Can the Budget Airline Model Succeed in Asia?

1. What opportunities exist in the Asia-Pacific region for the entrance of new low-fare airlines? How might demand for low-fare service differ in the Asia-Pacific region and in North America and Europe?

The Asia-Pacific region offers many opportunities for the entrance of new low-fare airlines. Analyst revealed that low fares are often the deciding factors for budget-conscious travelers in Southeast Asia. The Pacific Asia region represents a huge population, which offers low-fare airlines a vast market with promising profits. China's huge population alone offers a great market for low-fare airlines. Demand may differ for low-fare services between the Asia-Pacific region and in North America and Europe. In the Asia Pacific region low airfare is the main driving force for choosing an airline carrier. In European and American customers look for a more traditional airline which offers factors such as comfort, food, cleanliness, etc…

2. Do governments pose a significant obstacle to the expansion of low-fare airlines in Asia?

Yes Governments do pose a significant obstacle to the expansion of low-fare airlines in Asia. Government airline regulations in Asia prohibit competition to take place amongst airline carriers, allowing the government opportunities to be manipulated and bribed. The manipulation of the government by competing airlines can limit the growth for alternative airlines to offer service to Asia-Pacific regions, leading Asia to have few choices amongst air carriers.

3. Compare AirAsia's strategy with the strategies of Southwest and Ryanair. How is it similar to and different from the strategies of those carriers?

Southwest Airlines was the leading pioneer in adopting a budget airline model. Southwest practices core strategies focusing on the customer, having more of a "people strategy." Ryanair is more technical and focuses on their operational strategies. Just like any other low-carrier strategy, their key strategy does not differ much. AirAsia, shares the similarities being offered by the Southwest and Ryanair, specifically in the in-flight, frequency, punctuality, aircraft, airports with a very slight difference in terms of the fare since they are relatively a bit lower,. Overall, AirAsia values the proposition describes as "a Ryanair operational strategy, a Southwest people strategy, and an EasyJet branding strategy.

4. Did Tony Fernandes weigh the range of political, economic, and operational risks when he took over AirAsia? What risks might he have overlooked?

Any top caliber entrepreneur would not venture into something too risky, even though entrepreneurs are highly characterized as risk taker, provided that he or she has not explored fully the consequences of venturing into a new risky business. Move cannot be considered no-brainers at all. It is hard to pinpoint if the decision of has some flaws.

5. How would you describe Tony Fermande's entrepreneurial strategy?

Firstly, a British man, is described as having a superb entrepreneurial attitude and skills that unquestionably falls into the context of being an entrepreneur, a risk-taker, innovator, initiative-taker and the like. Equipped with marketing and entrepreneurial ability, it is no wonder that excels into envisioning and be driven by childhood dream of wondering his own airline someday; he was able to make it a reality.

6. How should AirAsia respond to the challenges posed by (a) new low-fare carriers entering the Asian