Table of Content 1.0 INTRODUCTION..................................................................................................2 2.0 IN- DEPTH EVALUATION OF AIRASIA .........................................................

3
2.1 St ate!"# Ob$e#t"%e& of A" A&"a....................................................................................3 Table 1' Ob$e#t"%e e%al(at"on& of A" A&"a.....................................................................3 2.2 St ate!"# f"t of A" A&"a.................................................................................................)

3.0 CO*PETITIVE SITUATION..............................................................................+

Table 2 A" A&"a an, "t& #o-.et"to &/ . of"le..................................................................+

).0 *AR0ET POTENTIAL 1 *AR0ET ATTRACTIVENESS...........................2

Table 3' *a 3et att a#t"%ene&& f o- a -a# o .e &.e#t"%e...........................................2 Table )' *a 3et att a#t"%ene&& f o- a -"# o .e &.e#t"%e............................................4 Table +' Po te /& F"%e Fo #e& fo A" A&"a......................................................................4

+.0 SE5*ENTATION6 TAR5ETIN5 AND POSITIONIN5 ANAL7SIS...........11

+.1 *a 3et Se!-entat"on..................................................................................................11 Table 8' *a 3et Se!-entat"on of A" A&"a...................................................................11 +.2 Ta !et *a 3et P of"le.................................................................................................1) Table 9' Ta !et *a 3et P of"le of A" A&"a..................................................................1) +.3 Po&"t"on"n! ..................................................................................................................1+ F"!( e 1' A" A&"a/& Pe #e.t(al *a. ...........................................................................1+

8.0 CUSTO*ER ANAL7SIS ...................................................................................19 9.0 INTERNAL CAPA:ILITIES 1 CORE CO*PETENCIES...........................14

Table 2' Co-.a "&on of *ala;&"a/& To. Pla;e & "n Lo< Co&t Ca "e &/ *a 3et"n! P o! a-.........................................................................................................................20

4.0 FINANCIAL AND *AR0ETIN5 EVALUATION OF AIRASIA..................23

4.1 E%al(at"on of A" A&"a/& f"nan#"al &tat(& (&"n! 2009 an, 2002 ann(al e.o t&........23 Table 4 ' A" A&"a/& f"nan#"al &tat(& "n 2009 an, 2002.................................................23 4.2 F"nan#"al E%al(at"on fo A" A&"a a& #o-.a e, to *ala;&"a A" l"ne =*AS>...........2) Table 10 ' A" A&"a/& f"nan#"al &tat(& a& #o-.a e, to *AS "n 2009 an, 2002...........2) 4.3 *a 3et"n! *et "#&......................................................................................................2+ Table 11' *a 3et"n! -et "#&........................................................................................2+

10.0 PRO:LE* IDENTIFIED AND THE ALTERNATIVES..............................2+ 11.0 REFERENCE LIST...........................................................................................29

1.0 INTRODUCTION AirAsia is a low cost carrier [LCC] based in Kuala Lumpur [KL], Malaysia. Tony Fernandes founded AirAsia in 2 Airline by )*ytra# +AirAsia, 2 .ndonesia, more t"an / ! w"ic" "as e#panded rapidly into an award$ winnin% and profit$yieldin% company, %rabbin% t"e title of &orld's (est Low Cost ,a-. From "ubs located in Malaysia, T"ailand and ,b-. fli%"ts operate to 0! domestic and international destinations

utilisin% a fleet of 12 airplanes +AirAsia, 2

T"e airline industry in Malaysia is anticipatin% a promisin% %rowt" as t"e forecasted %rowt" of international tourism is e#pected to increase by ! 2 or M341 billion [5)6,.0 billion] at a Compound Annual 7rowt" 4ate from 2 and Mar*ets, 2 ,-. , to 2 !2 +4esearc"

2.0 IN- DEPTH EVALUATION OF AIRASIA 2.1 St ate!"# Ob$e#t"%e& of A" A&"a. T"e main ob8ecti9e of AirAsia is to be a leadin% low cost airline in t"e re%ion. T"is ob8ecti9e is ac"ie9ed by ma#imi:in% s"are"olders' 9alue, placin% importance on safety, focusin% on customers' needs, operational e#cellences and mana%ement transparency +AirAsia, 2 ;-.

T"e ob8ecti9es of AirAsia are well$defined into fi9e cate%ories, specifically formulated to benc"mar* eac" important aspects of a LCC. )afety is t"e most important ob8ecti9e as bot" t"e company and consumers are affected by it as indicated in Table !. Table !< =b8ecti9e e9aluations of AirAsia =b8ecti9es Ma#imi:in% )"are"olders' >alue )afety Focusin% on Customer @eeds =perational A#cellence Mana%ement Transparency .mportance to AirAsia ? ? ; ; ? .mportance to t"e customer 2 ? ? ? 2

2.2 St ate!"# f"t of A" A&"a. AirAsia's strate%y comprise of safety, low fare, ser9ice and simplicity. T"e strate%y fit of AirAsia "as been e#cellent as its implementation of t"eir different strate%ies "a9e been successful. T"e safety aspect "as been a success as AirAsia "as maintained a B:ero$accidentC rate. T"e only si%nificant incident "appened in @o9ember 1, 2 / w"en an AirAsia fli%"t /-. s*idded off t"e runway due to "ea9y rain after landin% in Kota Kinabalu .nternational Airport w"ereby two passen%ers suffered minor in8uries +>anar D )ario, 2

As AirAsia emp"asises on competiti9e pricin%, airfares "a9e remained low compared to its competitors, at t"e same time wit"out compromisin% t"e financial status of t"e company. AirAsia "as e9en recei9ed t"e presti%ious Airline )trate%y Award in 2 +AirAsia, 2 Ea-. E

=n t"e ot"er "and, AirAsia's ser9ices are *nown to "a9e been sufferin% from bad %eneral perception. Fowe9er, AirAsia "as been impro9in% its ser9ices by %uaranteein% on$time fli%"tsG ot"erwise a %ift 9ouc"er wort" 4M2 +AirAsia, 2 Eb-. will be pro9ided

)implicity of AirAsia as a company is s"own in t"eir or%anisation's structure by bein% employee$orientated w"ere t"e B=ne AirAsiaC ta%line was adopted +Ama:in% AirAsia, 2 ,-.

3.0 CO*PETITIVE SITUATION

Competitors operatin% in t"e same re%ion as AirAsia are analysed a%ainst AirAsia as seen in Table 2.

