Tuesday, August 10, 2010

Air Asia

Needless to say, many of the people around the world know or heard of Air Asia. Sorry, I should use travel with Air Asia instead. When I traveled with Air Asia on last weekend, i saw a Bangladesh guy who working as a barber (he only know to do straight cut) using Air Asia to do transit to his working place, the same as Philippians and Malaysians. Why?

Air Asia is a low cost airline, it makes you afford to travel, for low/medium income people to go for vacation, for expatriates to go back to hometown, business trip, etc. It saves our money! So everyone is starting to use Air Asia service. Many people asking, does it makes money with such a low fare?

I couldn't deny that AirAsia stewardess uniform is hot. But don't you think steward uniform should improve?

In fact, Dato Tony said it can makes money only if the resource, schedule and cost control is doing very well. If the risks occurred, then he will be unlucky. For example, planes go down, web site goes down or airline system goes down. Airline business is also very tough, as other airlines are starting to reduce their fares and approaching low fare business. That's why Air Asia is looking for other sources to increase it's income and reduce the known's risk.

Apart from the previous post I talked about on last year, I noticed they have make some significant improvements lately to increase their revenue.

1) Tune Talk
Claimed to be the cheapest mobile service in Malaysia. I'm not sure how well it is doing now. But as long as it is the cheapest and the service quality is fair, they will get some businesses.

2) Self Check-In Kiosk
They have tried to reduce the check-in counter by introducing self check-in kiosks in the airport. Thus, it would able to save his human resources and number of counters.

3) Keep on increasing new route
Although they facing a lot of limitation from the local government, they are still expanding their route to new cities and countries. Thus, it would benefits the local people at the new route, while increasing it's revenue. As you can see, the promotion is more frequent with new route introduce. More people will have the opportunity to visit the new places.

Still walk under the sun? I wonder why low cost carrier terminal cannot make it like normal airport?

4) Courier Service
I also noticed they are doing courier service at a very low rate. From the day I travel, I can see many courier boxes are sending into the airplane. Low rates and their consistent flight to the destination make Air Asia get the business opportunity for this service.

5) Tune Store
I think they are not doing well on this business? They have no edge on this? What do you think?

Overall, they are just doing well for the past 3 years, and perhaps the coming 3 years. Would you consider to buy Air Asia share? Or you just think airline business is just too risky and having too much uncertainty?
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