Success story of airasia Essays

Success story of airasia Essays Success story of airasia Essay Success story of airasia Essay The business world Is a tough one. Unless one Is lucky enough to establish Itself In the market that has very few competitors, every business usually have a very rough time. And in todays scenario, where there is high level of competition not only on the local, regional, and national front, but also from global enterprises, the business world has become a place where it is difficult to even get by. The Lorene Industry too Is one of the toughest and most challenging In the world today, and has been so for last couple of decades. Ever since the winds of globalization started blowing all over the globe. It was always a difficult task for an airline to establish itself in a competitive market and Air Asia too faced the same hurdles that many other airlines faced. The difference however, is that Air Asia managed to rise above its initial setbacks and is today one of the most influential and successful airlines in Asia as well as the global aviation sector. The Lore ne was founded In the year 1 993 and the first flight of Alarm Salsa took to the skies In November 1996. Within a few years, the airline was heavily In debt and there was talk that the airline would have to wrap up its operations and say goodbye to the aviation sector forever. In the year 2001 however, Tony Fernando, the business honcho known for his shrewd business skills took an interest in the airline and his company Tune Air SD Bad finally took over the same year at a token amount of Just 1 ringing. At that time, a debt of USED 11 million was staring in the face of the airline and only a miracle could save It. The miracle was Tony Fernando and his efficient management and operational executives. After the takeover, Air Asia developed a new strategy to attract customer by offering flights at fares as less as MYRA 1. This created a lot of hype for the airline and customers were soon lining up for tickets. Another strategy of introducing new routes and revamping the operational aspect of the airline saw Air Salsa doing a complete turnabout and the company recorded a profit In the year 2002 Itself. The year 2003 saw Air Asia take another leap by starting off with international operations in the form of a flight to Bangkok. Singapore soon saw more and more Air Asia international flights taking off from its airport and so did other cities in many countries all over Asia. This momentum was never lost out on, and today, Air Asia is a name that holds a prominent position among the low fare carriers and also among all other carriers In the aviation Industry. Growing with the region From a 2 aircraft- and 250 staff member-company, Eurasia now has approximately 130 aircrafts and employs 10,000 people. It has 15 hubs In the SEAN region, flies to 10 Hong Kong SARA, Macaw, Taiwan, China, India, Japan, South Korea, Australia, Nepal, and Saudi Arabia. Sixty-five (65) of its 95 destinations are in Southeast Asia. Eurasia carried 37 million guests in 2012 alone, and more than 200 million guests to date, making it the biggest airline in SEAN in terms of passenger volume. It has been operationally profitable every year since 2001. But whats more encouraging is news about the airlines business impact. Raisins operations trigger economic activities and benefit not Just the airlines employees and their families, but also indirectly offer anis to players inside and outside the travel and tourism industry. SEAN people and location Aside from its low-cost business model, Eurasia attributes its growth to its people. Raisins workforce comprises of people from different SEAN countries, allowing the airline to benefit from SEAN talents diverse backgrounds and familiarity with the region. Raisins strategic location in Southeast Asia is equally important. Raisins location allows the airline access to the regions 600 million people needing affordable air travel. Its proximity to China and India, as well as Japan and South Korea, further expands Raisins reach to a market of more than 3 billion people. It also gains from Jeans growing economy and expanding middle income class. More people are now flying as SEAN populations disposable incomes increase, economic and business activities rise, and Gaps of most SEAN countries grow. Heavily invested in SEAN Eurasia believes SEAN is the place to be in now. Confident of continued growth in the region, it is thinking of setting up associate airlines in other SEAN countries. It plans to open more routes, increase flight frequencies, offer new products and revise, and set more Joint ventures in the region. As part of its regional expansion, Eurasia X has ordered a total of 25 units of Airbus AWAY and 10 Airbus AWAY, while Eurasia ordered 475 units of Airbus AWAY aircraft, making it the largest airline customer of Airbus for its AWAY model. It is bullish on the SEAN Community and sees the SEAN integration as a component of its future success. For Eurasia, an integrated SEAN will result to more streamlined operations, increased access to a bigger talent pool, higher demand for travel, and a more encouraged investment limited. The implementation of SEAN Open Skies, in particular, is envisioned to mean growth in number of destinations and frequencies, and true liberalizing of air travel. Towards this end, Eurasia has established Eurasia Sean to support rationalization efforts within and outside the company. It has begun to prepare the Eurasia Group for the SEAN Economic Community (ACE) by 201 5 and has been a steadfast advocate of SEAN integration efforts as it urges business community to transcend a national mindset and embrace a regional outlook. Everyone can fly Eurasia continues to pave the way for low-cost air travel thru innovative solutions, efficient processes, and a passionate approach to business. With its tagging Now everyone can fly, it holds fast to its aim of making air travel truly accessible to not only the 600 million people in SEAN but also to the billions of people who together call SEAN, Northeast Asia, and South Asia home. 1)Never afraid to challenge the norm. A few years ago, people had to call a travel agent or airline operator to buy a flight ticket. Air Asia challenged the norm by riding on the e-commerce wave. It invested in user-friendly website interface and allows travelers to book and print flight ticket anytime and also introduce online check in services. This has proven to be enormously successful especially in engaging with toughen-Y customers. 2)Dare to Think Big and Serve the right Customer Air Asia business model has always been focusing in low cost operation and serving the mass market. They know their targeted customers well and do not directly compete with other premium airlines. 10 years ago traveling by air was a luxury. Air Asia was daring enough to think big and today, it is truly Everyone Can Fly.