Table 2 AirAsia and its competitors' profile A" l"ne A" A&"a F" efl; T"!e A" <a;& *ala;&"a A" l"ne& =*AS> C?a a#te "&t"#& Co(nt ; of O "!"n Nat( e of t?e :(&"ne&& 7ea of E&tabl"&?-ent Ro(te& be"n! Se %"#e, Malaysia LCC 2 ! 6omestic, )out" Fon% Kon%, Macau, .ndia, )ri Lan*a, St en!t?& (an%lades" AirAsia pioneered low cost tra9ellin% in Asia. Malaysia LCC 2 1 6omestic and countries [T"ailand, .ndonesia and )in%apore] )ubsidiary of MA). Cost structure is modelled after 4yanair. )ubsidiary of &ell$establis"ed in t"e Malaysian mar*et. MA) is t"e stron%est amon% t"e four airlines as it is a full$ser9ice carrier [F)C] and is well$establis"ed in terms of reputation in t"e mar*et, "owe9er AirAsia )in%apore LCC 2 / )in%apore Malaysia Full fled%e carrier !,1; 6omestic, )AA, ot"er destinations worldwide $ $ MA) was t"e dominant airline in Malaysia MA) "as a si%nificant ad9anta%e in terms of destinations compared to ot"er airlines w"ile AirAsia "as an ad9anta%e o9er t"e ot"er LCC. @(&t"f"#at"on

Aast Asia [)AA], nei%"bourin%

)in%apore Aea3ne&&e& Hoor ser9ice Iuality and freIuent cancellation and *a 3et S?a e delay in fli%"ts. ?02 of t"e domestic mar*et. $ $ //2 of t"e domestic mar*et. 4elati9ely new in t"e airline industry. Airlines. 4elati9ely new in t"e airline industry. Fi%" price le9els.

"as been %radually %ainin% stren%t"s. &ea*nesses amon% t"ese airlines are "i%"ly different as t"ey are not on t"e same le9el of playin% field, despite competition bein% stiff. .n June 2 +T"omas, 2 conte#t. E, AirAsia mana%ed to %ain ?02 E-.

of t"e domestic airline mar*et s"are Mar*et s"are is calculated in t"e Malaysian

Le%el of P o-ot"onal A#t"%"t"e&

.ntense K FreIuent ad9ertisement on traditional media

Moderate$ =ccasional ad9ertisement on traditional media

Moderate K Few ad9ertisement on traditional media and %uerrilla style ad9ertisin% +T"o, 2 2002< )76,,, E-.

.ntense K FreIuent ad9ertisement on traditional media

AirAsia and MA) ad9ertises intensely on t"e company's brand and promotion. FreIuent ad9ertisements between t"e two companies on t"e newspapers, radio and on t"e .nternet +6'cru: D )il9a, 2 0-.

F"nan#"al #a.ab"l"t"e& BNet P of"tC

2002' M34/,?,;?2,

5na9ailable

2002' , K M3422E, 2!,

MA) "as a upper "and in terms of financial capabilities as compared to t"e ot"er

M342/,1? , 2009' M34/0E, 12, 2009' )76!/,E K )ource< +AirAsia, 2 1G Malaysia Airlines, 2 M34;1, , ,aG Malaysia Airlines, 2 ,f, Ti%er Airways, 2 , 2009' M34EE , E;,

competitors as "as a "i%"er net profit.

,a, Firefly, 2

,a-

).0 *AR0ET POTENTIAL 1 *AR0ET ATTRACTIVENESS Assessin% mar*et potential and attracti9eness is important in order to identify and 8ustify t"e entry of t"e company into specific mar*ets. Assessment of mar*et attracti9eness can be done in two le9els, at t"e macro and micro le9el. T"ese are s"own in t"e Table ; and Table /. Table ;< Mar*et attracti9eness from a macro perspecti9e Fa#to & B*a# oC E#ono-"#& @(&t"f"#at"on& T"e %lobal recession "as caused demand for air tra9el to fall, decreasin% mar*et attracti9eness +4in%bec* D 4os*a, 2 E-. Herformance of AirAsia "owe9er is still , "as increased stable as consumers substitute F)Cs for LCCs, pro9ed by t"e fact t"at earnin%s for 2 So#"o-#(lt( al +Francis, 2 ,-. &it" KL bein% t"e "ub, socio$cultural en9ironment of Malaysia would affect attracti9eness. .n %eneral, Malaysians emp"asi:e on sa9in%s and as suc" demand Re!(lat"on for AirAsia would rise. 4e%ulations in Malaysia used to be 9ery strict, many in fa9our of MA). 4ecent liberalisation "owe9er "as created a more conduci9e en9ironment for AirAsia, suc" as t"e liberalisation of t"e KL$)in%apore route Te#?nolo!"#al +)id"u, 2 1-. 4apid ad9ancement in tec"nolo%ical le9els increases mar*et attracti9eness. For e#ample, AirAsia recently switc"ed its fleet of aircrafts to Airbus, w"ic" minimises petrol consumption and t"us costs.

Table /< Mar*et attracti9eness from a micro perspecti9e Fa#to & B*"# oC ED"&tent of ta !et #(&to-e & Co-.et"to & 5 o<t? of ta !et &e!-ent& @(&t"f"#at"on& Tar%et customers e#ist as t"ere are plenty of price conscious tra9ellers in Malaysia. AirAsia is t"e only ma8or bud%et airline in Malaysia, increasin% attracti9eness. Li*ely to occur due to %rowt" in tourism industry and international business, a result E-. of %lobalisation +=nwutalobi D Ant"ony$Claret, 2

=t"er factors t"at can be used to assess mar*et attracti9eness include mar*et trends for low cost tra9el, w"ic" in %eneral is increasin% w"ile si:e and %rowt" of t"e low cost and o9erall airline industry is %rowin% rapidly. T"is is seen from t"e increasin% passen%er's 9olume w"ic" indicates an attracti9e mar*et. Cost structure for AirAsia is also low despite bein% in t"e %rowin% sta%es of t"e life cycle, furt"er indication of attracti9eness. Horter's Fi9e Forces Model can also be used to e9aluate mar*et attracti9eness. T"is is summarised in t"e Table ?. Table ?< Horter's Fi9e Forces for AirAsia Fo #e& R"%al ; an, Co-.et"t"on De&# ".t"on $ Fi%" due to t"e dere%ulation in t"e a9iation industry. T? eat of Ne< Ent ant& $ Amer%ence of ot"er LCC increases competition. $ 4elati9ely low since entry into t"e a9iation industry reIuires lar%e capital. $ T"ere are also barriers for new entrants to establis" T? eat of S(b&t"t(te P o,(#t& brand name. $ Fi%" since air tra9ellers can substitute LCCs for F)Cs. $ Hlenty of ot"er substitute products suc" as cars, :a !a"n"n! Po<e of :(;e & buses and trains. $ Fi%" since competition in t"e industry is intense.

$ Customers can switc" to competitor if left :a !a"n"n! Po<e of S(..l"e & unsatisfied. $ A9era%e as it can be "i%" in certain areas but low on ot"ers. $ )uppliers of labour suc" as t"e union for pilots and en%ineers "a9e si%nificant power. $ )uppliers of aircraft components do not "old si%nificant power.

10

+.0 SE5*ENTATION6 TAR5ETIN5 AND POSITIONIN5 ANAL7SIS +.1 *a 3et Se!-entat"on AirAsia may use se%ment bases suc" as demo%rap"ics, socio$cultural, user$related, user$situation and benefits$sou%"t se%mentation to se%ment t"eir mar*et, as indicated in Table 0.

