Mr. Tony Fernandes, there were only 2 aircrafts of Boeing 737-300s flying to 6 routes in Malaysia in January 2002. However, since 2002 AirAsia had been gaining profits and able to launch new routes in a lightning speed to many destinations at a possible promotional low price of US $1 under the leadership of Tony Fernandes. AirAsia was 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 600 million populations from 10 hubs in three countries - Kuala Lumpur, Kuching, Penang and Kota Kinabalu in Malaysia, Bangkok and Phuket in Thailand, and Jakarta...
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...Table of Contents 1. Introduction 1 2.1. Company background 2 2.2. Key strategies 2.3. Business process 2. Main discussion 3.4. AirAsia’s strategic decisions in offering short-haul services 3.5. AirAsia X’s strategic decisions in offering long-haul services 3. Recommendation for future growth of AirAsia 4. Conclusion References 1. Introduction 1.1. Company background In the year 1993, AirAsia was founded by DRB-Hicom which is a government owned conglomerate. The first operation of the company was started on 18 November 1996. Since the year 2001, AirAsia has been expanding its business rapidly and until the present AirAsia group has been recognized as one of the largest low fare airlines in the Southeast Asia. AirAsia offers both domestic and international flights. In addition, everyday with 72 aircrafts the company operates scheduled more than 400 flights and AirAsia has served more than 55 million guests from different nations. Particularly, the company pointed out the low fare business concept, hassle-free or no-frills as the major components of the business (AirAsia, 2016). The vision of AirAsia group is to perform as one of the largest low cost carrier in Asian airlines industry, as well as the company aims to provide its low cost airline services to billions of customers who are served with high fares. Further, the mission of AirAsia is to be recognized as a global brand which offering the lowest...
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...Pest Analysis On Airasia 1.0 Introduction Purpose The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai Is this Essay helpful? Join OPPapers to read more and access more than 350,000 just like it! GET BETTER GRADES AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis 2.1 Political Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers...
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...Why Collabration Take Place Between Mas and Airasia In: Business and Management Why Collabration Take Place Between Mas and Airasia MALAYSIA AIRLINES SYSTEM AND AIRASIA AIRLINES COLLABORATION TAKES PLACE. TABLE OF CONTENTS QUESTIONS 1:- Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal From its inception, it has not been plain sailing for the planned...
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...CONTENT PAGES 1.0 INTRODUCTION…………………………………………………………………2 About the product…………………………………………………….………….2 2.1 Company background…………………………….………………….....7 2.2 Business process and operation…………………..………………….9 2.3 Low cost carrier (lcc) business model……………….………………11 2.4.1 Business model……………………………………………...11 2.4 Competitive Advantages …………………………..…………………..12 2.5 Historical Performance………………………………..……………….13 2.0 ANALYTICAL SWOT ANALYSIS……………………………….……………..18 3.0 PRODUCT ANALYSIS…………………………………………….……………21 4.6 The product Life Cycle (PLC)………………………………....………21 4.0 STRATEGIS AND TACTICS………………………………………..………….24 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 6.7 Market Segmentation………………………………………..………….26 6.8 Target Market Profile……………………………………………………30 6.9 Positioning………………………………………………………….…….32 6.0 MARKETING STRATEGIES AND EVALUATION OF MARKET PROGRAM ELEMENTS………………………………………………………………………..33 Refferences…………………………………………………………………………………………………………….36 1.0 INTRODUCTION AND HISTORY a. Introduction of the product Name of the company: Air Asia Berhad ABOUT THE PRODUCT 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...
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...version essay Pest Analysis On Airasia Pest Analysis On Airasia Print version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!. Join Essays24.com and get instant access to Pest Analysis On Airasia and over 30,000 other Papers and Essays Category: Miscellaneous Autor: anton 12 May 2011 Words: 1354 | Pages: 6 1.0 Introduction Purpose The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more...
