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Swot Examination For Air Asia Advantages Management Essay

The first phase of the swot evaluation is the talents examination for Air Asia. There are a few unique talents of Air Asia that others company could not defeat them. First and foremost, Air Asia has a very cooperative and strong management team with strong contacts with the federal government and the flight industry leaders. This is because Air Asia contains different record of professional management users team from different varieties of industry experts and ex-top federal government officials. For a good example, Shin Corp before which owned by the family of former Thai Prime minister which name ThaksinShinawatra have maintain around a fifty percent of stocks in the Air Asia branch which located in the Thailand. Because of this reason, it offers help to create and explore up yet draw in a sizeable market in Thailand. Besides that, Air Asia have a solid working romantic relationship with Air bus that assist them to get plane for discount which air craft can save more gasoline which is fuel efficient in comparison to Boeing 737 planes that lots of airlines company are employing currently.

Besides that, air asia management team is also famous in strategy formulation and execution. The strategy thatthey have created at the beginnings was a brilliant blend of strategies which have proven by other low cost airlines which located in US and European countries. Those strategies include Ryanair's operational strategy which is signify no frills or getting in secondary airport terminal, second is the Southwest's people strategy which also known as as worker comes first strategy, third is the Easyjet's branding strategy which signify a link between other companies such as hotels, car hire etc. On the other handAirAsia'sbrand name is more developed in Asia Pacific. Ignoring the common print marketing advertising and special offers, Air Asia's top professionals also expert to make promotions through media with their slogan of 'multimedia friendly' and provide free sharing and advertisements of the latest kept up to date information of Air Asia such as current packages, fees, special discounts and the others. Alternatively, Air Asia have a good partnership romantic relationship with the other service industry such as hotels, hostels, car rentals firms, medical travel and leisure such as nursing homes, buses, taxis and others. Meanwhile, Air Asia also have partner with Citibank to build an Air Asia Citibank Card and have professional and visa greeting card. This have really convenient the tourism and hence create a very special image among the travellers. Air Asia likewise have alliance with Galileo Global Syndication System that convenient the travel and tourism agents internationally to check the flight information such as the flight fees and timetable and make arranging which also result strengthen Air Asia string brand. Furthermore, Air Asia have some strong branch in other country such as Indonesia Air Asia and Thailand Air Asia have effectively increase the brand to become a local brand and can compete with Malaysia branch of Air Asia. Air Asia also has asked one of the world's famous basketball team Manchaster United and the AT&T Williams Method One team to market and boost the quality reorganization image to a larger extend.

Meanwhile, AirAsia is the reduced cost leader in Asia. Through Air Asia Academy, Air Asia has successfully produced an inexpensive air travel mentality and image among their working environment and labor force. This workforce is vital, versatile and high competence and pledges in making Air Asia end up being the leadership of low priced airlines in Asia. This low priced control can let all various income customers to own appreciated the affordable air fees. With the wonderful usage of IT and technology, Air Asia can straight involved in their promotional activities such as email to customers and desktop widget that was spouse developed with Microsoft for new promotions, with over three thousands hits per month and the most famous surfed booking engines internationally brand building activities and also retaining their low cost strategy through permit customers immediately purchase tickets and therefore can save the airline agent fees. The primary vision of the environment Asia that contain make Air Asia being successful is the emblem of "An inexpensive carrier that provides five-star service where everyone can fly. "

Furthermore, Air Asia hasprovided various local Malaysia foods for all the Malaysian customers andoffers in-flight services that promote Malaysian hospitality with their friendly and warm inviting service. Besides of providing a good hostility service, Air Asia also offers provided internet and mobile services as mediums for check-in and scheduling. Customers can always use their cellular phone to provide internet and online scheduling the seating or reserves. Additionally, it is quite convenience for customers is, Air Asia provide take a flight schedule and the costs from Malaysia to other countries or other countries to Malaysia price. Besides, customers can simply browse the time of take flight routine of Air Asia. With all the current convenient, Air Asia become the most favourite air travel in Malaysia for the clients. On the other hand, Air Asia provides comfortable car seats, secure basic safety and a sanitation environment for the customer so those customers feel safe during their fly times with the reduced price.

