Top level management absolutely considers these factors during the setting overall goals. These key success factors give a widespread knowledge for the entire company.
The AirAsia Case A. Shokri2, d and M. Noordin1, e 1 Dept. Demand for air transportation has boomed extensively in Southeast SE Asia during the past decade as a result of economic development and the lack of land routes between destinations.
The purpose of this study is to focus on the cost-leadership competitive strategy applied by low-cost carriers LCCs in SE Asia airlines and explore Key success factors of air asia elements that affect the competing capability of these airlines in the region.
|Clarke, The hidden value of air transportation infrastructure, Technological Forecasting and Social Change, vol. Ishikura, Low-cost carriers in Asia:|
Furthermore, the study attempts to illustrate the key success factors that have resulted in the superiority of AirAsia AA airline among other LCCs airlines in the competitive market of SE Asia. Hence, AA attempts to cope with these barriers have been illustrated in this research.
Introduction There are a large number of literatures that assess and justify the role of airports and air traffic in the economic activities of countries . Air transportation is an essential strategic transportation mode because it provides accessibility to markets thus enabling the economic development of countries around the world .
Air transportation is also essential for Asian countries as it not only enhances the tourism industry, but also it improves the mobility of people. Several Asian countries, including the Philippines and Indonesia, have many islands which are not connected to one another by road.
Although, countries in the Indochina Peninsula or the Greater Mekong Region are connected by land; their roads and railway infrastructures are absent or in poor operating conditions .
Therefore, air transportation especially low-cost carriers LCCs can be a key solution to overcome the obstacles of mobility in this region. A low-cost airline usually has many features that distinguish it from traditional carriers. According to previous studies, LCCs are usually critical throughout producing traffic congestion on routes and developing new tourism capacity resulted in more revenue.
Furthermore, LCCs naturally can attract passengers from large catchment parts due to low airfares offered [4, 5].
SE Asia has an extensive network of low-cost budget airlines that is rapidly developing. As a matter of fact, SE Asia is probably the most developed area for low-cost aviation in Asia.
AirAsia AA which is, based in Malaysia is a well-known company that is pioneer in implementing the cost-leadership strategy in SE Asia.
It can be also considered as one of the largest and most comprehensive budget companies in that area .
Thus, this paper provides a brief overview on the key success factors that have resulted in superiority of AA airline over other LCCs airlines in the competitive market of SE Asia. In addition, it is pointed out how AA can maintain its profitable LCCs leadership position in the airline industry and become superior over its competitors.
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By effectively using these factors, Ryanair and AA have become successful pioneers in the LCC airline industry in the world that indicates the importance level of implementing these cost advantages factors in this business . Organization size has a strong correlation with economy of scale.
Larger companies have cost advantage over the smaller ones due to the existence of economy of scale in various parts of their business such as marketing, service and distribution. Furthermore, larger companies are more capable and flexible in reducing cost, especially overhead cost, that results in higher revenue .
Organization size in airline industry can be recognized by the number of passengers that travel using that airline.
Likewise, it can be referred to the number of seats that an airline can provide using its fleet [8, 9]. Increasing the number of planes in the fleet can directly increase the supremacy of the company in a targeted market.
When demand exists, increasing the number of planes can bring more revenue tothe airline as it may decrease the overhead costs and increase the flexibility.
Furthermore, it allows airlines to operate in more routes that may increase the possibility of new markets . Selecting the type of plane with the appropriate capacity when operating a particular air routes would be another source of economy of scale .
Various types of planes have various capacities for transferring passengers.
Long-haul carriers with high capacity can incur less cost to the airline when transporting more passengers. In addition, they have less cost in distribution and airport handling.Key Success Factors For Air Asia Essays and Research Papers. Search. Key Success Factors success factor is a performance area of critical importance in achieving consistently high productivity.
There are at least 2 broad categories of . AIR ASIA Executive Summary Strategic management has played a key role in the success of many business organizations in the world including airlines and Air Asia is no exception.
Commencing in , within fifteen years, Air Asia managed to expand its operations into another ten countries. Furthermore, the study attempts to illustrate the key success factors that have resulted in the superiority of AirAsia (AA) airline among other LCCs airlines in the competitive market of SE Asia.
This study shows that the regulatory environment in the region’s air transportation business is an important barrier for the development of local. Furthermore, the study attempts to illustrate the key success factors that have resulted in the superiority of AirAsia (AA) airline among other LCCs airlines in the competitive market of SE Asia.
The research shows that the regulatory environment in the regions air transportation business is an important barrier for the development of local.
Key Success Factors in Airlines: Overcoming the Challenges Marcella Riwo-Abudho 1, Lily W. Njanja 1 & Isaac Ochieng 2 1 School of Business, Kabarak University amongst air carriers.
Bunz and Maes () state this is . 3 AirAsia Success Factors that entrepreneurs should look at to grow their businesses. 10 years on after taking a bold chance to start a low cost airline, Tan Sri Tony Fernandes has built AirAsia from two planes to aircraft today, flying to more than destinations spanning 25 countries, making the slogan “Now Everyone Can Fly” comes true.