Air Asia Strategic Management

1. a) AirAsias vision:
To be established as the leading low-cost carrier in the Asian region.
AirAsias mission:
A low cost airline carrier that offers five-star service with 95% of on-time performance.
To be able to provide affordable airfares, at the same time promoting Malaysian hospitality and the local food.
To focus on customers needs by stimulating demand and offers the lowest fares, comprehensive distribution channel
and developing various products and services.
AirAsias objective:
Aims to carry 70 million passengers a year, within six years starting from 2014.
Turn the low-cost carrier terminal at the KL International Airport into the regional hub for budget travel.
Plans to introduce more routes, add frequencies and develop the existing ones.

b) AirAsias competence:
A low-cost no frills airline, with an extensive regional network in Asia that caters people of all income levels.
AirAsias core competence:
Offers low-cost and affordable airfares
Offers in-flight services that promote Malaysian hospitality and a huge variety of the local food.
Offers internet and mobile services as mediums for check-in and booking.

AirAsias distinctive competence:

A low cost carrier which offers five-star service where everybody can fly.

c) Opportunities:
AirAsia will have the opportunity to promote Malaysian tourism, which in return will increase the companys revenue.
Within the South-East region, AirAsia can tap on a lot of opportunities since there is huge potential for customers that
consist of foreign workers from neighbouring countries such as Indonesia, Myanmar and Vietnam.

 AirAsia will be chosen as the first choice in the alternative of travelling especially during economic turmoil, since this
company offers low-cost airfares.
Threats:
Economic recession reduces the urge for people to travel by air as it is the most costly alternative for travelling.
Emergence of new- entrance in the low-cost carrier sector like Firefly and Jetstar.
Inconsistent oil prices adversely affect the fuel surcharge.

d) Air Asias value chain activities:

e) i) Business model focuses on how to make money in a particular business and the capability of achieving good bottom
line results. It also indicates whether revenues and costs came from the planned business strategy can be sufficiently
profitable and feasible.
ii) AirAsias business models:
Fast turnaround times, for full utilization of aircrafts.
Land at smaller uncongested airports, which incur a lower landing fee.
Direct sales of tickets, to avoid fees and commissions charged by travel agents.
All passengers sit in the same class.
Free seating encourages passengers to board early and quickly.
Aggressive fuel hedging programs.
Uses one type of aeroplane only (A320), thus reduces training and maintenance costs.
Minimal set of optional equipment on the aero plane, eliminating luxury and optional equipments to reduce costs.
Profit from in-flight sales/services such as ala carte food sales, and commission based products like AirAsia t-shirts and
souvenirs.
Employees working multiple roles; flight attendants are also in charge of cleaning the aircraft and work as gate agents,
hence personnel costs are reduced.
Offer various promotions frequently that attract customers like the RM 0.99 ticket promotion.

f) AirAsia needs alliances to attain global market leadership because:

Improve its supply chain efficiency
Build on companys strength to compete with rivals.

 Improve its access to financial resources available in existing or new markets.

Spread risks and costs among partners.
Penetrate the market in other countries/region.

g) Two specific defensive actions taken by AirAsia:

AirAsia is in the lookout for potential joint-venture opportunities like in Philippines and Vietnam where there are
symbiotic benefits for the parties involved. By joint-venturing, AirAsia can penetrate the market in other countries by
covering more routes, sustaining and strengthening the firms position as a low cost carrier.
AirAsia plans on introducing more routes, add frequencies and develop existing ones. This will fortify AirAsia hold on
the budget carrier market as its network is vastly expanding to other major cities, providing access to more locations
while maintaining the low ticket price.
Ref : http://www.123helpme.com/air-asia-strategic-management-view.asp?id=163631
MLA Citation:
"Air Asia Strategic Management." 123HelpMe.com. 17 Dec 2014
<http://www.123HelpMe.com/view.asp?id=163631>.
_____________
the AirAsia Company strategic management: How AirAsia can be a leader in the lowest cost
carrier in the airplane industry
August 31, 2009catatanraufmenduniaLeave a commentGo to comments

1.0 Introduction
Without a strategy the organization is like a ship without rudder, going around in circles. (Joel Ross and Michael Kami)
Nowadays, the competition among airplane industries is very tough. According to Daniel Chan (2000), with just about two years to
go to the turn millennium, air wars over Asia are hotting up, with some of the worlds biggest airlines engaged in intense over Asian
skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their
industry. A lot of airplane companies come out with different strategies to make their company better than their competitors. To
compete with their competitor in the business environment, a company needs to make a strategy to achieve their long terms
objective and can be successful for doing their business.
Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management,
because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their
business. Regarding this issues, the strategic management becomes important due to the following reason such as globalization to
survival their business, and than e-commerce become the critical success to the company nowadays.
The two following reason are need to take into consideration, and than to be successful in the company management, a company
needs to consider the company ability and how to integrating it with the as well as main factor in the internal and external factor.
The main factor in the internal and external factor can be identified with SWOT analysis. The internal factor can take a look into
strength and weakness in a company, and for the external factor, a company can look at opportunities and threats in the external
environment.
Furthermore, according to Daniel Chan (2000), the airline industry is a unique and fascinating industry. It captures the interest of a
wide audience because of its glamour, reach, and impact on the large and growing numbers of consumers/travelers worldwide[2].
Based on this statement, airline industry become the greatest opportunity for AirAsia. The growing numbers/travelers worldwide can
be the wonderful opportunity for AirAsia for running their business. In addition, to captures and attract a customer to choose AirAsia
as an airline option, AirAsia need to develop and create a wonderful strategy and come out with special offering to their customer to
successfully in their business.
On this paper, I would like to identify and analyze the AirAsia Company strategic management: How AirAsia can be a leader in the
lowest cost carrier in the airplane industry. Im interested to more deeply identify and analyze the strategic management in AirAsia

