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MGM4136

MGM4136. Can AirAsia Soar in Asia Pacific?. Prepared by. ONN PING CHOU 115983 NG KAR CHOY 116000 TAN AI JANE 115489 TAN MENG WHUAI 115336 TEE SIEW EY 115582. INTRODUCTION. Established in 8 December, 2001

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MGM4136

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  1. MGM4136 Can AirAsia Soar in Asia Pacific? Prepared by ONN PING CHOU 115983 NG KAR CHOY 116000 TAN AI JANE 115489 TAN MENG WHUAI 115336 TEE SIEW EY 115582

  2. INTRODUCTION • Established in 8 December, 2001 • Tune Air Sdn Bhd • CEO-YBhg Dato' Tony Fernandes • Public listed company- 22 November 2004 • Leading Malaysia Airline- 5 December 2005

  3. NEW ROUTE AIRBUS INTERNAL ANALYSIS E-TICKETING SPECIAL EVENT

  4. INTERNAL ANALYSIS 1. New Route -Indonesia, Thailand and China market Table 1: New route of Air Asia, 2005 onwards Date of commerce Destinations 2006 Jan 13th Pekan Baru 2005 Dec 20th Indonesia’s Balikpapan Dec22nd Indonesia’s Solo Nov 1st Phnom Penh in Cambodia Oct 20th Chiang Mai in Thailand April Mainland China ( Xiamen) & Philippines ( Manila) April 5th Diosdano Macapagal International Airport Manila, Philippines. Source: Thai News Service, 2005 www.airasia.com

  5. 2. AIRBUS • December 9 2005, AirAsia received Malaysia's 1st Airbus A320 • Configured with 180 seats and powered by CFM-56-5B engines • Superiority - fuel burn, maintenance requirements, increased capacity, wider cabin and larger cargo payload • Replaced 30 Boeing 737 by 2007 • Mr Gustav Humbert, CEO and President of Airbus - A320 Family has proven to be the outstandingly popular choice

  6. 3. E-TICKETING • 13 April 2002- FIRST Low Fare TICKETLESS • 65% of the total sales • 23 August 2005 launched its first mobile.airasia.com • Benefits - reduce operating costs, convenient, reach out to even more consumers

  7. 4. SPECIAL EVENT • Free two million tickets • Celebrating AirAsia 4th anniversary • Available for all domestic and regional flights • Available for travel in 7 Feb 2006 to 10 October 2006 • Requirement – booking through online • Sponsorship with Manchester United • Club’s Official Low Fare Airline starting in August 2005 • Aim of the partnership - promote AirAsia brand to the world

  8. MARKET JOINT VENTURE EXTERNAL ANALYSIS COMPETITORS

  9. EXTERNAL ANALISYS 1. MARKET • Geneva-based Air Transport Action Group (ATAG) • Asia Pacific- airline passenger traffic doubling- next 15 years • 871 million passengers by 2014. • Vietnam- region’s highest growth- 10.5 percent annually • China- largest number of domestic and international scheduled passengers -214.7 million in 2014.

  10. Table: Passenger GrowthIn Asia Pacific Region (1999-2014) Source:Geneva-based Air Transport Action Group (ATAG)

  11. Table: Passenger Traffic in November 2005 Source: www.airasia.com

  12. 2. JOINT VENTURE Source: www.airasia.com

  13. 3. COMPETITOR ANALYSIS Source: http://en.wikipedia.org/wiki/Main_Page

  14. Table: Summary of Strength and Weaknesses of Competitors. Source: http://www.airlinequality.com

  15. Table: TOWS Matrix of AirAsia

  16. RECOMMENDATION • Increase more new international route • Lobbying • Negotiate with foreign government • Find Rooney as AirAsia Ambassador • Take precaution action before and during critical period • Promote other alternative destination • More accurate time forecasting

  17. CAN AIRASIA SOAR IN ASIA PASIFIC? YES!!!

  18. THANK YOU!!! THANK YOU!!! THANK YOU!!!

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