Case-Study REG NO NAME

AIRASIA X: CAN 12204218 Nitin Goyal

THE LOW-COST
12201010 Bittu Rai
MODEL GO LONG
HAUL? 12201004 Roshini Lamba

12202374 Muskan Guddu

12201066 Aruna Dubey

12208081 Mahtab Alam

 About The Air Asia-
1. Introduction to AirAsia: AirAsia is a leading low-cost airline based in Malaysia,
known for its affordable fares and extensive regional network.
2. Founding and History: Established in 1993 by Tony Fernandes, AirAsia has
grown from a small domestic airline into Asia's largest low-cost carrier.
3. Headquarter : Headquartered in Kuala Lumpur, Malaysia.
4. Mission Statement: AirAsia's mission is to democratize air travel and make flying
accessible to everyone by offering low fares and convenient routes.
5. Corporate slogan: "Now Everyone Can Fly!".
6. Innovations and Services: Mention some of AirAsia's innovative services, such as
its mobile app, inflight entertainment, and ancillary offerings like AirAsia Go and
Big Pay.
6. Renowned for:
• Competitive fares
• Extensive network across Asia and beyond ( Both Domestic And
International)
• Skytrax World Airline Awards - Best Low-Cost Airline in Asia Multiple times
 AIR ASIA
X
Founding and History: AirAsia X was established in 2007 as a
subsidiary of AirAsia, with the aim of expanding its reach beyond short-
haul routes.
Long-Haul Destinations: AirAsia X primarily operates flights to
destinations beyond the range of its parent airline, including routes to
Australia, China, Japan, and the Middle East.
Aircraft Fleet: Discuss the aircraft fleet operated by AirAsia X, which
typically consists of Airbus A330 and Airbus A330neo aircraft configured
for long-haul flights.
Low-Cost Model: Emphasize how AirAsia X follows the same low-cost
model as its parent company, offering competitive fares by focusing on
operational efficiency and ancillary revenue streams.
Premium Services: Highlight AirAsia X's premium services, such as
"Premium Flatbed" seats, which offer greater comfort and amenities for
passengers willing to pay extra.
 SUMMARY TO THE CASE

The Case talks About the Strategic

journey to distinguish itself from The Challenges Faced by the Company
The Case is about the AIR ASIA X
traditional airlines and short-haul in its Journey
counterpart

Global Marketing and Brand

Positioning by the company through-
• Evolution from startup to significant player in long-
haul low-cost segment.
The Strategies adopted By the Company • Prioritization of innovation, cost-efficiency, and
to become on e of the best Airline service brand differentiation.
• Positioned for sustainable growth and success in a
competitive market environment.
 Challenges Faced
Operational Efficiency for Long- Revenue Generation and Pricing
Haul Flights: Balancing low-cost Strategy: Developing innovative
operations with the demands of revenue management strategies to
long-haul flights while ensuring increase profitability without solely
passenger satisfaction. relying on discounted fares.

Flight Transfers : All X flights Affordability Vs Comfortability:

were point-to-point only, requiring To maintain the balance of the
passengers to self-connect for affordability and comfortability for
onward flights. the long-haul flights

Growing Revenue with

Global Brand Positioning:
Maintaining Low Ticket Price:
Establishing a strong global brand
Increasing onboard sales while
identity while maintaining cultural
keeping ticket prices affordable to
authenticity across diverse markets.
passengers.
 Marketing and Advertising Alignment: Financial Stability and Investor
Ensuring advertising efforts align with Confidence: Demonstrating financial
revenue goals and are cost-effective across stability and growth potential to attract
different departments. investors, crucial for potential IPO

Competition and Market Dynamics: Political Pressure: Navigating government

Differentiating the airline amidst intense pressure for IPO listing in the Malaysia
competition. while considering potential impacts on
expansion plans
 Strategies Adopted
Low-Cost Business Model Adoption:
• Focus on cost efficiency and operational excellence for affordable long-haul flights.
• Minimizing overhead costs, sharing resources, and maximizing aircraft utilization to attract budget-conscious travelers.

Market Segmentation and Targeting:

• Targeting new travelers with less disposable income overlooked by traditional airlines.
• Catering to the economic base of the pyramid to expand the customer base and make long-distance travel more accessible.

Operational Efficiency:
• Prioritizing efficiency in aircraft selection, seating capacity, and route planning.
• Maximizing resources and streamlining processes to enhance productivity while maintaining safety and service quality.

Cross Training Initiative:

• Leveraging relationships with Airbus for maintenance efficiency.
• Utilizing cross training to meet maintenance needs and achieve time and cost savings.

Proper Aircraft Utilization:

• Maximizing flight hours to increase efficiency with average of 16 hours in air as compared to the competitors having on average 11
hours in air
• AirAsia X aircraft spending more time in the air compared to competitors.
A La Carte In-Flight • Offering individual inflight entertainment for a fee.
• Selling a variety of merchandise and duty-free goods onboard.
Experience:
Brand Positioning and • Positioning the brand as fun, hip, and affordable.
• Using traditional and non-traditional marketing strategies, including social media and
Marketing: sponsorships, to reach a wider audience.

Building the Global • Sponsoring high-profile sports events to improve brand recognition.
• Expanding brand presence globally through sponsorships and marketing initiatives.
Brand:
Training and • Establishing a training academy for pilots, engineers, and cabin crews.
• Investing in training to differentiate from traditional airlines and ensure a consistent
Development: customer experience.
 Global Expansion and IPO • Planning for global expansion and IPO to attract investors.
• Leveraging first-mover advantage in the long-haul, low-cost market.
Preparation:

Growing Revenue with • Selling travel-related merchandise onboard to increase revenue.

• Onboard sales per passenger exceeding competitors while maintaining low ticket prices.
Maintaining Low Ticket Price:

• Emphasizing the "X-factor" culture as a key differentiator.

Cultural Preservation: • Focusing on cultural values and employee engagement to retain top talent.

• Aligning advertising activities with revenue management to optimize pricing.

Revenue Management and • Balancing promotional fares with long-term profitability goals to enhance financial
Pricing Strategy: performance.
 Continuous
Customer-Centric
Innovation: Stay
Approach: Prioritize
Recommendation ahead in technology,
services, and business
satisfaction and tailor
services for loyalty
to the Company models for a
competitive edge.
and repeat business.

Strategic Sustainable
Partnerships: Practices: Invest in
Collaborate with eco-friendly
airlines and hospitality operations to attract
for reach and cost environmentally
savings. conscious travelers.
Employee Development: Invest in training and
engagement for a motivated workforce.

Diversification of Revenue Streams: Expand ancillary

services and explore new business areas.

Adaptability to Market Changes: Stay agile to seize

opportunities and mitigate risks.

Transparent Communication: Maintain open

communication to build trust and credibility.
Thanks