1.0 Introduction and Background
*1.2 Background *of* Air*Asia
2.0 Remote Environmental Analysis
2.1 Political environment
Corporate with Shin Corporation
Support _from the Government of Malaysia_
AirAsia had attained the fully support from the Malaysia government in Year 2001 in order to help to boost the under-used Kuala Lumpur International Airport. The purpose of government to allow AirAsia to fly from Senai is to develop Johor into the transport hub to compete with Singapore. This had become the opportunities for AirAsia to extend its services in Malaysia and Thailand market as AirAsia can offer the alternative route to Bangkok by using Senai Airport at Johor.
2.2 Economic Environment
Offering cheaper products
Good location to compete
Asia is the good locations for the low cost airline providers because it has a huge and density population base and emergence of under-used airports. Therefore, the number of the budget carriers’ increase in this region accordingly to time. However, AirAsia still owned a pioneer status as carrier operated in Asia with the low-cost identity. In order to remain as the cost leadership in the airline industry, AirAsia has sold 26 percent stake to the three investors (mainly from Thailand and Indonesia) which valued approximately 98.8 million Ringgit in order to meet the future demand.
2.3 Technological Environment
_Engaged Online services_
AirAsia provides online service that combines air ticketing with hotel bookings, car hire and travel insurance as to increase the customers’ conveniences as they fly with AirAsia. In order to keep the operation costs low, AirAsia has utilized and stressed on the usage of internet booking services. This can reduce its operation cost especially bypassing the service from the middle-man which can become costly to AirAsia in the long-run. Apart from that, the promotion are also been spread to the public via painting the...