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.
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.
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.
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.