Some of them describe below:Utilising one type of aircraft (Boeing 737-300 which will be fully replaced with Airbus A320) results in reduction of maintenance cost (one of the major expenses in airline industry), scheduling cost, administrative cost, and inventory of parts.Creative and low-cost advertising significantly reduces marketing cost. Low operating cost due to being No Frill, online reservations system, quick check in etc. Different localities and countries have different technological standards, and quality control policies, which AirAsia would have to adhere to, by adherence to these policies; certain intended developments may be possible in certain communities but not acceptable in others.According to CEO’s of the company, Mr. Fernandez, there are a lot workers or low pay salaries earners who would like to travel often to meet their families especially during special occasions but due to how expensive it was that time, their desire are not fulfilled. The company constantly invests in improving the facilities it provides to the passengers and has introduced facilities, such as in-flight meals, complimentary WiFi, entertainment facilities such as separate televisions for passengers, and seat options including flatbeds (Abdullah, Chew and Hamid, 2017).Another strategy that the company will implement in the future is networking. It offers scheduled flights and chartered flights for passengers, and also provides air cargo services (AirAsia, 2018). That’s why Emirate Airlines introduce high quality first class private lounges to attract business travelers.Installation and modification of aircraft’s onboard facilitiesIt will take 6 months to 1 year to complete installation new facilities in a single aircraft and estimated cost around $0.2 million to new aircraft and for marketing cost.Recruiting new employees to serve business customerContract with new or existing company for catering service for business customer.Quantitative measurement of this product would be number of booking or occupancy.By studying PEST, SWOT and marketing analysis, it could be said that AirAsia is situated in standard cycle markets where it get competitive advantage for its business policy and strategy. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. It is the largest airline company based on the concept of the Low-Cost Carrier (LCC) (Zhang The company makes use of innovative solutions in order to provide low-cost aviation. Economy of scales benefits.Low operating cost due to being No Frill, online reservations system, quick check in etc.There is huge untapped market in the region, especially for business travellers and “for-the-first-time-flying” segment.As it is low cost airlines, it can target customers who are currently using non-aircraft modes like, Bus, Trains, car to travel to distances.Huge investment to purchase air planes and implementing latest technologies there is high amount of operational cost.The flight times are more or less limited to 2.5 hours. In 2002, AirAsia became the first airline company in the region that allowed passengers with the facility to pay for their bookings by using credit card. Specific analysis has been conducted in order to analyse the market environment for AirAsia. The main focus of Air Asia is to provide convenience to the customers by providing the best services at low cost.
Luggage handling is the major factor that is considered by the customer as well as the airlines industries and in context to this fact, Malaysia Airlines provides average 15 kg of luggage, and it does not include any additional charges in case there is few more luggage than the normal capacity provided by the airlines. As per the results of the survey, AirAsia hasgained a smart rating of 54 whereas Malaysia Airlines has gained the rating of 85 which, signifies the contrast of both the airlines in terms of acceptance of the services and feedback by the customers (Holiday.My, 2018).The marketing mix’s 7 Ps model is a marketing strategy tool that is used in a business in order to gain the feedback from the market in relation to marketing objectives. If oil prices go high, it is very difficult to control cost of operation.Passengers are reluctant to board a no-frills airline for a long-haul flight.Increasing world’s population, tourists and number of educated people helpful for the growth of aviation industry.Outbreak of the Severe Acute Respiratory Syndrome (SARS) has scare people to fly. The importance of pricing strategy is to know the strategies that are used in the market and to analyse the rivals that are present for Air Asia n the airline industry (Shaw, 2016).There are a lot of operations that are conducted by the company as it is spread across 25 countries in more than 160 destinations. Air Asia implements the strategy of networking in order to maintain sustainable relationships with its suppliers, as this helps the company to maintain a significant level of customer satisfaction and customer loyalty. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia launched AirAsia Berhad in 2001, which provides air transportation services, particularly in Malaysia. This enables them to identify their target market.