Air Asia Strategic Management Recommendations Essay

triggerAn analysis of the External Environment would be d wiz so as to aid a withdraw comparison mingled with the generic elements where AirAsia has been founded in. The report t wherefore would take away into an internal analysis whereby the Porters 5 Forces would echo the direct forces that would usurp the air passage Industry and subsequently, AirAsia itself. The capabilities and core competencies of the faithful would be explained in greater special(prenominal) towards the latter part of the report in front a series of analysis would be d unmatched to segregate the much than advocateful sensations from the backup man. A series of strategies would be then recommended for AirAsia to undertake so as to hatch make home run aw atomic number 18ness and blur beauteousness through with(predicate) extinct the world as a indwelling depression- em re primary(prenominal)s carrier.1.0 EXTERNAL synopsis1.1 Industry IdentificationAirAsia belongs to the skyway line of products perseverance. argument in the leakage path persistence is precise intense and is growing speedyly in concert with the incr locomote in demand for compute f ars crossways Asia. The different institutionalise duct businesss atomic number 18 fashioning drill of several strategies to compete with one an separate in the channelizeline application and it is pivotal for respiratory tract companies to identify their private- tuckp forward motion(a) proceedss so as to be suitable to achieve bread and fool equity glob bothy.1.2 External Environment Analysispolitical/LegalPolitical promoters much(prenominal)(prenominal)(prenominal) as changes in regulation and the global geld toward privatisation of governance-owned or government-regulated firms take aim had implications on the familiar environment. Furtherto a greater extent, taking cipher escape valves out of Malaysia feces be quite a challenge. m whatsoever an unsanded(prenominal)(prenominal) governments make up been instrumental in dabbling in the success of air lane companies in Asia. hardly about air passage companies in Asia use up had to the full or substantial state ordain motive as surface as vigilance and control.A prime ex angstromle in Malaysia would be Malaysian Airlines System (MAS). much(prenominal)(prenominal) companies be a good deal comfortably-subsidized by their governments and do non face much competition. rather of being w foreign ampereum-oriented, they ar more than focus on fulfilling matter objectives. As such(prenominal), privatization and de-regulation arouse paved the way for new routes and aerodrome deals via the use of open skies agreements amidst countries and liberty of entry of private airways (Dellit 2002) As such, they would befuddle new airlines that ar beginning- bell carriers such as AirAsia, Jetstar and tiger Airways chances to access internal routes and tapping into concern place sh atomic n umber 18 of the airline effort. except, in light of globalization, the airline exertion has to a fault been hit by holy terrors such as terrorism, accidents, attacks and disasters. A drop in client confidence in a particular airline conjunction would be deleterious to a smart sets usefulnesss as advantageously, thereof a slump gear court carrier would be subjected to factors such as melody restrictions, consumer preferences and geographic nucleotide of Asia (Steverman 2009). To combat such uncertainties, a cipher airline play along would have to be meticulous in selecting favourable routes in its day to day trading operations so as to avoid any form of possible damaging have-to doe withs. (Dellit 2002) scotchDespite standard of living detect to be improving globally, at that place personify variations inside and between countries. Economic downturns in the recent years have greet companies to lose profits in the application. However, this turn up to be an hazard for budget airlines. The emergence of the recent global economic downturn which led to a world capacious threadb be trade plunge in any consequence begetd aircraft leasing be to be reduced by 40%, and this led to an environment that had littleer competition in the airline intentness. This then enabled umteen budget airlines to lease their aircraft at a cheaper rate, which proceedsed in cheaper ticket prices for their nodes (AirAsia 2009).However, the possible impact of fluctuating embrocate prices in the scrimping would take a toll on operation be when en buildle prices prize (Milmo 2011). Revenue and profit seriousness of the high society as a whole would fall if kindle prices perform too superior. As such economic factors be not indoors airline companies control and ar unavoidable, the opportunities would outweigh the disadvantages, devoteing further opportunities for them to get crossways in its intricacy crosswise Asia. During economic dow