Analysis for Cost Leadership Strategy and Core Competitiveness Points of Air Asia (2024)

Track: Graduate Student Paper Competition

Abstract

Much literature considers the important role of airports and air traffic as a country's economic activity. AirAsia Airline As the best low-cost passenger. AirAsia connects visitors and destinations via 293 routes; 90 of them were categorized as unique routes - routes only operated by the AirAsia Group. This Research conducted to find strategic that implemented at company especially Air Asia as role model for another company. This research uses a descriptive case study method which aims to describe the Cost Leadership strategy adopted by Air Asia and how the company can make efforts to minimize risk so that the company can maintain a competitive advantage. The AirAsia Group's business model rests on a low fare philosophy that emphasizes streamlined, simple and efficient operations. AirAsia implemented a number of key strategies to achieve this, such as: high aircraft utilization, low fares, no frills and a direct flight network. Air Asia has two core competitiveness points: it has lower fares compared to other airlines and has auto baggage facilities to make it easier for passengers without having to long queue . Even during the COVID-19 pandemic, AirAsia was still able to sell travel tickets at low prices. Not only that, Air Asia has issued the AirAsia Unlimited Pass program. AirAsia Unlimited Pass is a program for unlimited flights on some AirAsia networks.

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