Evaluation of air asias response to tourism Executive summary Air Asia, the market leader of low cost carriers in Asia, shown on the good record of bringing about innovative idea into the industry. The industry itself, especially in the Asian region, is observing a higher growth rate of passenger and profitability. The report examines the organization’s key business structure and operation, products and provides summary analysis of its key revenue lines and strategy. The analysis looks at the
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Air Asia What are the sources of AirAsia’s cost advantage? Value chain: Operations: Single type of aircraft, short and medium distance flights, joint-venture (Thai airasia and Indonesia Airasia), High aircraft utilization (fastest turnaround time), low fare- no frills, complements (shuttle bus, hotels, financial services). On board: no meals, snacks can be bought, only one class (more seats per plane), no aerobridges, no seating Logistics: Marketing/Sales: Advertising, co-branding, sponsorships
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