nturns, at that place would be an expected demand for affordable misfortunate airf atomic number 18s amongst budget-conscious buyers, especially for triggerlers who are travelling on leisure (Ernst & preadolescent 2012). companionable-CulturalThe changing societal attitudes and cultures such as growing environmental awareness has implications on the stress placed on corporate cordial responsibility. Furthermore, in rules of order to stay globally competitive, firms now have to consider placing more resources into sustaining competitiveadvantage with being environmental friendly at the like magazine. bustling economic ingathering has to a fault paved the way for a growing pump differentiate within Asias cosmic population, especially so in Malaysia (Ernst & Young 2012). Together with the constant and dull growing in trade and touristry activities within Asia, the demand for travel has besides sum upd.People are now keener on exploring places far away from ho me and are resulting to fork out bullion for such experiences. In doing so, the idea of funky speak to airfares that would al first base them to scavenge more to spend at spend end points is great(p)-hearted to them (Ernst & Young 2012). The magneticness of budget airlines lie primarily with their low-ticket prices and hence would present itself as a major probability to budget airlines. For an airline to differentiate itself from its competitions, it has to be able to have value-added gains asunder from low fares to distinguish itself and outstand the rest. This works out to be a competitive advantage, which whitethorn present itself as an important factor for airline companies to have so as to succeed as a low cost carrier (DestinAsia 2012).TechnologicalBy utilizing information technology to aid companies in e-transactions and e- doctor activities, the traditional ticketing and travel agent make-ups were before long replaced by e-ticketing and internet applyin g outlines (Mouawad 2010). This meant that alongside with globalization, even the process of booking tickets have asleep(p) through a enormous restructuring. Airlines are now able to save the cost of issuing physical tickets and discount now do away with vauntingly and expensive booking schemes as well as tour agency commissions (PRLOG 2010). However, an airline must ensure that it is not over-reliant on the Internet systems as if it is not handled properly, the stake of system destruction and infobase overload dismiss affect online gross sales heftily. The technological flavor of the airline business would pose to be a little terror if systems are not properly backed up and halted on a regular basis (Mouawad 2010).Environmental planetary warming has be go down an change magnitude issue facing businesses all around the world as in that location has been change magnitude number of evidence of revolt dangersfrom the ongoing buildup of human-related harmful greenhou se gases. planetary emissions of snow dioxide experienced a frosty increase peaking in 2010, hence having a greater impact on how to the highest degree businesses are carried out (The in the buff York times 2012). Considering the fact that airplanes contri entirelye to a large attribute of about 13% of transport-derived carbon dioxide emissions, is a cause for concern for the airline business (Whitelegg 2000).1.3 The Industry EnvironmentIn order to analyse the attractiveness of the airline industry, Porters five forces mannequin erect be employed. This evaluation is crucial to determining the Air Asias eliminate hat dodge later in the report.dicker force of SuppliersIn the airline industry, the suppliers are make believely aircraft suppliers and airline employees such as the flight crew and pilots. Depending on the shift key be that are associated with changing airplanes, the dicker condition of the aircraft suppliers pass on vary. The talk terms power of suppliers is higher when purchasing new airplanes objet dart it is smaller for second-hand airplanes.Labour unions specifically the pilots and mechanism unions have high bargaining power as their skills are hard to replace. In addition, in that respect has been an observed trend whereby in(predicate) union strikes in the airline industry have led to negative unnatural repossesss ( pay Department Faculty Publications University of Nebraska neat of Nebraska 1991). Furthermore, wage rates accounts for a bigger proportion of cost in the airline industries as compared to separate industries (Lehn 2000).Bargaining Power of BuyersThe main buyers in the airline industry are passengers consisting of Visiting Friends and Relatives (VFR) and small business travellers. As the majority of airline clients are unable to organize and coordinate, their bargaining power is low. Furthermore, with the need for organizations to negotiate well in advance and that discounts are dependent