Air Asia is a case of classical management, where the company competes as a low cost producer, in this case of airline service, using the discount airline model. There are many elements of the AirAsia business model that mirror the discount carrier pioneers like RyanAir and EasyJet in Europe. This case will discuss AirAsia's business model.
Issue Identification
The management issue for AirAsia is to maintain their low cost business model going forward, while handling intense competition and expanding their footprint. Recent expansions outside of SouthEast Asia have been necessary for the growth of the company but they have also stretched the company thin. Additionally, such moves may require larger aircraft, and may affect how the branding is perceived. But AirAsia has developed a strong route network from its KL hub and needs to find growth somewhere.
Another issue that the company is facing is that with its rapid growth, now 8000 employees, it can be difficult to maintain successfully...
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