Host country political and legal environment of airasia

All these help lower fixed costs.

Host Country Political and Legal Environment Affect of Airasia

Better still, in some instances, technology advancements also means having opportunities to reduce operation costs such as savings on commissions for travel agents — AirAsia was the first to do so However, amidst these benefits and cost saving, AirAsia must be mindful that system disruption due to heavily reliance on online sales can pose serious threat to the company.

Airline traffic in Asia is projected to grow at 7. Limited aircraft causes AirAsia was cannot prepare of standby aircraft if there is any problem in the operation.

Macro-Environment Analysis on Airasia and Its Effect on Marketing Decision Making Essay Sample

Besides that, AirAsia also strives to build strong relationship with its suppliers. D Higher Frequency of Service Predominantly, AirAsia offers point-to-point flights on short-haul routes — less than 4 hours flight time. This growth in air travel was also due to the region having geographically dispersed countries with large population, a rapid increase in trade and tourism as well as the respective government investments in their airports, airlines and travel infrastructure.

The company is also able to achieve higher plane utilization due to short turnaround time and as mentioned point-to-point routes. Additionally, economic growth in the region and improved cost of living has empowered many Asians to board flights to different destinations hence, an advantage to AirAsia airline.

Indonesia laws disallow majority foreign ownership on domestic civil aviation operations. How does a host country political and international legal environment or trade barrier affect the Malaysian companies in their international marketing activities?

Although rapid growth and increased trade and businesses may intensify competition entrance of other LCCs and even lead to full-service airlines start cut costs to complete, it can present opportunities for airlines to enlarge their markets.

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According to a report by CSSit was deduced that AirAsia would continue to be profitable in Demographic environment Population growth affects sales of AirAsia. So far, it has expanded its network from Malaysia to Thailand to Singapore, Macau and even the Mainland China in The longer the route, the fewer prices conscious the clients become.

This inevitably helps AirAsia in its defense against aggressive competitions especially when it comes to price war from strong rivals Question 3 The PESTL Analysis and the Porter Model provide an overall analysis of the operating environment that AirAsia competes in.

Hundreds of thousands if not millions of Malaysians, who otherwise would not able to travel overseas, begin to travel overseas. However, due to the lowest cost of operating by AirAsia the service resources is limited.

It is compulsory for each airlines to follow the government order. AirAsia has always been stringent about standards and procedures.If government announce that any flight from Malaysia to country that was having crisis, will affect AirAsia and any flight schedule will be delay until there is an announcement again from government.

Introduction of Airasia Essay; Introduction of Airasia Essay. Words Mar 11th, 3 Pages. Show More. Introduction of Air Asia Host Country Political and Legal Environment Affect of Airasia in International Marketing. COMPANY AIRASIA Content a. Introduction b.

Company bibliography c. Entry mode to international market (through. Macro-Environment Analysis on Airasia and Its Effect on Marketing Decision Making Essay Sample.

Introduction Company Background Air Asia was established inand started of as one of the subsidiary for government owned company, DRB Hicom.

Host Country Political and Legal Environment Affect of Airasia

9 What are the Success factors in AirAsia Absolute Cost Advantage Low cost per from BUSS at University of Malaysia, Pahang AirAsia believes to compete in the airline industry, Moreover the host country political environment will affect the international%(11).

Essay about Airasia. Words Nov 7th, 43 Pages. Show More. PEST Analysis: The Indian Airline Industry A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T.

is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. Host Country.

Airasia Weakness

Air Asia’s organizational structure is rather simple and flat as it involves a group of staff in the company reporting to one manager. This serves Air Asia well as the business requires a structure with fewer levels of management so as to achieve more consistency and cost reduction.

Host country political and legal environment of airasia
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