Airasia Berhad: A Leading Low-Cost Airline

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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…

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