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
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award for largest low fare airlines in the Asia. It now served over 60 domestic and international countries with a fleet of 72 aircrafts all airbus A320-200 with 108 routes network. Airasia is well known for its belief ‘Now Everyone Can Fly’ and flies over millions of customers believing in the no frills without hassle, cost effective business concept and high efficiency of air travel which more and more customers choosing Airasia as their favourite choice of air transport.
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If the Air Asia to be competitive as a low cost or budgeted fare airline, Air Asia should continue to grow its services by simulating new markets in a sustainable manner. They also need to build stronger brand image as it’s continue to loose. Maintenance Since, Air Asia do not have its own facility to maintain its aircraft has to take it other facility. It has being long to do maintenance
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MAS needs government rescue. Background and context of the company: Malaysia Airline System (MAS) is the home base of Malaysia and it was established in 1947. Nowadays, Malaysia Airlines secures a variety of routes such as Europe, North America and Asia continent. These days, Malaysia Airline has recorded the minus of Operating Cash Flow (OCF) over the past three years. Free Cash Flow (FCF) which minuses capital expenditure from OCF was negative for six years. (Tengku Bahar,2014) The financial issue
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Malaysian public listed company, founded by current CEO Tony Fernandes Jetstar, an Australian incorporated company, is a subsidiary of QANTAS currently managed by CEO Bruce Buchanan Industry Both companies operate mainly in Asia Pacific region’s budget passenger airline industry. However, both are not fully integrated as they do not build their own aircraft. Both companies only offer economy class for its flights, which travels within Asia Pacific region and to selected international destinations
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ASIAN JOURNAL OF MANAGEMENT CASES, 3(1), 2006 SAGE PUBLICATIONS NEW DELHI/THOUSAND OAKS/LONDON DOI: 10.1177/097282010500300104 AIRASIA: THE SKYS THE LIMIT Rizal 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
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places, more often. The Jetstar Group is a value based, low fares network of airlines operating in the leisure and value based markets. The Group consists of: Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group). Jetstar Asia based in Singapore. The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent. Jetstar Pacific based in Vietnam (majority owned by
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able of 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
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Development and History of AIRASIA AIRASIA is one among the top International brand in the low cost Airline Industry. Airasia brand came into existence in 1993, it was a joint public-private sector enterprise, however in 2001 current CEO Mr. Tony Fernandes purchased it and It was under him the Airasia brand got global recognition and unimaginable growth which started right from 2002 and continues till date, AirAsia started moving up the ladder under Tony's leadership from 2002 onwards by launching
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faced, AirAsia continues to defy the odds. Since December 8, 2001, when the company was taken over by the new Air Asia management, AirAsia has grown to become the largest low-cost carrier in Asia. Today the airlines are operating in Malaysia, Thailand and Indonesia. With more than 6,000 talented, hardworking and committed employees and a market capitalization in excess of RM2billion, Air Asia has earned a reputation as a consistent performer no matter what the external environment. They have seen a
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