Compare with the earlier ages, the airline industry has evolved much; the operations become simpler and more efficient. Airline industry contributes to the economic growth of a country. The International Air Transport Association surveyed that the growth rate of the airline industry is about 6.6% every year and it has been grown more than 5% from the year 2000 – 2010.

1. Presentation On
Low Cost Leadership Analysis On AirAsia
Presented By
FAKRUL HASSAN MEHER AFROJ MD. SAROWAR HOSSAIN JANNATUL FERDOWS MD ABDUL MUNIM
ID # 2018010005080 ID # 2018110005068 ID # 2017210005066 ID # 2018010005029 ID # 2018010005052
By - Fakrul Hassan

2. AirAsia
AirAsia Berhad is a Malaysian low-cost airline headquartered
near Kuala Lumpur, Malaysia. It is the largest airline in Malaysia by
fleet size and destinations. AirAsia Group operates scheduled domestic
and international flights to more than 165 destinations spanning 25 countries.
AirAsia X, Thai AirAsia, Indonesia AirAsia, Philippines' AirAsia Inc and AirAsia Japan,
AirAsia is ready to serve valuable and memorable flight with its believable, “Now
Everyone Can Fly.”
By - Fakrul Hassan

3. AirAsia VISION
To be the largest low cost airline in Asia and
serving the 3 billion people who are
currently underserved with poor connectivity
and high fares.
By - Fakrul Hassan

4. AirAsia MISSION
• To be the best company to work for whereby employees are
treated as part of a big family.
• Create a globally recognized ASEAN brand
• To attain the lowest cost so that everyone can fly with AirAsia.
• Maintain the highest quality product, embracing technology to
reduce cost and enhance service levels
By - Fakrul Hassan

5. AirAsia VALUES
• Safety First
• High Aircraft Utilization
• Low Fare, No Frills
• Streamline Operations
• Lean Distribution System
• Point to Point Network
By - Fakrul Hassan

6. AirAsia Low Cost Leadership
The AirAsia LCC had changed the norms of airlines
that air transportation is a luxury and expensive,
it also only for high segmented people. The main
objective of LCC is to gain huge market and
provide the flight service to a broader market.
By - Fakrul Hassan

7. AirAsia Challenges
• High Aircraft Utilization
• No Frills
• Modernize Operations
• Basic Amenities
• Point to Point Network
• Lean Distribution System
• Positioning
• Low Operating Cost
By - Fakrul Hassan

8. AirAsia SWOT Analysis
Strength
• AirAsia’s brand name is well established
in Asia Pacific
• AirAsia is the low cost leader in Asia.
• Air Asia has a very strong management
team with strong links with governments
and airline industry leaders.
• AirAsia has the excellent utilization of
IT.
Weakness
• Asia does not have its own maintenance,
repair and overhaul (MRO) facility.
• AirAsia receives a lot complaints from
customers on their service.
Opportunity
• “ASEAN Open Skies” agreement has been
reached.
• There is also some opportunity to
partner with other low cost airlines.
• The population of Asian middle class will
be reaching.
Threat
• Certain rates and charges are beyond
the control of airline operators.
• AirAsia’s profit margin is about 30%
which has already attracted many
competitors.
• Customers worry about safety
By - Fakrul Hassan

9. AirAsia Low-cost Leadership
AirAsia is well known in Asia especially in ASEAN, AirAsia is one of the
best examples for learning low-cost leadership practice. Nowadays,
the airline industry has become simpler when compared to olden
ages; it want to improve itself in the broad global market. Airline
industry boosts all the countries in growth of the economy, tourism,
and international business investment.
By - Fakrul Hassan

10. Thank You!
By - Fakrul Hassan