on airline expecte d demand, offers, and decisions forecasts and not so much on buyers, the corporate bargaining power stays low. Besides ply for passenger travel, there is in addition the weight transportation whereby bargaining power is increasing with itbeing one of the key drivers of tax in the airline industry.Threat of New EntrantsAlthough there is deregulation and relaxation behavior in the airline industry, there are up to now high direct be and upfront be that whitethorn deter entrants such as high provide direct be and purchasing price of airplanes ( smokestack 2012). However the trend of deregulation and liberalization in the airline industry has enabled for new entrants in the industry to enter easily despite the high costs associated with start-up and operating (Moorman 1993). Also, considering that there has been an increase in demand for cheap air travel coupled with the deregulation, there is increased competition as a result. Hence, the threat of new entrants is moderate ly high despite the high breastworks to entry.Rivalry amongst actual incorruptiblesAs seen from the case, there was a rapid emergence of low cost carriers across Asia as well as the neighbouring regions in a fierce competition to succeed alongside established airlines (Lawton & brawl 2008). Hence, the rivalry amongst firms is observed to be real intense. In the Asia region, opposite competitors that look out over the airline industry include Scoot, Jetstar, Tiger Airways and in Malaysia itself, Malaysian Airlines (Wassener 2012). soakeds domiciliate differentiate themselves establish on factors such as specialization and cost leading. Hence, the choice of providing better swear out or choosing to lower prices on a further and continual basis are examples of strategies that firms have employed to differentiate themselves from their crevice competitiors. This further reiterates that price competition makes rivalry amongst existing firms in truth high.Threat of Substitu tesThe threat of substitutes for the airline industry is medium as apart from transportation methods such as rail, ship and buses, there is no direct substitute for freight services. This is due to the geographical location of the Asian region in comparison to the United States and the United earth that makes it time consuming to make use of other(a) means of transport (Lawton & Doh 2008). Hence, ferrying customers via air would reiterate that the threat of substitutes for alternating(a) modes of transport is slightly low. However, there are some(prenominal) other substitutes within the airline industry for alternative low budget airlines that offer the equivalent services with no frills and at a low cost for customers (Sreenivasan 2010). In the case of a low-cost leadership dodge that has been adopted by the industry leaders such as AirAsia, other airlines would deliver the goods suit in lowering costs to entice their competitors customers.Is the Airline Industry piquan t?Investors whitethorn find that the airline industry is a slightly volatile investment, yet if the airline has a good brass section in the commercialize, and is cost effective and profit generating, this go forth highly improve industry attractiveness.1.4 The Competitive EnvironmentThere is a contemporary trend of customers who favour low cost airline hence there is an increasingly number of airlines that are fling the equivalent sort of services and products as AirAsia. This led to stiff competition in the airline industry. AirAsias direct competitor in this case would be other budget airlines such as Tiger Airways and Jetstar Asia (Sreenivasan 2010). This screw be seen by their position market of customers being similar to their competitors across all of these firms and the strategies adopted are often identical to for each one other (Sreenivasan 2010). As AirAsia is deemed as the lowest cost airline in the world as of 2007, it uphold first- go naughtilyr advantage, whi ch stemmed from moving directly into initiate a low-cost leadership world- physical body (Mahtani 2012). It was merely after it happened that that other budget airlines begin to break into the market with replicated strategies.1.5 Opportunities and ThreatsOpportunities stirred foodstuff Growth By having a plane ticket cost less than a bus ticket, bus passengers will probably want to chastise to air travel. As aresult, the demand will increase signifi pooptly. This same kind of market stimulation occurred when Ryanair , an Irish low cost airline, was launched.Liberalization of Geographic Markets Full liberalization of the Asian market would open doors to AirAsia dowry them expand their routes. Malaysias underdeveloped aura market Even though Malaysias geography may encourage air travel, a survey held in 2001 showed yet 6% of the population was doing so. Therefore, it shows good opportunity for them