Airasia Berhad: A Leading Low-Cost Airline

1014 Words3 Pages

AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier in the Association of Southeast Asian Nations (ASEAN) region. AirAsia focuses on providing high-frequency services on short-haul domestic and international routes. The main goal of this paper is to analyse the business strategy of AirAsia as a low-cost airline. This paper aims to apply the management process of strategy and analyse the three levels of strategy by which AirAsia is able to maintain its reputation as the top Low-Cost Carrier (LCC) in Asia. This paper will then show how innovation is a key aspect in AirAsia’s strategy, and will finally consider the external environment framework in which AirAsia is succeeding.
AirAsia Berhad is a Malaysian low-cost airline based in Kuala Lumpur, …show more content…

This consists of competitors, suppliers, customers and the labour market. The major factor in AirAsia’s task environment is the strength of competitors in the saturated LCC market, all of whom are competing to offer customers the cheapest airfares in Asia. AirAsia’s corporate strategy directly reflects this factor, as they aim to outperform their competitors and be the cheapest airline in the market. In their current venture into India’s aviation market, the competition is fierce. The market is predominantly controlled by low-cost carriers, with almost 60% of the domestic market dominated by competitors such as SpiceJet Ltd. and IndiGo (Kotoky, …show more content…

2014. Aimia, AirAsia and Think Big Digital Form Partnership To Grow the AirAsia BIG Loyalty Program. [press release] 24 January 2014.

Choudhury, C. 2013. Low-Cost Airline Joins the Dogfight for Indian Skies. [online] Available at: http://www.bloombergview.com/articles/2013-02-28/low-cost-airline-joins-the-dogfight-for-indian-skies [Accessed: 31 Mar 2014].

Kotoky, A. 2014. IndiGo, Indian Carriers Oppose AirAsia’s Local Discount Venture. [online] Available at: http://www.bloomberg.com/news/2014-02-20/indigo-indian-carriers-oppose-airasia-s-local-venture.html [Accessed: 31 Mar 2014].

Nikam, N. 2013. AirAsia announces expansion plans for India. Deccan Herald, 2 June.

Samson, D. and Daft, R. L. 2012. Management. South Melbourne, Vic.: Cengage Learning.

Shuk-Ching Poon, T. and Waring, P. 2010. The lowest of low-cost carriers: the case of AirAsia. The International Journal of Human Resource Management, 21 (2), pp. 197--213.

Spiess, L. and Waring, P. 2005. Aesthetic labour, cost minimisation and the labour process in the Asia Pacific airline industry. Employee Relations, 27 (2), pp. 193--207.

The International Air Transport Association (IATA). 2014. Airline Cost Performance. IATA Economics Briefing. [report] IATA, p.

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