Strength
The most importance strength of AirAsia airline is their low fares and dense route network in the current economic. Logically further revenue growth in the Asian population has a higher rate of economic growth at the same time. This allows more people to have the ability to fly, mainly in the part of the railway and road infrastructure is very weak Asian region. AirAsia set up in the context of the following conditions: a large population, population density, base, mobility and Internet applications increasingly widespread popularity. But above all, AirAsia aimed at a different market group, those who want to travel by air but people cannot afford. AirAsia are targeting the low-cost affordable to the masses. AirAsia airlines continue
…show more content…
The most obvious strength of AirAsia is particularly low cost, high subsidiary income, according to 2008--2009 financial report, non-fuel expenses of the company had dropped by 3%, suggesting that the company continue to implement cost control (AirAsia, 2014). In the 2009-2010 fiscal year, the company plans to non-fuel unit costs dropped 5% again (AirAsia, 2014). Meanwhile affiliated revenues increased twenty three percent to $ 598 million, which helped the company achieve annual revenue growth target (AirAsia, 2014). In subsidiary income, the company still have much room for growth, with fares continue to decline, the company has decided to continue to expand the sources of income of the subsidiary. Company CEO Fernandes has always insisted philosophy that is: "Winning is always a low cost." (Hutton, 2015). Financial Report as of March 31, 2009 has made it clear that the company competitive advantages show that the operating income increased 9.5% ($ 2.94 …show more content…
The industry is composed of experts and former government officials, they are especially different experience and management to make a contribution. For example, it has Thai AirAsia 's 50% stake in the new company - (formerly owned by the family of former Thai prime minister) (). It helps AirAsia, have the ability to take a large market share in Thailand. In order to allow close cooperation with Airbus, they are now able to effectively get a good discount Boeing 737 has been used in many other airlines, so they can reinvest in purchase more aircraft fuel. Good performance and management team to implement the development of the strategy. It is a combination of strategic and other low-cost airlines, they have a good, initially in the United States and Europe. For example, hotels and other suppliers of services such as car rental forming a complementary
The NAICS code for Air Canada is 48111, which stands for Scheduled air transportation. The International Air Transport Association (IATA) is the global trade association for the airline industry. It focuses on representing, leading, and serving the whole airline industry. Air Canada and Air China are both the members of The International Air Transport Association, which means they all have the same value and put passengers’ safety on priority. Also, ITAT supports these airlines to help them reduce carbon dioxide emissions by promoting the Carbon Offset Program among them. ITAT is also a great platform for all airlines around the world to corporate and become partners.
SWOT analysis is a company’s environmental screening and analysis method that uses four factors as a basis for evaluation. The factors look into the strengths and weakness of the company as well as the opportunities and threats in the environment in order to determine its position in the market.
Introduction: Southwest Air was founded in 1966 when a group of Texas investors, including Rollin King, M. Lamar Muse, and Herbert D. Kelleher, pooled $560,000 to form the Southwest Air Company. Incorporated in 1967, the company was envisioned as a commuter airline serving three cities within Texas: Dallas, Houston, and San Antonio. However, its operation was delayed nearly four years due to entry barriers from competitors. Since its first flight in 1971, it has literally changed the rules of operating airlines while becoming the airline with the most consistent profits. Southwest begins with the low cost strategy to penetrate the competition and achieve a competitive advantage.
Kingfisher Airlines (KFA) was founded by Vijay Malaya and he is the chairman of United Breweries group (UB group) in the year 2003. Its first airplane was launched from Mumbai to Delhi in 9th may 2005. It started as a premium business class airline company. The airlines have a tag line “Fly the good times”. At the launch of airline, Vijay Malaya said “we are committed to achieving our ambition of making Kingfisher Airlines, India’s largest private airline both in capacity and market share. The airline ushered in a new era of luxury in India’s domestic aviation sector and its brand new aircraft with stylish red interiors, and smartly dressed crew and ground staff. Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems”. (Malaya, 2005). Kingfisher airlines are one of the seven airlines which were awarded the rating of five stars by skytrax. It operates 400 flights daily including the regional and international services. In 2009 it gave the highest market share in Indian airlines industries, carrying more than 1 million passengers. The main mistake was lack of understanding of customer requirements and luxurious facilities in airlines. Organizations focus on reducing costs and usually just CEO’S and top level managers prefer business class travel. Rest of the staff mostly travels by economy class. Moreover, buying most expensive business class tickets doesn’t go down well, when seniors aim to project the image of walking the talk. Secondly, the company is facing financial crisis since Mid-2008. After merging with Air Deccan in 2007, it is a low-cost airlines, provides minimum frills to customers at reasonable rates. Th...
Thirdly, AirAsia kept its fixed costs down by continuing to adopt management practices. A key strategy that AirAsia continued to use was to treat some of its fixed costs as variable cost. When serving a minor route (a small airport and a sector with non-frequent departures), such as Kuala Lumpur to Chiang Mai in North Thailand, AirAsia took its ground engineer abroad its flights instead of stationing him at Chiang Mai airport and subcontracted all other aircraft ground services at t...
