Private entrepreneur Tony Fernandez took over the debt ridden AirAsia airlines from the Malaysian government in December 2001, months after the terrorist attacks 9 / 11th A month later, he called the Southeast Asia’s first low cost carrier (LCC) relaunched the airline and scored an instant hit with greater profitability and rapid route expansion. Under the slogan “Now everyone can fly”, was able to keep AirAsia the lowest cost structure among its competitors, offering low airfare to cu … Read more »

Private entrepreneur Tony Fernandez took over the debt ridden AirAsia airlines from the Malaysian government in December 2001, months after the terrorist attacks 9 / 11th A month later, he called the Southeast Asia’s first low cost carrier (LCC) relaunched the airline and scored an instant hit with greater profitability and rapid route expansion. Under the slogan “Now everyone can fly”, was able to keep AirAsia the lowest cost structure among its competitors, offering Cheap flights to customers. We are innovative, to the bone Corporate, AirAsia pioneered several new services for the operation, including an ambitious plan that many other low cost, short-haul carriers considered risky extending services to include long haul. In 2007, AirAsia was ranked as the best LCC in the Asia region. His success was not only inspired many followers LCC in the Asia-Pacific region, but also severely threatened the well-being of full-service operators, especially its major competitors at home, Malaysia Airlines (“MAS”). In May 2008, MAS launched an unexpected price war by introducing the “Everyday Low Fare” campaign, with zero tariff for domestic and short-haul flights, which were largely dominated by AirAsia. Amidst rising airline costs globally and increasingly intense competition in the Asia-Pacific region, such as AirAsia could increase its competitiveness?
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from
Stephen Ko,
Claudia H. L. Woo
Source: University of Hong Kong
20 pages.
Release Date: 11 June 2009. Prod #: HKU833-PDF-ENG
AirAsia: Flying Low Cost with High Hopes HBR case solution

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