Air Asia Company Analysis Essays

3172 Words 13 Pages
Accounting & Finance
TP 023513
UC1F1007BMP (AF)
Utari Asmelia
Introduction of Management
AirAsia Company Analysis

Background of AirAsia Company
Dato’ Tony Fernandez was the entrepreneur that brought up AirAsia to be the one of the award wining the largest low fare airlines that is currently well known for now in Asia. Since then it has been flying to over 61 domestic and international destination with 108 routes, and furthermore it operates over 400 flights daily from hubs that are basically located in Malaysia, Thailand and Indonesia.
Today if we look at their progress, AirAsia has flows over 55million guests across the region and continues to create more extensive route network through its associate companies.
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With the introduction of the ‘no frills’ concept to the Malaysian market, AirAsia has proven this theory wrong and goes from strength to strength by actually increasing the size of the market and more recently by taking away passengers from the major airline competitors. With its expending strategy as objectives to reach excellent standard around the world, marketing in Asia has been the key player to achieve success.
AirAsia is one of the business that have successfully adopted cost leadership through operational effectiveness and efficiency. The cost advantages have enabled AirAsia to become the Asia’s leading low fare airline. AirAsia has successfully positioned itself in customer’s mind. Its net profit for the second quarter ending 31 December 2004 was reported RM 44.4 million, a 323% increase over the previous quarter. AirAsia until today has flown more than 55 million passengers in and around Asia. AirAsia has also ventured into other market that complemets with the airlines business. It has started franchises like the tunes hotels and red box couriers to gain maximum efficiency in and around the airline business.

There’s economic aspects which AirAsia did:

* AirAsia holds 49% of Thai AirAsia with 1% held by a Thai individual. The remaining 50% is held by Shin Corp., owned by the former Thailand prime minster, Thaksin Shinawatra. Shin Corp. has financial strength, synergy in information technology and telecomunications,

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