Air Asia Strategic Analysis

STRATEGIC ANALYSIS OF AIRASIA THE BEST LOW-COST CARRIER AIRLINES IN THE WORLD ASSIGNMENT FOR MICROECONOMICS FACULTY OF ECONOMICS AND BUSINESS NATIONAL UNIVERSITY OF MALAYSIA BY: IWAN BUDHIARTA P-46048 MALAYSIA 2009 I. INTRODUCTION 1 A low- constitute carrier (also known as a no-frills or discount carrier) is an airline that offers low f ares but eliminates all non-essential services. The typical low-cost carrier business mold is based on: a single passenger illuminate a single type of airplane (reducing training and overhaul costs) a simple fare scheme (typically fares increase as the plane fills up, which rewards early reservations) free stooling (which encourages passengers to board early) direct, localize to point flights with no transfers flying to cheaper, less congested secondary coil airports short flights and fast turnaround times (allowing maximum work out of planes) Free in-flight catering and other complimentary services are eliminated, and replaced by optional paid-for in-flight food and drink. Simple Product A typical low cost airline product is super basic. It focuses on getting passengers from point A to B, cutting out all the extras. This means there are no meals, drinks or snacks served free on board.

In certain airlines, these may be purchased on request. The aircraft have Narrow seating to permit great capacity. Low cost airlines offer all-economy flights, with 2 no spare set requirements for wider business class seating. This means more passengers can be accommodated on each sector. There are no facilities for seat allocations as this free-seating makes passengers board the flights early to get themselves a the right way seat. The pricing structures of low cost airlines allow for no additional schemes or sales promotion activities, including frequent-flyer programmes. Positioning The low cost airlines the world over are known to target Non-business passengers, leisure time traffic and the... If you want to get a full essay, ready it on our website: Orderessay

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