AirAsia: Flying Low Cost with High Hopes Harvard Case Solution & Analysis

One month after, he relaunched the airline as South-East Asia's first low cost carrier (LCC) and attained an immediate success with increased profitability and high-speed course expansion. Under the tagline of the "Now Everyone Can Fly", AirAsia was able to keep the lowest price construction among its competitors and offered low airfare to customers. Being innovative down to the bone that was corporate, AirAsia initiated several new services for its operation, including an ambitious plan that many other low cost, short-haul carriers viewed as insecure-extending services to include long haul routes.

In 2007, AirAsia was ranked as the finest LCC in the Asia region. Its success had not only inspired many LCC followers in the Asia Pacific area, but also severely threatened the well-being of full service operators, particularly its leading opponent at house, Malaysia Airlines ("MAS"). In May 2008, MAS began an unanticipated price war by launching the "Regular Low Do" campaign, offering zero fare for national and short-haul flights, which were largely controlled by AirAsia. Amid ever intense competition in the Asia Pacific region and soaring flight operation prices worldwide could its competitiveness evolve?

PUBLICATION DATE: June 11, 2009 PRODUCT #: HKU833-PDF-ENG

This is just an excerpt. This case is about SALES & MARKETING

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