Key Success Factor free essay sample

The low-cost concept became a moneymaker in the United States, where it was pioneered in the 1970s by Southwest Airlines, the model for budget carriers elsewhere like Ryanair and EasyJet in Europe. Definition of Low Cost Airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel, online ticket sales, no international offices, no frequent flyer points, no free food and beverages, no inflight magazines, no club lounges, use of secondary city airports and the travel distance is short. Not all low cost airlines have these features, and not all airlines that have some of these features are low cost airlines. For example, Virgin Express is a low cost airlines, but it still offers complimentary coffee and inflight magazine, and they are based at Brussels primary airport. Story of AirAsia Air Asia, as the second Malaysian National Airline, provides a totally different type of service in line with the nations aspirations to benefit all citizens and worldwide travellers. We will write a custom essay sample on Key Success Factor or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Such service takes the form of a no rills low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia. Their vision is Now Everyone Can Fly and their mission is to provide Affordable Airfares without any compromise to Flight Safety Standards. The story of emergence of AirAsia is similar to Ryanair, since both carriers underwent a remarkable transformation from a money-losing regional operator to a profitable, low cost airline. AirAsia was initially launched in 1996 as a full-service regional airline offering slightly cheaper fares than its main competitor, Malaysia Airlines. Before 2001, AirAsia fail to either sufficiently stimulate the market or attract enough passengers from Malaysia Airlines to establish its own niche market. The turnaround point of AisAsia is in 2001, while it was up to sale and bought by Tony Fernandes. Tony Fernandes then enrolled some of the lending low-cost airline experts to restructure AirAsia’s business model. He invited Connor McCarthy, the former director of group operation of Ryanair, to join the executive team. In late 2001, AirAsia was re-launched in Malaysia as a trendy, no-frills operation with three B737 aircraft as a low-fare, low-cost domestic airline. AirAsia Marketing Strategy/ Key Success Factors 1. Positioning – low cost short haul flight and no frills 2. Aircraft – Airbus A 320 with 180 seats 3. Seat Type – single seat (economy class only) 4. Seat Option – free seating with Xpress boarding option 5. Inflight Services – wide range of light meal and snacks available for purchased on board