What is the business model of AirAsia?

What is the business model of AirAsia?

AirAsia’s business model is Low Cost Carrier (LCC) that showed as above. There are 3 attributes that contribute to LCC business model, which are simple product, positioning, and low operating cost. Simple Product attribute for AirAsia Company is referring to the plane seating that is narrow and with only one class.

What business strategy made AirAsia a successful company?

Air Asia has adopted a generic strategy of cost leadership by reducing the cost of operations and passing the savings through to customers with very low ticket prices. The firm was founded in 1996 as a low cost domestic airline, and was purchased by Tony Fernandes in 2001.

What is AirAsia strategy?

AirAsia X’s stated strategy is: to be the leading low-cost, long-haul airline, operating primarily in the Asia Pacific Region, with the lowest unit cost of any airline in the world (CASK of US¢3.74 and CASK ex-fuel fuel of US¢1.90 for 2012), about 70% lower than full service airlines in the region, offering fares 30%- …

What is the business level strategy adopted by AirAsia?

The business level strategy adopted by Air Asia is a cost leadership strategy – LCC, and selling their services below the average industry price.

Is AirAsia undervalued?

Compared to the current share price of RM1. 0, the company appears quite undervalued at a 45% discount to where the stock price trades currently.

How does AirAsia reduce cost?

KUALA LUMPUR (April 29): AirAsia Group Bhd expects to achieve at least a 30% year-on-year cost reduction in 2020 as a result of initiatives implemented, including deferring aircraft deliveries and restructuring its fuel hedges. As such, it expects to end 2020 with 242 aircraft, one aircraft less than last year.

What makes AirAsia successful?

Then, with directed content analysis, AirAsia’s critical internal success factors can be attributed to extraordinary entrepreneurial foresight, skillful application of low-cost airline model, unconventional marketing approach and its corporate culture.

What is a business level strategy?

A business level strategy definition can be summarized as a detailed outline which incorporates a company’s policies, goals, and actions with the focus on being how to deliver value to customers while maintaining a competitive advantage.

Will AirAsia bounce back?

In contrast to the domestic recovery, international services are still skeletal for most Asia-Pacific countries due to border restrictions and closures. AirAsia is “optimistic” that international passenger services will resume in the second half of 2021, said Bo Lingam, the group’s president of airline operations.

Can AirAsia survive?

Further, Tony Fernandes doesn’t expect to see any significant rebound in international operations until later this year. But he is happy AirAsia (and most other airlines) are still alive. “The good news is most airlines are still alive. All the low-cost carriers in Southeast Asia are still alive.

Why is AirAsia stock dropping?

AirAsia Group Bhd. shares fell after the carrier posted a record loss and 92% plunge in revenue, as coronavirus restrictions affected travel demand internationally and in Malaysia. “Lockdowns announced in Malaysia for the month of October and November further dampened sales.”