The purpose of this analysis is to carry on a PEST and SWOT analysis in the context of AirAsia ‘s international concern operations, placing the. AirAsia Berhad dba AirAsia MYX: is a Malaysian low-cost airline. It operates scheduled domestic and international flights and is Asia’s. 1 CHAPTER ONE: INTRODUCTION OVERVIEW OF AIR ASIA AirAsia .. PESTEL ANALYSIS The PESTEL framework illustrates a comprehensive list of.

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Skip to main content. Log In Sign Up. These have been associated with all areas such as marketing management, operation, strategy management, financial management area, and others.

The scopes of business project include of management of the company, Malaysian economic analysis over 10 years, industry analysis, market feasibility, five year financial analysis, and airzsia company analysis. By closely examined aieasia scopes of the company, it provides a company problematic area identification for the company analyst.

Based on the problem identification, it is studied that competitive advantages of Air Asia as a market leader in airline services This problematic pestek identification then being studied and several solutions are being suggested. These solutions are suggested to counter and ensure that Air Asia will remain as leading airlines services airasis maintaining its competitive advantages. AirAsia was established in year AirAsia continues to spread out the way for low-cost aviation through the innovation, efficient and passionate approach to business with a route a network that extent through over 20 countries.

In addition, for the vision part in AirAsia, AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. While for the mission of AirAsia, AirAsia wants to analyeis the best airline company to work whereby employees are treated as part of the big family.

Besides, Air Asia try to maintain the lowest cost hence everyone can fly with AirAsia. Highest quality product, embracing technology to lower the cost and improvement in service levels will be maintained by the AirAsia airline also. In the values part, AirAsia will implement trough the following key strategies which are: Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats.

The airlines established airaisa and started operations on 18 November It was originally founded by a government-owned conglomerate DRB — Hicom. aiirasia

Air Asia currently is the main customer of the Airbus A The company has placed an order of units of the same plane to service its routes and at least 50 of these A will be operational by The first unit of the plane arrived on 8 December, AirAsia creates values through the following vision and mission: We safeguard that responsibility through the safety and quality of our operations.

We operate with the highest level of integrity, striving to exceed industry standards in a proactive manner while doing so with respect to others and the environment. This basic foundation for doing business allows us the pleasure of serving our guests. On Air Asia X flights, passengers are given a choice of purchasing extra baggage weight, meals, and comfort kit and seat selection all with nominal fees.

AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with routes, and operates over flights daily from hubs located in Malaysia, Thailand, and Indonesia.


Today, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business.

To achieve the goal, it has some strategies such as lean cost structure, different ways of promotion, keeping safety, satisfying guests, and developing human resources.


Air Asia always tries to keep the operations simple and efficient to keep the costs low, for example by simple and efficient online ticket booking. It sells food, snacks and beverages on the plane, so customers who want to eat or drink can just buy what they want. By implementing this strategy, Air Asia can gain profit from the sales of the food and beverages because it sells the products for higher price than supermarket or wholesaler price.

Air Asia also tries to keep the cost low by recruiting only numbers of workers needed and selecting only capable and hard workers, so each worker will have works to do and the company does not have to pay workers who do not work efficiently.

The company also gives multiple tasks to some of the employees, for example Air Asia does not hire cleaners to clean used planes that stop in airports.

Instead, the stewardess or stewards of the planes have to clean the used plane. So, other than saving another amount of money, it also can make maximum use of the human resources available. Air Asia also maintains the safety of the airplanes by complying with the highest International Aviation Safety Standards and practices. In addition, to save money from paying airplanes parking fare.

Hence, air Asia tries to keep flight schedule efficient and one time. The planes only stops for approximately 25 minutes for cleaning, so every time the airplanes stop in the airport, the planes will be cleaned before the passengers come into the plane, and the airplanes will take off right away. Specifically, Air Asia realized that satisfying customers is the key for long term success and that is why it always tries to satisfy its customers by flying on time to be friendly to every air Asia customers.

Their concept is based on the idea that people would fly a lot more often if they get an affordable fare.

LCC make air travel the most simple, convenient and inexpensive form of transportation in the world so that they can move maximum number of passengers at the minimum of cost. The right customer segment of LCC is Price-Conscious Traveler, a traveler who seek best or lowest price, because they only want to simple move from a place to another and have no tight time for their traveling.