Company because AirAsia have a lot of achievement and awards since year 2001 until present and than they have the greatest
strategy which is can make AirAsia to be a leader in the worlds low cost carrier in airline industry.
And than, AirAsia is one of the companies with good company strategic management and has a successful story in the airplane
industry in the world. AirAsia now becoming the leading low cost carrier airline in the world and the achievement that AirAsia
received to ascertain that AirAsia is one of the best airplane companies. The achievement that AirAsia received in 2009 on the last
awards and recognition is the best low cost airline in the world.
In Addition, on this paper will be structured into four sections. Section 1.0 is introduction, Section 2.0 covers about AirAsia Current
issues, in this section will be discusses about why AirAsia need to consider a strategy, and AirAsia current issues. Section 3.0 mainly
discusses about AirAsia business strategy, this section also will be discusses about why AirAsia stressed to be low cost carrier in
airline industry, AirAsia SWOT (strength, weakness, opportunity, and threat) analysis, and also AirAsia business strategy to solve the
current issues. And than, section 4.0 would be the last section is conclusion for this paper.
2.0 AirAsia Current issues: how to be low cost carrier leader in airline industry
On this section, I will discuss about the AirAsia current issues: how to be low cost carrier in airline industry. This section involve, why
AirAsia need to consider a strategic management, and than what is the current issues that happen in AirAsia Company. This section
will discusses the importance of developed and consider strategic management in AirAsia Company, and identify of current issues in
AirAsia Company.
2.1 Why AirAsia need to consider a strategic management
Why a company needs to consider a strategic management nowadays? According to Daniel Chan (2000), since the 1970s, the
competition for the Asian air travel market has always been intense. This became more intense in the 1990s as traffic volumes were
squeezed[3]. Based on that statement, the competition among airplane industry will become more grow, traffic volume also would
be increase, and also the Asian air travel market has always been intense. When the competition in the airplane industry becoming
though, complex, and rapidly change, AirAsia company as a company that joined in the airplane industry business need to thinking
strategically and also must preparing a good strategic management. The AirAsia strategic management needs to effectively and
efficiently prepare and implement in the AirAsia company management. Why AirAsia need to consider strategic management? The
first reason is because the airline industry is a unique and complex industry[4]. Based on the statement, the complexity and unique
of the airline industry, AirAsia need to come out with the greatest strategy to compete with their rival in the same industry. Without
the right strategic management, its possible AirAsia could not be able be compete with the complex business environment in the
airline industry.
Furthermore, the second reason why AirAsia need to consider a strategic management because in a company nowadays, general
management which is the process of achieving organizational goals by engaging in the four major functions of planning, organizing,
leading, and controlling may not sufficient and supportive for the organization succeed in the world of complex environments. It
concerns about the process to manage the company internally but do not concentrate more on creating competitiveness regarding
environments affecting the organization. Even companies adopt general management to sustain profitability by reducing the defects
or costs, and improving operations process in order to increase productivity, they may not succeed in the competition because they
perform only similar activities better than competitors but do not create distinctive competitiveness.
Additionally, they perform only operational effectiveness but not strategy. Operational effectiveness and strategy are both essential
to superior performance but they work in very different ways. Strategy is about competitive position that the company performs
different activities from rivals or performing similar activities in different ways. To learn how the companies create strategies and put
them into action, the executives or strategists should examine carefully an aspect of strategic management.
Moreover, the organization or company nowadays is faced with constantly changing external environments and needs to ensure that
its own internal resources and capabilities are more than sufficient to meet the needs of the external environment. Organizations or
companies do not exist simply to survive in the market place but want to grow and prosper in a competitive environment. In order to
make sense of what is going on around them, firms must undertake an analysis of their external and internal environment. To
understand and how take an action about external and internal environment, a company needs to support themselves with a good
strategic management.
Because of this reason, AirAsia need to consider a strategic management as the important things in their company. The strategy that
AirAsia need is not just how to reduce cost and make the operational activities running effectively. But, AirAsia needs to come out
with the strategy that can make competitive position that the company performs different activities from rivals or performing similar
activities in different ways to achieve their business successfully.
In addition, the third reason, why AirAsia company needs to consider and stress to a strategic management? This is because,
strategic management becomes important in AirAsia due to the following reasons. The first reason why strategic management
becomes important is because the globalization. The globalization consideration impacts virtually all-strategic decisions in a
company. The globalization also forced AirAsia Company to survival for business. To see and appreciate the world from the
perspective of others has become a matter of survival business.