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...INB70012 Global Business Strategy Semester 1, 2015 Strategy Analysis of AirAsia Convenor : Dr Aron Perenyi & Lecturer Students : Natalia Knets Emma Dalton Gautham Raju Markus Arian Shakoor (1704583) * Executive Summary * Content page Executive Summary II Content III Figures IV 1 Introduction 1 2 Mission, Vision and Core Values 1 3 External Environment Analysis 2 4 Internal Environment Analysis 4 5 Current Strategy Analysis 7 5.1 Corporate and International Strategy 7 5.2 Business Strategy 9 6 Strategy Fit 9 6.1 Financial Performance Analysis 9 6.2 SWOT Analysis 11 7 Strategy Recommendations 14 References 15 * Figures page Figure 1: Structure of AirAsia 8 Introduction AirAsia is a Malaysian low-cost carrier (LCC) and has been established in 1994 by DRB-Hicom. In 2001 Tony Fernandes took over the company and remains the CEO of the AirAsia Group. Fernandes turned the company from a small airline with two aircrafts operating to one destination with 250 staff (AirAsia 2015a) into the number one LCC operating in Asia. Today it operates on 132 routes, connecting 65 destinations in 18 countries with over 8,000 staff (AirAsia 2015b). The group services almost 12 million passengers per year with 171 aircrafts (AirAsia 2015c). This report provides a comprehensive strategy analysis of Air Asia. First the mission, vision and core values of AirAsia are presented. Next the external environment of the company will...
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...INTRODUCTION Doing businesses has become harder in today’s competitive market structure. Businesses do not face only higher pressure due to increased number of competitors, but also compete in dynamic and complex environments. The competition level that is mostly induced by the digitalization and more findings of more advanced technology has motivated every single business to adjust to the best business strategy. The heavy competition is also taking place in airlines industry. There are increasing number of new carriers with new business model which has changed the competition pattern in the airlines industry. O’Connel and Williams (2005) said that direct competition between full service airlines and no-frills carriers is intensifying across the world. The old business model of most airlines business focused on the full service, while the new business model focuses on using digital technology to make the business becomes more and more efficient, and thus, leading to cost advantage. Facing the digitalization era, by 2007, AirAsia had become one of the most successful budget airlines in the world. Having dominated Southeast Asia and entered China and India, AirAsia was poised to solidify its place as a top budget airline and one of the most consistently profitable globally. AIRASIA X Airasia X subsidiary of Airasia was founded in 2 November 2007 it’s a long-haul, budget airline based in Malaysia. The airline Airasia, is the international operation of the brand Airasia which...
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...TABLE OF CONTENTS QUESTIONS 1:- Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal From its inception, it has not been plain sailing for the planned share swap between two of the country's most bitter airline rivals — Malaysia Airlines (MAS) and AirAsia — given the many issues involved. "The collaboration between MAS, AirAsia and AirAsia X was flawed from day one because it cannot bring in a rival. From the start, the share swap had been marked...
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...Introduction Today’s, AirAsia Berhad has become one of the well-known and popular name among the airlines industry. The AirAsia is a name synonymous with low fares, quality service and dependability. The company has made flying affordable for more than 50 million guests. Now, the airline company is the leading low fare airline in the Asia since it has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. The airline company was established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. In 1996, the company became Malaysia’s second national carrier, and officially commenced operations as a full-service domestic airline with two aircraft. Five years after in December 2001, Tune Air acquired a 99.25% shareholding in the company from Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes and his partners for the token sum of one ringgit. At that time, Fernandes and his partners have set up the company Tune Air Sdn Bhd, an airline holding company then bought over AirAsia. Since it was set up by Tony Fernandes in year 2001, the AirAsia has become the leading low-cost carrier in Southeast Asia...
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...Table of Contents Executive Summary 2 1. Introduction 3 1.1 Brief Description of the Report 3 1.2 Current Situation 3 1.3 Company Background 4 1.3.1 AirAsia 4 1.3.2 Vision and Mission 4 2. Strategy and the Industry 4 2.1 Analysis and Evaluation of industry Strategy 4 2.2 Global Forces that Impact the Industry 5 2.3 Importance of an Effective Strategy 5 3. Environmental Analysis and the Strategy 6 3.1 Corporate Strategy 6 3.1.1 Evaluation of Current Strategies 7 3.2 Analysis of the Internal Environment 8 3.3 Analysis of the Resources and Capabilities 9 3.4 Analysis of the External Environment 10 3.5 Proposed Change Strategy 11 4. The Relevance of Strategy Models/Frameworks 11 4.1 Discussion and Application of the Models 11...
