Thai Air Asia Case Study

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In airlines industry, there are a heavily competitive among each company which it make the threat of new entry to be low for Thai AirAsia. For entering in this industry, it needs high capital for startup which include purchase the aircraft, hiring employees such as pilot, cabin crew and etc. According to Asia aviation, “Thai AirAsia has a registred value is 400 million THB in 2003” which mean Thai AirAsia have highly of value to operate in Thai market. Also, the new company needs to make brand awareness not only in airline industry but also in every business industry. New entry needs to spend a lot of money in creating their brand awareness which they have to compete with the exist company that they already well known in the market. Also, they …show more content…

The most suppliers that directly effect on airlines is aircraft manufacturer because aircraft is a machine of airlines to drive their business. There are a few of aircraft manufacturer’s suppliers, which is two company only Airbus and Boeing. Hence, they have high power to reduce airline’s bargaining power. Thai AirAsia has low switching cost on aircraft operating. The total number of Thai AirAsia’s aircraft fleet is 68 aircraft. In Previously, Thai AirAsia is used 14 aircraft from Boeing model and they changing to use Airbus model. In recent time, Thai AirAsia using aircraft from Airbus company only, they are own 54 Airbus A320 aircraft to expand more routes in international and domestic flights. According to Airbus,“ Airbus manufacturing has an advanced flight control technologies, the materials in airframe, and cockpit design” which is Airbus provide the high technology and the eco-innovation on their aircraft. As mention on environmental factor, Thai AirAsia has concern on conservation environment, and reduce consumption energy. Which make Thai AirAsia purchased Airbus A320Neo which this aircraft is reducing carbon dioxide emission and save fuel efficient. In term of Airbus, the total number of aircraft that Airbus manufacture is 13,075 aircraft of Airbus A320 as 2017 base on airbus statistic. Hence, Thai AirAsia has low power on supplier because they order aircraft only 54 out of 13075 aircraft that other airlines order, which represents 0.41% of total airbus

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