The underpinning of strategic management hinge upon managers gaining an understanding of competitors, markets, prices,
suppliers, distributors, governments, creditors, shareholders, and customers worldwide. The price and quality of firms products and
services must be competitive on a worldwide basis, not just a local basis[5]. The globalization makes a rapid change in the business
environment. Every company has a same chance and opportunity for doing their business. For those company doesnt aware and
take this as important consideration, they will failed to compete with their rival or competitors in their business.
Moreover, the strategic management becoming important due to the following reason is because the rapid development in ECommerce. Nowadays, E-commerce is becoming a business tool. E-commerce also has become a vital strategic management and
allows a company to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, eliminate paperwork, and
share information. In total, electronic commerce is minimizing the expense and cumbersomeness, improved products, and higher
profitability[6].
In conclusion, Air Asia is need to aware and consider with the strategic management. The reason of the airline industry is a unique
and complex industry, not just how to reduce cost and make the operational activities running effectively. But, AirAsia needs to come
out with the strategy that can make competitive position that the company performs different activities from rivals or performing
similar activities in different ways to achieve their business successfully, and the last one is because the effect of globalization and Ecommerce becoming an effective tool in a company nowadays.
Regarding to the importance of strategic management for AirAsia Company, the next part will discusses about the current issues that
happened in AirAsia Company.
2.2 AirAsia current issues
The leading low fare airline in the Asia AirAsia has been expanding rapidly since 2001, to become an award winning and the largest
low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes,
and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million
guests across the region and continues to spread its wings to create more extensive route network through its associate companies,
Thai AirAsia and Indonesia AirAsia.
Established on 12 December 2001, AirAsia has been such a big phenomenon in airline industry especially in Asia. AirAsia with the
ordinary symbol but with strong brand, now everyone can fly nowadays has been phenomena in Airlines industry. AirAsia is one of
the airline companies who more focused with the strategy how to reduce inefficiency and make it low possible fare in the world. With
the cost-efficiency, low complexity and profitability are always the cornerstones of building a strong business.
Furthermore, according to Dawna and Blaise (2005), the most successful carriers came to dominate their hub markets allowing them
to exert greater control over pricing and capacity[7]. Based on this statement, the current issues in AirAsia Company are how to
achieve to be a lowest carrier in the world in Airplane industry. Regarding to this issues, Dawna and Blaise said, the most successful
carrier in the airline industry allowing them to exert greater control over pricing and capacity.
In addition, according to Haddad (2003), the key to their current success has been to cut costs to the bone through lower salaries
and reduced overhead[8]. In airline industry nowadays, customer not only looks at the service that airline company offered to them,
but the price of the airline ticket also can influencing the customer to use an airline company. AirAsia Company can compete with the
other competitor in the airline industry if they can cut costs through lower salaries and reduced overhead.
Moreover, according to Daniel Chan (2000), these moves but a very small price to pay for continued and greater access to the
worlds most prospective air travel markets[9]. The very small price are offered to the customer also can give biggest affect in this
business. As all airlines in low cost carrier (LCC) industry compete on costs, AirAsia needs to offer the lowest possible fare in order to
win the competition in the current markets served as well as new markets[10].
In conclusion, the current issues in AirAsia Company are more focused in the competition of the cost among an airplane industry.
AirAsia as an industry company which is more focusing in the low cost carrier airplane industry need to consider to make the lowest
possible cost to compete with the other competitors in their airplane industry. To achieve the lowest possible cost, AirAsia Company
has some strategy to achieve it. On the next section, I would like to discuss about AirAsia business strategy: how to implement and
achieve it.
3.0 AirAsia Business Strategy: how to implement and achieve it.
On this section, I would like to discuss about AirAsia business strategy. On the previous section, it more focused about the
importance of strategic management for AirAsia Company and what is the current issue in AirAsia Company that was happening. On
this section, would be involved with the question, why AirAsia stressed to be low cost carrier in airline industry. And than what is
AirAsia SWOT analysis and how AirAsia solves the current issues in their company.
3.1 Why AirAsia stressed to be low cost carrier in airline industry
Datuk Tony Fernandez as CEO of AirAsia Berhad said his philosophy is very clear: before a business can grow, it needs to have its
costs under control. It must be cost-efficient and profitable, and it must create value. Costs that do not add value must be contained,
reduced and even eliminated. I have been asked by various people, How much lower can your cost reduce? Youre already the
lowest in the world! My direct answer is if we do not strive to be more efficient and choose to be complacent our days are
numbered. This is a continuous task we have to face head on year on year; it is the critical ingredient to operate a successful
business[11].

Based on the Datuk Tony Fernandez said, AirAsia can be growing in the airline business if they can control their cost. The cost that
they have to running there must be efficient and reliable. Everything that can make inefficiencies must be reduced and possibly to
eliminate. What a Datuk Tony Fernandez said is very strong opinion about their company to running their business. AirAsia can be
possibly competing with another airplane industries if they can make efficiencies to reduce cost and make the low possible fare than
another airplane industries.
Furthermore, based on the environmental scanning performed, the demand for low cost carrier (LCC) industry will keep growing
rapidly. The LCC industry attractiveness and profitability will attract many full services airlines to launch its version adding the
degree of rivalry in this industry. As the implication, AirAsia, current market leader of LCC in Malaysia, Thailand, and Indonesia, will
face competition from both existing and new players. In order to sustain its competitive advantage, AirAsia needs to leverage its
competency in creating cost advantages across multiple value chains[12]. Based on that statement, AirAsia need to make a
consideration and more stressed to be lowest cost carrier in the airline industry. The demand for lowest cost carrier is will be growing
rapidly, it can be the great opportunity for AirAsia Company to run their business.
In addition, AirAsia business strategy also centered on cost leadership. According to Porters generic strategies (1985), one of the
generic strategies is the cost leadership[13]. The cost leadership in AirAsia Company is already approving because AirAsia more
focused and concentrated in the lowest cost carrier in airplane industries. AirAsia wanted to be a leader in the lowest cost for run
their business. AirAsia builds and sustains its competitive advantage by providing services at a price that simply lower than
competitors price. Operation effectiveness and outstanding efficiency are the two main characteristics of low cost business including
in AirAsia.
Moreover, AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high
efficiency in every part of the business. Efficiency creates savings that are then passed on to guests so that affordable air travel can
become a reality. Through AirAsia philosophy of Now Everyone Can Fly, Air Asia has sparked a revolution in air travel with more and
more people around the region choosing AirAsia as their preferred choice of transport. As Air Asia continuously strives to promote air
travel, AirAsia also seek to create excitement amongst their guests with they range of innovative and personalized service.
In conclusion, with there believes to make a low possible fare for to the customer, AirAsia was becoming an Airline company that is
chosen by so many customers. The best philosophy of AirAsia now everyone can fly means to giving an opportunity to all the people
to flight with the lowest possible fare and making them can flight even they only have the less money.
In conclusion, the reason why AirAsia more stressed to be low cost carrier in airline industry because:
1.
2.
3.

AirAsia believes to compete in the airline industry, it must be cost-efficient and profitable, and it must create value. Costs that do not
add value must be contained, reduced and even eliminated.
Demand for low cost carrier (LCC) industry will keep growing rapidly.
And than the best philosophy of AirAsia now everyone can fly means to giving an opportunity to all the people to flight with the
lowest possible fare.
The lowest possible fare that AirAsia was implementing is the best strategy that they are used to compete with their rivals in the
airplane industries. AirAsia believes with the lowest fare that they are offering to the customer, they can attract customer more than
their rival in the airplane industries.
In addition, to achieve the lowest possible fare in the low cost carrier airplane industry, AirAsia also need to make analysis about
their SWOT (strength, weakness, opportunity, and threat). On the next part, I would like to discuss about the AirAsia SWOT
analaysis
3.2 AirAsia SWOT analysis
Strengths, Weaknesses, Opportunities and Threats Analysis are one of the important things in a company. This SWOT analysis is for
identifying the internal (strength and weakness) and external (opportunities and threats) factor for AirAsia Company to achieve their
goals and objectives to be low cost carrier company in airline industry. To be successful in the company management, a company
needs to consider the company ability and how to integrating it with the as well as main factor in the internal and external factor.
The main factor in the internal and external factor can be identified with SWOT analysis. On this section, I will identify one by one
the strength, weakness, opportunities and threats in AirAsia Company. The purpose of this analysis are for identify the internal and
external factor that AirAsia need to consider to be low cost carrier in airplane industry. These are the strength, weakness,
opportunities, and threat in AirAsia.

