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Air Asia Swot Analysis

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AIR ASIA SWOT ANALYSIS

STRENGTHS Low cost operations and the leading low cost airline in Asia Strong management team with effective, focused and aggressive management Simple proven strategies formulation and executions that consistently delivers that lowest fares Easy branding and enters and stimulate to potential markets easily Multi-tasking staffs who are very flexible and highly commited Single type fleet minimize maintenance fee and easy for pilot dispatch WEAKNESS Lots of complaints and limited human resources could not handle irregular situation Government interference and regulation on airport deals and passenger compensation Heavy reliance on outsourcing on its maintenance, overhaul and repairs Questionable on time performance Limited aircraft also means unavailability of standby planes in event of operational problems Poor airport infrastructure - not enough gates, no transit trains, not enough parking bays, not enough counter space OPPORTUNITIES Ongoing industry consolidation has opened up prospects for new routes and airport deals High fuel prices will squeeze out unprofitable competitors, being a low cost leader, AirAsia an upper hand because its cost will be still the lowest among all the regional airlines Huge market potential by increased population ,this creates a larger market and a huge opportunity for all low cost airlines in this region including AirAsia

THREATS Full service airlines start cut costs by creating a low cost subsidiary to compete Users perception that budget airlines may compromise safety to keep costs low Accident, terrorist attack, and disaster and affect customer confidence Aviation regulations and government rules like airport departure, security charges and landing charges are beyond the control of airline operators Increase in operation cost in producing value-added services

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