After taking AirAsia to 6 countries, I have learned quite a great deal of their business expansion plan and strategies. They apply at least two approaches for their airline business expansion. First of all, they add more routes. Secondly, they add more services or charges to their airline services. For adding more routes, it is a straight forward strategy. For adding more services and more charges to increase their revenues, they have done the following based on my personal observation:
- The all in charges can be as many as 10 different charges including airport tax etc.
- They offer in flight meal and also many other items.
- They offer different seat and choice of seating selection.
- They offer online free of charge check in service or pay at the counter.
- They offer discount for ordering of food online and also cheaper rate for check in baggage.
Of course, the not airline business including hotel, insurance, prepaid mobile airtime and so on.
Creativity: Airasia is quite creative and innovative in their business expansion.
I am not sure how much AirAsia copied other airline or other businesses but their success is basically understand the needs of customers well and position themselves well to capture the niche market of low cost airline business.
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