to promote air travel in their home country.Introduction of Bio raises Follow ing other airlines endeavours, it is an environmentally-friendly alternative to reduce carbon emissions.Market of Potential trip outers in In dosia, China and India Indonesia which is set close to Malaysia has a population of 235 million. These are electromotive force travelers specially with the junctiont think already in place. India and China feature have 2.5 billion stack. These sizeable markets score a potential to add new routes to and within those countries.Further Expansion into charge Tansportation An agreement with a loading gild was made in 2007 and as express by AirAsia, it to section of their ancillary income, well contributing to the beau mondes scum bag line. Perhaps AirAsia keister egest other deals with other committal companies.Oakland airport The airport is located on the west strand of the United States and may serve as an entry route into the American market. Passengers would be able to get a connecting flight to many other terminals within the US from there.ThreatsFirstly, a number of budget airlines would enter the market and become a threat as well existing ones who may become more competitive. At the bite there 50 budget airlines in South, East and Southeast Asia. Secondly, AirAsia may insufficiency bilateral agreements with some counties thus deterring the optimal free feast of passengers. On the other hand, competition in the tourism industry might entice countries to open up their borders. Thirdly, important players from other regions may be willing to join the market seance a threat to AirAsia. Richard stakeson from Virgin Blue, for example, is interested in making investments in a low cost airline in Asia. Lastly, an increase in the cost of fuel may limit the companys expansion plans as well as compromising the low cost fares brand position they hold.2.0 INTERNAL ANALYSIS2.1 The Firms Resources tactile and impalpableTangibleAirAsias fuel efficient airbus 320 helps to maintain its low-fares brand posit ion and at the same time being environmental friendly. financially with the companys IPO, there is capital available for further expansions. In addition, with the companys hardware costs locked in coupled with the availability through the very robust surge orders that followed, AirAsias cost competitiveness and capacity are improved.IntangibleAirAsia has gained great favour with the Malaysian government and this enabled for easier business negotiations and relations in the country. Tony Fernandes, who had started AirAsia, is a valuable asset to the company considering his healthful merchandise and usable abilities. In addition, Fernandes hire leading low-cost airline experts to reconstitute the companys business baffle and has acquired more valuable assets onboard as such.With AirAsias established presence through sponsorship of sports aggroup ups such as Manchester United and market leadership in the Malaysian domestic market, they have an advantage over competitors with th eir brand recognition. The companys strong relationship with lode direction company, Leisure Cargo, is another intangible asset resource. Lastly, the airlines low start-up operating benefit and internet booking and ticketless travel allow for the lowest possible costs anatomical anatomical structure and low statistical distribution costs respectively.2.2 Capabilities IdentificationUse of Information engineering science (IT)Making bookings via the internet and having e-transactions for ticketless travels meant that it not notwithstanding saved customers time but also gave them the convenience of being able to book their travel tickets anywhere and anytime (The Economist 2012). This also helped in reduction of costs when it comes to offspring of tickets and entertaining bookings via the phone or in person. Making use of IT made the boilersuit process fuss-free and easier to handle for the company. Air tickets can also be supplementd from designated Automated teller Machine s (ATM) as well as locating offices, which showed how far Airasia went in making the purchase of tickets convenient for their patrons. Airasias ability to leverage on IT far surpassed its competitors in the field. conveyance of title SwitchAirAsia also went forth to dominate the domestic market by tempt current and prospective customers to make the switch from road to air transport (Lawton & Doh 2008). This can be seen in low fares that were offered from Kuala Lumpur to Penang, this tactic allowed customers to experience the in-flight puff of the low cost airlines and boosted publicity for AirAsia (Lawton & Doh 2008). Furthermore, their decision to go into cargo transportation was a significant move in their expansion plans.AirAsias cross off Equityhas been rising stealthily passim the few years that it has established in the airline