Airline Industry, Budget Airlines

In: People

Submitted By rtek84
Words 2329
Pages 10
AirAsia is a Malaysian public listed company, founded by current CEO Tony Fernandes Jetstar, an Australian incorporated company, is a subsidiary of QANTAS currently managed by CEO Bruce Buchanan
Both companies operate mainly in Asia Pacific region’s budget passenger airline industry. However, both are not fully integrated as they do not build their own aircraft. Both companies only offer economy class for its flights, which travels within Asia Pacific region and to selected international destinations.

Core activities include ?
Activity Analysis: First, you identify the activities you undertake to deliver your product or service;
Value Analysis: Second, for each activity, you think through what you would do to add the greatest value for your customer; and
Evaluation and Planning: Thirdly, you evaluate whether it is worth making changes, and then plan for action.

Access the industry’s future growth
Current- life-cycle position of the industry
Generally, based on the information given, it seems that the airline industry in overall is on a decline. This is supported by the fall in premium air passengers by 25% and the declaration of bankruptcy by Japan Airline However, due to these factors, the initial public offering of Tiger Airways, another budger airline and the prediction of increase in revenue in Jetstar’s operation by Bruce Buchanan, it is likely that the budget airline industry is growing at a rate more than 10%.

Key issues affecting future growth
| |Description | |Impact |
|Technology |The increase in the availability of high speed broadband allows higher utilization of online | |Medium |

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