Air Asia MalaysiaEssay Preview: Air Asia MalaysiaReport this essayAir Asia is a low-cost airlines based in Malaysia. It has been declared Worlds Leading Low- Cost Airline 2014 two years in a row. It has also attained the tittle of Asia’s Best and World’s Best Low Cost Airline by Skytrax for consecutive years from 2009 until 2014. The approach used by Air Asia from prior year until now is to be easy to book, pay and fly and most of seats are sold through online. This is in line with its motto ‘Now Everyone Can Fly’. Air Asia had expanding the business to neighboring countries such as Indonesia and Thailand years later. Despite all those success, Air Asia faced some challenge and problems where it place Air Asia in declining state.
1- Incident of Airbus 320-200 crashedIrish Times reported that AirAsia encountered biggest challenge as jet QZ8501 goes missing in 2014 when an Airbus 320-200 with people on board went missing during a flight from the Indonesia city of Surabaya to Singapore. Then it was disclosed that the airbus crashed into Java Sea on December, 28. It killed all 162 passengers and crew. It was reported as the first major accident involving AirAsia plane. As a consequence of that incident, AirAsia dropped fares by 9% in the first quarter to bring back passengers. The Malaysian parent airline carried 3% more passengers in the first quarter than last year, while its capacity grew 10%, leading to a drop in its seat load factor, or the portion of aircrafts filled to 75% in the first quarter of this year versus 81% in the same period last year.
Aircraft: “AirAsia, Inc. (AIA) is in close communications with Indonesian authorities concerning the crash of a cargo aircraft from a transport aircraft near Port Jervis of Abyan Island, the Philippine side,” said a statement issued by AIA in a press release regarding the incident in Abyan city, where at least 12 people were killed.
The Singaporean Federal Aviation Authority was investigating the incident, said an spokesman.
As a result of AIA, airlines did not receive the additional revenue from commercial flights, which raised costs and prompted a surge of passengers on flights to the United States.
AirAsia said in the statement the airline had decided to cut travel times for domestic customers based on lack of “high demand” services, which will lower the average price of a seat.