Thus, they are very sensitive to the price no matter in what product or service. The airline industry offers similar service. The pricing structures of low cost airlines allow for no additional schemes or sales promotion activities, including frequent-flyers programmed.
They also undertake regular fare promotions for specific travelling periods that encourage early booking, and increasing the avenues that customers could book the tickets e.
Consumers usually prefer low cost. But now, with few hubs Malaysia, Thailand and Indonesia and over planes currently owned and about another planes to be received in the next few years, AirAsia have to ensure proper and continuous maintenance of the planes which will also help to keep the overall costs low.
They only offer snacks on flight and this is not for free. Technological Global By utilizing information technology, AirAsia was able to the first airline in Southeast Asia utilize e-ticketing and bypass traditional travel agents. However, the success story of Air Asia clearly reflects his skill in managing the company that revived Air Asia from its ashes.
Full market coverage Products offered to customers cover all areas of a budget traveler. This enabled the airline to save on the cost of issuing physical ticket i. First there are only two major planessuppliers which are Airbus and Boeing. Moreover, Air Asia placed a large amount of order from Airbus in order to expand its routes to international routes.
They targeted these people and offered them convenient and affordable air travel experience. These airlines have aggressive marketing strategies and complete with all transportation carriers, including the road and railway networks.
In 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. Particularly,in the second fiscal quarter from July to September when the Summer school vacations starts, and their resultant family trips, conclude by June in the south where Air Asia India intends to commence operations Agarwal, This worked to the advantage of the company now it could penetrate a bigger market and target a wider pool of customers.
If there is positive trend, then the firms have not to steal the market share among them. This has helped Air Asia to open up and capture a sizeable market in Thailand.
Some of the airlines offers cheaper price to achieve profitable passenger loads. In Asian developing countries, the middle class isgrowing up. With increase frequency and the addition of new routes, AirAsia expects passenger volume to reach 18 million by the end of On 27 Septemberthe company had on its list new routes to be added to its then-current list of Compared to other modes of transportation, the archipelago geographical structure of Asia made air transportation the most viable, convenient and efficient mode of transportation.
It may be a good strategy when they first started with only Malaysia as the hub and few planes to maintain. This has helped AirAsia to open up and capture a sizeable market in Thailand. Which is free for some companies is not for other ones.
Air Asia can sustain its competitiveness by maintaining its no frills, low fared services and expand their business hubs through Asia and around the world. How to Write a Summary of an Article. Airline Yield and profitability would decrease for AirAsia if fuel prices become too high.
Hence, as an investor or business man, they will choose more reliable airlines instead of Air Asia. However, if AirAsia is not careful in its implementation to differentiate itself from competitors, it could incur an unnecessary increase in operation cost in producing value-added services.
Therefore it isvery difficult getting a new flight route from the government. For example, Singapore Airlines has created a low cost carrier Tiger Airways.
In order for an airline company to exit the industry, it needs to pay its loans and staffs retrenchment as well as refund the flight cancellations, which all incurs high cost. Moreover, brand awareness is quite important in this industry.
Feedback is crucial for Air Asia so that they could implement their strategy effectively and efficiently. That is why they are verysensitive to the price not matter the product or the service.
This creates huge opportunities for the airlines. High The internet has allowed customers to have access in aviation market information, mainly, the price of air transportation ticket charged by different airline companies, where price comparison can be made. This is a genius strategy because Air Asia knows its customers.
But, the main competitors for Air Asia are Firefly, Malindo Air, Tiger Airways, Cebu Pacific Air and Lion Air; which competes within the same routes and destinations. According to IATA, Asia Pacific airlines are a major collective force in international aviation. AirAsia Berhad (AirAsia) is the leading low cost airlines in South East Asia, which has expanded rapidly since The company is based in Kuala Lumpur, Malaysia and has successfully positioned itself in customer’s mind through the simple slogan “Now Everyone Can Fly”.
The company is. Air Asia should review their customer feedback and customer service parameters to effectively match the customers’ views and opinions to the services they offer.
They can also introduce new concepts and enhancements to their brand of service. Air Asia is one of the Malaysian Airline. It was established in and started operations on 18 November The airline was established in and started operations on 18 November Some of the airlines do not compete directly with Air Asia, but they compete indirectly in routes that Air Asia does not fly.
Thus, the higher the number of competitors, the fiercer the competition. Popular Essays. Air Asia was the first successful low cost airline in the Southeast Asian region.
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while many others have made air travel with AirAsia their preferred choice of transport. We are consistently adding new.Air asia essay essay