AirAsia - Southeast Asia's Most Successful Low-cost Airline

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : BSTR157 Electronic Format: Rs. 500;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


Growth Strategy | Cost Leadership
Case Length : 17 Pages
Period : 2001 - 2005
Organization : Air Asia Airlines
Pub Date : 2005
Teaching Note : Available
Countries : Malaysia
Industry : Aviation


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.


To study the growth of the pioneer of low cost airlines in the Southeast Asian region

To analyze 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

To understand the operational model followed by the airline and how it contributed to its success

To examine the relationship between leadership and culture and the need for a strong and dynamic leader in a startup organization

To understand the threats to the airline's long-term success and how these may be overcome

To analyze the growing low cost trend in the Southeast Asian region and the market potential for the same


  Page No.
Introduction 1
Background Note 2
What Made Airasia Click? 4
Can Success be Sustained in the Long Run? 9
The Outlook for Airasia 11
Exhibits 12


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