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Air Asia Competitor analysis

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by

Jeena Wickremaratne

on 16 April 2013

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Transcript of Air Asia Competitor analysis

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Images from Shutterstock.com Singapore Airlines Defender
-Focusing on retaining market share despite the instability in the market created by new market entrants
-Focuses on differentiation (premium price paid for the comfort offered to passengers by cabin crew service)
- Product extension : Firefly
-To compete in budget airline industry against Air Asia MALAYSIAN AIRLINES "Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality
and to maximising returns for the benefits of its shareholders and employees." Singapore Airlines' Mission Statement Competitive Advantage First to offer free headsets, a choice of meals and free drinks in Economy Class, in the 1970s
First to introduce satellite-based inflight telephones in 1991
First to involve a comprehensive panel of world-renowned chefs, the International Culinary Panel, in developing inflight meals in 1998
First to offer audio and video on demand (AVOD) capabilities on KrisWorld in all classes in October 2001
First to operate the world’s longest non-stop commercial flight between Singapore and Los Angeles in February 2004 on the A340-500, and then surpassing the record (in terms of distance) later that year with the non-stop service to New York (Newark), in June 2004
First to fly the A380 from Singapore to Sydney on 25 October 2007 ValuAir Set up by a former Singapore Airlines Executive in June 2003

Began operations in 2004, with two 180-seat Airbus 320s to serve Hong Kong, BangKok andJakarta

ValuAir's focus was on destinations that were within five-hour radius from Singapore

By June 2004, ValuAir, AirAsia and Thai AirAsia claimed 2% of the international passenger travel at Don Muang International Airport gfvk Tiger Airways SIA and Temasek (the investment arm of the Singapore government), set up Tiger Airways in a joint venture with the U.S. airline financier and founder of Ryanair, David Bonderman.

Tiger Airways projected,
10 destinations within the a 4-hour flying radius of Singapore in the 1st year and
15 destinations in the 2nd year, bringing Thailand Hong Kong and Madras within reach.

The company received 2 Airbus A320s and expected to get another 2 by the end of 2004. Singapore Airlines is a Defender SIA is primarily concerned with maintaining its differentiated position in the mature market In order to compete with AirAsia,
SIA introduced 2 budget airlines; ValuAir and Tiger Airways. Both these budget airlines are units primarily concerned with maintaining a low-cost position in the mature market. Introduction

Began in 1996

Officially acquired by Tune Air

Structured itself to be a low fare airline

Cost cuts Competitve Advantage Low Cost Operations

Efficiency of Operations

Distinct Corporate Culture MILES and SNOW TYPOLOGY Partially a prospector
- Aggressive pursuit of new product market opportunities in the Asian Market
- Created Unique Corporate Culture Partially an analyzer
-Actively seeking to expand into relative product markets with low cost offerings-
-Utilizing cost leadership as strategy
-Thorough research and studied other airlines closely Government supported carrier
Market Leader in Malaysia - focuses on international flights
Multi-class scheduled services to over 100 domestic and international destination MILES AND SNOW WISE History of Garuda Airlines The airline flies to a number of destinations in Southeast Asia, East Asia, the Middle East, Europe and Australia.
In 1985, Garuda undergoes a complete branding makeover, changing its name into "Garuda Indonesia" along with its colour scheme, logo and logotype Cont.
In 2001, Garuda Indonesia finds itself in a more dynamic and highly competitive world.
Significant and consequential changes are taking place in the aviation industry as a result of changing customer preferences.
Garuda Indonesia face an environmental threat from domestic market.that comes from Air Asia which tariff offer are at very low price Garuda Airline is a defender. Before year 2001, Garuda Airline is a defender differentiation as they are concerned of maintaining a differentiated posittion in the airline industry market.
Between year 2001 to 2004, they have become a defender cost leadership as they introduce Citilink to compete with Air Asia in low-cost airline industry in order to maintain their major share market. Citilink stop operations on 15 January 2008 with plans to consolidate and recommence operations with a new format and new services.
In September 2008 Citilink resume their flight services.
In May 2011 Garuda announced plans for a spin-off of Citilink.
The new business plan is for Citilink to become a separate business entity in the first quarter of 2012 with a full brand overhaul for the airline, including
new website, a new cabin interior design, new advertising and marketing strategies and new cabin crew uniforms Thai Airways International Thai Airways International is the national carrier of Thailand
It operates domestic, regional and intercontinental flights radiating from its home base in Bangkok to key destinations around the world and within Thailand
THAI's philosophy is to provide a full service to premium passengers while maintaining the highest standards of service to leisure travellers, who represent over 80% of the company’s total passenger transportation revenue
THAI aims to be the “First Choice Carrier with Touches of Thai” Thai Airways International is an analyser An analyser attempts to maintain a strong position in its core product markets but also seeks to expand into new-usually closely related-product markets
Thai Airways founded Nok Air
THAI is the first airline to install hospital-grade air-filter True HEPA, capable of intercepting up to 99.999% of dust particles and micro organisms on every flight
THAI is the first carrier in Asia to fly commercial flights using bio fuels Nok Air The airline was established in February 2004 and Thai Airways is the largest shareholder of the low-cost carrier
After its troubled international expansion, Nok Air has decided to focus on domestic services in Thailand
It is now the airline that serves the highest number of domestic routes within Thailand
Since its inception, Nok Air has been operating largely independently from Thai Airways International. This has led to some friction between the two companies along the way. One Two Go One Two Go Airline was alow-cost airlinebased inDon Mueang,Bangkok,Thailand
The airline started operations on 3 December 2003 Cont. Since July 30, 2012 Citilink has officially operated as a separate business entity from Garuda Indonesia, operating 14 aircraft with a new logo and uniform.
Its main hub is Juanda International Airport, Surabaya, East Java.
Ctilink is targeted to reach 8.3 million passengers by 2013 with route expansion to the eastern part of Indonesia and regional international routes to Malaysia, Philippines, Thailand, Singapore and Australia.
As of April 2013, Citilink serves 21 domestic destinations. THANK YOU
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