Case Study

Due Date : 12 Feb 2021

ASSIGNMENT
AirAsia Case Study (EMBM)

Question: Analyse and discuss in detail the “Organizational Behavior” in AirAsia Group
which may have resulted the phenomenal success for the Group.
You may use any models or tools such as SWOT, PESTEL or BCG Matrix.
Give relevant and appropriate examples in your analysis. You may use any of
the
information given below if needed.

(30 marks)

With the early start of only a few operators in these regions, LCCs have been developing
quickly in South Asia, North Asia and South East Asia since 2000 as more airlines, both
no-frills ventures of legacy airlines and independent private low-cost startups; have
appeared flying within and across different countries in the region. Table 32 sets out a
chronology of the development of the low-cost carriers in Asia since year 2000.

Table 3-1: Early-Start Low-Cost Carriers in Asia

Name of LCC Based Operate Brief description on the LCC

in d since
Skymark Japan 1996, Is an independent private start-up low-cost airline
Airlines flying headquartered at Tokyo International Airport
since (Haneda) in Ōta, Tokyo, Japan, operating
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1998 scheduled passenger services within Japan. Its

major shareholders are CEO Shinichi Nishikubo
(35.47%) and the travel agency H.I.S. (27.62%).
Hokkaido Japan 1996, Is an independent private start-up Japanese
International flying lowcost airline operating scheduled service
Airlines since between Tokyo and cities in Hokkaidō. It is
(formerly Air 1998 headquartered in the Oak Sapporo Building in
Do) Chūō-Ku,
Sapporo, and its main base of operations is Tokyo
International Airport in Ōta, Tokyo. Owned by
Mizuho Financial Group and individual private
investors.

Continue Table 3-1: Early-Start Low-Cost Carriers in Asia

Cebu The 1996 Is a Philippines‟ second largest carrier and biggest
Pacific Philippi LCC based on the grounds of the Ninoy Aquino
nes International Airport, Pasay City, Metro Manila, the
Philippines. It offers scheduled flights to both
domestic and international destinations. Its main
base is Ninoy Aquino International Airport,
Manila, with other hubs at Mactan-Cebu
International Airport, Clark International Airport,
Francisco Bangoy International Airport, and Iloilo
International Airport. It is wholly owned by JG
Summit Holdings
Lion Air Indonesia 2000 - Independent private start-up and the first LCC in
early Indonesia. The airline is owned by Rusdi Kirana.
2013 The airline just liquidated by early 2013.
AirAsia Malaysia 2001 Malaysian low-cost airline headquartered in Kuala
Lumpur. It is Asia's largest low-fare, no-frills airline.
The airline was previously owned by AirAsia
Berhad. It is now listed publicly on the Malaysia
Stocks Exchange.
Citilink Indonesia 2001 LCC belongs to Garuda Indonesia Airlines
Garuda
Skynet Japan 2002 Independent private start-up low cost airlines owned
Asia by the Industrial Revitalization Corporation of
Airways Japan, Mera Electric Industrial Corporation and All
Nippon Airways
Air India 2003 Low-cost brand run by Kingfisher Airlines,
Deccan headquartered in Mumbai, India. Independent
private start-up and the first LCC in India.
The airline is listed and owned by public
investors.
Thai Thailand 2003, Is a joint venture of Malaysian low-fare airline

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AirAsia flying AirAsia and Thailand's Asia Aviation. It serves

since AirAsia's regularly scheduled domestic and
2004 international flights from Bangkok and other
cities in Thailand.
Indonesi Indonesia 2004 Is a joint venture of AirAsia; another foreign joint
a venture 51% of which is owned by Abdurrahman
AirAsia Wahid, former President of Indonesia (1999–2001)
(formerl and 49% owned by AirAsia.
y
Awair)
One- Thailand 2004 Owned and managed by Orient Thai Airlines and
Two-Go owned by CEO Udom Tantiprasongchai and his
wife, the One-Two-GO brand was retired in July
2010, and the aircraft re-branded as Orient Thai
Airlines (international charter operator).
Nok Thailand 2004 LCC of Thai Airways. The airline is 39% owned by
Airlines Thai Airways, 10% by Krung Thai Bank, 10% by
(formerl Dhipaya Insurance, 10% by the Government
y Sky Pension Fund, 6% by CPB EquityCo., 5% by ING
Asia) Funds, 5% by King Power and other minor
shareholders
Valuair Singapore 2004 Is an independent private start-up and the first LCC
to begin operations in Singapore. The airline merged
with Jetstar Asia in July 2005, giving the first sign of
consolidation of LCCs operating in SE Asia
Tiger Singapore 2004 LCC of Singapore Airlines. The airline is 49% held
Airways by Singapore Airlines, 24% by Indigo Partners, 16%
by Irelandia Investments Ltd (the private investment
arm of Tony Ryan and family) and 11% by Temasek
Jetstar Singapore 2004 Founded by Qantas in financial cooperation with the
Asia Singapore government and two local investors.
Qantas holds 49% share of the airline, with the rest
19% held by Tamasek, 22% by Tony Chew and 10%
by FF Wong. Its sister company is Jetstar which is
based out of Melbourne and is wholly owned by
Qantas
Viva Macau 2004, Independent private start-up owned by MKW
Macau SAR, flying Capital and local investors. It is the first Asian LCC
China since airline to fly long-haul
2006
SpiceJet India 2005 The company was originally known as Royal
Airways. Royal Holdings Services is one of the
largest shareholders of the airline, also with
investment from the Dubai-based Isthithmar (private
equity arm of the Dubai government), Citigroup, and
Ewart Investments (a division of the Tata Group)
Hansun Korea 2005 Independent private start-up and the first LCC in
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g Korea. The airline is listed and owned by public

Air investors
Spring China 2005 The first LCC of China owned by Shanghai Spring
Airlines International Travel Service Ltd, one of the
country‟s largest domestic travel agency
IndiGo India 2006 Independent private start-up owned by
Interglobe Enterprises, an Indian travel and
hospitality group
Jeju Air Korea 2006 The airline is a joint venture between the Jeju
Province (holding 25% share) and conglomerate
Aekyung Group (holding 75% share).
Oasis HKSAR 2006 Independent private start-up owned by Rev.
China Raymond Lee and other shareholders. The airline
was liquidated on April 2008, after only a 15month
operation.
AirAsia Malaysia 2007 A long-haul LCC operated by FlyAsianXpress
X (FAX). The airline is 48% controlled by Aero
Ventures Sdn. Bhd. (a company owned by Tony
Fernandes and his associates), 16% by Richard
Branson of the Virgin Group, and 10% each by
Japanese leasing firm Orix Crop and
Bahrainbased Manara Consortium.
Pacific Vietnam 2007 Vietnam‟s first LCC which was transformed from
Airlines the country‟s second largest legacy carrier founded
in 1991. The airline is owned by the Vietnamese
government‟s State Capital
Investment Corporation (SCIC), Saigon Tourist
Corporation and, its strategic partner, Qantas
Airways.

Philippi Philippine 2010 Operating as Philippines AirAsia is a low-cost

nes s carrier based at the Clark International Airport in
AirAsia Angeles City, Pampanga in the Philippines.

AirAsia Japan 2012 Low-cost airline headquartered in Tokyo, Japan.

Japan The airline is joint venture between Malaysia's
AirAsia and Japan's All Nippon Airways.
AirAsia India 2013 Operated as a joint venture between Tata Sons and
India AirAsia, with AirAsia holding 49% of the airline

Source: From various websites