Airasia Business Model

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Air Asia Company Backgrond AirAsia Berhad is part of the AirAsia Group, a world-famous low cost airline that operates extensive networks both domestically and internationally. AirAsia pioneered low cost airfares in Asia and is now currently the largest low fare, no-frills airline in Asia. It is also one of the largest airlines in all of Asia in terms of passengers carried. AirAsia has also been voted the World‟s Best Low Cost Airline in 2009 and 2010. AirAsia Berhad is currently based in the Low Cost Carrier Terminal (LCCT), Kuala Lumpur International Airport (KLIA), Sepang. Its associate airline - AirAsiaX, is also located at the LCCT and shares operational facilities with AirAsia Berhad. History of AirAsia The airline was established by…show more content…
AirAsia Bhd Low Cost Carrier(LCC) Business Model. AirAsia significantly adapt the low cost carrier model and changed the definition of airlines that air travels are the luxury transportation and only for the upper class people of the population. The key objective of the business model is to discover and provide the services to the bigger population in targeted areas. Here are the low cost carrier business models that AirAsia used as guidance’s: Simple Product  Catering on demand for extra payment.  Planes with narrow seating and only a single class.  No seat assignment.  No frequent flyer programmes. Positioning  Non-business passengers, especially leisure traffic and price-conscious business passengers.  Short-haul point to point traffic with high frequencies.  Aggressive marketing.  Secondary airports.  Competition with all transport carriers. Low Operating Costs  Low wages.  Low airport fees.  Low cost for maintenance, cockpit training and standby crews due to homogenous fleet.  High-resource productivity.  Short ground waits due to simple boarding and…show more content…
Thus, every employee of an AirAsia have to play big role to create the safe environment. big role to create the safe environment. So the safe environment in this case it means every stakeholders must follow the rules and guidelines on the process of how to control people and maintaining the equipment that involved. In other words AirAsia have to make substantial effort and continuously improve their safety quality. Cost Efficiency To ensure “Now Everyone Can Fly” a reality Air Asia have to control their cost and fares at low prices. Their aim is to be the most efficient airline in the industry, so in order to achieve that AirAsia have to reduce wastage, resolve the inefficiencies, increase value spending and maintain it throughout the organization. Collaboration and Innovation As we already know AirAsia Bhd have quite broad knowledge, the experience and the expertise to improve their organization and tackle every situation at their best. Indeed for them the collaboration will helps the innovation and grow bigger, as some proverb saying “If u want to go fast go alone, if u want to go far go together”. In fact by more collaboration been made AirAsia would be what they want, truly AESEAN
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