industry. Having established its study as the humanss trounce unhopeful-Cost Airline, it has also win many other awards throughout its time in the airline industry (AirAsia 2007). The companys stigmatization beginning(a)s are deemed to be prospered, as they have been continually pushing for aggressive marketing and sustaining their growth organization-wide. (Silverstein 2010) With the airline earning such a reputable strike, it has gone into establishing alliances with other airports within and outside its geographical region, this further advertises their brand name on a global scale. (Khor et. al 2009)Organizational StructureThe corporate structure of AirAsia is relatively simple and flat as it comprises of few levels of management so as to reduce cost and increase readiness (AirAsia 2011). The levels of management are streamlined and unitedly with the use of IT, employees are empowered with decision-making skills with scarce one or two people to report to in the organization structure. Employees are regarded as equals, and inputs are often boost regardless of hierarchical positions. Furthermore, as in centives are distributed based on performance of the company, employees are motivated to work harder cohesively.Product maturation and InnovationAircrafts were designed by the company to combat wear and tear as well as costs and reduction of cleaning time. Innovative ideas include cathode-ray oscilloscope up their own branded citation card as well as offering corporate travel inscription points (The Economist 2012). Their aircrafts bear the logo and the name of the company, which makes it a form of advertisement and establishes its brand presence in the look of the customers (AirAsia 2007). The Fly Thru program is an example of an in advance(p) idea developed by the company. It reduces ruin in time for multiple flights and noses passenger ease of travel from the booking peg to the transit stage, reducing discomfort of having to re-check in at their transit destinations (Periabras 2012).2.3 Core force AnalysisFrom the core competency analysis, it can be deduced that some of the firms capabilities outstand others. Brand Equity stands for having a strong brand two-base hit and this is deemed to be one of the most sustainable competitive advantage in the long run. Factors such as use of information technology, organizational structure and product development and innovation would also make AirAsia outstand like-minded firms in the airline industry. Whereas transportation switch may be a capability that AirAsia has but it would scarce sustain the firm on a temporary basis and may be similar to similar capabilities that other companies have. Identifying the more outstanding factors would aid the company in recognizing its sustainable capabilities as the returns would also be higher compared to other factors.2.4 Value bowed stringed instrument AnalysisPrimary activitiesSupport activitiesFirm infrastructureBusiness strategies shareholder management participatorship management relationship building Inbound logisticsMonitoring competitors In-flight cateri ng flight scheduling Human resource managementPilot and sales force fostering in-flight training career planning operational training OperationsCheck-in, baggage handling bookings cargo management coordination of stations and hubs on-board service Technological developmentComputer reticence systems Flight scheduling system market research baggage tracing system Outbound logisticsFlight connections security procedures baggage systems commission earningss ProcurementMonitoring suppliers branding (online) delivery instruction specification merchandising and salesAdvertising and promotion homage card group sales online sales travel agent programsService luggage claim service car and hotel reservation customer profiling service customer relationship management2.5 WeaknessesAt the consequence AirAsia is disadvantaged in that they have a majority of wide body aircrafts that are not as economical for poor haul flights. North American and European low-cost carriers have around 77% na rrow-body planes compared to AirAsias 29%. In addition, the company is express mail in their ability to expand services and volumes due to limited availability of suitable terminals. There take to be a greater show of low-cost airlines terminals at national and international airports. These terminals allow low-cost airlines to keep costs down through quick regression and taxi times and therefore charging customers cheaper fares.2.6 work up AnalysisSTRENGTHS sufferingest cost airline in the world Low distribution costs Market leader in Malaysia Being progressive High profit margins 35%. Amongst highest in the airline industry smashing brand recognition Good management skillsWEAKNESSES Too many wide body aircrafts instead of narrow body for shorter flights Lack of low-cost carriers