1.

Strengths
Air Asia has a very strong management team with strong links with
governments and airline industry leaders.
This is partly contributed by the diverse background of the executive management teams that consists of industry experts and extop government officials. According to Johnston (1996), without the protection of national airlines brought about by deregulation,
building alliances as strategy became necessary for many airlines to stay competitive and gain access to a global market too huge for
any existing airline to dominate[14]. The strong links with the government and airline industry leaders is one of the strength of
AirAsia Company.

For example, Shin Corp (formerly owned by the family of former Thai Prime Minister Thaksin Shinawatra) holds a 50% stake in
Thai AirAsia. This has helped AirAsia to open up and capture a sizeable market in Thailand. And also, with their strong working
relationship with Airbus, they managed to get big discount for aircraft purchase which is also more fuel efficient compared to Boeing
737 planes which is being used by many other airlines

The management team is also very good in strategy formulation and execution.
` The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines is US
and Europe. They are Ryanairs operational strategy (no frills, landing in secondary airport), Southwests people strategy (employee
comes first) and Easyjets branding strategy (linking with other service providers like hotels, car rental).

AirAsias brand name is well established in Asia Pacific.

Besides the normal print media advertising & promotions, AirAsias top management also capitalized on promotions through news by
being very media friendly and freely sharing the latest information on Air Asia as well as the airline industry. Their partnership with
other service providers such as hotels and hostels, car rental firms, hospitals (medical tourism), Citibank (AirAsia Citibank card) has
created a very unique image among travellers. Alliance with Galileo GDS (Global Distribution System) that enables travel agents
from around the world to check flight details and makes bookings have also contributed to their string brand name.
Air Asias local presence in few countries such as Indonesia (Indonesia AirAsia) and Thailand (Thai AirAsia) has successfully
elevated the brand to become a regional brand beyond just Malaysia. The links with Manchester United (one of the worlds most
famous football teams) and AT&T Williams Formula One team have further boosted their image to a greater extend beyond just the
this region

AirAsia is the low cost leader in Asia.

With the help of AirAsia Academy, AirAsia has successfully created a low-cost airline mentality among their workforce. The
workforce is very flexible and high committed and very critical in making AirAsia the lowest cost airline in Asia.

The excellent utilization of IT

The excellent utilization of IT have directly contributed to their promotional activities (email alerts and desktop widget which was
jointly developed with Microsoft for new promotions), brand building exercise (with over 3 million hits per month and on the most
widely surfed booking engines in the world) as well keep the cost low by enabling direct purchase of tickets by consumer thus saving
on airline agent fees

1.

Weaknesses
Air Asia does not have its own maintenance, repair and overhaul (MRO) facility.
It may be a good strategy when they first started with only Malaysia as the hub and few planes to maintain. But now, with few hubs
(Malaysia, Thailand and Indonesia) and over 100 planes currently owned and about another 100 planes to be received in the next
few years, AirAsia have to ensure proper and continuous maintenance of the planes which will also help to keep the overall costs low.
It is a competitive disadvantage not to have its own MRO facility

AirAsia receives a lot complaint from customers on their service.

Examples of complaints are around flight delays, being charged for a lot of things and not able to change flight or get a refund if
customers could not make it. Good customer service and management is critical especially when competition is getting intense.

1.

Opportunities
There are 2 major events that are taking place now or going to take place in
less than 6 months from now.

First, is the ever-increasing oil price. Second, is the ASEAN Open Skies agreement that has been reached. The increasing oil price
at the first glance may appear like a threat for AirAsia. But being a low cost leader, AirAsia an upper hand because its cost will be still
the lowest among all the regional airlines. Thus, AirAsia has a great opportunity to capture some of the existing customers of full
service and other low cost airlines customers. However, there will be also some reduction in overall travel especially by casual or
budget travelers.
Second, is the ASEAN Open Skies allows unlimited flights among ASEANs regional air carriers beginning December 2008. This will
definitely increase the competition among the regional airlines. However, with the first mover advantage as well as its strengths in
management, strategy formulation, strategy execution, strong brand and low-cost culture among its workforce, this agreement can
be seen as more of an opportunity.

There is also some opportunity to partner with other low cost airlines.
As Virgin to tap into they exist strengths or competitive advantages such as brand name, landing rights and landing slots (time to
land).

The population of Asian middle class will be reaching almost 700 million by 2010.
This creates a larger market and a huge opportunity for all low cost airlines in this region including AirAsia.

1.

Threats

Certain rates like airport departure, security charges and landing charges are beyond the control of airline operators
This is a threat to all airlines especially low cost airlines that tries to keep their cost as low as possible. For example, Changi airport
in Singapore charges SGD21 for every person who departs from Singapore.

AirAsias profit margin is about 30% and this has already attracted many competitors.
Most of the full service airlines have or planning to create a low cost subsidiary to compete directly with AirAsia. For example,
Singapore Airlines has created a low cost carrier Tiger Airways.

Users perception that budget airlines may compromise safety to keep costs low.
In conclusion, the SWOT analysis that AirAsia have is on of the major component to make AirAsia more strength in their business
and can make they are able to compete with the same low cost carrier airline industry.
After Im discussed about the SWOT analysis, I would like to discuss about the AirAsia strategy to solve the current issues: How
AirAsia can be a leader in the lowest cost carrier in the airplane industry.
3.3 AirAsia business strategy to solve the current issues
Regarding to the airplane industries issues that is low cost carrier was becoming an important issue if AirAsia want to compete with
other airplane industry that is involved with low cost carrier business.
The strategy that AirAsia was implementing to make they are being a successful in low cost carrier and can compete with other
competitors in this field of business are:

1.

