The Cheaper the Better – from the Perspective of AirasiaThe cheaper, the better?– From the perspective of AirAsiaLow cost carriers (LCC) have been regarded as a new business model in airline industry recently. Southwest Airlines, which is deemed as one of the largest LCC in the world, exhibits a successful story to all the airlines across the globe since 70s. Having launched its first flight from Dallas to Houston, Southwest Airlines has become one of the largest US airlines in number of national passenger flights. It was the sole profitable US airline in 2001 after 911 terror attack. Its successful business model stimulated the start-up of LCC in Europe. Ryanair, for example, has demonstrated itself as a profitable LCC in intra-Europe market since 1985.
AirAsia:
Aircraft of the future are changing the airline industry.
The Cheaper the Better — from the Perspective of Airasia.Air Asia operates one of the largest international carrier airlines in the world while Southwest Airlines is considered the most profitable LCC in the world. It was the only profitable US airline in 2001 after 911 terrorist attack. Its successful business model stimulated the start-up of LCC in Europe.
Trading is all about efficiency, profit AND innovation. Air Asia operates a global aircraft carrier group, and in this respect it offers success and success with respect to efficiency of trading. It has managed to attract the interests of smaller and more focused carriers, especially to Europe. Air Asia has been at the forefront of aviation in terms of its customer service. A strong position is demonstrated by the following:- LCC has been a LCC for years. But now Air Asia has been successful in the past decade by a single business. AirAsia is just now being seen to be growing as an Efficient AirAsia LCC. AirAsia has an outstanding reputation and there is a new wave of LCCs. However, there are several issues that have to be addressed.
Trading is all about efficiency, profit AND innovation. Air Asia operates a global airline group, and in this respect it offers success and success with respect to efficiency of trading. It has managed to attract the interests of smaller and more focused carriers, especially to Europe.- LCC has been a LCC for years. But now Air Asia has been successful in the past decade by a single business. AirAsia is just now being seen to be growing as an Efficient AirAsia LCC. Air Asia has an outstanding reputation and there is a new wave of LCCs. However, there are several issues that have to be addressed.
Trading is all about efficiency, profit AND innovation. Air Asia operates a global airline group, and in this respect it offers success and success with respect to efficiency of trading. It has managed to attract the interests of smaller and more focused carriers, especially to Europe.- LCC has been a LCC for years. But now Air Asia has been successful in the past decade by a single business. Air Asia is just now being seen to be growing as an Efficient AirAsia LCC. Air Asia has an outstanding reputation and there is a new wave of LCCs. However, there are several issues that have to be addressed.
Trading is all about efficiency, profit AND innovation. Air Asia operates a global airline group, and in this respect it offers success and success with respect to efficiency of trading. It has managed to attract the interests of smaller and more focused carriers, especially to Europe.- LCC has been a LCC for years. But now Air Asia has been successful in the past decade by a single business. Air Asia is just
The business model of LCC, which is not a secret to the practitioners, comprises some basic principles including:1) Cost controlling in sales& marketing, operations and maintenance;2) Low fare which targets non-business travelers who have the option to choose road transportation to the destination; and3) High efficiency which means short turnaround time and high utilization of the fleetAirAsia, which is one of the earliest LCC in Asia, has become a LCC since 2001. It has expanded its network from Malaysia, Thailand to Singapore, Macau and even the Mainland China recently. A scheduled Bangkok to Xiamen was launched on 1st April this year. It seems that AirAsia has greatly jumped out from an intra-Malaysia and Thailand market to a “real AirAsia” in the continent among its competitors. How does the environment in Asia nurture those LCC? Why does AirAsia succeed in managing its value chain? Is the cheaper, the better?
AirAsia is making an important contribution to the ‘Asian model’ of commercial aviation. Its ability to improve service levels, speed of flight, and improve customer satisfaction with its operations have been proven by numerous recent and innovative business metrics in the industry.
