Air Asia Case Study Example | Topics and Well Written Essays - 1000 words

ship Asia - Case Study ExampleHowever, they tend to value quality service, and are willing to pay for excellent service. On the other hand, Asians are less likely to concentrate on quality of service, and are willing to compromise quality service for a low price. Furthermore, wad in the U.S. and Europe can use other forms of transport for short trips such as speed rail, bus etc. However, there are exactly any world class rails in Asia, and air choke remains the only option for many travelers. Some people in Asia skill use bus, but the advent of budget airlines has made it cheaper for travelers to fly instead. Given todays economic climate, low-fare service would be a hit in any luck of the world and the Gulf region is no exception. Although, the Gulf region has a good per capita income, lower and middle class travelers would nevertheless welcome low-fare service and it would unimpeachably affect the large carriers in the Gulf Region.Q2 Air Asia is a budget airline which was on the verge of bankruptcy, but sprang up in 2001 to become the worlds cheapest airline. Air Asia is a budget airline and succeeded in getting the lowest cost per kilometer of any airline. It was largely in part because of the declining demand for air travel and fleet purchases in the aftermath of 9/11. Thus, time was a key player in ensuring that Air Asia got the lowest cost structure possible. Furthermore, Air Asia likewise differentiated itself from other carriers by initiating ticketless travel. Under this new method, travelers had to book tickets online and there was no hassle to for travelers to go through agents. This made travel easy for the passengers and helped set ahead in the reduction of distribution costs. However, Air Asia was similar to other carriers because all carriers of its type focused on low cost travel and targeted small business concern travelers. Moreover, Air Asia just like other carriers also offered only three types of fares. This was to stimulate deman d for these carriers and attract travelers from major airlines like Malaysian Airlines. Q3 By meter reading the case study, I feel that Air Asia was wrong in its decision of Internet booking. Although this has been a viable option for many travelers, it has also meant that the airline is losing authorisation passengers who do not have access to the Internet. Air Asia is targeting relatives and small travelers and many might not have access to Internet. Furthermore, I also feel that expanding similarly much in a short period of time might have its disadvantages. Purchasing a lot of fleet might be a cause of concern given todays shifting business climate. It would be difficult to make monthly payments if uncertain conditions force demand to plunge. First, Air Asia came into the market at the right time. Just after the terrorist attacks of September 11, the aviation industry took an uncertain turn and there was a drop in demand. This caused the market for fleets to go cut back and leasing costs were reasonable, causing Air Asia to penetrate the market. Also, Air Asia expanded beyond national borders and grabbed the opportunity to serve neighboring countries. Moreover, Air A