The company has been benefiting from lower fuel costs over the past few months, which has boosted earnings.
This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials.
This has helped AirAsia to open up and capture a sizeable market in Thailand. The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines is US and Europe. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals medical tourismCitibank AirAsia Citibank card has created a very unique image among travellers.
Alliance with Galileo GDS Global Distribution System that enables travel agents from around the world to check flight details and make bookings have also contributed to their string brand name.
The workforce is very flexible and high committed and very critical in making AirAsia the lowest cost airline in Asia. It may be a good strategy when they first started with only Malaysia as the hub and few planes to maintain. 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.
Examples of complaints are around flight delays, being charged for a lot of things and not able to change flight or get a refund if customers could not make it.
Good customer service and management is critical especially when competition is getting intense. First, is the ever increasing oil price. But being a low cost leader, AirAsia an upper hand because its cost will be still the lowest among all the regional airlines. However, there will be also some reduction in overall travel especially by casual or budget travellers.
This will definitely increase the competition among the regional airlines.
This creates a larger market and a huge opportunity for all low cost airlines in this region including AirAsia. Most of the full service airlines have or planning to create a low cost subsidiary to compete directly with AirAsia. For example, Singapore Airlines has created a low cost carrier Tiger Airways.The specific threats, opportunities and challenges identified with the help of the above SWOT analysis would be necessarily used to maintain the Air Asia Berhad’s competitive advantage in the market.
We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats. The Business JetBlue is a passenger carrier company that provides air transportation services. SWOT ANALYSIS FOR AIR ASIA Strengths, Weaknesses, Opportunities and Threats Analysis for AirAsia Strengths The first phase of the swot analysis is the strengths analysis for Air Asia.
e) WestJet Airline plan a new threat to Air Canada. All creations of god are blessed with best qualities but no one is born perfect. humans, things etc all have some strengths and opportunities but weaknesses and threats accompany them along. Air Asia: Strategic management report Intoduction Air Asia was founded in and has since grown to be one of the biggest airlines in the world.
It initially operated in Malaysia and currently operates in over 25 countries (Ricart and Wang ).
There are some of the threats that face by the Air Asia SdnBhd, firstly, the air asia faced certain rates like airport departure, security charges and landing charges are beyond the control of airline operators.