Service Promotions and In-Flight Services The promotion in this industry is mainly targeted to enhance the base of loyal customers and also focused to the regular high-revenue customers. Clarke, The hidden value of air transportation infrastructure, Technological Forecasting and Social Change, vol.
These small improvements can cause huge cost saving in different parts of organization.
Due to regulatory environment that is different from deregulated environment in Europe and north of America, airline span of operation are usually confined to their countries border [3, 21].
There are indeed, a lot of lessons for Start Up to take home from AirAsia stories. Long-haul carriers with high capacity can incur less cost to the airline when transporting more passengers. According to previous studies, LCCs are usually critical throughout producing traffic congestion on routes and developing new tourism capacity resulted in more revenue.
The purpose of this study is to focus on the cost-leadership competitive strategy applied by low-cost carriers LCCs in SE Asia airlines and explore the elements that affect the competing capability of these airlines in the region.
It can be also considered as one of the largest and most comprehensive budget companies in that area . All LCC airlines try to perform in this manner; but AA was the pioneer airline to use extensively IT system in its operation that resulted in them becoming the first airline to go to ticketless in [22, 26].
Being a big fan of AirAsia and its business model, there are 3 AirAsia success factors to learn from: Pavcnik, Airbus versus Boeing revisited: McKenney, Airline Reservations Systems: The emergence of two technological frames in the competition between Boeing and Airbus, Technology in Society, vol.
Morrell, Mergers and acquisitions in aviation — Management and economic perspectives on the size of airlines, Transportation Research Part E: A few years ago, people had to call a travel agent or airline operator to buy a flight ticket.
In order to overcome this disadvantage, AA formed subsidiary airlines in order to expand its operating zone and cover the entire SE Asia region. AA has the largest fleet in terms of number of planes and seats among its competitors. Burton, A Study of Motivation: Logistics and Transportation Review, vol.
Air Asia has become a household brand in Malaysia and beyond in less than a decade. In general, issuing tickets result in extra costs. Furthermore, the study attempts to illustrate the key success factors that have resulted in the superiority of AirAsia AA airline among other LCCs airlines in the competitive market of SE Asia.
As a good example for quality circles, durability of airplanes tires in AA have been more than duplicated just with a little advice from the maintenance chief engineer . Air transportation is also essential for Asian countries as it not only enhances the tourism industry, but also it improves the mobility of people.
In fact Tiger air fleet with an average age of 2. Noordin1, e 1 Dept. Create Complementary business opportunities, they can be Huge This is shared by Luke Bong and I think it is an exemplary example for businesses to learn. In addition, they have less cost in distribution and airport handling.
If other smaller planes are to be used, a higher fare would result even for a single trip. Furthermore, larger companies are more capable and flexible in reducing cost, especially overhead cost, that results in higher revenue .
As a matter of fact, SE Asia is probably the most developed area for low-cost aviation in Asia. When demand exists, increasing the number of planes can bring more revenue tothe airline as it may decrease the overhead costs and increase the flexibility.
In this regard, airlines based in Singapore, whose country of origin border is smaller than others, is faced with more difficulties in expanding their operation in Southeast Asia.
Software technologies such as information technologies IT in organization is another source of cost advantages that can deal with managerial diseconomies and staff demotivation in airline industry. Hesterly, Strategic Management and Competitive Advantage:. AIR ASIA Executive Summary Strategic management has played a key role in the success of many business organizations in the world including airlines and Air Asia is no exception.
Commencing inwithin fifteen years, Air Asia managed to expand its operations into another ten countries. Airline Industry - Key Success Factors BUSINESS RISK ASSESSMENT Market Position The analysis covers comprehensive examinations of the company’s business and market position within the market served, including its routes network; the attractiveness of the markets; and its competitive.
9. What are the Success factors in AirAsia?
Absolute Cost Advantage Low cost per average seat kilometer AirAsia focused on ensuring a competitive cost structure as its main business strategy%(11). Organizational Structure of AirAsia.
Print Reference this. Disclaimer: Air Asia Success factors. By using it AirAsia is the best lowest cost airline company in South Asia. The key point of Airasia’s success factors is to deliver low fares is to consistently keep costs low. Providing low costs needs the high efficiency in every part.
Furthermore, the study attempts to illustrate the key success factors that have resulted in the superiority of AirAsia (AA) airline among other LCCs airlines in the competitive market of SE Asia.
This study shows that the regulatory environment in the region’s air transportation business is an important barrier for the development of local. Furthermore, the study attempts to illustrate the key success factors that have resulted in the superiority of AirAsia (AA) airline among other LCCs airlines in the competitive market of SE Asia.
The research shows that the regulatory environment in the regions air transportation business is an important barrier for the development of local LCCs airlines.Key success factors of air asia