Case ID: 9B12M013
Solution ID: 19384

AirAsia X Can the Low Cost Model Go Long Haul Case Solution

Abstract

By 2007, Air Asia grew to become most likely the very best budget airline carriers in the world. Getting centered Southeast Asia and became a member of India and china, Air Asia was poised to solidify its place just like a top budget airline travel and most likely probably the most consistently lucrative globally. But company founder Tony Fernandez had bigger plans. Within the begin in 2001, Fernandez had designed to offer long-haul service, competing using the greatest and lots of established airline carriers in the world. However, his experts had advised him to give consideration to regional, short- to medium-distance service. With a lot of previous accomplishments, Fernandez used to be more ready to attempt long-haul service. Despite alerts from industry affiliates, Fernandez pressed forward while using expansion. Employing 36-year-old Azran Osman-Rani since the CEO for your new long-haul venture, nicknamed X, will be a critical thing about this method. By early 2010, X had received its eleventh aircraft and was flying to 15 locations on three continents. However, as time passes the substantial versions between long-haul and short-haul operating needs increased being more apparent. Consequently, the management made a decision to formally separate X from Air Asia. This separation, as well as the natural challenges for X which is recently hired mind of economic methods, incorporated: the easiest method to leverage the extensive network in the regional sister company Air Asia in selecting new and lucrative locations for X, the best way to increase revenues without raising ticket prices, the easiest method to globally squeeze airline�s brand in non-Asian areas, the best way to change his marketing team�s attitude from the start-up mindset, and just how you will get ready for any worldwide dpo next year.


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