Branding Satisfaction in the Airline Industry: a Comparative Study of Malaysia Airlines and Air Asia

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African Journal of Business Management Vol. 5(8), pp. 3410-3423, 18 April, 2011 Available online at http://www.academicjournals.org/AJBM ISSN 1993-8233 ©2011 Academic Journals Full Length Research Paper Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia Kee Mun, Wong* and Ghazali, Musa Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia. Accepted 23 March, 2011 Brand is crucial in differentiating

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The tough situation has forced the airlines around the world to revoke their traditional airline strategy and venture into new alliances and new business models in order to keep its competitiveness. One of the main developments in the current aviation industry is the growing popularity of low cost airlines, including the Asia Pacific region. As stated by O’Connell and Williams (2005), low cost airlines have intensified the direct competition with full service airlines, particularly during the weak economic situation in 2008 and 2009. Within Asia Pacific, airlines industry in Malaysia is expected to make a net profit of about US$ 300 million in 2010, making it the highest in the SouthEast Asia region. The aviation industry in Malaysia is dominated by two airlines. These are Malaysia Airlines and Air Asia. According to O’Connell and Williams (2005), Malaysia Airlines has been classified as a full service airline while Air Asia has been classified as a low cost airline. Malaysia Airlines, the national airline of Malaysia is serving both international and domestic routes across 100 destinations worldwide (including code-sharing flights). It has one of the largest fleet sizes in South East Asia and is one of only six airlines to have been awarded a 5-star rating by Skytrax (Skytrax). On the other hand, Air Asia is the first low cost
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