Table 0< Mar*et )e%mentation of AirAsia

Se!-ent Se!-en t :a&e 6emo%rap"ics Income M34 K M34/ , +yearlyLower class Low M34/ , ! $M340 , +yearlyMiddle class Moderate M340 , ! and o9er +yearly5pper class Fi%" M34/ , ! K M340 , +yearlyMiddle class Fi%" Se!-ent 1 Se!-ent 2 Se!-ent 3 Se!-ent )

)ocio$cultural Social class 5ser$related Usage rate 5ser$situation Time (enefits )ou%"t Value-formoney Fi%" Fi%" Low Fi%" Leisure Leisure Leisure (usiness

Income 5nder demo%rap"ics, income is one of t"e 9ariables w"ic" AirAsia may use to se%ment t"eir mar*et +)c"iffman, (ednall, ='Cass, Haladino D Kanu*, 2 E-. .ncome indicates t"e capability of t"e consumer to tra9el wit" AirAsia as consumers from different income %roups are attracted to different airlines. For e#ample, low$income [M34 KM34/ , yearly] and middle$income [M34/ , ! $ M340 , yearly] earners are more price sensiti9e t"an "i%"$income [M340 , ! and o9er] earners,

t"us t"ey would be more attracted towards LCCs suc" as AirAsia. T"is is because

11

low$income and middle$income earners %enerally "a9e lesser disposable income t"an "i%"$income earners, "ence are unli*ely to be capable of purc"asin% airline tic*ets from F)Cs suc" as MA) as t"eir tic*ets are more e#pensi9e. For low$income and middle$income earners, t"eir main need of an airline tic*et is simply to tra9el from one destination to anot"er. T"erefore, t"e pricin% of airline tic*ets is a 9ital factor t"at influences purc"asin% be"a9iours. )tatistics "a9e indicated t"at consumers "a9e increased t"eir e#penditure in air tra9el due to t"e a9ailability of more affordable domestic and re%ional fli%"ts from LCCs +Consumer Lifestyles K Malaysia, 2 Social Class AirAsia may "a9e se%mented t"eir mar*et into lower, middle and upper social classes on t"e basis of t"is 9ariable because different social classes tend to "a9e different purc"asin% be"a9iours, brand preferences and e#pectations +)c"iffman et al., 2 E-. A consumer's social class is associated wit" t"e income le9el t"at t"e consumer is earnin%. For e#ample, if a consumer is cate%ori:ed as a low$income earner, t"e consumer will fall wit"in t"e lower social class. Moreo9er, upper social class consumers would tend to "a9e a ne%ati9e perception about t"e ima%e of LCCs as a pro9ider of less comfortable ser9ices. Usage Rate 5sa%e rate is one of t"e 9ariables under t"e user$related se%mentation w"ic" AirAsia can use to se%ment t"eir mar*et and is di9ided into low, moderate and "i%" usa%e rates +)c"iffman et al., 2 E-. 6ependin% on t"e consumer's amount of disposable income and preferences, consumers will "a9e different le9els of usa%e rates. For e#ample, consumers [)e%ment /] w"o tra9el freIuently for business meetin%s would "a9e a "i%" usa%e rate of air tra9el as t"ey are reIuired to tra9el to different destinations freIuently. Consumers wit" low usa%e rates are mostly from t"e low$ income cate%ory w"o can only afford to tra9el at most twice a year dependin% on t"e destination. T"is is because t"ey "a9e less disposable income compared to "i%"$ income earners. Fowe9er, if price le9els are affordable, t"en low$income earners [)e%ment !] would be able to tra9el more often wit" LCCs. ,-.

12

Time As for t"e user$situation base, AirAsia is able to use time as one of t"eir 9ariables to di9ide t"e mar*et +)c"iffman et al., 2 E-. T"e time 9ariable is cate%ori:ed into leisure and business. Consumers wit" different purposes of tra9ellin% "a9e different priorities. For e#ample, low$income earners w"o are plannin% to %o on a leisure "oliday would "a9e t"e ability to continuously monitor tic*et prices to ensure t"at t"ey can attain t"e c"eapest price. Tra9ellers on business trips meanw"ile would probably "a9e to pay "i%"er prices because t"ey may need to purc"ase airline tic*ets in ad9ance. Value-for-money >alue$for$money is one of t"e benefits sou%"t 9ariables w"ic" AirAsia can li*ely use to se%ment t"eir mar*et +)c"iffman et al., 2 E-. T"e le9el of importance of 9alue$for$ money can be di9ided into low, moderate and "i%" w"ereby consumers wit" lower income le9els tend to place "i%" emp"asis on 9alue$for$money products and ser9ices. For e#ample, consumers from )e%ment / place "i%" emp"asis on 9alue$for$money because t"ese consumers are wor*in% for corporations t"at are currently affected by t"e economic recession "appenin%, t"us t"ey are reIuired to reduce t"eir e#penses as muc" as possible +AirAsia, 2 ,d-.

13

+.2 Ta !et *a 3et P of"le =nce t"e mar*et "as been se%mented, t"e or%anisation can analyse, e9aluate and prioritise w"ic" se%ment to pursue +6uncan, 2 )e%ment 2 and )e%ment / as indicated in Table 1. ?-. T"ere are t"ree different tar%et mar*ets w"ic" AirAsia are tar%eted. T"ese se%ments are cate%orised as )e%ment !,

Table 1< Tar%et Mar*et Hrofile of AirAsia

)e%ment ! .ncome )ocial class 5sa%e rate Time )e%ment 2 .ncome 5sa%e rate Time )ocial class >alue$for$money )e%ment / .ncome 5sa%e rate Time )ocial class >alue$for$money < Middle$income le9el +M34/ , < Fi%" < (usiness < Middle social class < Fi%" ! $ M340 , yearly< Middle$income le9el +M34/ , < Moderate < Leisure < Middle social class < Fi%" ! $ M340 , yearly< Low$income le9el +M34 K M34/ , < Lower social class < Low < Leisure yearly-

>alue$for$money < Fi%"

)e%ment ! is referred to as t"e lower social class consumers w"o tra9el at most twice a year for leisure and "a9e "i%" importance on 9alue$for$money. )e%ment 2 is defined as middle social class consumers w"o tra9el moderately for leisure and place "i%"
1)

emp"asis on 9alue$for$money. )e%ment / meanw"ile is classified as middle social class consumers w"o tra9el freIuently for business purposes but also place "i%" importance on 9alue$for$money. T"is is because t"e current economic climate "as caused consumers to be more price$sensiti9e and often searc" for t"e best 9alue +AirAsia, 2 ,e-. Fowe9er, t"is "as not dampened but instead increased t"e EG Airline Hassen%er Traffic K Asia Hacific, 2 !-. E-. freIuency of consumers to tra9el domestically or internationally on LCCs +Airline Hassen%er Traffic K Malaysia, 2 Consumers t"ese days w"o tra9el for leisure or business want to pay as little as possible to secure a seat on a fli%"t +6ri9er, 2

+.3 Po&"t"on"n! Fi%ure !< AirAsia's Herceptual Map

AirAsia "as positioned itself as t"e leadin% and lar%est LCC in Asia wit" t"e p"ilosop"y of L@ow A9eryone Can Fly' +AirAsia, 2 ,b-. T"ey belie9e in t"e no$ ,b-. Afficiency frills, "assle$free, low fare business concept and belie9e t"at *eepin% costs low reIuires "i%" efficiency in e9ery part of t"e business +AirAsia, 2 creates sa9in%s w"ic" are t"en passed on to consumers in order to ma*e affordable air tra9el a reality. AirAsia "as spar*ed a re9olution in air tra9el wit" more and more

1+

people around t"e re%ion c"oosin% AirAsia as t"eir preferred airline +AirAsia, 2

,b-.

