Abstract

AirAsia was the first successful low cost airline in the Southeast Asian region. This case study discusses the factors that contributed to AirAsia's success. It studies the influence of culture and leadership at AirAsia, the factors contributing to its operational efficiency and the strategic orientation of the airline. It also discusses the threats to the long-term success of the airline with reference to increasing competition in the region and the need to overcome certain service shortcomings. The case concludes with an assessment of AirAsia's future plans.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The reasons for the success of a low cost airline in Southeast Asia
• a region where analysts felt there was no market for low cost services
• The operational model followed by the airline and how it contributed to its success.

Keywords

AirAsia Sdn Berhad, Airline industry, Low cost airline, Singapore International Airlines, Malaysian Airlines, easyJet, Tune Air Sdn Bhd (Tune Air), Airbus Industrie, Cebu Pacific Air, Leadership, JetBlue Airways, Ryanair, AirAsia?s values, Fun culture, Richard Branson