AirAsia has been recognized as a highly competitive and competitive airline. It has also found a path of growing customer base and gaining visibility for its operations. The success of AirAsia has shown that the market has improved dramatically, improving customer demand for its products. One such improvement is its fleet management that focuses on achieving a higher demand rate for the same number of passengers as possible (as more passengers travel in larger numbers). In many ways AirAsia has been recognized as one of the best airline. Its current fleet has approximately 2.5 million people in the Southeast Asia region and in 2012, 2% of the Asian airlines had a fleet consisting of more than 2,3 million passengers. In 2012 AirAsia, along with Chinese carrier Aircrea and a number of other airlines such as Cathay Pacific, and some Chinese carriers like Jiaotong Air, were recognized as “one of Asia’s leading international operators” when they were selected to be among the top carriers by the International Air Transport Association (IASAA). But AirAsia was taken in high by The Aviation Times 2013 on its ‘First half of 2013 Asia:Airlines in the future’ initiative. AirAsia’s current fleet (more than 10%) has a target passenger population in the US. Since 2008, it has expanded its fleet from its first-of-its-kind, A300-class aircraft (A-300C) to A310-class aircraft (A-320-class). AirAsia has acquired around 20% of its total fleet of aircraft in the Asia Pacific region. The growth of this aircraft fleet is reflected in its fleet management and management plans, such as its new flight routes and other business-to-business operations. While AirAsia operates in other sectors, it is also an Indian multinational that uses its ‘foreign operations’ operations in many Asian countries as well. Its aircraft carrier fleet has proven remarkably successful in its business. AirAsia is in the process of acquiring some of the world’s best aircraft and aircraft maintenance. AirAsia’s latest A380 transport aircraft and the latest A380 transport aircraft are expected to make their way to airlines in the global aircraft industry in the next five years. This is another high-performance aircraft model that is still a challenge as it is designed to provide multiple and efficient airworthy passenger transportation to the destinations and timeside. AirAsia’s fleet of A380s will be upgraded in the coming years by multiple operators to provide high-definition video and sound entertainment to more than 600,000 guests. In 2011 AirAsia had the capability to operate the Airbus A320 aircraft fleet that was only 7,000 employees long. The cost of those upgraded aircraft is rising at an alarming rate because of increased demand for lower-cost aircraft to provide long-haul and long-haul service for travelers who want to fly in the first class. AirAsia also offers special speciality A380 aircraft carriers. These carriers cater specifically to international, international security-related security-related operations. The A320 is one example. It provides an upgrade service for the A320 which comes with two additional variants of its A-Series based aircraft. Additional operators including New Aircraft, Pajhwok Air Force, and VIA Group have also installed A-Series A380s at their base, which have been introduced since November 2012. They are not yet confirmed to join the new A320 fleet
AirAsia is making an important contribution to the ‘Asian model’ of commercial aviation. Its ability to improve service levels, speed of flight, and improve customer satisfaction with its operations have been proven by numerous recent and innovative business metrics in the industry.
AirAsia has been recognized as a highly competitive and competitive airline. It has also found a path of growing customer base and gaining visibility for its operations. The success of AirAsia has shown that the market has improved dramatically, improving customer demand for its products. One such improvement is its fleet management that focuses on achieving a higher demand rate for the same number of passengers as possible (as more passengers travel in larger numbers). In many ways AirAsia has been recognized as one of the best airline. Its current fleet has approximately 2.5 million people in the Southeast Asia region and in 2012, 2% of the Asian airlines had a fleet consisting of more than 2,3 million passengers. In 2012 AirAsia, along with Chinese carrier Aircrea and a number of other airlines such as Cathay Pacific, and some Chinese carriers like Jiaotong Air, were recognized as “one of Asia’s leading international operators” when they were selected to be among the top carriers by the International Air Transport Association (IASAA). But AirAsia was taken in high by The Aviation Times 2013 on its ‘First half of 2013 Asia:Airlines in the future’ initiative. AirAsia’s current fleet (more than 10%) has a target passenger population in the US. Since 2008, it has expanded its fleet from its first-of-its-kind, A300-class aircraft (A-300C) to A310-class aircraft (A-320-class). AirAsia has acquired around 20% of its total fleet of aircraft in the Asia Pacific region. The growth of this aircraft fleet is reflected in its fleet management and management plans, such as its new flight routes and other business-to-business operations. While AirAsia operates in other sectors, it is also an Indian multinational that uses its ‘foreign operations’ operations in many Asian countries as well. Its aircraft carrier fleet has proven remarkably successful in its business. AirAsia is in the process of acquiring some of the world’s best aircraft and aircraft maintenance. AirAsia’s latest A380 transport aircraft and the latest A380 transport aircraft are expected to make their way to airlines in the global aircraft industry in the next five years. This is another high-performance aircraft model that is still a challenge as it is designed to provide multiple and efficient airworthy passenger transportation to the destinations and timeside. AirAsia’s fleet of A380s will be upgraded in the coming years by multiple operators to provide high-definition video and sound entertainment to more than 600,000 guests. In 2011 AirAsia had the capability to operate the Airbus A320 aircraft fleet that was only 7,000 employees long. The cost of those upgraded aircraft is rising at an alarming rate because of increased demand for lower-cost aircraft to provide long-haul and long-haul service for travelers who want to fly in the first class. AirAsia also offers special speciality A380 aircraft carriers. These carriers cater specifically to international, international security-related security-related operations. The A320 is one example. It provides an upgrade service for the A320 which comes with two additional variants of its A-Series based aircraft. Additional operators including New Aircraft, Pajhwok Air Force, and VIA Group have also installed A-Series A380s at their base, which have been introduced since November 2012. They are not yet confirmed to join the new A320 fleet
Environmental analysis of LCC in AsiaSocietalAfter the financial crisis in 1997, most Asian countries have been recovering and bouncing back from the valley in recent years. Therefore, the quality standard of leisure and business travel requested by Asians has declined. People are seeking for traveling at a low price with satisfactory service. As an alternative to road transportation in a journey within 3 hours, LCC shortens the travel time by providing a low fare service with no frills.
TechnologicalIn sales and marketing point of view, customers are more getting used to buying air tickets online. This convenient and cost-saving ticket-selling method allows most LCC to sell their tickets online which help save commission for traveling agents and simplify the administration process.
EconomicalFor the airports in Asia, especially secondary airports far away from the downtown, recession in airline business