Airasias Business Model: Low Cost Carrier.

The business models. AirAsia’s success has taken flight through the continued confi dence of our guests who prefer a no-frills, hasslefree, low fare and convenient option in air travel. The key to delivering low fares is to consistently keep cost low.

It is considered a success, achieving the lowest industry CASK (cost per available seat kilometre), with plans to expand. 15 AirAsia thus has the rare distinction of having succeeded in both segments (i.e. short-haul and long-haul) using a LCC business model — defying industry logic that LCC business models cannot be successfully applied for long-haul destinations.

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. So that, there is no seat assignment offered. Catering is not included on the.

AirAsia is one of the leading airlines corporation of Malaysia that performed exceedingly well in terms of its past investments and the profits that it made out of it after it’s relaunch. It was acquitted by a private entrepreneur Tony Fernandes when it was highly under debt. The sudden changes in the profit graph came to the surface soon when it announced its first profit right in seven.

AirAsia makes the low fare model possible and create values through the implementation of the 6 key strategies.The first of the key strategies is Safety First, AirAsia wan to be partnering with the world’s most renowned maintenance providers and complying with the world airline operations.

AirAsia business model was also proven that they was able to offer the lowest fares, where in every year AirAsia was hold the highest ranking of demand from the customers, and each year also AirAsia was gain profit. Other than that, most of the sales of AirAsia were from online, online ticketing was introduced by AirAsia.

Values that constitute the organization culture. In Airasia, they value into making a low-cost, long-haul segment while maintaining the quality of service of that in a high-class airline and providing high-frequency and point-to-point networks to the long-haul business.

On this paper, I would like to identify and analyze the AirAsia Company strategic management: “ How AirAsia can be a leader in the lowest cost carrier in the airplane industry”.I’m interested to more deeply identify and analyze the strategic management in AirAsia Company because AirAsia have a lot of achievement and awards since year 2001 until present and than they have the greatest.

AirAsia owns many subordinates in many Asiatic states, since cold war, with intense relationship between China and Japan, Taiwan, continues struggle between South Korea and North Korea, the flights of AirAsia are affected by these political factors, the relationships among Asiatic states are hard to fortell and the political relations in each state seem unsteady ( Yahuda,2005 ).

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