Fi%ure ! indicates t"e position in w"ic" AirAsia currently stands a%ainst its competitors. T"e 9ertical a#is illustrates t"e price ran%e w"ile t"e "ori:ontal a#is represents t"e ser9ice Iuality. 6espite bein% Asia's lar%est and leadin% LCC, ser9ice Iuality of AirAsia lac*s be"ind ot"er LCC suc" as Jetstar. T"us, w"ile AirAsia "opes to maintain its current position as t"e leadin% LCC, it also "opes to mo9es towards pro9idin% better ser9ices in t"e future as seen in Fi%ure !.

18

8.0 CUSTO*ER ANAL7SIS AirAsia's core business operations are focused on dealin% wit" end consumers w"ic" includes leisure and business tra9ellers +AirAsia, 2 ,d-. T"is is because AirAsia directly mar*ets t"eir products to end consumers t"rou%" t"e .nternet or t"rou%" tra9el a%encies. AirAsia's direct competitors are FireFly and Ti%er Airways, "owe9er MA) is also seen as a direct competitor for AirAsia because MA) "as been a monopoly in t"e domestic air tra9el industry in Malaysia +=n% D Tan, 2 ,-. =t"er indirect competitors include )in%apore Airlines [).A]. Currently, AirAsia is only tar%etin% t"ree se%ments w"ic" are low$income leisure tra9ellers, middle$income leisure tra9ellers and middle$income business tra9ellers. &"ile t"ese t"ree consumer se%ments are attracti9e and profitable, "i%"$incomeMpremium leisure tra9ellers are now s"iftin% t"eir tra9ellin% options by optin% for LCC as well so t"at e#penses can be sa9ed for ot"er purposes suc" as accommodation +='Connell D &illiams, 2 economic downturn +Cowell, 2 ?-. A9en "i%"$income leisure tra9ellers are switc"in% to lower cost tra9el due to t"e ,-. Furt"ermore, tra9ellin% wit" LCCs is becomin% a fa9ourable option for businesses to cut e#penses. Fence, t"ere is an opportunity for AirAsia to de9elop partners"ips wit" businesses and set up corporate accounts in order to increase passen%er's 9olume and re9enues. )ome of t"e 9arious factors w"ic" influence buyer be"a9iour are percei9ed price, ser9ice Iuality and passen%er's satisfaction +Har*, 2 )tern +!,E,, as cited in Har*, 2 1G )c"iffman et al., 2 E-. T"ese factors are 9ital in affectin% consumer's purc"asin% be"a9iour. Accordin% to 1-, most air passen%ers are recepti9e to airline tic*et prices, "ence airlines employ pricin% strate%ies to differentiate mar*et se%ments based on demand elasticities. T"ese prices are establis"ed based on fare sensiti9ities of business and leisure passen%ers +Har*, 2 low$income earners. )er9ice Iuality is anot"er determinin% factor w"ic" can influence consumer's c"oices as it often referred to t"e passen%er's o9erall impression of t"e airline and its ser9ices +Har* et al., 2 ?, as cited in Har*, 2 1-. Nuality of ser9ices includes fli%"t sc"edule, 1-. For e#ample, LCC includin% AirAsia would set t"eir prices low to attract consumers w"o are 9ery price sensiti9e suc" as

19

in$fli%"t ser9ices and fli%"t attendants +C"en D C"an%, 2 T"ein%i, 2

?G Har*, 2

1G )a"a D

,-. =strows*i et al. +!,,;- indicated t"at ser9ice Iuality can be a 9ital 1-. )tudies of 1-. Apart from

dri9er of passen%er's satisfaction and loyalty +as cited in Har*, 2 airlines for bot" business and leisure tra9ellers +Ha*dil D Aydin, 2

demand for airline ser9ices indicated t"at ser9ice Iuality is central to t"e c"oice of t"at, passen%erMcustomer satisfaction is important because an increasin% customer satisfaction can lead to impro9ed profits, lower mar*etin% e#penditures and positi9e word$of$mout" +4eic""eld, !,, , as cited in Har*, 2 1-. Har* +2 1- also ar%ued t"at ;-. customer's satisfaction can be a si%nificant determinant of passen%ers purc"asin% be"a9iour and it is 9ital to t"e lon%$term sur9i9al of airlines +7ilbert D &on%, 2 T"ese factors influence consumers in decidin% t"e c"oice of airline. &it" t"e current economic downturn, consumers are more price$sensiti9e t"us would not mind purc"asin% from LCCs. Additionally, t"e Centre for Asia Hacific A9iation [CAHA] forecasted t"at t"e demand for LCC will continue to increase rapidly due to blea*er economic conditions and lower fuel prices +Hredictin% More 6emand for Low Cost Carriers, 2 ,-. (y understandin% t"e importance of t"ese factors, airline companies will be able to de9elop better mar*etin% strate%ies. For e#ample, if passen%er satisfaction is increased, AirAsia can reduce t"eir mar*etin% e#penditures on promotion but focus more on customer loyalty instead. Failin% to understand t"ese factors will lead to customers s"iftin% towards competin% airlines. T"us, airlines need to be continuously prepared wit" tactics to compete in t"e industry. =n a w"ole, as it "as been forecasted t"at t"e demand for LCCs are increasin% rapidly due to t"e difficult economic situations, w"ereby consumers are bein% more price sensiti9e and cautious wit" t"eir income.

