Social Passengers are reluctant to board a no-frills airline for a long-haul flight. In this case, even Air Asia always provide lowest price to customers, but they still will make comparison between airlines.
Bilateral agreement is one of the obstacles in the way of Asian budget carriers. There is also some opportunity to partner with other low cost airlines as Virgin to tap into their existing strengths or competitive advantages such as brand name, landing rights and landing slots.
Therefore, there is a realisation among regional governments that they need smashing airports and feisty carriers or they are going to miss out big time.
To make up for revenue lost in decreased ticket prices, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc. Moreover, brand awareness is quite important in this industry. Power of the suppliers is important as it will affect the industry. In an airline industry, the power of suppliers is quite high since there are only two major suppliers which are Airbus and Boeing hence there are not many choices to airline industry.
Peng, However, both suppliers provide almost same standard aircrafts and hence the switching to AirAsia is low. It also has to leverage on its existing wide reach of its brand name to monetize more areas of its services.
BeforeAirAsia fail to either sufficiently stimulate the market or attract enough passengers from Malaysia Airlines to establish its own niche market.
Thus, it becomes a threat to Air Asia.
For example, Singapore Airlines has created a low cost carrier Tiger Airways. The companies through the nature of these influences are inextricably linked to social, legal and political factors. Power of suppliers Every industry has someone to play the role as suppliers.
However, the technology now make information much more easily to assess. For Air Asia, it is subject to intense regulatory scrutiny by Environmental Protection.
Air Asia is also heavily involved with charitable activities such as providing assistance to victims of aviation disasters in Myanmar and China. Therefore, these governments are more willing to support low cost airlines.Apr 01, · AirAsia is the Malaysian low cost air carrier that charges the lowest fares per kilometer in the world (Case Study).
Analysis and Research PESTEL analysis of Air Asia will help to develop a significant understanding of the impact of Market Liberalization in the Asia-Pacific on the growth and development of Air Asia/5(K).
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AirAsia Case Study Report. Assignment 1. Executive Summary. Strategic management has played a key role in the success of many business organisations in the world including airlines and AirAsia is no exception.
AirAsia was the first successful low cost airline in the Southeast Asian region. This case study discusses the factors that contributed to AirAsia's success. In the global airlines industry these days, it’s a trend to offer a no-frills low cost concept in their business.
A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline or cheap flight) is an airline that. Air Asia case study - Free download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online.
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