Pest analysis on airasia

macro environmental factors affecting airline industry

As it is low cost air hoses, it can aim clients who are presently utilizing non-aircraft manners like, Bus, Trains, auto to go to distances. Economic Analysis Inthe world hardly managed to cope with H1N1 influenza pandemic.

Singapore Airlines plans to establish a budget bearer, they see the success of AirAsia. Evaluation standards: Quantitative measuring of this merchandise would be figure of booking or tenancy.

pestle analysis of airline industry

Due to major growth in technology recently airline industry has develop ways on how to reduce the cost of travelling by introducing Airbus. Adding new paths and finishs are possible ; particularly there is growing Malaysia and East Asia touristry.

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As an established LCC airline, AirAsia would hold the monopoly over prime time slots at certain airports, which makes it harder for new airlines to infiltrate, as these new entrants would be restricted to offer flights at off-peak times or further away from popular destinations Datamonitor, Economical fuel burn and simpler maintenance result in lower costs, effecting cost optimization to enable AirAsia to enjoy considerable cost savings thus providing low fares all-year round, besides of course a much better quality service in air.

Besides that, Asian business values cooperation rather than individualism.

Lufthansa pestle analysis

Some of them describe below: Using one type of aircraft Boeing which will be to the full replaced with Airbus A consequences in decrease of care cost one of the major disbursals in air hose industry , scheduling cost, administrative cost, and stock list of parts. Open Skies scaled easy to suit our growing. Airbus, By strictly adhering to a proven business model, AirAsia maintained profitability in its Malaysian operations, despite limited operations and financial resources. They know how large the market is and how good the chance is in Asia. Additionally, there is a subway system that provides frequent and efficient services for customers at inexpensive rates. Collaboration with airports to adapt and develop existing facilities is required to minimise airport capital expenditure and reducing the environmental impact. Firefly offering baggage 5. If oil monetary values go high, it is really hard to command cost of operation.

A customer who uses the service of a competitor will lose the benefits of the loyalty scheme, which is equivalent to the incurred switching cost Datamonitor, However, in an attempt to increase their power, legacy airlines have introduced loyalty schemes to attract customers to their service and ensure loyalty.

There also have been incidents whereby AirAsia website is down, most of the time during its promotions and most probably due to heavy traffic and non redundant data infrastructure. Although many new LCCs have emerged since the inception of AirAsia, at the financial year ofAirAsia was the only LCC in Asia that was making profits for 5 years consecutively and obtained the lowest cost on all measures compared to other global LCCs.

Presently, tough economic conditions has enabled AirAsia to attract a new segment of customers, specifically business travellers seeking cost reductions, as rising unemployment and lack of job security may lead to customers avoiding expensive leisure flights.

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Strategic analysis