12

9.0 INTERNAL CAPA:ILITIES 1 CORE CO*PETENCIES

Core competencies are %enerally w"at companies in an industry needs to "a9e in order to sur9i9e w"ile internal capabilities are w"at %i9es a company an added ad9anta%e o9er its competitors in t"e same industry. AirAsia's main competitors in Malaysia are MA) and FireFly, w"ile its low cost competitors from nei%"bourin% countries include Ti%er Airways. =ne of t"e main core competencies of AirAsia is its safety record. T"is is an important aspect loo*ed by customers, and to date AirAsia "as not e#perienced any si%nificant problems in terms of safety and security and in fact "olds a better record t"an some national carriers +Adwards, 2 0-. Anot"er core competency of t"e company is its wide ran%e of destinations. .n t"e mar*et w"ic" it focuses on, namely )out" Aast Asia, AirAsia ser9es many routes, lin*in% many destinations across t"e re%ion. .n order to capture t"e mar*et, t"e airline must be able to meet t"e needs of customers, w"ose demands to different destinations 9ary. (ein% a LCC, AirAsia's internal capabilities include its ability to reduce cost and offer its ser9ices at low prices. AirAsia's efficiency in cost reduction ta*es t"e form of usin% Airbus planes w"ic" consumes less petrol, elimination of ba%%a%e and food costs and also t"e remo9al of administration c"ar%es. (esides t"at, AirAsia's ser9icin% of many routes is also anot"er of t"e company's internal capability. T"is is because ot"er airlines in t"e re%ion do not ser9e as many routes and as suc", AirAsia can claim to be t"e only airline in t"e re%ion ser9icin% certain sectors. T"is %i9es it an ed%e o9er its competitors as certain routes for instance KL$(ali*papan can only be accessed t"rou%" AirAsia +AirAsia, 2 ,f-

14

2.0 EVALUATION OF *AR0ET PRO5RA* ELE*ENTS Table E< Comparison of Malaysia's Top Hlayers in Low Cost Carriers' Mar*etin% Hro%ram
Co-.an; P "#e A" A&"a F" eFl; T"!e A" <a;& *ala;&"a A" l"ne& B*ASC Hrice ran%es from 4M0 to ? . - , countries across )out" Aast Asia +;2 destinations? countries across )out" Asia +, destinations! country in Africa +! destination/ countries across Aast Asia +!! destinations/ countries across t"e Middle Aast +/ destinations1 countries across Aurope +1 destinations! country in @ort" America +2 destinations2 countries across =ceania +0 destinations! country in )out" America +! destinationLow fare promotion offerin%s to different locations durin% different tra9ellin% periods.

Hrice ran%es from 4M; to 4M 1 . Va "et; of - , countries De&t"nat"on& across )out" Aast Asia +/ destinations; countries across )out" Asia +/ destinations! country in Aast Asia +0 destinations-

Hrice ran%es from Hrice ran%es from 4M ? to 4M? . 4M; to 4M/ . - ? countries - 0 countries across )out" across )out" Aast Asia Aast Asia +!E +!E destinationsdestinations- ! country in Aast Asia +?destinations! country in )out" Asia +; destinations! country in =ceania +!2 destinations-

P o-ot"on

Certain amounts of free airline tic*ets are offered to consumers.

Oero fare promotions durin% s"oulder tra9ellin% period.

Low fare promotion offerin%s to different locations durin% different tra9ellin% periods. >arious call centres across 1 countries in -

Pla#eE Lo#at"on

>arious call centres across 1 countries.

! call centre in Malaysia. E city tic*et

!2, sales offices located in ?2 countries across t"e

20

/! airport sales stations across )out"east Asia, )out" Asia, Aast Asia. 21 sales centres across ? countries in )out"east Asia.

offices in / countries. !; airport tic*et offices in 2 countries. 2 operation centres in Malaysia. T"e community airline.

)out"east Asia and =ceania.

world.

: an,"n!

T"e leadin% and lar%est low fare airline in Asia. Hro9ide online c"ec*$in wit"in 2/ "ours of departure time. =ffers B)nac* Attac*C, a buy$ on board pro%ramme offerin% food and drin*s for purc"ase. Hre$boo*ed li%"t meals durin% fli%"ts. Free seatin% wit" Ppress (oardin% option. )elf c"ec*$in counters at all airports. )elf c"ec*$in t"rou%" mobile p"ones. A$7ift 9ouc"ers are a9ailable. -

Asia$Hacific's true low fare airline. =ffers li%"t snac*s and drin*s for sale on board +.n$ fli%"t ser9ice)eat selectin% ser9ice for purc"ase durin% online purc"ase of fli%"t tic*et.

Malaysia Airlines w"ereby MF stands for Malaysia Fospitality. Hro9ides online c"ec*$in ser9ice wit"in 2/ "ours of departure time. (usiness and First class passen%ers are entitled to use t"e facilities in t"e 7old Loun%es in certain airports. =ffers customer loyalty pro%ram +Anric"-

A,,e, fa#"l"t"e&

Li%"t snac*s and drin*s are included on board for passen%ers. 2 *% ba%%a%e c"ec*$in allowance is %i9en to passen%ers.

,iG AirAsia, 2 ,8G Ti%er Airways, 2 ,bG Ti%er Airways, 2 ,cG Ti%er Airways, 2 ,dG FireFlyQ2 ,aG FireFly, 2 ,bG FireFly, 2 ,cG Malaysia Airlines, 2 ,bG Malaysia Airlines, 2 ,cG Malaysia Airlines, 2 ,dG Malaysia Airlines, 2 ,eG Malaysia Airlines, 2 ,fSources: +AirAsia, 2 ,bG AirAsia, 2 ,fG AirAsia, 2 ,%G AirAsia, 2

,"G AirAsia, 2

21

(y comparin% AirAsia to FireFly, Ti%er Airways and MA), it is ob9ious t"at AirAsia remains t"e leadin% LCC in Asia, seen in Table E. .t is also 9isible t"at AirAsia offers fli%"ts to a wider ran%e of destinations compared to its competitors. MA) "owe9er "as a wider 9ariety of destinations compared to AirAsia. &"ile Ti%er Airways may offer lower tic*et prices at selected destinations, AirAsia often "as more promotional offers, w"ic" is 9ital for AirAsia in defendin% its leaders"ip position as t"e leadin% LCC in t"e re%ion. =t"er met"ods ta*en to defend t"e leaders"ip include constant offerin% of c"eap fli%"t tic*ets and elimination of administration fees and fuel surc"ar%es. Additionally, AirAsia freIuently introduces additional ser9ices suc" as self c"ec*$in counters, online c"ec*$ins and pre$boo*in% of li%"t meals, w"ic" can furt"er impro9e efficiency. AirAsia "as successfully met t"e needs of t"eir customers by reducin% t"e lon% Iueues at c"ec*$in counters. &it" online and mobile p"one c"ec*$ins, customers also sa9e time from waitin% at c"ec*$in lines. 6espite t"ese additional ser9ices, t"ere are still areas w"ic" can be impro9ed. )er9ice Iuality needs to be impro9ed as AirAsia still la%s far be"ind MA) in terms of reputation. MA) "as also won numerous awards for "a9in% t"e world's best cabin crew +Malaysia Airlines, 2 ,%-.