Furthermore, Air Asia have a very strong promoter and advertising of advertising. Air Asia always have deals that attract customers pursuits. Besides that, Air Asia have good marketing skills employees and technology of advertising which can affect customers attractions and selection of purchase. In addition, Air Asia is a well-established LCC working out of South East Asiaand it has businesses in over 25 countries and over 400 international and nationwide locations, and the most well-known vacation spot is Bali- Indonesia, Thailand - Bangkok, Korea-Seoul, Japan- Tokyo and Nagasaki, Taiwan and the other. In the meantime, they have subsidiaries in Indonesia, Thai, Philippines, Japan and it has a fleet size of practically 300 aircrafts.


Air Asia doesn't have its maintenance, repair and overhaul (MRO) facility. Although it is an excellent strategy with the hub and few planes only need to maintain when Air Asia getting their first voyage which only in Malaysia. However, with those few hubs that only situated in Malaysia, Thailand and Indonesia with over 100 planes that managed by Air Asia presently and another 100 planes which intended to be received in future next few years, Air Asia have to take proper activities of confirmation such as continuous of maintenance of planes with preserving the entire costs low. This is a competitive disadvantage that Air Asia do not have its own belonging of MRO facility which cause many difficulties.

Meanwhile, AirAsia will get lot grievances from customers on the service. Examples of complaints are around airline flight delays, being costed for a number of things rather than in a position to change flight or get a refund if customers cannot make it. It is crucial for Air Asia to have a good customer service and management when the marketplace competition is increasingly more intense. Besides, this is also scheduled to do not have too many routes as compared to market head. Which suggest Air Asia can't provide many travel schedule compared to the MAS for example. And Air Asia has a very stiff competition in its sector.


First and most important, there are 2 major occasions that are occurring. To begin with, is the increasing essential oil price. Second, is the "ASEAN OpenSkies" contract that has been reached. Gasoline price that contain been increase in society and competitors eyes may seem to be like a threat for Air Asia. Yet somehow Air Asia is a low cost innovator, it cost will still stay as the cheapest one of the other regional airlines this is because Air Asia can be an upper hand among others. Hence, Air Asia have a great chances to attract parts of the existing consumers of full service and customers that prefer low cost from other airlines. However, there will be also some decrease in overall travel performance which include everyday or budget tourists. The "ASEAN Open Skies" allows unrestricted plane tickets among ASEAN's regional air carriers starting December 2008. For this reason factor, Air Asia can continue to be competence and defeat the other regional airlinesHowever;this arrangement can be seen as more of a chance with the "first mover" advantages as well as its advantages in general management, strategy formulation, strategy execution, strong brand and "low-cost" culture among its workforce. Besides that, Air Asia have created some opportunity to spouse with other low priced airlines as Virgin to tap into their existing talents or competitive advantages such as brand name, landing rights and landing slots in other meaning is a chance to land on earth. Meanwhile, the population of middle income consumers have being consistently increased and therefore creates a more substantial market and an enormous chance for all low cost airlines in this area including AirAsia.

On the other palm, Air Asia will have the opportunity to promote Malaysian travel and leisure, which in return will increase the company's revenue. That is anticipated to Air Asia has a good government and citizen romance of Malaysia. Furthermore, Air Asia have agreement with Malaysia in the 'Cuti-Cuti Malaysia' and the whole customer that relate with the 'Cuti-Cuti Malaysia' will promote the Air Asia fly.

Meanwhile, within the South-East region there are lots of potential clients that contain foreign workers from neighbouring countries which include Indonesia, Myanmar, Philippines, and Vietnam which allow Air Asia to seize huge opportunities and hence also increasing the travel from India and the Indians customers normally like cheap and budget airlines as they are incredibly particular about the airlines fees.


There are a few of the dangers that face by air Asia SdnBhd, firstly, the environment asia faced certain rates like airport terminal departure, security charges and getting charges are beyond the control of airline operators. These costs which have been talk about is a significant threat to the airlines that intention to keep up their low cost strategy. For instance, Changi airport terminal in Singapore charges SGD21 for each person who departs from Singapore. Besides, AirAsia's profit margin is about 30% which has already attracted many challengers. Furthermore, many of the small airlines competition provide full service airlines have or likely to create an inexpensive subsidiary to beat down AirAsia. For instance, Singapore Airlines has created a low cost carrier Tiger Airways. Alternatively, Air Asia users' perception that budget airlines may compromise safeness to keep costs low.

Moreover, Air Asia experienced the threat of rising gasoline cost and labour costs. The price tag on the gas that continue increase caused air Asia can not be in a position to have low priced production and charge high, effect either increase price or reduce the fly route. Meanwhile, the employees of the environment Asia demand of the high salary and the increase cost of the training and personnel welfare cause Air Asia expenses have been increased.

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