AirAsia

AirAsia purchased insurance policies to mitigate pure risk although it is done and operated a bit differently as it adopts an integrated approach risk management that goes beyond the traditional parameters of what is insurable. For instance, when AirAsia purchases insurance any policies to insure against pure risk, it also makes a conscious effort to acquire them at a much lower rate lower than other LCCs. In addition, to mitigate price risk, AirAsia hedged fuel prices at US$42 a barrel for the…

AirAsia has two main customers which is the young, fair conscious customer and business travelers whom are looking for low airfares to travel to their destination, safely and comfortably. AirAsia adopted low cost leadership strategy, hence, all sources such as labour, fuel and aircrafts related to cost reduction must be exploited. AirAsia must reduce operating cost throughout its internal value chain activities. Therefore, we have used value chain analysis as a tool to analyze the effectiveness…

RISK FACED BY AIRASIA BERHAD Based on AirAsia Annual Report 2016, AirAsia has identified the significant risk faced by the company and how they mitigate those risk. The risk is classified into six categories namely strategic risks, operational risks, financial risks, cyber security risks, compliance…

AirAsia has two main customers which is the young, fair conscious customer and business travelers whom are looking for low airfares to travel to their destination, safely and comfortably. AirAsia adopted low cost leadership strategy, hence, all sources such as labour, fuel and aircrafts related to cost reduction must be exploited. AirAsia must reduce operating cost throughout its internal value chain activities. Therefore, we have used value chain analysis as a tool to analyze the effectiveness…

1. Objectives of the Report This task’s objective is to analyze and investigate AirAsia on how it has managed its competitive advantage to become a top budget airline in Asia. 2. Purpose of the Report The purposes of this report is to know how AirAsia works, to know the strength, weakness, opportunity, and the treatments on Air Asia analysis, and to overcome the lowest strategy on the analysis. 3. Scope of the Report Scopes on the analysis are: - The internal analysis for the internal…

BSE. Comparison between AirAsia Berhad and Jet Airways Ltd with same ratios to determine the companies between each other: GROSS PROFIT MARGIN: Gross profit margin of AirAsia Berhad for year 2015 is 39.22%.For Jet Airways Ltd, the gross profit margin is (4.48)%. AirAsia Berhad obtains a positive and stable gross profit margin for previous 5 years. Jet Airways Ltd will be different compare with AirAsia Berhad…

BUSINESS MODEL Indigo Business model Indigo is India’s fastest growing domestic airlines. It has the highest load factor of 89.40%. The mission statement of indigo clearly indicates their business model: To be the best airline in India by providing the following values to the customer: • Affordable fares • On-time performance • Hassle-free service The strengths of Indigo include: Business Model, High Brand Awareness, Cost Leadership, innovation, Age of Equipment, etc. Indigo has Low Cost, not…

Industry consists of many independent airline companies, but because of the mergers and acquisitions, there are 4 major domestic low-cost carriers in the Philippines, namely Philippine Airlines, Cebu Pacific, Zestair Philippines, and Philippines AirAsia. Low-cost Carriers (LCC) are the carriers that have the highest demand in the Philippines as it accounts for 67% of total domestic market. Most of the Low-cost Carriers have international routes and almost all has domestic routes. Philippine…

instance, according to Business Traveller Asia-Pacific (2010), Alan Joyce state that ‘‘Jetstar and AirAsia offer unmatched reach in the Asia-Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale.” “Figure 3 is image of Tony Fernandes, Alan Joyce and Bruce Buchanan share a laugh at the January 6 launch of the Jetstar - AirAsia alliance”. What is more, it is true that low price airline can draw travellers who…

Air Asia is the biggest airline company in Malaysia which have fleet size and destination. According to the history of Air Asia in Jump Start Malaysia: The Air Asia Definitive Guide to Malaysia, Truly Asia, the company established in year 1993 and begins to operate since 1996 to present. It was founded by government owned conglomerate; DRB Hicom. Unfortunately, in 2001, the company was heavily in debt. It was then bought by the former Time Warner executive; Tony Fernandes who owned the Tune Air…