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

In 2007, AirAsia has become one of the most successful low cost airline in the world. Having conquered Southeast Asia and into China and India, AirAsia was willing to consolidate its position as one of the largest airlines and one of the most consistently profitable World scale. But founder Tony Fernandes had bigger plans. From the beginning, in 2001, Fernandes aims to provide long distance service to compete with larger, more established airlines in the world. However, his advisors asked him to focus on regional, short and medium distance service. With many successes to his credit, Fernandes was again ready to tackle the long term. Despite persistent claims arising from within the industry that the low cost long distance would not be profitable, Fernandes pushed forward with the expansion. Hiring Azran Osman-Rani 36 as CEO of the new company in the long term, called X, was an essential step in this process. Maiden flight of X in Australia took place in November 2007. In early 2010, X received its eleventh aircraft and flew to 15 destinations in three continents. However, over time the substantial differences between long-term and short operational needs became more apparent. Therefore, the administration has decided to formally separate AirAsia X. This separation, and the challenges inherent in X and its major trading operations recently appointed Darren Wright include: (1) the best way to leverage the extensive network of the company s core AirAsia regional in choosing new destinations? profitable for X, (2) how to increase revenue without raising ticket prices, (3) the best way to position the company global brand in non-Asian markets, (4) how to change the mindset your marketing team mentality implementation, and (5) how to prepare for a global initial public offering in the next 12 months.
by
Thomas Lawton,
Jonathan P. Doh,
Andreas Schotter,
Ben Forrey
Source: Ivey Publishing
22 pages.
Date Posted: February 17, 2012. Prod #: W12704-PDF-ENG
AirAsia X: the low-cost model can go Long Haul? Case Solution

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