22

4.0 FINANCIAL AND *AR0ETIN5 EVALUATION OF AIRASIA 4.1 E%al(at"on of A" A&"a/& f"nan#"al &tat(& (&"n! 2009 an, 2002 ann(al e.o t& Table , < AirAsia's financial status in 2
FINANCIAL RATIO FOR*ULA 2002 R*/000 B)4+63+2C E 16+4+6)42 F 100G H B;!. ?-2

1 and 2

E
@USTIFICATION

2009 R*/000 )426092 E 160206038 F 100G H /E.E22

DIFFERENCE

P of"tab"l"t; at"o& @et Hrofit @et income M Mar%in )ales R ! 2

B31.0+CG )2.22G H B1,.E1-2 (Decreased)

4eturn on AIuity

@et .ncome M B)4+63+2C Total AIuity E2610964)2 R! 2 F 100G H B2;.? -2 B16+4+6)4 2E 46+036422 C F100G H !01.,2

)426092 E 1689164)+ F 100G H 2,.1,2 B160206038 E 86)+2632)C F 100G H !?.1,2

B23.+0CG 24.94G H B?;.2,-2 (Decreased) 189.4G 1+.94G H !?2.!!2 (Increased)

In#o-e &tate-ent "n 2002 &?o<& a ,e# ea&e of 94.29G "n net . of"t -a !"n. T?"& "& ,(e to t?e ?"!? eD.en,"t( e #o-.a e, to 2009. F(el eD.en&e "n# ea&e, b; 142G ,(e to &oa "n! !lobal f(el . "#e&. H"!?e f"nan#e #o&t& al&o #ont "b(te to t?e lo&& "n 2002 a& bo o<"n!& "n# ea&e, t e-en,o(&l;. H"!? bo o<"n!& &?o< t?at A" A&"a ea#te, to t?e fl(#t(at"on of f(el . "#e& b; (t"l"I"n! a ne< fleet of a" # aft t?at "& f(el eff"#"ent. T?e efo e 6 <"t? t?"& ne< fleet of .lane& f(el an, -a"ntenan#e eD.en,"t( e #an be #ont olle,. Staff #o&t& a e elat"%el; ?"!? ,(e to t a"n"n! "n ?an,l"n! t?e ne< fleet of .lane&. A ,e# ea&e of +3.24G &?o<& t?at A" A&"a "& "neff"#"ent "n ?an,l"n! -one; "n%e&te, b; &?a e?ol,e &. T?"& #o(l, affe#t "n%e&to /& t (&t "n A" A&"a. In e%e ; *7R1.00 a&&et6 189.4.G of &ale& "n 2002 "& be"n! # eate,6 #o-.a e, to 1+.94G "n 2009. T?e e "& an "n# ea&e of &ale& .e a&&et. T?"& "n,"#ate& t?at A" A&"a ?a& "-. o%e, "t& eff"#"en#; "n (t"l"&"n! "t& a&&et&. A" A&"a/& ab"l"t; to -eet &?o t te - ,ebt& ?a%e <ea3en b; 0.+) a& 2009 &?o<& a &t on!e ab"l"t; to o%e #o-e ,ebt& &"n#e e%e ; *7R1 ,ebt <"ll # eate *7R1.82 to -eet t?e ,ebt. A"t? a 13.+2G ,e# ea&e "n ,ebt at"o "n 20026 t?e .e #enta!e "& &t"ll elat"%el; ?"!? a& ?alf of A" A&"a f"nan#e& a e ,ebt. A ?"!?e ,ebt to total a&&et& at"o

O.e at"onal eff"#"en#; at"o& Asset )ales M Total Turno9er Assets R ! 2

L"J(","t; at"o Current ratio

Current assets M Current Liabilities

164026120 E 169)1692) H 1.04

16+1263+9 E 4316108 H 1.82

1.83 K 1.04 H 0.+)

Le%e a!e at"o 6ebt to Total Assets 4atio

Total Liabilities M Total Assets R! 2

B+6180644 )E 46+036422 CF 100G H ?/.;2

B361126021 E )62106028C F 100G H 0/.E22

+).3G - 8).22G H +!;.?2-2 (Decreased)

23

=peratin% Cas" Flow 4atio

@et =peratin% Cas" Flow M )ales R ! 2

=B)116243C E 16+4+6)42 > F 100G H B2?.1E-2

B+406944 E 160206038C F 100G H ?1.,22

B2+.92CG +9.42G H +E;.1-2 (Decreased)

le&&en& bo o<"n! o..o t(n"t; be#a(&e t?e "n&ol%ent "&3 "& ?"!?e . O.e at"n! #a&? flo< at"o ?a& ,e# ea&e, "n 20026 <?"#? &?o<& t?at A" A&"a/& ab"l"t; to t( n &ale& "nto #a&? ?a& <ea3ene,. T?"& affe#t& t?e ,ebt at"o to total a&&et& at"o a& bot? &?o<& a ,e# ea&e "n l"J(","t; "n 2002.

)ource< +AirAsia, 2

,cG AirAsia, 2

,*-

4.2 F"nan#"al E%al(at"on fo A" A&"a a& #o-.a e, to *ala;&"a A" l"ne =*AS>. AirAsia's financial e9aluation is a%ainst Malaysia Airline because it is transacted in t"e same currency and it operates in t"e same country as seen in Table ! . Table ! < AirAsia's financial status as compared to MA) in 2
FINANCIAL RATIO FOR*ULA A" A&"a R* 6000 2007 : )426092 E 160206038 F 100G H /E.E22 2008: B)4+63+2C E 16+4+6)42 F 100G H B;!. ?-2 O.e at"onal eff"#"en#; at"o& Asset Turno9er )ales M Total Assets R ! 2 2007: B160206038 E 86)+2632)C F 100G H !?.1,2 2008: B16+4+6)42 E 46+036422C F100G H !01.,2 L"J(","t; at"o Current ratio Current assets M Current Liabilities 2007: 16+1263+9 E 4316108 H 1.82 *ala;&"a A" l"ne B*ASC R* 6000 2007: 2206023 E 46329639) F 100G H ,.//2 2008: 2226021 E 26+)86+28 F 100G H 2.012 2007: B46329639)E 464+2600+C F 100G H ,;.002 2008: B26+)86+28E 4642262+2C F100G H E?.02 DIFFERENCE

1 and 2

@USTIFICATION

P of"tab"l"t; at"o& @et Hrofit @et income M Mar%in )ales R ! 2

2007: )2.22G - 4.))G H ;,.;E2 2008:: B31.0+CG 2.89G H +;;.12-2

In 20096 A" A&"a #o(l, ea n a ?"!?e net . of"t -a !"n #o-.a e, to *AS. T?"& "& ,(e to ?"!?e &ale& of &eat& "n 2009. In 20026 A" A&"a ?a& a ne!at"%e net . of"t -a !"n. Ho<e%e *AS/& . of"t -a !"n ?a& al&o e,(#e, t e-en,o(&l;6 t?(& t?"& #an be ,(e to t?e !lobal e#e&&"on. A" A&"a/& eff"#"ent (&e of a&&et fo &ale& ?a& been "n# ea&"n! <?"le *AS/& ?a%e been ,e# ea&"n!. T?"& &?o<& t?at A" A&"a #o(l, -ana!e "t& a&&et bette #o-.a e, to *AS. Ho<e%e *AS "& -o e eff"#"ent a& t?e e a e no &t on! fl(#t(at"on&.

