Case Study Of Air Asia

Firstly, there are 2 major events that are taking place. First of all, is the ever increasing oil price. Second, is the "ASEAN OpenSkies" agreement that has been reached. The competitors seem like a threat for Air Asia due to increase of the fuel price. It cost will still remain as the lowest among the other regional airlines because Air Asia is a low cost leader. Hence, Air Asia have a great opportunity to attract parts of the existing consumers of full service and customers that prefer low cost from other airlines. The "ASEAN Open Skies" allows unlimited flights among ASEAN's regional air carriers beginning December 2008. Air Asia can still remain competence with other regional airlines and defeat them due to this factor. Furthermore, Air Asia have created some opportunity to partner with other low cost airlines as Virgin to enter into their

For instance, global economic downturn aircraft leasing costs were reduce by about 40%. Creating an environment with lesser competition and enabled AirAsia to lease their aircraft at a cheaper rate and it will leading to cheaper ticket prices for customers. Last several year, economic growth rapidly resulted in a burgeoning middle class within Asia’s large population. Demand for air travel increased together with increased. More people were willing to compromise on food and other services in exchange for lower prices. The attractiveness of budget airlines is primarily their lower ticket prices, which can be as low as 10-20% of those charged by full-service airlines. This presents AirAsia with opportunities to differentiate itself with competitors by adding customer services or operation as full service airline with low fare. It give it a competitive advantage and corporate travel services with its own branded credit card by further increasing brand awareness and value for