AirAsia was established in 1993 and began operations on 18 November 1996. It was founded by a government-owned conglomerate, DRB-HICOM. In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru and launched its first international flight to Bangkok.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Air Asia.
Air Asia At A Glance – Air Asia SWOT Analysis
Company: The AirAsia Group
Founders: Tony Fernandes | DRB-HICOM
Year of establishment: 18 November 1996
CEO: Tony Fernandes
Headquarters: Kuala Lumpur International Airport Sepang | Selangor | Malaysia
Employees (Dec 2020): 20,000
Ticker Symbol: AIABF
Annual Revenue (Dec 2020): US$1.12 Billion
Profit net income (Dec 2020): US$354 Million
Products & Services: Air transport, travel and lifestyle products | Financial services
Company Website: ir.airasia.com
Top Air Asia Competitors
Competitors: Malaysian Airlines | JetStar Airways | Singapore Airlines | China Eastern Airlines | China Southern Airlines | Shanghai Juneyao | SilkAir | Tiger Airways | Air Sahara | Air Deccan | Kingfisher | Air Arabia
Air Asia SWOT Analysis – SWOT Analysis Of Air Asia
SWOT Analysis Of Air Asia analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Air Asia SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Air Asia SWOT Analysis. Below Is The Detailed SWOT Analysis Of Air Asia.
Air Asia Strengths – Air Asia SWOT Analysis
1. Stable and consistent position: Air Asia has been promoted as a low-cost airline . The airline has succeeded in ensuring they maintain their operating costs at a minimum and the benefits from this are absorbed into cost of the.
2. Weekly flights: Through consumer research Air Asia realized that many customers were traveling to and from Trichy to Chennai before continuing on towards Kuala Lumpur, Singapore, and Bangkok that was turning out to be pricey. Air Asia decided to start daily flights from Kuala Lumpur priced as low as Rs 12000 for an alternative to Rs 21,000 for other airlines.
3. Broad coverage of India: Air Asia was quick to grasp the massive potential that India could offer and consequently began to expand to the area. Air Asia has around 120 routes to India connecting several key destinations, and ensures that an economical travel options are available to its customers.
4. Innovative thinking within the service: Air Asia was making use of cutting-edge technology to innovate. One of their services include printing tickets online and even electronic check-in. The airline is also improving efficiency by replacing manual labor by technology via online services.
5. Cost-cutting success: Air Asia has a very low cost carrier and they have taken every possible measures to cut on expenses. One approach which has been adopted by Air Asia is to shift the responsibility of providing service to the consumer, resulting in most of the tasks self-service.
Air Asia Weaknesses – Air Asia SWOT Analysis
1. Costs to sustain: Air Asia is a low-cost carrier, so it is essential that airlines manage their operating expenses at a minimum. With fluctuation in fuel prices and the rise in costs for service and rising service costs, airlines face extremely difficult to keep their expenses as low as they can.
2. Low Profits: In order to maintain their status as being a low-cost airline, Air Asia keeps their prices at the lowest they can and therefore rely on volume for their earnings which, in turn, has resulted in lower profit margins as well as a reduction in constant revenue flows.
3. Problems with finding a balance between quality of service with price: The USP of Air Asia is the low-cost carrier image it projects. But, consumers aren’t willing to sacrifice quality simply because they are priced the lowest price and their satisfaction is contingent upon the high quality service. Therefore, the airline finds it difficult to balance quality and price, and there is a claim that they compromise quality.
Air Asia Opportunities – Air Asia SWOT Analysis
1. A surge in international travel: In Asia where Air Asia is based , there’s been an increase for business travelers. Cities such as Singapore, Malaysia, and Bangkok are among the top destinations on the world map of tourist destinations. holidays also bring an increase in leisure travel. These are opportunities the airline could profit from.
Air Asia Threats – Air Asia SWOT Analysis
1. Competitive: The company faces lots of competition from other brands like Air India, Singapore Airlines, Virgin Airlines etc.
2. Control of costs: Air Asia is finding it difficult to handle the fluctuation in costs of fuel as well as to keep up its huge collection of planes. The control of costs over time is the biggest problem that the airline is facing.
Air Asia SWOT Analysis Overview Template
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