Air Asia Swot Analysis

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Table of Contents

I.        EXECUTIVE SUMMARY        2

1.        INTRODUCTION TO AIR ASIA        3

2.        HISTORY OF AIR ASIA        3

3.        PRODUCT AND SERVICE OF AIR ASIA        4

3.1 SERVICES OF AIR ASIA        4

3.1        PRODUCT OF AIR ASIA        5

4.        SWOT ANALYSIS OF AIR ASIA        6

4.1 INTERNAL ASPECTS        6

5.        AWARDS AND ACHIEVEMENTS OF AIR ASIA        9

6.        VRIO FRAMEWORK OF AIR ASIA        16

6.1 LOW-COST CARRIER BUSINESS MODEL        16

6.2 FLAT ORGANIZATIONAL STRUCTURE        16

6.3 BRAND REPUTATION        16

7.        CONCLUSION        17

8.        RECOMMENDATIONS        18

9.        APPENDIX        19

10. REFERENCES        21

1. EXECUTIVE SUMMARY

This report is about the SWOT analysis review of Air Asia mainly on its internal environment. Through internet research, we have gathered information about Air Asia and analysed how it has affected Air Asia’s product and service since it started as a business. We have used internet for all the research and the information is gathered from online articles, online journals videos, online annual report of Air Asia etc.

The main topics covered are SWOT, 4P’s of the marketing mix, VRIO framework (brand, organizational structure etc.)

The reason why we chose this topic is because Air Asia has a very interesting history about how the founder built it over the years. Today, it is the world’s largest low-cost carrier and has accomplished the trust and loyalty of so many customers. What is even more thrilling being how the low cost is maintained despite its many obstacles such as the rising economy and the way Tony Fernandez has managed to navigate the company through its ups and downs. Not only that, we really adore him on how he cares for his employees and want them to be happy as they work.

All the little things he has considered for everyone brought him a long way and researching about Air Asia and writing a SWOT analysis review on it has enabled us to understand what kind of commitment, planning and marketing is required to keep your product in the market.

1. INTRODUCTION TO AIR ASIA

AirAsia is 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 9 times in the recent years. 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. (Airasia.com, 2017)

1. HISTORY OF AIR ASIA

The airline was established by a Malaysian corporation in 1993 and commenced operations in 1996. In December 2001, Tony Fernandez of Tune Air Sdn. Bhd. Purchased the establishment for the price of RM1 as it was drowning in debts and owners had no hopes in the future. It was Tony Fernandez’s dream to start an airline since he got an idea when he was in boarding school at Epsom, England.  ‘I remember calling my mom to ask if I could go home for half-term, and she said she was afraid it was too expensive. From there on, I thought what it would be to have a low-cost airline. Years later, the music business wasn’t doing so well so I quit and decided to try something new. That is where I came across the Rm1 deal and committed to my dream’ – Tony Fernandez, BBC interview. (YouTube 2017)

Under the leadership of Tony Fernandes, the airline was flying high in 2002 and launched its new route that year. Tony is very concerned about his employees. ‘For me, I would say Employees come first, then the customers. If they enjoy where they are working, they will automatically serve your customers well. There should be inner branding before they can go out and explain the product to other people.’ (YouTube, 2017)

He wanted his first flight to be from London to Kuala Lumpur as it was his emotional moment reminding him that his dream came true 35 years later.

In 2003, a second hub was opened in Senai International Airport, Johor Bahru, as well as the airline’s maiden international flight to Bangkok. After that the only place AirAsia was heading for is up, as the Thai and Indonesian subsidiaries were set up as well as the commencement of flights to Indonesia, Macau, China, Philippines, Vietnam and Cambodia in 2005. AirAsia now flies to all ASEAN countries, a great portion of Asian countries that include India, Iran, Sri Lanka and Bangladesh; as well as to the United Kingdom, France, Japan, Korea and Australia via AirAsiaX. In 2011, we are setting up another AirAsia hub in the Philippines and are well on the way in setting up other similar operations elsewhere in the region soon after. (AirAsia, 2017)