When we think about premium brands, we believe that the brand is worth to pay for. Excellence quality always come with expensive price is not always true; Singapore Airlines proved this statement is wrong. Singapore airline or SIA is a flag carrier of Singapore, was ranked as a second place in world airline award, voted by airline passengers from around the globe. SIA has earned a stellar notoriety in the furiously competitive aviation business for offering clients with excellence quality of services. Not only just the quality of service makes them become one of the world-class airlines, but the lowest price airline as opposed to its main rivals make them stand out among its competitors. There is no doubt that how SIA has made its way up to one of the world largest
In the 1990s, Emirates airlines began to expand its route network to various international destinations including Paris, Rome, Zürich, and Jakarta. With the advancement in aeronautical engineering, long haul flights became more frequent which lead to the airline's route expansion and earned it the name, “finest in the sky”. By 1994, the airline had 4000 employees and netted a profit of about 24 million dollars (The Emirates Story).
During 19991-1992, Modiluft, East West and Damania went bankrupt. Air Sahara and Jet Airways survived along with government own Indian Airlines because they had the capability to bear losses. Globalization and privatization had a major impact on aviation industry. Indian aviation industry was deregulated by the government in 1990s. As a result now 14 airlines are operating today in Indian sky. Now, collaboration with international organization and foreign direct investment are welcome to improve infrastructure and technology. Today people who can not afford high prices of Full Service Carriers (FSC) can travel by Low Cost Carriers (LCC) or budget airlines. Air Deccan was India’s first LCC started in 2003. It flies to several metro and non-metro destinations. All airlines have three major fixed costs i.e. fuel costs, financing or aircraft lease and labour cost. But LCC costs are 10 to 15 per cent lower than FSC. This is because of three reasons. Firstly, saving on distribution cost as passengers book tickets on the internet. Secondly, no frills are offered on board. Thirdly, to accommodate additional seats, catering and cabin crew space in these aircraft has been used. So these aircraft have 40 seats more than the FSC.
Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connection in the 35 countries and it has currently having 137 fleets. This company becomes the public limited company in the 1946. The company has international and the local route and its performance is increasing day by day with the pace of the good growth as compare to the other airlines in the industries in the area and the channels in which this airline is working.
AirAsia Company has been operating with routes in an average of twenty countries and it is still expanding to different parts of the world....
Air transport is the conveyance of more recent development, and therefore the most modern. This implies the presence of very advanced technological conditions, standardized procedures developed computer worldwide. Rates, flights and destinations are included in international publications, which are available immediately via the Internet or with a simple call to airlines, travel agencies or freight forwarders. Despite these facilities, high costs in the operation, turn the air transport management in a very sensitive within the logistics system where one mistake can mean significant economic consequences appearance. Air transport, its high cost and capacity constraints, is appropriate for covering routes between middle and long distance and charge for shipping small, perishable goods, high value and urgent deliveries. Factors affecting demand for air traffic costs the airlines and therefore passenger fares and freight are included. In recent years the costs of airlines have been adversely affected due to increased insurance costs, in addition to the oil price hikes. Moreover changes i...
Strategic plan :They are link in new market, principally organization has to revenue United Kingdom, Italy, Canada, Spain and United States. Next, Air Asia also emphases on other state including Europe and America to more easier achieve their missions.
Travel Today’s marketing plan product strategies include offering clients vacation packages, cruises, flights, hotels, car rentals, special events, and transportation to and from airports. The company offers last-minute deals to Mexico and the Caribbean to include airfare. Travel Today is offers travel opportunities throughout Europe by offering luxury, adventure, sport, and gourmet food packages. Travel Today is offers adventure packages to Mediterranean or Northern Alaska. Travel Today customizes travel packages. The firm believes that providing customers with exceptional value will keep them coming back.
AirAsia’s high frequency service ensures guest convenience is met. The airline practices a quick turnaround of 25 minutes, which is the fastest in the region, resulting in high aircraft utilization, lower costs and greater airline and staff productivity.
The next characteristic of service offered by AirAsia is inseparability. Inseparability refers to a distinguishing characteristic of services that reflects interconnection among the service provider, the customers involved in receiving the service and other customers sharing the service experience (Hoffman&Bateson, 2010). Based on this definition, it can be concluded that the inseparability in the service involves the participation by both the customers and also the service provider. Different from the goods that are manufactured prior to its sale, the services production includes the presence of the customers in its production process. For AirAsia, the production of the services started as soon as the passengers board the plane. Since the production and the consumption of the services happen simultaneously, then punctuality is very important especially for AirAsia, which is an airline. AirAsia must ensure that their flights depart on time and should try their best to avoid flight delays. This is because flight delays will cause dissatisfaction to the customers and might cause inconvenience to them.