AirAsia X: Can the Low Cost Model Go Long Haul? Harvard Case Solution & Analysis

By 2007, AirAsia had become one of the most successful budget airlines in the whole worldwide. Having dominated Southeast Asia, and penetrated into China and India, AirAsia was on the brink to harden its place as one of many foremost budget airlines and one of the very consistently rewarding globally. But firm creator Tony Fernandes had larger plans. From the start in 2001, Fernandes had intended to offer long haul service, competing against the biggest and most recognized airlines on the planet.

 Yet, his advisers had urged him to focus on regional, short to moderate distance amenities. With several triumphs under his belt, Fernandes was once again prepared to tackle long haul. Hiring 36-year old Azran Osman-Rani as the CEO for the new long haul enterprise , nicknamed X, was a crucial step in this development. X's opening flight to Australia occured in November 2007. In early phase of 2010, X was flying to 15 destinations on three continents and received its eleventh aircraft. However, over time the significant differences between long haul and short haul operating demands became more clear. Therefore, the management decided to officially separate X from AirAsia.

PUBLICATION DATE: February 17, 2012 PRODUCT #: W12704-PDF-ENG

This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE

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