With their strong working relationship with Airbus, they managed to get big discount for aircraft purchase which is also more fuel efficient compared to Boeing planes which is being used by many other airlines. Not only that, AirAsia also takes initiatives for its employees and has provided them with friendly and tension free environment to work on.
Conclusion Air Asia has clearly highlighted how a keen and critical strategic movement may drive a company towards phenomenal success.
There are few low cost carriers such as Firefly, Tiger Airway and etc which makes their services provided weak differentiation.
Nowadays, those buyers are much more knowledgeable and high educated. Especially, when there are limited or no in-flight services. The routes were subsequently returned to MAS wings a year later, citing commercial reasons.
First, is the ever increasing oil price. The company favors the employees by giving them incentives and in return demands for staff loyalty and credibility.
I chose to make the comparison between these two companies for diverse reasons. It has used IT to its advantage with the use of the internet and newer airplanes. The staff and crew understand their roles and responsibilities and understand the basic strategy of the company that is low cost maintenance resulting in high productivity.
This act results in reducing the maintenance cost along with administrative cost and inventory cost. Opportunities There are 2 major events that are taking place now or going to take place in less than 6 months from now.
It operates scheduled passenger flights on an extensive network from Jakarta to 56 destinations. Moreover, with border controls remaining incredibly bureaucratic in certain areas, i.
For example, Singapore Airlines has created a low cost carrier Tiger Airways. The Airbus A will allow AirAsia to operate at lower costs due to the reduction in fuel charges and operating costs. The number of old routes discontinued has not been publicly disclosed.
Nowadays, those buyers are much more knowledgeable and high educated. Confronting more revenue enhancement for tickets, clients will experience uncomfortable and inquire to cut down the monetary value of tickets.
This fashion suggests an easy image from the method of setting up a material such as scientist research or other paper. Government ordinances and intense relationship among specific states, unsteady political relations in Asia.
The purchase agreement is for 25 Airbus A series aircraft. KAI so there is nocompetition. Air Asia group CEO Tony Fernades says at the press conference that this purchase is an important step for Air Asia as it signifies their future aggressive route expansion plans in tandem to their expected traffic growth over the next decade.
Demand may differ for low-fare services between the Asia-Pacific region and in North America and Europe. In addition, through its associate company AsiaX, it launched long-haul low-cost air services from Malaysia to Australia and the United Kingdom.The AirAsia opted for various cost-effective, customer-oriented and highly innovative strategies to shape its business model to reach its ultimate missions and objectives.
With its innovative low-fare, no-frills concept it highly reduced the cost of air ticket such as by having just a single standard cabin, paid meals instead of pre-paid free meals, etc.
AirAsia’s low cost business model along with the right timing had paid off by ascending the airline to be able to expand its operating significantly. By the yearAirAsia showed the record of over 70 aircraft in operation compared to only two when the company started up. Executive sum-up The current state of affairs of Air market is non steady and could fulfill demands of clients, more and more negative intelligence appear to demo depression of AirAsia.
AirAsia is a Malaysian-based company which owns air hoses in Asia with low cost and supply flight lines over 25 states, the AirAsia.
Air Asia is one of the company that succeed in low cost carrier (LCC) business provides a full service regional airline that offered slightly lower fares than other airlines in Malaysia.
Private entrepreneur Tony Fernandes saw great potential for no-frills LCC in Asia after saw a massive success of LCCs in the West. Writing; Business Level Strategy of Airasia; Business Level Strategy of Airasia. Words May 22nd, 9 Pages. Business Level Strategy Successful business model is the product of successful business level strategies.
A successful business model can give a company competitive advantage over rivals. Airasia Strategy Essay on delivering the best possible customer experience by directly selling computing products and services online Business Model Direct sales – Direct customer relationship – Products and services targeted at distinct customer segments Build-to .Download