Swot analysis for airasia

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Oil price at six month high. Another economic threat is the increasing entrants of low cost airlines.

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They would also make it nearly impossible to resume services to Europe as efficiency improvements that come with new generation aircraft would be offset.

The current four-hour rule puts AirAsia X at a strategic disadvantage while the licensing agreement poses a long-term risk.

Swot analysis for airlines

AirAsia continues to grow faster than any carrier in the region, so is well placed to compensate with frequency. Having the increase in fuel prices and the need to drop prices to compete might cause AirAsia to lose profit, considering other companies might surpass AirAsia due to its lack of safety. In terms of physical resources, they charge every service during their flight, including luggage allowance, food, drinks, blankets, and seat arrangement. Thai AirAsia X also will likely start serving northern China by the end of , leveraging the strong brand AirAsia has built up in the mainland Chinese market. But being a low cost leader, AirAsia an upper hand because its cost will be still the lowest among all the regional airlines. Recycling routes abandoned by struggling rivals. This does not appear likely at this stage, although Japanese cancellations have escalated recently. While the Chinese visitor numbers in Thailand and Malaysia have dropped in , AirAsia X has seen rapid growth in China - Australia traffic, where upside is large and direct services are limited.

Examples of complaints are around flight delays, being charged for a lot of things and not able to change flight or get a refund if customers could not make it. AirAsia X outlook: High potential but challenges also loom AirAsia X has demonstrated the long-haul low-cost model can work with the right focus.

Swot analysis for airasia

The current four-hour rule puts AirAsia X at a strategic disadvantage while the licensing agreement poses a long-term risk. AirAsia X is well positioned to expand premium revenues and cabin AirAsia X has built up a strong niche in the premium end of the market, capitalising on its position as the only LCC with a lie-flat product. AirAsia X will continue to face intense competition Southeast Asia has become an intently competitive market, forcing AirAsia X to cut fares as it rapidly added capacity. It is believed there will be an increase of million more in the next 5 years Kharas, Homi. Thai AirAsia X also will likely start serving northern China by the end of , leveraging the strong brand AirAsia has built up in the mainland Chinese market. It has done so by reshaping the low-cost airline model, achieving many of the full service airline connectivity features, but at a much lower cost. CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets. Consequently, AirAsia X gains a disproportionate cost improvement as fuel prices fall, both giving the airline an advantage when competing head to head with full service airlines and in terms of the range that can be flown commercially. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals medical tourism , Citibank AirAsia Citibank card has created a very unique image among travellers.

AirAsia X could be used to up-gauge existing AirAsia flights of under four hours where slots preclude additional frequencies Hong Kong is slightly under four hours from Kuala Lumpur. Singapore Airlines ' long-haul low-cost subsidiary Scoot also now operates two short-haul routes.

AirAsia X is well positioned to expand premium revenues and cabin AirAsia X has built up a strong niche in the premium end of the market, capitalising on its position as the only LCC with a lie-flat product.

Airline swot analysis pdf

Oil prices have surged to six-month highs above USD65 per barrel. If the government were to continue to increase fuel price, it can destabilize the business model, causing this airline to either increase their prices, or go bankrupt. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals medical tourism , Citibank AirAsia Citibank card has created a very unique image among travellers. Swine flu spread. There are a lot of socio-cultural opportunities for the organization that accesses to different countries for a cheap price, especially when the 21st Century emphasizes on globalization and diversities. This has helped AirAsia to open up and capture a sizeable market in Thailand. Oil prices have tended downwards recently, to around 12 month lows, although they remain above USD90 per barrel; jet fuel has fallen in sync. Without the restructuring it is unlikely AirAsia X would have been able to complete an initial public offering in Jul But AirAsia X continues to be successful in China and is looking to further expand its Chinese network. Most of the full service airlines have or planning to create a low cost subsidiary to compete directly with AirAsia. If these services are included, the plane ticket to be more expensive than full service carrier. Lufthansa for example is explicitly exploring the possibility of partnering with another airline to deliver a long-haul low-cost operation. This situation provides unique long term opportunities for AirAsia

This will definitely increase the competition among the regional airlines. A political threat for AirAsia is the continued increase in fuel prices.

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Hence, with its distribution network and cheap price, more globalized individuals are willing to travel around the world, and more companies are willing to travel to conduct transactions overseas within budget.

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Case Study on Business Strategy of Air Asia