Maximized IT and implementing E-commerce in AirAsia business

Nowadays, E-commerce is becoming a business tool. E-commerce also has become a vital strategic management and allows a
company to sell products, advertise, purchase supplies, bypass intermediaries, track inventory, eliminate paperwork, and share
information. In total, electronic commerce is minimizing the expense and cumbersomeness, improved products, and higher
profitability[15]. According to this statement, E-commerce can change the way of doing business nowadays. E-commerce becomes a
major success to Airplane Company to make effectively and efficiency in their business.
AirAsia is one of the airplane companies, which is implementing E-commerce and maximized their information technology usage to
make the efficiency and effectively in their company and make possible low cost carrier in their business. According to Pultorak
(2004), when the business strategy and IT are aligned, the IT infrastructure can continuously sense the changing business needs
and respond by provisioning or redeploying resources to match the demands of the business[16].
Moreover, to maximize their IT, AirAsia implemented current IT such as yield management system (YMS), computer reservation
system (CRS), and enterprise resource planning (ERP) system[17]. Lets we discuss the current IT that AirAsia implemented one by
one.
Yield management system as revenue management system it understands, anticipates, and reacts to the behavior of customer to
maximize revenues for the organization. In this system, AirAsia used it to takes into account the operating costs and aids AirAsia to
optimizes price and allocate capacity to maximize expected revenues.
The optimization is done on two levels in AirAsia:
v

Seat (Every seat is considered an opportunity to maximize revenue.

Seats are available at various prices in different points of time. A reservation done at a later date will be charged more than the one
done earlier for the same seat)
v

Route (By adjusting prices for routes/destinations that have a higher demand when compared to others).

The effective method however is to combine these two levels for all flights, all routes so that both the seat and the route are
effectively priced for all the flights.
As a result, by using this yield management system, AirAsia can understands the behavior of their customer and offering the
effectives and efficiency strategy and also can allocate capacity to maximize the expected revenue. By this system, AirAsia can make
efficiency to know their customer using IT technology with lowest cost.
Furthermore, the other system that AirAsia implemented is customer reservation system (CRS); it is an integrated web-based
reservation and inventory system. It includes Internet; call center, airport departure control and more. It is a direct sales engine that
effectively eliminates the middleman (travel agents) and the sales commissions that need to be paid to them.
By using this system, AirAsia can reduce the cost and eliminates the middleman (travel agents) and the sales commission to pay
them. After that, this system are very customer friendly because the entire customer if want to buy or make a reservation a ticket
directly via online, and no need to come to the ticket counter. In conclusion, by using this system effectively, efficiency, customer
satisfaction, fast and secure in buying a ticket already met. It means the lowest cost can possibly achieve.
And than, the last system that AirAsia used in maximized IT to meet the lowest cost during their business activities is the
implementation of enterprise resource system (ERP). From the view of managers in a company, the emphasis is on the word

planning; ERP represents a comprehensive software approach to support decisions concurrent with planning and controlling the
business[18].
Based on the definition, ERP is the system that integrated comprehensive software to make the IT system is more effectively and
efficiently. By implementing this package AirAsia is looking to successfully maintain process integrity, reduce financial month-end
closing processing times, and speed up reporting and data retrieval processes, (Microsoft Malaysia)[19]. In addition, it is a system
focusing on capturing transactions in daily operations and helping AirAsia to save its operational costs as well as to increase the
efficiency and integrity in its operation (Microsoft Press Pass, 2005)[20]
As a result, the system that AirAsia implemented by using strategy to maximized the IT system (yield management system (YMS),
computer reservation system (CRS), and enterprise resource planning (ERP) system) can be a great strategy to make AirAsia more
effective and efficiency and possibly able to reduce the cost and eliminated inefficiency in their business.
1.

Operation effectiveness and outstanding efficiency

One of the AirAsia strategies to solve the current issues/problem in the lowest carries competition among the LCC airline industry is
to make operation effectiveness and outstanding efficiency. How AirAsia implemented this strategy to make operation effectiveness
and outstanding efficiency? To make this strategy successfully implemented:

AirAsia move from the traditional business into modern business by implementing E-commerce and maximize the information
technology (IT) in their business.
The implementation of E-commerce can reduce the cost of travel agents, and less of ticketing paper cost.

AirAsia also choose the route by adjusting prices for routes/destinations that have a higher demand when compared to others.
And than AirAsia also trying to reduce by using better maintenance management.
According to Gloker (2002), by using the better maintenance management, AirAsia can save large proportion of its maintenance cost
contributes approximately 9% to the overall cost of an airline[21].
In conclusion, those are the Air Asia strategy to make Operation effectiveness and outstanding efficiency in their business. With this
strategy, AirAsia can achieve their goals and objective into the lowest carrier airplane in the world.

1.

Implemented outsourcing in their business

To make the lowest carrier in airplane industry, AirAsia also face with challenged to make a decision in terms of efficiency in their
business how it will acquire the system. AirAsia have two options in this strategy: in house building or outsourcing. In the strategy
that AirAsia used and implemented, AirAsia more preferred to used or implemented outsource system in this strategy. The decision
in outsourcing has several benefits such as cost, competency, control, and also competitive advantage.
By implemented outsourcing in their business strategy will provide:

Cost benefits to AirAsia because it can be eliminated in more resource consumption (time financial).
And than for the competency, AirAsia competency is not in IT. By implemented outsourcing in the IT field, AirAsia also can reduce
cost in IT system activities which is can make possible more cost in their business.
After that, by using outsourcing, AirAsia can easily to control all the system that is outsourced to another vendor or company. The
control in this strategy also gives benefits because AirAsia function only to be a controlled a system that is AirAsia used.
By using outsourcing, AirAsia also can reduce risk, and it can make AirAsia not spend their financial to cover the risk factor in this
strategy.
The implementation of outsourcing also can give competitive advantage in AirAsia because the strategy can be greater rather than
created by AirAsia itself.
Furthermore, some of outsourced example that AirAsia did are in AirAsia computer reservation system (CRS) by Navitaire Open Skies
Technology Company, and than implementing enterprise resource planning (ERP) by Microsoft Corporation, and also implementing
AirAsia X. By implemented outsourcing more better than in house operation, because it can give more lowest cost, reduce risk, more
effectively and efficiently, and also can easily control by AirAsia and than more fast in AirAsia company.
4.0 Conclusion
The competition among airplane industries is very tough. Each Of Airplanes Company in the world trying to conduct some strategies
to compete with another competitor in their industry. To compete with their competitor in the business environment, a company
needs to make a strategy to achieve their long terms objective and can be successful for doing their business. The strategic
management becomes important due to the following reason such as globalization to survival their business, and than e-commerce
become the critical success to the company nowadays. a company needs to consider the company ability and how to integrating it
with the as well as main factor in the internal and external factor.
How AirAsia can be a leader in the lowest cost carrier in the airplane industry? To be a leader in the low cost carrier, firstly, AirAsia
need to consider about their strategic management. The reason why need to consider strategic management because the first reason
is because the airline industry is a unique and complex industry. The second reason, the strategy that AirAsia need is not just how to
reduce cost and make the operational activities running effectively. But, AirAsia needs to come out with the strategy that can make
competitive position that the company performs different activities from rivals or performing similar activities in different ways to
achieve their business successfully, the third reason because a globalization and implementing E-commerce.