terminals at national and international airportsOPPORTUNITIES Stimulated market growth Liberalization of geographic markets Underdeveloped geographic market in Malaysia Use of biofuels reducing c arbon emissions Further expansion into cargo transportation Large market of potential travelers in Indonesia, China and India Oakland airport as a entrance route to the US market THREATS Competing budget airlines entering the market Lack of bilateral agreement within countries enabling a free flow of passengers Important players from other markets willing to join the market Increase in fuel cost3.0 Strategies and Recommendations3.1 Current StrategiesSingle Class, Low Fares and No FrillsAirasia adopts a single class and no frills service for its airline services. (Airasia 2012) This meant that dissimilar global airlines, Airasia does not provide meals, delight or amenities for its customers. Their sole role is charging the customers for the most basic airfreight experience, with the goal of the destination in mind. On the other hand, they do not compromise on customer service as a result of giving reduced cost services. The products offered onboard are also standardized with c haracteristics that are deemed gratifying to the customers. Establishing ticket prices that are deemed the lowest competitively, trim Fixed CostsAirAsias scheme is in line with its mission to be the worlds lowest cost airline. (AirAsia 2012) The low cost structure was attributed to the companys good planning of resources such as fuel consumption and sustentation costs so as to give customers the best yet lowest prices they can offer. (AirAsia 2008)Efficient Distribution System position are deemed as single class which means that there is solo one class tramping and it is not assigned, passengers would seat themselves on a first come first serve basis. This is done so in fairness and to save the harry of allocating seats on the companys behalf. (AirAsia 2012) E-ticketing also aids in legal transfer the cost of issuing hardcopy tickets, this makes it convenient for customers and saves costs for AirAsia. (AirAsia 2008)Use of vicarious AirportsAirAsia typically operates from ine ssential airports which mean that they would benefit from lower parking, land and ground handling fees. Secondary airports are also less busy than main airports with most of them having shorter runways, this in turn reduces fuel consumption during take-off, landing or taxi. terminate consumption is one of the main expenses that AirAsia has hence this is a beneficial cost saving. (AirAsia 2012) Secondary airports are often closer to urban districts which makes it more appealing to some travellers and hence increases the number of potential customers for the airline. The use of second-string airports help in boosting sales and charge operating costs low. (AirAsia 2012) arcdegree to Point NetworkAirAsia adopts a point-to-point interlock ensample whereby the flights they embark on are short-haul ones within four-hour radius or less (AirAsia 2008) Their sis airline, AirAsia X would focus more on the longer flight routes, hence the point-to-point network is based on the goal of lo comote a customer from the origin to the destination.client Loyalty program BIGAirAsia has utilise a Customer Loyalty Programme named BIG Loyalty Programme which enables for the assembling of BIG Points and allows for the members to redeem free flights. This computer program is also a collaborative come along with other BIG Partners where if customers spend their bills at, they are also able to pucker BIG points.3.2 Future StrategiesUse of E-CommerceAirAsias current electronic online booking system expanded to cater to different payment methods like billing and settlement plan (BSP) and computer reservation system (CRS) impart after they realized that sticking to the direct-sales alone channel was a self-destructive strategy. This has created an ease of booking for customers. However, to further enhance the organizations IT capabilities, AirAsia can hire an IT expert team to oversee the electronic commerce systems, improve web design, and include more payment methods as dee med fit. As AirAsia operates in a fast-moving services industry, the IT expert team will then meet up regularly to review the electronic commerce systems, gather the problems that surface, and provide consolidated solutions and recommendations to each problem.In addition, AirAsia has adapted Revenue prudence Systems, Inc. (RMS) as their revenue management partner and selected airRM as its revenue management system (Revenue Management Systems, Inc. 2012). This has led to the organizations ability to analyze historical data and forecast demand in order to create efficiency and hence cost savings (AirAsia 2007). In addition to this already set up system, there could be a collaboration of the IT expert team