AirAsia may have adapted an existing business model, but it has revolutionized the way people travel in Southeast Asia.
In a marketplace traditionally dominated by regional powers like Singapore, Thai, and Malaysia Airlines, AirAsia’s rise to prominence has left the aviation establishment scrambling to compete in the short-haul business.
While all three national airlines have remained highly rated for their service, their financial stability has been shaken by an influx of low-cost upstarts, led by AirAsia.
Singapore has taken a proactive approach by launching budget subsidiaries: SilkAir and Scoot.
Malaysia Airlines may be AirAsia’s biggest victim. Even before the tragic disappearance of MH370 and shooting down of MH17 this year, Malaysia Airlines has been struggling. The airline’s regional business has been decimated; the national airline’s more traditional business structure hasn’t been able to cope with AirAsia’s lean, mean strategy.
With the disappearance of AirAsia flight 8501, the airline and its charismatic leader will face their greatest challenge to date. The probable tragic loss of the flight may be a turning point in the airline’s story. But given Fernandes’ track record, AirAsia should be up to the task.
Read more: http://www.businessinsider.com/airasia-ceo-tony-fernandes-turned-a-29-cent-investment-into-a-billion-dollar-empire-2014-12#ixzz3NJh86WGc