Airasia Airline

Market Size

The main hub of AirAsia airline located at Kuala Lumpur International Airport (KLIA), Sepang in Malaysia. AirAsia have big market size in the domestic and international market. Some of the affiliate airlines such as AirAsia China, AirAsia Vietnam, AirAsia India and others.

AirAsia use joint venture as strategy to launch low cost carrier in China. AirAsia CEO- Tony Fernandes decided to choose Zhengzhou as a main hub due to strategic location and importance as a logistics hub. Zhengzhou located at the center of vast rail, highway that easy to do air transport and transportation on land. China’s major LCC hubs and Zhengzhou already have their own LCC market share which is 22%. For example, Beijing Nanyuan capital airport has only 37,000 weekly LCC seats in May-2017. Zhengzhou has more LCC seats compare with Beijing which is 125,000 weekly LCC seats.

Vietnam grows fastest aviation market in ASEAN so AirAsia establish new budget airline with Vietnam. Tran Trong Kien and Hai Au Aviation Joint Stock Company on 2017. Tran will own around 69.99% for the new LCC and AirAsia own 30% from the company share. AirAsia need $44 million to run this new venture plans and 30% internal fund will contribute by Kuala Lumpur Company. AirAsia believe Vietnam is the best location to connect domestic key cities in Vietnam to ASEAN such as China, Korea and Japan from some hubs which is Ho Chi Minh, Hanoi and Da Nang.

Indian Government allow foreign airline direct invest their funds up to 49% in aviation sector in year 2012. AirAsia use joint venture to set up their airline business in India which AirAsia holding 49% of the airline and Arun Bhatia took up 21% and Tata Sons remain 30% stake in the airline. Besides that, AirAsia become a first foreign airline  set their affiliate airline in India. The Headquartered of AirAsia India located at Chennai and make Chennai International Airport become a hub.

AirAsia use some strategic and action to increase sales in the market. AirAsia will discuss the new strategic and plan with their marketing team to ensure different strategic to maintain their market share and boost profit.

Cheaper flight tickets

AirAsia reduce their price of the flight to attract more customers to buy the tickets of flight and increasing their sales in the market. AirAsia provide low cost carrier, affordable, efficient for their customers and always keep the lowest cost so that everyone can fly with AirAsia. AirAsia will offer the low fares to their customers in specific time base on different country. Customer can buy the cheap ticket from the Airasia website in every end of the year to enjoy their journey. For example, AirAsia is offer the promotional fares as low as RM199 all-in fare for one way travel include the taxes for all Maldives flights from Nov 2017 to May 6, 2018. Customers able to purchase cheap ticket and achieve their travel dream with their family members and sales of AirAsia will increasing at the same time.