with the financial and marketing team to set the most effective way to management inventory and revenue besides just leaving it to the IT expert team.Undoubtedly, there will be attempts and barriers that will be approach when implementing these suggested strategies. One of the po tential risks of E-Commerce is the fact that it increases the casualty of making wrong decisions and the impact is ordinarily huge and swift (International Symposium on presidential term in E-Commerce Development 2001). Another barrier could be the culture barrier between the different functional teams (i.e. marketing, financial, IT team) that could possibly cause the collaboration of the teams to be unsuccessful. As a result, this could lead to wastage of resources.In-Flight Advertising InitiativesIt is essential for AirAsia to continue building on its brand image and brand equity as it is deemed to be a capability that would not only bring in the revenue but would also establish AirAsia as a niche budget airline across households. This can only be done through further publicizing and marketing initiatives. In-flight marketing is an ideal way for AirAsia to reach out to its first-timer flyers and possible returners to continue transitory with AirAsia (Kirby 2010). Discounted t ickets, package holidays and credit points brought forward from old travels with AirAsia would entice customers into flying more with AirAsia.This can be done within the aircraft where customers would not be able to leave the premise (Leslie n.d). Such marketing initiatives can be incorporated into mini leaflets or flyers so that customers can explore their future holiday options on board the flight to their current holiday destination. Furthermore, flyers onboard have a undefended mindset which is due to the fact that they are excited about the new destination that they would be heading to therefore advertising to such a target auditory sense would bring forth more responsive results (Leslie n.d).Implementing this initiative would beseech documents to be printed in precise and bold as well as eye-catching manner that would buy out the attention of the flyers on board. It has to be attractive so that customers would enquire about it and not just take a quick glance before chuc king it aside. Further anadiplosis can be done by in-flight staff, which could bring personal marketing into this initiative by offering their knowledge upon request. It is an cut-rate procedure for certain in-flight advertising products and it would make more initiation from interested customers. This method is ideal compared to the more expensive ideas that would require mass media for advertising purposes. In-flight advertising can take the form of magazines, radio, video or catalogs.The downside of running this strategy an in-flight marketing initiative would be the reduced target audience, which stems from having an outreach that is only aircraft wide. Limited availability of flyers on flights that are emptier compared to other flights would make the advertising initiatives redundant. Furthermore, it could sustain the irritation of customers who may wish to rest and not have to deal with anything else on the flight. In-flight initiatives such as radio and videos would enge nder higher costs as compared to theme advertising on catalogs and magazines. Furthermore, if the advertising posture is too intrusive, consumers may in return develop negative attitudes towards AirAsias marketing regimes.Use of BiofuelsBrazilian airlines as well as American, Canadian, German, French, Australian within many others around the world have started apply or have plans on utilise biofuels (Lane 2012). In Asia, specifically, Thailand and Indonesia announced plans of moving towards aviation biofuels (Lane 2012). AirAsiacould join the group Sustainable air power Fuel Users Group (SAFUG) formed in 2008. It may be an alternative when oil prices will likely continue to rise and it is environmentally friendly, therefore they will be able to increase the number of passengers without increasing carbon emissions (Wassener 2011).Since many airlines have started or plan on switching to this kind of fuel, perhaps supply may not be enough and prices go up with high demand (Wassene r 2011). Another risk would be the fact that if you are utilize edible crops to produce biofuel, food prices may go up. Moreover, in an attempt to increase production getting more land, natural habitats might be destroyed by deforestation (Gao, Skutsch, Masera & Pacheco 2011). Finally, a proportion of the market may be doubting of flying on aircrafts utilizing aviation biofuels.fast-growing(a) Promotional CampaignsAirAsia can continue creating aggressive promotional campaigns as Malaysia with love. It will make them standout in the competitive airline market. Due to the fact that sociable media is so widely used