Meanwhile. AirAsia is the low cost leader in Asia. With the aid of AirAsia Academy. AirAsia has successfully created a “low-cost air hose mentality” among their work force. The work force is really flexible and high committed and really critical in doing AirAsia the lowest cost air hose in Asia. This low cost leading can allow all assorted.
AirAsia’s business model is Low Cost Carrier (LCC) that showed as above. There are 3 attributes that contribute to LCC business model, which are simple product, positioning, and low operating cost.Simple Product attribute for AirAsia Company is referring to the plane seating that is narrow and with only one class. So that, there is no seat assignment offered. Catering is not included on the.
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A company’s business model is management’s model of how the strategies they pursue will allow the company to gain a competitive advantage and achieve superior profitability. Business strategies are the actions management take to execute a business model. At the heart of any business level strategy is the objective of developing a firm-specific business model.
The Group's entire business model centres around a low-cost philosophy which requires its operations to be lean, simple and efficient. Several key strategies have been employed towards this effect, including: High Aircraft Utilisation. AirAsia focuses on high frequency and high turnaround of flights, both of which add to customer convenience and greater cost efficiencies. Its turnaround of 25.
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AirAsia has gained great favour with the Malaysian government and this enabled for easier business negotiations and relations in the country. Tony Fernandes, who had started AirAsia, is a valuable asset to the company considering his strong marketing and operational abilities. In addition, Fernandes hired leading low-cost airline experts to restructure the company’s business model and has.
Based on Southwest Airlines and Ryanair’s business model, AirAsia offer “No frills” airlines with a catchy tagline of “Now Everybody Can Fly’’. Within 2 years Air Asia posted a net income of 18.8 million and broke the 100 million net income barriers in 2005. Since then nothing has stopped AirAsia from moving forward and setting milestones, notably the first Asian Airlines to go.
AirAsia makes the low fare model possible and create values through the implementation of the 6 key strategies. The first of the key strategies is Safety First, AirAsia wan to be partnering with the world’s most renowned maintenance providers and complying with the world airline operations. Beside that, the second key strategies is High Aircraft Utilization is mean implementing the regions.
When talking about AirAsia as a LCC, there are those who are still very pessimistic and unsure about the business model. Believe it or not, questions like whether a passenger must stand in a flight due to lack of seats or whether there will be chickens in the flight do come up. Such misconceptions are not surprising, given the fact that scheduled, low-fare flights are a relatively new.
AirAsia is leading the way in terms of integrating technological advances into its business model. The use of the internet to buy and sell tickets has significantly reduced operating costs for AirAsia because ticket agents are not needed. Furthermore, newer airplanes being produced are reducing fuel costs and becoming more efficient. 5.2 Task 2: Technological Change 5.2.1 Analyze Policies and.