Can the Budget Airline Model Succeed in Asia Essay Example

having more of a “people strategy. ” Ryanair is more technical and focuses on their operational strategies. All three airlines have their own approaches to being a good airline carrier, but they also share some similarities. AirAsia, Southwest, and Ryanair all focus on in-flight frequency, punctuality, quality aircraft, and safe airports. One major difference between the three is AirAsia which offers SMS (mobile texting) which is a very popular pastime in the Asia-Pacific region.

Did Tony Fernandes weigh the range of political, economic, and operational risks when he took over AirAsia? What risks might he have overlooked? Yes, Tony Fernandes did weigh the range of political, economic, and operation risks when he over took AirAsia. Although AirAsia had problems from the beginning and was failing to turn a profit Fernandes enlisted leading low-cost airline experts to restructure AirAsia’s business model and he persuaded McCarthy to join his executive team to become one of the investors; which all contributed to AirAsia being relaunched in 2002. . How would you describe Tony Fernandes’s entrepreneurial strategy? Tony Fernandes’s entrepreneurial strategy is very straightforward. He is an initiative-taker, an innovator, and a risk-taker. His qualities make him an ideal entrepreneur. He had a childhood dream to own an airline company and he took the necessary risks, made the right decisions to better AirAsia, which lead him to own his own successful airline company. 6. How should AirAsia respond to challenges posed by a) new low–fare carriers entering the Asian marketplace

The low-fare airlines entering the Asian marketplace combined with the deregulation of airlines by the government can lead to great competition in the Asia-Pacific airline marketplace. AirAsia being the

first in the low-fare airline carrier in the Asian market could offer incentives to customers to keep them coming back to their airline over new competing airlines. AirAsia should respond with marketing that encourages customer loyalty and to keep their standards to the customer's liking low-fare strategies pursued by incumbent carriers?

AirAsia should respond to low-fare strategies by incumbent carriers the same way it would handle new airline carriers. By making sure it offers customer loyalty, and marketing towards those things that customers value most. Such as safety etc… How do you think the Asian passenger air transport marketplace will shake out? What lessons can be drawn from the North American and European experiences? I think the Asian passenger air transport marketplace will shake out when the government starts imposing strict regulations inhibiting competition to flourish amongst the low-fare airline carriers.

If there are government restrictions it may affect the operations of the airlines and their financial backings causing a shakeout. Another cause of a shakeout could be a financial market crisis. If the Asian economy were to have a financial crisis customers would not have a high purchasing power leaving the airlines with few customers financially stable enough to fly. AirAsia can learn a valuable lesson from North American and European airlines experiences. AirAsia could venture into alternate routes and branch out their flights and services areas to other countries and reap the financial benefits of broadening their flight choices.