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How Air Asia compete using low cost stratergy - Coggle Diagram
How Air Asia compete using low cost stratergy
High Aircraft Utilization
Air Asia aircraft fly as much as possible
first flight begin in the early morning and flight end in late night
Time on the ground is very limited
aircraft turnaround time is 25 minute compared to 1 hour for Full Service Carrier
on average, Air Asia aircraft utilization is 12 hours a day compared to FSC which is 8 hours a day
No frills
bacis business for low cost airlines is to fly people from A to B.
Air Asia removes some frills such as:
1)
No free food and beverage on board
passengers can buy food and beverages on board or online at ticket booking process at affordable price
2)
There is no assigned seating, all seats are free
except, passengers are willing to pay more for seat selection
3)
Ticketless
Less complicated for operational and customers
4)
No refund
Airline cost much money when passengers no show for flight due to refund and reschedule
5)
No loyalty program
Air Asia believes customers are loyal with the low fare
Modernize Operations
1)
Company makes the process as simple as possible.
Air Asia uses a single type of aircraft that enables the staff specialized in a single type of aircraft
2) Offers single class seating only
If passengers want to have special privilege to choose seat, they have to buy Xpress Boarding
3) SOP that ensures all the staff have the same level of competencies
this way, homogeneous service is offered to the customers
Basic Amneities
1) Secondary Airport
secondary airport is cheaper and also less dense that allow faster turnover for the aircraft
2) Air Asia does not offer business lounge even for VIP
Lean Distribution System
1) 80% of ticket sales are generated from Air Asia website
2) Air Asia have very few sales office
3) Ticket sales and booking can be made by telephoning