The current issues in AirAsia Company are more focused in the competition of the cost among an airplane industry. AirAsia as an
industry company which is more focusing in the low cost carrier airplane industry need to consider to make the lowest possible cost
to compete with the other competitors in their airplane industry.
How AirAsia can solve the current issues to be a low cost carrier leader in airplane industry? The first is to identify and analyze the
SWOT analysis, and than to solve the current issues with some strategies such as Maximized IT and implementing E-commerce in
AirAsia business, Operation effectiveness and outstanding efficiency, and the last one is implemented outsourcing in the AirAsia
business.

http://itsaboutmymot.wordpress.com/2009/08/31/the-airasia-companystrategic-management-%E2%80%9C-how-airasia-can-be-a-leader-in-thelowest-cost-carrier-in-the-airplane-industry%E2%80%9D/
References
Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and
tactics in action. Emerald management and development 19: 473
Chan, D. (2000). The development of the airline industry from 1978 to 1998 A strategic global overview. management
development 19(Emerald journal ): 489
Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and tactics in action.Emerald management and
development 19: 473 488.
Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and tactics in action.Emerald management and
development 19: 484.
http://www.scribd.com/doc/2516371/Strategic-Management
http://www.scribd.com/doc/2516371/Strategic-Management
Rhoades, D. L. and B. W. Jr (2005). Strategic imperatives and the pursuit of quality in the US airline industry. managing service
quality 15(Emerald journal): 344.
Haddad, C. (2003), Catch him if you can, Business Week, September 15, pp.93-4
Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and tactics in action.Emerald management and
development 19: 483.
Kho, C., S. H. Aruan, et al. (2005). AirAsia- Strategic IT Initiative. Faculty of Economics and Commerce University of Melbourne: 3.
http://www.airasia.com
Kho, C., S. H. Aruan, et al. (2005). AirAsia- Strategic IT Initiative. Faculty of Economics and Commerce University of Melbourne: 8.
Porter, M.E. (1985). Competitive Strategy: Creating and Sustaining Superior Performance. New York: The Free Press.
Johnston, H. (1996), Partnership Up in the Air, Asian Business, August, p.53
http://www.scribd.com/doc/2516371/Strategic-Management
Pultorak, D. (2004, July). Beyond Alignment. Business and IT Sunchronization.
Retrieved from http://us.foxit.net/download/beyond_align.pdf 22nd October 2005
Kho, C., S. H. Aruan, et al. (2005). AirAsia- Strategic IT Initiative. Faculty of Economics and Commerce University of Melbourne: 9.
Vollman, Thomas E, Berry, W.L, (2005). Manufacturing planning and control for supply chain management. Fifth edition. McGraw-hill
.p-109
Microsoft (2005) Budget Airlines in Asia Pacific Fly High on Microsoft Business Solutions. Retrieved
from http://www.microsoft.com/malaysia/press/linkpage4285.asp on 20th October 2005
Gloker, et.al. (2002), The Airline Industry More Than Just Transportation

[1] Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and
tactics in action. Emerald management and development 19: 473
[2] Chan, D. (2000). The development of the airline industry from 1978 to 1998 A strategic global overview. management
development 19(Emerald journal ): 489
[3] Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and tactics in action. Emerald management and
development 19: 473 488.
[4] Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and tactics in action. Emerald management and
development 19: 484.
[5] http://www.scribd.com/doc/2516371/Strategic-Management
[6] http://www.scribd.com/doc/2516371/Strategic-Management

[7] Rhoades, D. L. and B. W. Jr (2005). Strategic imperatives and the pursuit of quality in the US airline industry. managing
service quality 15(Emerald journal): 344.
[8] Haddad, C. (2003), Catch him if you can, Business Week, September 15, pp.93-4
[9] Chan, D. (2000). Air wars in Asia: competitive and collaborative strategies and tactics in action. Emerald management and
development 19: 483.
[10] Kho, C., S. H. Aruan, et al. (2005). AirAsia- Strategic IT Initiative. Faculty of Economics and Commerce University of
Melbourne: 3.
[11] http://www.airasia.com
[12] Kho, C., S. H. Aruan, et al. (2005). AirAsia- Strategic IT Initiative. Faculty of Economics and Commerce University of
Melbourne: 8.
[13] Porter, M.E. (1985). Competitive Strategy: Creating and Sustaining Superior Performance. New York: The Free Press.
[14] Johnston, H. (1996), Partnership Up in the Air, Asian Business, August, p.53
[15] http://www.scribd.com/doc/2516371/Strategic-Management
[16] Pultorak, D. (2004, July). Beyond Alignment. Business and IT Sunchronization.
Retrieved from http://us.foxit.net/download/beyond_align.pdf 22nd October 2005
[17] Kho, C., S. H. Aruan, et al. (2005). AirAsia- Strategic IT Initiative. Faculty of Economics and Commerce University of
Melbourne: 9.
[18] Vollman, Thomas E, Berry, W.L, (2005). Manufacturing planning and control for supply chain management. Fifth edition.
McGraw-hill .p-109
[19] Microsoft (2005) Budget Airlines in Asia Pacific Fly High on Microsoft Business Solutions. Retrieved
from http://www.microsoft.com/malaysia/press/linkpage4285.asp on 20th October 2005
[20] Ibid
[21] Gloker, et.al. (2002), The Airline Industry More Than Just Transportation.
---------------------------

Leading low cost airlines

ukessays.com/essays/aviation/leading-low-cost-airlines.php

Introduction
AirAsia Berhad (AirAsia) is one of the leading low cost airlines in South East Asia which has expanded rapidly since 2001. The
company is based in Kuala Lumpur, Malaysia and has successfully positioned itself in customer's mind through the simple
slogan "Now Everyone Can Fly" (AirAsia, 2009). The company is currently valued at approximately RM2.7 billion and has a total
of 60 aircrafts that fly to over 50 domestic and international destinations with over 400 domestic and international flights daily
(Euromonitor International, 2009). The operation for the short and long haul are handled by AirAsia and its sister company,
AirAsia X Sdn Bhd (AirAsia X).
AirAsia aims to establish itself as a leading low cost carrier in market by valuing its customers through cost advantages created
by operational effectiveness and efficiency. More customers are able to fly taking into consideration the low fare charges as
AirAsia capture segments of customers that previously could not afford the airlines' fare.