2007: 1+.94G - 43.88G H +11.E1-2

2008: 189.4G - 2+.8G H E2.;2

2007: 9601)6202 E +62+)6192 H 1.3) 2008:

2007: 1.82 K 1.3) H 0.22

2008:

:ot? A" A&"a an, *AS ?a%e t?e ab"l"t; to -eet "t& &?o t te - l"ab"l"t; a& t?e" f"nan#e& a e &(ff"#"entl; l"J(",. T?e #o-.an"e& a e at t?e &a-e &tan,a , "n te -& of -eet"n!

2)

2008: 164026120 E 169)1692) H 1.04

8682462+2E )642)6800H 1.38

1.04 K 1.38 H B0.29C

&?o t te - l"ab"l"t"e& a& t?e ,"ffe en#e bet<een 2009 an, 2002 "& onl; 0.01.

)ource< +AirAsia, 2 2 ,d-

,cG AirAsia, 2

,*G MalaysiaAirlines, 2

,aG MalaysiaAirlines,

4.3 *a 3et"n! *et "#& Mar*etin% metrics are used to e9aluate t"e current mar*etin% performance of t"e company. T"e mar*etin% performance metrics for AirAsia can be summarised in t"e Table !!. Table !!< Mar*etin% metrics *et "#& *a 3et *et "#& C "te "a $ Mar*et %rowt" rate $ Mar*et s"are $ 4elati9e product Iuality $ 4elati9e price C(&to-e *et "#& $ Customer satisfaction $ Customer retention O(t#o-e $ Fi%" $ Medium to "i%" $ Low to medium $ Low $ Low to medium $ Medium Note& $ More people are tra9ellin% t"rou%" airlines $ .n Malaysia $ Low cost carriers e#clude many types of ser9ices $ Low prices compared to competitors $ FreIuent fli%"t delays and cancellation $ )ome "a9e really bad e#periences wit" AirAsia

Co-.et"t"%ene&& *et "#&

10.0 PRO:LE* IDENTIFIED AND THE ALTERNATIVES T"e bi%%est issue faced by AirAsia is its inconsistent Iuality of ser9ices w"ic" leads to a ne%ati9e brand ima%e. AirAsia "as been freIuently delayin% or cancellin% fli%"ts, causin% incon9enience and frustration to many of its customers. Anot"er e#ample of bad ser9ices is its unfriendly staff includin% %round staff or cabin crew. Alternati9es as suc" must be ta*en to address t"is problem. =ne of t"e steps t"at can be ta*en is to remo9e unprofitable routes or fli%"t sc"edules. Many of t"e fli%"ts are delayed or cancelled because AirAsia did not "a9e enou%" passen%er 9olume to 8ustify a ta*e$off. As suc", daily fli%"t freIuencies on certain routes s"ould be reduced. Anot"er

2+

alternati9e t"at can be ta*en is t"e pro9ision of trainin% to bot" t"e %round staff and fli%"t attendants. &it" a more customer$oriented staff, customers will not spread ne%ati9e word$of$mout", t"us impro9in% t"e ima%e of t"e airline. Finally, incenti9es for staff eit"er in t"e form of bonuses or ot"er benefits can be implemented to encoura%e friendliness. T"ese staffs t"at are t"e front$liners of t"e company are important in con9eyin% t"e ima%e of t"e company. Customers w"o are satisfied wit" certain staff may send in t"eir names, w"o will t"en be t"e beneficiary of t"e incenti9e.

28

11.0 REFERENCE LIST Air Hassen%er Traffic K Asia Hacific. +2 Au%ust !0, 2 st.asp# Air Hassen%er Traffic K Malaysia. +2 Au%ust !0, 2 ap"yTree.asp# AirAsia. +2 ;-. >ision D )trate%y. 4etrie9ed Au%ust !/, 2 ,, from ,, from E-. Euromonitor International. 4etrie9ed ,, from E-. Euromonitor International. 4etrie9ed

"ttp<MMwww.portal.euromonitor.com.e:pro#y.lib.monas".edu.auMpassportM4esultsLi

"ttp<MMwww.portal.euromonitor.com.e:pro#y.lib.monas".edu.auMpassportMrad7eo%r

"ttp<MMwww.airasia.comMin9estorM9ision!.s"tm AirAsia. +2 !0, 2 1f Ea July !/-. Press Releases< AirAsia wins Airline )trate%y Award< ,, from "ttp<MMwww.airasia.comMsiteMmyMenMpress4elease.8spTidU2! /df,E$ ! $!,;0 e1 $EE 0!f?? Eb =ctober 2;-. Press Releases< AirAsia furt"er impro9es ?$)tar )er9ice ,, ! $

Finance Cate%ory 4eal ? )tar carrier %ets 4eal ? )tar "onourS. 4etrie9ed Au%ust

AirAsia. +2

Nuality 5p%rades =n$Time %uarantee to 2 Fours. 4etrie9ed Au%ust !0, 2 from "ttp<MMwww.airasia.comMsiteMmyMenMpress4elease.8spTidU2,20c0af$1f 0ddEe! AirAsia. +2 $d1;/ffa, ,a-. Awards D 4eco%nition. 4etrie9ed Au%ust !E, 2 ,, from

"ttp<MMwww.airasia.comMama:in%MenMpa%e&it"Feader.p"pT menuUoneDcontentUoneVawards AirAsia. +2 ,b-. Company Hrofile. 4etrie9ed Au%ust !E, 2 ,, from

"ttp<MMwww.airasia.comMsiteMauMenMpa%e.8spT nameUCompanyWHrofileDidU20!aEE/e$ac!e ae$edd,de $/fe;21,dDna9U?$

29

AirAsia. +2

,c-. Annual 4eport 2

1. 4etrie9ed from

"ttp<MMwww.airasia.comMsiteMmyMenMpa%e&it"Menu.8spG8sessionidU1,FA0F6A(AE E(!F0 2F1!F6AFAF(C6CATnameUAnnual22 4eportDidUeabE?e,?$ 1f ! $2e0c00 $0!/ebe; Droot.dU? ae!2 $c aEcE?d$!/! aE? $ baad0a/;Dparent.dU2eb0ca/c$c aEcE?d$!11e0b/ $dbE,! 00 AirAsia. +2 ,d, May 2E-. AirAsia Financial 4eport $ First Nuarter as of May 2E. ,, from

4etrie9ed Au%ust !0, 2 1f

"ttp<MMwww.airasia.comMstora%eMboMaaportal.model.ContentFile5ploadME01?0?E;$ ! $!/ef2;, $a,!!/0 2MnameMAAV!N ,VAnalyst22 Hresentation.pdf ,e, Au%ust !2-. Hress 4elease< Lower Fares and Lower Cost Hropels ,, from

AirAsia. +2

Fi%"er Hrofit. 4etrie9ed Au%ust !0, 2 1f ! $dbf1,d

"ttp<MMwww.airasia.comMstora%eMboMaaportal.model.ContentFile5ploadMddE?, / $ $,0!1a?!?MnameMAAV2N ,VHress22 4elease.pdf ,, from

AirAsia. +2

,f-. 6estinations. 4etrie9ed Au%ust !?, 2

"ttp<MMwww.airasia.comMsiteMmyMenMdestinationCity.8spG8sessionidUA;/6 1;(;?!A C;C0A2AC2ACAE(6,F/A1TreferenceUK5L AirAsia. +2 ,%-. )elf C"ec*$.n. 4etrie9ed Au%ust !?, 2 ,, from C ! $!E121?d $

?ttp<MMwww.airasia.comMsiteMmyMenMpa%e.8spG8sessionidUC EEE?AE!A/;!F?A1

F?6A16E// !TnameU)elfWC"ec*$inDidUEf,1ff ;$1f bfd1,//!Dna9U!$/ AirAsia. +2 ,"-. A$7ift >ouc"ers. 4etrie9ed Au%ust !?, 2 $ac!e ae$1 /cf?

