Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0017

Year : 2004

Industry : Transportation

Region : Malaysia

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:AirAsia, Malaysia's second largest national carrier after Malaysian Airlines started its new life as a low-fare airline in 2002 with two Boeing 737-300 aircrafts. Its lowfare and no frills policy enabled it to increase its passengers from 59,224 in 2001 to 128,647 in April 2002, an increase of more than 117%.

By effectively transforming itself into a low-cost carrier, AirAsia turned itself from a loss-making traditional airlines to a profit generating company and also expanded its operations through strategic alliances in both domestic and international markets.

The company increased its fleet from two in 2001 to eight in 2003 and planned to further increase it to 30 by the end of 2004.