Whether the strategy exploits the company's key resources

Each organisation is unique in terms of it resources and capabilities and the key to success merely depend on its ability to find
or create a competence that is distinctive (Teece et.al.,1997). The Resource Based View (RBV) combines two perspectives, the
internal analysis of phenomena within an organisation and an external analysis of the industry and its competitive environment
(Collis and Montgomery, 1995). It goes beyond the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis by
integrating internal and external perspectives. The ability of an organisations resources to present competitive advantages could
not be determine without taking into considerations the boarder competitive concept. Barney (1995) indicated that organisation's
resources and capabilities must be evaluated in terms of value, rarity, imitability or non-substitutability (VRINE model).
The value of the resources and capabilities interacts with the market sources and will differ based on time and industry. The
three fundamental market forces; scarcity, demand and appropriability determines the value of a resources and capabilities
(Collis and Montgomery, 1995). In order to answer the question of value, organisation could identify whether the resources and
capabilities are able to meet market demand. As for AirAsia, the organisation relies on its human resources and management

capabilities wherein these two components have satisfied the value requirement as it has been able to meet the demand for the
Low Cost Carrier (LCC) market. The resources and capabilities own by AirAsia are homogenous in the market however aspect
such as work culture and innovative routes differs it from the competitors. In applying the RBV concept, AirAsia has a
competitive parity based on its valuable and not rare resources and capabilities. Immitability is something generic in the airline
industry as aircraft, fast turnarounds time and others are easily duplicate. One of AirAsia's imitable characteristics is path
dependency wherein a characteristics of resources is developed and/or accumulated through a unique series of time. AirAsia's
work culture of openness between employees as well as the leadership from its Chief Executive Officer is something have been
built up over a period of time which is difficult to duplicate. Moreover, the high capital requirement for market entry is another
factor that leads to difficulty to imitate the resources and capabilities. It is undeniable that the said resources and capability be
imitated as competitors will identify the same however it will take time and meanwhile, AirAsia gain the competitive advantages.
Having a control and exploiting the resources and capabilities provides competitive advantages to the organizations (Carpenter
and Sanders, 2009). AirAsia has exploited it resources and capabilities which is shown in the financial performance. AirAsia has
gradually increased its performance throughout the years. AirAsia's s net profit for the 3rd quarter of 2009 totalled RM130 million
($38.4 million) which is sustained by rising passenger numbers and income from add-on services. The profit achieved was a
turnaround from a RM466 million ($137 million) net loss in the same period last year (www.airasia.com).

The fit of the strategy to current industry conditions

The competitive environment consists of many factors that are particularly relevant to an organisation's strategy. Analysing the
external environment particularly the industry is a starting point for firms to develop a strategy. Porter's five forces include the
overall structure rather than focusing to any one element. However the forces are not stagnant which tendency to change may
occur.
AirAsia operates within the airline industry and forces that are driven in the industry would identify the strength and weaknesses
of the organisation.
There is potential market in the Asia for LCC due to the rapid economic and disposable incomes growth. Infrastructure such as
high speed trains and highways has yet to meet the high standard level and therefore customers tend to choose the air as mode
of transportation. Hence, threats of substitutes are low as the geographical structure of Asia has made air travel the viable,
efficient and convenient mode of transportation. Looking into this scenario, AirAsia entered the airline industry concentrating on
the LCC and noted that at the initial stage there were less rivalry but as the industry grows, the rivalry among established firms
become higher partly due to price issues. AirAsia's main competitors are Firefly, Tiger Airways and Jetstar Asia. Knowing the
said changes, AirAsia applied the adaptation process (Hanan & Freeman, 1984) by expanding its operation to long haul services
to various destinations. Moreover, AirAsia realise the price is destructive and try to avoid direct price competition and try to
create a friendly competition environment.
As there is positive growth in the airline industry, full service airline carriers have refocused its operation related to costs and
yields as it is seen as a requirement to maintain profitability (Graham and Vowles, 2006). There is possibility of new entrance by
other LCC which creates further competition in the industry. For example, Firefly set up by Malaysia Airline System Berhad is a
part of LCC industry in Malaysia that has adapted AirAsia's low cost concept. However, it would not be a threat to AirAsia as
Hanan & Freeman (1984) highlighted it is difficult to imitate as tacit amount of knowledge is required on the targeted firm. The
high capital requirement and government barriers air service agreement can act as barriers to entry.
Due to significant growth within the industry, demand for additional aircraft has increased and suppliers will be in a powerful
position. It was reported that Asia accounts for 40% of new aircraft orders for Boeing and Airbus and seat capacity on LCC
worldwide has more than doubled in the past four years (Shameem, 2006). Due to few players, Boeing and Airbus and lack of
competition in the market, the bargaining power of suppliers are low. Consequently there is not much competition in terms of
pricing occurring between the two companies so an airline carrier will have to accept an offer from one of the suppliers. The
bargaining power for buyers is low as there is no room to bargain for cheaper tickets as AirAsia provides the lowest price
compared to other carriers.
The biggest threats for AirAsia are the rivalry and risk of entry with the existing and potential competitors. LCC business is viable
and there is healthy profitability provided AirAsia continuously improves itself and is flexible in the challenging market.

