Reason for the Success of Air Asia as a Low Cost Airline in Southeast Asia

REASON FOR THE SUCCESS OF AIR ASIA AS A LOW COST AIRLINE IN SOUTHEAST ASIA

PROMOTION STRATEGY

1- TAGLINE "EVERYONE CAN FLY"

It has enabled almost everyone to take to the air which is confirming its tagline that is "now everyone can fly". The tagline encourages people to look forward the promotion made by Air Asia. They also really understand the power of advertisement. Usually, they take advantage during school holiday where they launch low fares promotion and it attracts people attention.

When it was launched on December 2001, they promote one-way fares as low as $2.50 which has persuaded thousands of Malaysians to fly who in the past would have taken a bus, train, or boat. The tagline really encourage million of people around the world to get their airline service, make people want to know the range of price by using Air Asia since they use the words "everyone".

2 – ONLINE SYSTEM

Besides, Air Asia sells thru internet where people may buy and check in using website. They update the current promotion and put it at a front page when you open the websites. Once you sign up using the service, they always send latest promotion thru e-mail to make you updated. The use of internet also one of the catalyst for their success. Easy To Book, Easy To Pay, Easy To Fly is another tagline that had been use by them to encourage people to use online system. You may go to www.airasia.com to experience by yourself whereby when you enter the web, the promotion is there.

3 – NO MORE ADMINISTRATION FEE

In June 2009, AirAsia has recently announced that the administration fee will be abolishing from their fare structure which means, the passenger will pay less to fly. Through his strategy Air Asia stands to lose up to RM400 mil a year. However, they will replace lost revenue with income from higher passenger growth and its ancillary business.

The administration fees range from RM22.50 to about RM43 per route (one way). Once they announce about this, there is an increase in total passenger within 3 month which can be seen in AirAsia Financial Report on the 2nd quarter of 2009 as of middle of August:

Seats Sold in 1st Quarter 2009 3,147,609

Seats Sold in 2nd Quarter 2009 3,519,486

Seats Sold in 3rd Quarter 2009 3,590,744

These promotions encourage thousand of Malaysians to join into Air Asia service.

4 – ATTACK LOCAL

Talk the same language as of their customer. As we know Asia is a multi-language continent. They take into account every single achievement