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...1.0 Introduction Purpose The purpose of this analysis is to conduct an environmental analysis in the context of AirAsia's international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by AirAsia besides that, this analysis also helps to identify AirAsia's competitive strategy and analyse how the strategy is implemented to gain competitive advantage. Background on AirAsia AirAsia was set up by Dato' Tony Fernandes in 2001. In December 2001, Fernandes and his partners set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia. Now, AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. The airline now flies to over 40 destinations in Malaysia, Thailand, Indonesia, Macau, China, Philippines, Cambodia, Vietnam and Myanmar. AirAsia has formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through AWAIR. Starting from 2 aircraft till now AirAsia owns 28 and has carried more than 223 millions guest through its low fares travel. 2.0 External Environment Analysis 2.1 Political Flying outside Malaysia is difficult. Bilateral agreement is one of the obstacles in the way of truly pan-Asia budget carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like Bangkok...
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...Content…………………………………………………………………2 1. Abstract……………………………………………………………………...3 1.1 Conclusions……………………………………………………………...3 1.2 Recommendations……………………………………………………….4 2. Introduction……………………………………………………………….…5 3. Background to AirAsia……………………………………………………..6 3.1. Organization Definition………………………………………………..6 3.2. Looking at the Organization…………………………………………… 4. Industry Framework Analysis……………………………………………….. 4.1. Porter’s 5-Forces Model………………………………………………… 4.2. External factors using a PEST analysis………………………………… 4.3. Internal factors using a SWOT analysis………………………………… 5. Conclusion and Recommendations………………………………………….. 5.1. PEST 5.2. Task 2: Technological Change……………………………….. 5.2.1 Analyze Policies and Decision Making 5.2.2 Evaluate Effectiveness and Response 5.2.3 Demonstrate Areas of Improvement 5.3. SWOT………………………………………………………………… 6. References…………………………………………………………………. 7. Appendices………………………………………………………………… Appendix 1 Porter’s 5 Forces Model………………………………………….. 1. Abstract This report consists of an internal and external analysis of AirAsia using various methods including a PEST, Organization analysis, SWOT analysis and Porter’s 5 forces model. The main outcomes of the report are: 1.1 Conclusions reached: 1.2 Recommendations reached: 2. Introduction The company chosen for this report was AirAsia. The assignment required that: • A management report of 3,500 to 4,000 words is written on an organization. The report should describe, analyze and assess the impact...
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...AirAsia flies 20 million passengers in five years m-Travel.com Asia’s low fare airline AirAsia has surpassed its 20 millionth passenger mark in June this year. AirAsia, established in December 2001, has expanded from a two-aircraft operation to a fleet of 45, serving a regional network spanning 10 countries covering Malaysia, Thailand, Indonesia, Macau, China, Philippines, Vietnam, Cambodia, Singapore and Brunei. With the recent confirmation of 40 Airbus order, AirAsia’s total order now stands at 100 aircraft with 30 options. Kathleen Tan, executive vice president – commercial, said the milestone is “a strong testament to the appeal of our low fares and the strength of our unbeatable product – brand new modern fleet of Airbus 320, fun and friendly service, convenient booking channels and an extensive regional route network of 2,450 weekly flights.” Operating from six hubs, the continued roll out of Airbus fleet will increase AirAsia’s capacity to facilitate an aggressive expansion programme within the group through added new frequencies and launching of new routes. Over last six months, AirAsia has launched exciting new routes to Phnom Penh, Siem Reap, Brunei, Hanoi, Krabi, Solo and Pekan Baru. With recently added frequencies, AirAsia now flies five times daily to Bangkok, and four times daily to Jakarta from its Kuala Lumpur hub. “Our seamless internet booking is escalating at rapid pace, a strong indication that Asians today are embracing internet technology...
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...COMPANY ANALYSIS : AIRASIA BERHAD TABLE OF CONTENTS Introduction : Background of the company----------------------------------------------------------------3 SWOT Analysis---------------------------------------------------------------------------------------------5 Lost Cost Carrier [LCC] Business Model----------------------------------------------------------------9 Current Issues / Problems---------------------------------------------------------------------------------13 Strategy to solve problems-------------------------------------------------------------------------------19 Conclusion-------------------------------------------------------------------------------------------------23 References-------------------------------------------------------------------------------------------------25 INTRODUCTION : BACKGROUND OF THE COMPANY AirAsia Berhad [Company No: 284669-W] [Incorporated in Malaysia with limited liability under the Companies Act, 1965] First Quarter Report Ended 30 September 2004. This is the first quarterly announcement made by AirAsia to the Bursa Malaysia Berhad since its listing on 22 November 2004. AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia...
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