Business Strategy

Swot Analysis of Air Asia

STRENGTH

1. Low operational cost by having a single aircraft type fleet i.e. Boeing 737 or Airbus A-310.
2. Low maintanace cost due to the same reason as above.
3. Low operating cost due to being No Frill, online reservations, fast check in etc.
4. huge untapped market, specially for business travellers and "for-the-first-time-flying" segment.
5. target customers are who are currently using non-aircraft modes like, Bus, Trains, car to travel to distances.

WEAKNESS

1. Rising Fuel Cost.
2. flight times are more or less limited to 2.5 hours. so you cant operate flights of longer duration without any Frill, so No-Frill becomes impossible to implement for passengers.
3. increased competition from proper carriers and other no frill carriers.

OPPORTUNITY

1. tapping the segment which is not using airline to travel at all. i.e. people who are using Bus or car or train to travel from KL to LangKawi
2. Regional International flights of 2.5 hrs duration.

THREAT

1. Rising Fuel Cost
2. more competition from State-owned Carriers.
Swot Analysis of Air Asia

STRENGTH

1. Low operational cost by having a single aircraft type fleet i.e. Boeing 737 or Airbus A-310.
2. Low maintanace cost due to the same reason as above.
3. Low operating cost due to being No Frill, online reservations, fast check in etc.
4. huge untapped market, specially for business travellers and "for-the-first-time-flying" segment.
5. target customers are who are currently using non-aircraft modes like, Bus, Trains, car to travel to distances.

WEAKNESS

1. Rising Fuel Cost.
2. flight times are more or less limited to 2.5 hours. so yo ...
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