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Ordinary Resurrections

Autor:   •  April 4, 2018  •  1,003 Words (5 Pages)  •  465 Views

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This has helped Air Asia to open up and capture a sizeable market in other Asian countries. The management team is also very good in strategy formulation and execution. The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines in U.S. and Europe. AirAsia made tickets expensive when the demand is high such as holiday and weekend. They also offered more on board service to the passengers such as taxi booking service, Internet WIFI access in order to in order to gain profit.

Additional source of AirAsia cost advantage is that they maximized media coverage and they have their brand name well established in all over Asia Pacific. AirAsia is the leader among other Southeast Asian airlines and because of that they receive a regular coverage from media outlet. Besides the normal print media advertising, this has helped AirAsia to promote brand awareness without spending high expenses in all of these media appearance. AirAsia also partnered with other service providers such as hotels and guesthouses, car rental firms, hospitals travel agents, AirAsia Citibank and this has created a very unique image among travellers. In addition, Air Asia’s local presences in few countries such as Indonesia and Thailand have successfully helped in raising the brand to become one of the fastest growing airline businesses in the world.

Partnership with one of the world’s most famous football team, Manchester United and a cooperative advertising deal with Time magazine have further boosted their image to a greater extend beyond and made them very famous. Since AirAsia is the lowest cost leader in Asia, it has successfully created a low cost airline mentality among their workers and customers. Their employees are very flexible and high committed and very critical in making Air Asia the lowest cost airline in Asia.

There are advantages and disadvantages in expanding AirAsia its long haul business. AirAsia should and should not expand its long haul business for many reasons. Since AirAsia has been successful as the world’s best low cost airline and over 100 planes currently owned and about another 100 planes to be received in the next few years, expanding it long haul operation might move AirAsia from successful low cost carrier strategy. It might be a good strategy when they first started with its short haul operation, however, expanding to long haul business might create difficulties with external factors. Some of the advantages of expanding it to it long haul business would be that it might create new market and growth opportunity. It would also help them with their expansion of trunk routes. AirAsia and AirAsia x should be integrated operationally because that way, they will able to share costs and services. AirAsia and AirAsia X operational integration could benefit both from sharing pilots, cabin crew, marketing and distribution. These could lead both to

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