Airasia Group Case Study
Identify and describe the following elements of these companies.Customer value propositionAir Asia has a value proposition as being the leading low cost carrier in the world. Recently, Â Air Asia has been named the “Worlds Best Low Cost Airline” and “Asias Best Low Cost Airline” for the sixth consecutive year by the Skytrax World Airlines Award. AirAsia Group Chief Executive Officer Tan Sri Tony Fernandes said it was a great honour to be acknowledged as the worlds best low cost airline for the sixth consecutive year. “It all started with a dream 12 years ago. From two aging aircraft and six routes back in 2002, we have grown to operate a proud fleet of over 160 aircraft, flying to 95 destinations and having carried over 250 million guests,” he said in a press release.[1]AirAsia prides itself for connecting people and places across 132 routes, 40 of which are offered by no other airline. In 2010, the Group, which includes affiliates AirAsia Thailand and AirAsia Indonesia, reinforced its leadership position with two remarkable milestones flying its 100 millionth guest and breaking the RM1 billion profit barrier.From an airline with two aircraft plying six routes in Malaysia in January 2002, AirAsia has soared in the last nine years to cover 65 destinations in 18 countries. Today, employing more than 8,000 staff and with a market capitalisation of just over RM7.06 billion (as at 31 December 2010), it is the only Truly ASEAN airline, serving the regions 600 million population from 10 hubs in three countries – Kuala Lumpur, Kuching, Penang and Kota Kinabalu in Malaysia. Bangkok and Phuket in Thailand. As well as Jakarta, Bali, Bandung and Surabaya in Indonesia.
In 2011, they introduced two hubs, Chiang Mai for AirAsia Thailand and Medan for AirAsia Indonesia. Singapore functions as a virtual hub where AirAsia features among the top 10 airlines in terms of contribution to passenger traffic. Further strengthening its ASEAN network, the Group in December 2010 signed an agreement to establish a Philippine-based low-cost affiliate.[2]Another strong proposition that air asia has is due to its slogan, “Now everyone can fly”. This was part of their marketing scheme way back then. Till today, this slogan still carries an impact towards the success of AirAsia. AirAsia has then set the benchmark for marketing schemes in the aviation industry. One of it goes like this: “We started flying 13 years ago with the aim of opening the skies to everyone. Not just business people or students or grey nomads, but everyone. And it seems like everyone liked the sound of that, because we’ve been voted world’s best low-cost airline an unprecedented six years in a row. And you know what? We like being popular! That’s why we fly to over 120 destinations in Asia. Why we were the first low-cost airline in the world to offer Business Class Flatbeds. Why we only charge for the extras you use. And it’s why we keep our fares as low as they can go, every single day .But even with all the awards and plaudits, there’s only one thing that gets us really excited: wondering where we can take everyone next”.[3]