They will only flying if they get cheap or may be free ticket. LCC will keep cost of their channel and their customer relation as simple as possible and will cover all their customers. Air Asia has airazia Internet as the most alrasia effective channel that can attract more customers to choose Air Asia. Passengers will book flight using their laptop, tablet or smartphone and they can pay with credit card and then just print at home their e-ticket before to go.

To support website, Air Asia provide Call Centre and to get close with their customer they open Sales Office on some big cities to let their customers to come and buy with them by face to face. Since Air Asia znalysis provided the basic service of flying so that they will get Low Airfare from more and more passengers as their revenue stream.

Beside that they also get Additional service fee from service such as food, drinks, over baggage, choosing seat in advance and so on. Flight attendants responsible not only to serve customer, but also they also need to clean up of flight interior. Internet Transaction Platform is the key to effective channel cost.

Pest Analysis On AirAsia

Air Asia first flight will be starting from on early morning and their pestep flight will end on late midnight and fast turnaround. Airasi keep cost from arrangement connecting flight, labeling luggage, LCC only provide point-to-point route. No-Frills on board and Single Class Seating is keep airline cost with simple activities. Much of that growth has been driven by low-cost carriers LCCswhich now control some 25 percent of the worldwide market and which have been expanding rapidly in emerging markets; growth also came from continued gains by carriers in developed markets, the IATA reported.


Yet profit margins are razor thin, less than 3 percent overall.

Sample Essay on PESTEL Analysis on Airasia

In the commercial aviation sector, just about every player in the value chain which airports, airplane manufacturers, jet engine makers, travel agents, and service companies, to name a few are turns a tidy profit. That is largely due to the complex nature of the business, manifested in part by the significant degree of regulation which minimizes consolidationand the vulnerability of airlines to exogenous events that happen with great regularity, such as security concerns, volcanic eruptions independent.

Since the s, airline yields defined as the average fare paid by a passenger per kilometer have consistently dropped. MACRO ANALYSIS Given these unique circumstances, airlines must continue to focus on top- line growth because their limited profitability depends almost solely on revenue gains, while increasing productivity in order to shore up and perhaps even increase margins.

The way individual commercial airlines react to and navigate several trends playing snalysis across the globe will determine carrier performance in the coming years. The gross domestic product GDP is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time.

The GDP value of Malaysia represents 0. GDP aiasia Malaysia averaged Growth was supported by strong domestic economic activity, particularly private consumption and investment.

On the supply side, the services sector sustained a aalysis of 6. Meanwhile, growth in the manufacturing sector further strengthened by 5. Similarly, the mining and quarrying sector recorded a robust growth of 9.

However, the agriculture sector declined further by 4. Private consumption strengthened by 8. Private consumption was also supported by increased spending especially on food and beverage as well as other daily necessities following the massive floods in the east coast. The increased private consumption was reflected in major consumption indicators such as credit card spending, passenger car sales and imports of consumption goods. Public consumption grew by 4.

Following a rebound in spending on fixed assets by the Federal Government, public investment turned around and grew by 0.

The Government of Malaysia is continuing efforts to boost domestic demand to wean the economy off of its dependence on exports. Nevertheless, exports – particularly of electronics – remain a significant driver of the economy. Manufacturing sector has been growing in recent years and now accounts for 25 percent of GDP and more than 60 percent of total exports. Mining and quarrying constitutes 9 percent of GDP and agriculture 9 percent.

It is the weakest expansion since the second quarter ofas a rebound in exports was unable to offset a slowdown in private and public consumption. GDP per capita in Malaysia averaged Transport 15 percent ; Communication 6 percent ; Recreation and culture 5 percent and Furnishings, household equipment and routine household maintenance 4 percent.

The remaining components are Restaurants and hotels at 3. Inflation Rate in Malaysia averaged 3. The official interest rate is the Overnight Policy Rate. Policymakers said current monetary policy stance remains accommodative and supportive of economic activity but signaled concerns over risks arising from global economic and financial environment.

Interest Rate in Malaysia averaged 2. Meanwhile, interest rates on fixed deposits for 1-month and 3-month maturities were maintained at 3. Population in Malaysia averaged The number of unemployed persons reached Labor force participation rate increased by 0. Unemployment Rate in Malaysia averaged 3. SinceMalaysia reports consistent trade surpluses, mainly due to rise in exports of electrical and electronics products.

Inthe biggest trade surpluses were recorded with Japan, Singapore and Australia while the biggest trade deficits with Taiwan and China.

It is the largest trade surplus since Octoberas exports surged while import slightly fell. Balance of Trade in Malaysia averaged