Air Asia is known to be the leading low-cost airline in Asia. The industry has been able to rapidly expand since 2001 to become and well-recognized low-cost carrier in this continent. The industry has 72 aircrafts which flies to over 61 local and international travel destinations with 108 routes, operating daily over 400 flights from hubs which are located in Malaysia, Indonesia and Thailand. Accordingly, this airline has already flown over 55 million clients across the region and the industry still continues to spread its wings to establish more extensive route network through along with their associate companies, Indonesia Air Asia and Thai Air Asia.
Air Asia believes in the hassle-free, no-frills, and low fare services for their target market and the management feels that keeping costs low needs high efficiency in every aspect of the business. Herein, efficiency creates savings which are then passed to the customers so that low-cost, affordable and high quality air travel will become a reality. With their philosophy ‘Now Everyone Can Fly’, this airline has been able to spark a revolution in air travel with more and mo guests across the region prefer Air Asia as their number one choice of transport As this industry strive continuously to promote air travel, the company also never stops to establish excitement amongst their guests with the range of innovative and personalized airline services offered.
2. Aim and Objectives
As mentioned above, the main goal of this report is to analyse Air Asia’s marketing strategy and its opportunity to expand in the UK market. Specifically, one of the objectives of this paper is analyse its being a low-cost airline. This will be discussed within the brief introduction into the airline development in the proceeding chapters. Aforementioned, Air Asia is known as one of the largest low-cost airline in Asia and it is important to analyse Air Asia as such. The internal and external analysis for Air Asia will be conducted through the use of SWOT analysis. Another objective is the evaluation on how Air Asia can use its strengths for a successful expansion in UK market. Hence, a detailed comparison with its main rivals will be considered.
3. Literature Review
For this report, secondary data and research will be considered. Herein, academic textbooks and specific airline management articles and written documents will be considered. In addition, among other academic journals, Journal of Air Transport Management provided very useful journals for this study. Air Asia’s websites and other low-cost airline will also be given emphasis, although it is important to keep objectivity when utilising such material.
3.1 Air Asia – deregulation of aviation market provided new opportunities
In 1993, Air Asia was established and started to operate on November 18, 1996. The airline industry was originally founded by DRB-Hicom which is a government-owned conglomerate. Fernandes proceeded to engineer a notable and significant turnaround, turning an Air Asia a profit in 2002 and establishing new routes from its hub in Kuala Lumpur International Airport rapidly. (责任编辑：charlie)