Political
Flying outside Malaysia has been a challenge to AirAsia airline. This is based on bilateral agreement affecting the way in which Pan-Asia budget carriers. Landing and navigation charges are expensive in major destinations including Beijing, Hong Kong, Singapore and Bangkok. There are also no cheaper secondary airports hence, a crisis for the airline. This is worsened by the fact that the airline market is regulated by bilateral air rights agreements.
Economic factors
AirAsia is a low cost airline and it faces stiff competition from Malaysian Airline. The good thing is that AirAsia offers cheap flight services and highly affordable tickets that attract many clients in the region. Asia in theory has the most attractive ingredients making a budget airline successful. This is enhanced by the fact that the region is wide and densely populated. 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.
Social
Many passengers in Malaysia are very reluctant to board no frill flights for long hours. The longer the route, the fewer prices conscious the clients become. They do not want to be on long flights especially with limited or no inflight services. AirAsia wanted to be an airline that operates on average man basis in the street of being in a position to pay for flights. Individuals who couldn’t think of flying are therefore attracted to AirAsia.
Additionally, AirAsia strongly commits to Safety First following past previous cases of Severe Acute Respiratory Syndrome that scared many people from flying. AirAsia therefore complies with all regulatory measures set and consistently adhere to high standards. This ensures safety for all passengers and airline staff.
AirAsia also operates in countries wide diverse cultural aspects and languages. This is because its staff embraces cultural diversity making it easier for the company to thrive in Thai Malaysian border and in Indonesia.
Technology
AirAsia offers airline online service that combines air ticketing with car hire, hotel bookings and travel insurance for enhanced AirAsia Travel Protection. To keep all costs in check, the company has further pushed its online or internet services. This makes it easier for individuals served by poor rail and road infrastructure to board flights.
AirAsia in 2003 became one of the first and best airlines to introduce SMS booking and guests can easily book for their flights, check schedules and get latest updates on AirAsia promotions at their comfort. The airline also introduced GO Holiday and clients can book for holiday making it a reliable, better performance and reliable airline.
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