AirAsia: Growth Strategies


Code : COM0017

Year :

Industry : Transportation

Region : Malaysia

Teaching Note:Not Available

Structured Assignment :Not Available

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The Inception AirAsia, that was originally started by the government-owned conglomerate DRB-Hicom1, was acquired by TuneAir Sdn Bhd (TuneAir) on December 8th 2001. Having acquired the highly indebted AirAsia, Tony Fernandes (Fernandes), the Chief Executive Officer (CEO) of TuneAir, transformed it into Asia's first low fare, no-frills airlines on the lines of US based South west Airlines and Dublin-based Ryanair. The venture was to craft a new aviation product in Malaysia, which would revolutionise air travel and also provide exceptionally low fares that were affordable to the Malaysians....

Growth of Airasia Since its inception,AirAsia had imbibed a fewvital strategies in both its domestic as well as international operations to establish itself as a strong brand in the global low-cost carriermap. It focused on customer convenience, safety and cost optimisation. To enable its customers to book their tickets over the phone, on March 1st 2002, AirAsia started its tele-booking services where the customers could pay for their tickets through credit cards. In April 2002, it launched a nationwide call centre in Malaysia for tele-booking services as well as ticketless services that simplified the ticketing process for its passengers....

The Road Ahed AirAsia in collaboration with HMD Tours and Travel (HMD) planned to make Labuan, in East Malaysia, a hub for the tourists from Brunei. To enable passengers to avail its services via Labuan, HMD tied up with two companies in Brunei. Commenting on those tie-ups, Raynie Mohd Din Jaffar, HMD's manager, said, "Under the arrangements made we would provide a complete package that allows the tickets to be bought in Brunei and use the fixed shuttle services for connections to AirAsia flights in and out here"...

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