nowadays, social media campaigns and efforts are an excellent idea to increase brand awareness and recognition. Statistics show that 58% of firms who have used social media for over 3 years have reported an increase in sales over that occlusive and 85% of businesses say they have had an increase in market exposure (Forbes 2012). Delta Airlines, for example, has introdu ced bookings through Facebook perhaps AirAsia can do the same or simple create an innovative campaign (The Independent 2010).Risks to the implementation of social media promotional campaigns is the fact that rival low cost-carriers may decide to copy this strategy allowing them to gain market exposure as well and consequently steal market share if their efforts prove to be more successful. In addition, customers who may have had bad experiences with the company will have the news report quickly spread in social media networks, making it more harder for firms to contain negative publicity.ReferencesAirAsia 2008, AirAsia wins Airline Strategy Award pay Category Real 5 friend carrier gets Real 5 confidential information honour gettable from . 10 October 2012AirAsia 2009, Medias Brand of the Year Goes to AirAsia Awarded for constant innovations and bold ideas in branding campaigns. getable from .10 October 2012Airasia 2011, Investor relations. gettable from . 10 October 2012AirAs ia 2012, What is low cost? accessible from . 10 October 2012AirAsia in Travel and Tourism (Malaysia) 2012, Euromonitor International The Independent 2010, Airline ticket booking via Facebook goes live, forthcoming from 10 October 2012Daily Yomiuri Online 2012, AirAsia expansion of Japan flights eyed. on hand(predicate) from . 10 October 2012Dellit, A 2002, How the free market finished the airline industry. usable from . 10 October 2012DestinAsia 2012, Reputation of Asias Low-Cost Airlines Takes Off. operational from < http//www.destinasian.com/airline-news/reputation-of-asias-low-cost-airlines-takes-off/>. 10 October 2012Ernst & Young 2012, Asia expected to experience changing trade patterns and huge expansion of consumption by growing middle class. accessible from .. 10 October 2012Finance Department Faculty Publications University of Nebraska capital of Nebraska 1991, The Effects of Airline Strikes on enamored and Nonstruck Carriers. lendable from 7 October 2012For bes 2012, The Developing Role of Social Media in Modern Business World. open from 10 October 2012Khor, YL, Ramli, M, Azeman, A, Goh, GG. 2009, Branding an airline a case study of AirAsia. Available from . 9 October 2012Kirby M. 2010, Airlines to roll out new in-flight advertising service. Available from . 10 October 2012Lane, J 2012 Aviation biofuels which airlines are doing what, with whom?, Available from 9 October 2012Lawton, T, Doh, J. The ascendance of AirAsia Building a successful budget airline in Asia. 9 October 2012Lehn, KM 2000, Soaring Labor Costs may Ground Airline Merger, debate Street Journal, 25 May. Available from ABI/ swear world-wide 7 October 2012Leslie, S n.d.,Why Inflight Advertising Works. Available from . 10 October 2012Mahtani S 2012, AirAsias Tony Fernandes Pokes Fun at Singapore Airlines. Available from . 9 October 2012Milmo, D 2011, crude prices pose threat to airlines profits and survival, IATA warns. Available from . 10 October 2012Mint 2012, Higher fuel costs and fewer travellers worry airline firms, Mint (New Delhi), 3 September. Available from ABI/INFORM Global 7 October 2012 Moorman, RW 1993, New entrants are no catholicon, Air carry World, vol.30, no. 8, pp.25. Available from ABI/INFORM Global 7 October 2012Moorman, RW 1993, New entrants are no cure-all, Air Transport World, vol.30, no. 8, pp.25. Available from ABI/INFORM Global 7 October 2012Mouawad, J 2010. Airlines Work to Catch Up to the Digital Age. Available from . 10 October 2012Periabras, R C. 2012, AirAsia expands Fly-Thru innovation. Available from . 9 October 2012PRLOG 2010, Technology Drives the Airline Industry. Available from 10 October 2012Silverstein B 2010, Airasia. Available from . 9 October 2012Sreenivasan V, 2010, Jetstar, Airasia link hands may twist Tigers tail. Available from . 9 October 2012 Steverman B, 2009. Renewed Terrorism Threat Rattles Airlines. Available from < http//www.businessweek.com/investor/content/dec2009/pi20091229_644479.htm> . 10 October 2012The Economist 2012, Spreading its wings. Available from . 9 October 2012The New York Times 2012, Global heating & Climate Change. Available from < http//topics.nytimes.com/top/news/science/topics/globalwarming/index.html>. 10 October 2012Wassener B 2012. Asia peaceable Region is Fertile Ground for Low Cost Airlines. Available from . 9 October 2012.Whitelegg, J 2000. capital of Sweden Environment Institute University of York England, Aviation The social, economic, environmental impact of flying. Available from 11 October 2012