,, from

"ttp<MMwww.airasia.comMsiteMmyMenMpa%e.8spTnameUA$ 7iftW>ouc"erDidU?;d1c; AirAsia. +2 $fd cf0/ Dna9U2$; ,, from ae$!bef!ac $

,i-. )nac* Attac*. 4etrie9ed Au%ust !?, 2

"ttp<MMwww.airasia.comMsiteMmyMenMpa%e.8spG8sessionidU/2ACAC/!2FE/AFA!66 A/06CAE;,? E/TnameU)nac*WAttac*DidUf,,fE0;0$ac!e ,a?!2d0 Dna9U2$?

22

AirAsia. +2

,8-. Contact 5s. 4etrie9ed Au%ust !?, 2

,, from ae$?!!e a $

"ttp<MMwww.airasia.comMsiteMmyMenMpa%e.8spG8sessionidU0A!00((A(0A(A06/10! ;1(1 !,;/;001TnameUContactW5sDidU!b1a;1dc$ac!e ;/df0a! Dna9U0$! AirAsia. +2 ,*-. Annual 4eport 2 E. 4etrie9ed from

"ttp<MMwww.airasia.comMsiteMmyMenMpa%e&it"Menu.8spG8sessionidU1,FA0F6A(AE E(!F0 2F1!F6AFAF(C6CATnameUAnnual22 4eportDidUeabE?e,?$ 1f ! $2e0c00 $0!/ebe; Droot.dU? ae!2 $c aEcE?d$!/! aE? $ baad0a/;Dparent.dU2eb0ca/c$c aEcE?d$!11e0b/ $dbE,! 00 Ama:in% AirAsia. +2 ,-. =ne AirAsia. 4etrie9ed Au%ust !0, 2 ,, from

"ttp<MMwww.airasia.comMama:in%MenMpa%e&it"Feader.p"pT menuUoneDcontentUoneVawards C"en, F. 3. D C"an%, 3. F. +2 ?-. A#aminin% airline ser9ice Iuality from a process anagement! !!+2-, 1,$E1.

perspecti9e. Journal of Air Transport

Consumer Lifestyles K Malaysia. +n.d.- Euromonitor International. 4etrie9ed Au%ust !0, 2 .asp# Cowell, ). +2 ,, April E-. Low cost flies "i%". ITP "usiness Portal Ara#ian Supply ,, from ,, from "ttp<MMwww.portal.euromonitor.com.e:pro#y.lib.monas".edu.auMpassportMMa%a:ine

C$ain. 4etrie9ed Au%ust !E, 2

"ttp<MMwww.arabiansupplyc"ain.comMarticle$!,12$lowVcostVfliesV"i%"M 6'cru:, F., A. D )il9a, 4., 6. +2 0, Au%ust !?-. MA), AirAsia Let fly in

ad9ertisements. %e&s Straits Times. 4etrie9ed from "ttp<MMwww.accessmylibrary.comMarticle$!7!$!/,?;00?;Mmas$airasia$let$fly."tml. 6ri9er, J. C. +2 !-. Airline mar*etin% in re%ulatory conte#t. ar'eting Intelligence

( Planning! !,+2-, !2?$!;?.

24

6uncan, T. +2 Fill. Adwards, H. +2 $airM2 FireFly. +2

?-. Principles of A)*ertising ( I C +2nd ed.-. @ew 3or*< Mc7raw$

0, July 2-. (est in air. T$e Age. 4etrie9ed Au%ust !,, 2

, from

"ttp<MMwww.t"ea%e.com.auMnewsMasiaMbest$in 0M 1M !M!!?!!1// 210?."tmlTpa%eUfullpa%eXcontent)wap2. ,a-. Company Hrofile. 4etrie9ed Au%ust !?, 2 ,, from

"ttp<MMwww.firefly:.com.myMaboutMcompany$profileM FireFly. +2 ,b-. 6estinations. 4etrie9ed Au%ust !?, 2 ,, from

"ttp<MMwww.firefly:.com.myMfli%"tsMdestinationsM FireFly. +2 ,c-. Contact .nfo. 4etrie9ed Au%ust !?, 2 ,, from

"ttp<MMwww.firefly:.com.myMcontactMcontact$info Francis, .. +2 ,-. AirAsia to see "i%"er profit in 2N ,. T$e E)ge. 4etrie9ed from

"ttp<MMwww.t"eed%emalaysia.comMbusiness$newsM!/0,2;$airasia$to$see$"i%"er$ profit$in$2I ,."tml. 7ilbert, 6. D &on%, 4. K. C. +2 ;-. Hassen%er e#pectations and airline ser9ices< a anagement! 2/+?-, ?!,$?;2. 1. 4etrie9ed from

Fon% Kon% based study. Tourism MalaysiaAirlines. +2 reports.asp#. Malaysia Airlines. +2

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,c-. 6irectory of &orldwide =ffices. 4etrie9ed Au%ust !0,

30

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,, from

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?-. Hassen%ers' perceptions of low cost airlines anagement! !!+/-, 2?,$212.

and full ser9ice carriers< A case study in9ol9in% 4yanair, Aer Lin%us, Air Asia and Malaysia Airlines. Journal of Air Transport =n%, &. L. D Tan, A. K. 7. +2 doi<! .! !0M8.8airtraman.2

,-. A note on t"e determinants of airline c"oice< T"e anagement. ,. 0. !

case of Air Asia and Malaysia Airlines. Journal of Air Transport

=nwutalobi D Ant"ony$Claret. +2

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Airline ("d. Co)e&it. 4etrie9ed Au%ust !E, 2

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studies. Journal of Air Transport

31

Hredictin% More 6emand for Low Cost Carriers. +2 %e&s 4eed, H. +2

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4esearc" and Mar*ets. +2

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intentions< A study of low$cost airline carriers in T"ailand. .uality, !,+;-, ;? $;12.

)c"iffman, L., (ednall, 6., ='Cass, A., Haladino, A., &ard, ). D Kanu*, L. +2 Consumer "e$a*iour +/t" ed.-. @)&, Australia< Hearson Aducation Australia. )id"u, (., K. +2 fileUM2

E-.

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T"o., P., 3. +2 fileUM2

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T"omas, 7. +2 Au%ust !1, 2

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32

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33