Case Study on Air Asia

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Case Study on Air Asia I. A full Strategic Appraisal Introduction: In the year 1993, Air Asia was founded by the Malaysian Government as a sister airline to the major Malaysian Cargo airline known as MAS. After its establishment Air Asia started its operation in 1996 and early 2002 Air Asia was less recognised as MAS aviation was dominating the market. There was a complete support from the Government as a part of State Own Enterprise focusing on the national objective in-lieu of giving attention to commercialization. Due to the partial support from the Government towards to MAS operation, Air Asia was suffering from loss even after being in profit for its last year. Which was totally not served from MAS even if Air Asia a sister concern airlines to cater the domestic routes. In the year 2001 Air Asia was suffering from a huge debt of USD 37 million, and that very moment Fernandes introduce a revolutionary plan of Low – Cost Aviation. Later, Government was looking as this as an another opportunity to get back in pace, as Government was trying to bring it above from last two year Pesek (2003) and Ranawana (2001)( Pesek Jr, W. (2003, July 9 2003). The Richard Branson of Asia Shakes Things Up. The Manila Times. Retrieved April 12 2010, from Ranawana, A. (2001, November 30 2001). No Fear Of Flying. AsiaWeek.) A detail study is shown which will investigate about the technical up-bringing of Air Asia as a biggest contender in Aviation industry. Marco Environment Analysis PESTEL Analysis Political Factor: Political interference plays a vital role in the Airline industry more particularly in Asia-Pacific and ASEAN counties. About 69% of Malaysian Airline is owned by the Government. They proctect there Air... ... middle of paper ... ...yone Can Fly” emphasising on on-line ticketing from around the world (No-ticket while travelling)eliminating physical staff, Advancement in IT, and constant research on reducing their cost in every department with better services to customer. Air Asia is now enjoying a healthy sustainable competition advantage in LCC industry. Focusing to right target class of society i.e. medium scale Air Asia has strategically implement the LCC Airline to earn huge number of travels. ‘’low income market presents a prodigious opportunity for the world’s wealthiest companies to seek their fortunes and bring prosperity to the aspiring poor.’’ (Prahalad, 2002 (Prahalad, C.K, Hart, L.S (2002) The Fortune at the Bottom of the Pyramid, Strategy +Business, 26 pp1-14) Corporate Strategy Option Ansoff Matrix, with context to Air Asia looks in the growth and expansion of the company