The sustainability of the differentiators

Porter (1996) indicated that to outperform rivals, an organisation need to deliver greater value to customers or/and build
comparative value at a lower cost. The airline industry is at the growing stage and therefore stiff competition from existing and
new LCC is expected in the future. In order to sustain its competitive advantage, AirAsia needs to leverage its competency in
creating cost advantages. At present, AirAsia differentiates by providing substantially low fares with no frills concept by offering
innovative routes.
Murray (1988) indicated that there is uncertainty for sustainable differentiation to be achieved through product innovation and
suggested that the area that could be concentrated for the said differentiation is quality and service. While, Porter (1996)
highlighted that positioning are successful based on activity system and simple consistency between each activity aligning with
the organisation strategy. AirAsia builds it brand name by providing a good quality service at a low price. During inception,
AirAsia focused on internal destinations and have further entered the international destinations. AirAsia X is differentiated by its
long haul LCC as customers would not need to look at different carriers to reach different destinations at a lowest price. It is
based on the same no frills service model wherein the price is 80% lower than its competitor together with additional services
that requires customer to pay additional payment such as food, entertainment and others. AirAsia also seek to create excitement
amongst their customers with the range of innovative and personalized service such as self check-in.
Due to AirAsia's success in the industry, competition might one to adapt the company's business model. However, AirAsia had
some advantages over its competitors by the advantage of experience and its brand enjoyed good recognition. AirAsia gain from
the first mover advantage which allows it to establish itself before competition perceive further in this low cost segment, apart
from competition that already exists across segments (low cost vs full service carriers). AirAsia has the strength to lay down the
rules and framework in the industry for business and operational suitability.
Through AirAsia philosophy of 'Now Everyone Can Fly', AirAsia has embarked a revolution in air travel with more and more
people around the region choosing AirAsia as their preferred choice of transport. As Air Asia continuously strives to promote air
travel, AirAsia also seek to create excitement amongst their guests with they range of innovative and personalized service.
Moreover customer loyalty is build by the differentiation which could act as a defense against rivalry (Eng, 1994).
Whether the elements of the strategy are consistent and aligned with the strategic position
Strategy works as a driver in a firm in achieving goals and objectives (Carpenter and Sanders, 2009). AirAsia's five strategy
elements are as follows:
Porter (1996) presented three generic strategies that an organisation could use to overcome the five forces and achieve
competitive advantage. However, there were studies resulting that adapting one or more forms of competitive advantage will
outperform better (Murray, 1988). In the LCC segment, cost is the competitive priority and it determines market position. In lieu
of this, Airasia has applied the focused cost leadership strategy wherein it targets on specific markets; price sensitive customers
as well as lowering its overall costs (Flouris and Walker, 2005).
With the positive growth in the LCC, it will create opportunity to others to enter the market. Competition between carriers using
the same business model will inevitably be intense. One of the major pitfall against attempting to differentiate is by trying to
combine low cost and differentiation strategy by starting to add frills in its business model. However, by applying the said
strategy, carriers have lost their source of competitive advantage by narrowing the strategic cost gap. Every frill or service adds
to cost and reduced the strategic cost gap, thus curbing the flexibility to offer innovative price deals.
Murray (1988) disagrees that cost structure is vital in relation to the output performance compared to the price sensitivity.
Factors such as economy of scale and quality of management teams within the organization could be the benchmark for cost
leadership. Under the cost leadership strategy, level of operation efficiency is vital as it assist in achieving cost advantages than
the rivals by searching continuous areas for cost reduction along its value chain that leads to economies of scale (Eng, 1993).
AirAsia increases its efficiency through increased route network and its operating activities by adapting cost optimising
techniques such as quick turnaround times and maximizing of flight utilisation for its aircrafts (Shari, 2003). As the result from
efficient operation, it minimizes the cost that is then passed on to customers so that affordable air travel can become a reality. In

2005, the cost per available seat mile (ASK) for Airasia was only 0.3 compared to the next lowest value from 0.6 being Firefly
(www.airasia.com).
AirAsia took advantage from the existence of e-commerce which is cheaper and easier technique in providing information about
products and services. Furthermore, it gives a better and more convenient way of promoting the company's product and
services. The cost related to web is very low compared to other methods like advertisement on television. AirAsia has taken
advantage from this method to reduce the cost of operations that leads to operating on a low rate. Malaysia government has
supported AirAsia through the opening of the LCC terminal in Kuala Lumpur International Airport which enhanced its competitive
edge by reducing costs and better logistic planning (Euromonitor International, 2009).
Competitors tend to know how big the market is and how good the opportunity is in Asia. Therefore, there is threat by
competitors which could imitate AirAsia's low cost base. Most of the competitors have the same concept of no frills and low price
strategy and will continuously try to reduce its costs than AirAsia in order to gain sustainability in the market. The challenge for
AirAsia is to reduce cost effectively which it is difficult for the competitors to copy.

Possible issues associated with implementation

Strategy formulation and implementation are interdependent with the objectives being a coherent set of strategy elements and
implement levers (Carpenter and Sanders, 2009). In order to succeed in the LCC segment, AirAsia will need to maintain its low
cost elements in their business design as it is critical to the long term success. The main reason is because the more gap
between arises between the competiting airlines, the more flexibility will be available to offer lower price and gain market share.
An extended route system will most certainly be a key differentiator and to sustain its competitive advantages, resources and
capabilities need to be analysed further. Around the world, it has been observed that low cost airlines pursuing a generic
business design have emerged as the most successful.

Conclusion
AA actual main strength was based in its innovative ways to keep the cost low which was hard to imitate. AirAsia has indicated
that synergies between the internal and external factors could develop a competitive advantage. This has allowed AirAsia to
positioned and be the market leader in the LCC.
The brand name brand equity is a major strength that AirAsia must successfully capitalize.

Bibliography

Barney J.B. Looking Inside for Competitive Advantage (1995) Academy of Management Executive. 9(4) pp. 49-61

Carpenter, M.A., Sanders W.G. Strategic Management: A Dynamic Perspective Concepts and Cases (2009) Pearson
International Edition.

Collis, D. J.,Montgomery, C. A. Competing on Resources (1995) Harvard Business Review. pp. 118-128

Graham B., Vowles T.M. Carriers within Carriers: A Strategic Response to Low-Cost Airline Competition(2006) Transport
Reviews, pp. 105-126

Porter M.E., What is Strategy (1996) Harvard Business School, pp. 61-78

Shameen A. AirAsia Takes Flights on Low Cost Carriers (September 26, 2006), Business Week

Teece, D.J., Pisano G., Shuen, Amy. Dyanmic Capabilities and Strategic Management (1997) Strategic Management
Journal. 18(7), pp. 509-533

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