Model:

Bargaining power of suppliers: Power of suppliers affects the industry because there must be someone
who will play the role of a supplier. In the airline industry, airbus and Boeing are the only major two
suppliers. Nevertheless, the economic crisis in the world has reduced the upgrading of planes. Recently,
Air Asia has placed a large demand of airbus for their company. This will enhance the management of
passenger traffic and create a good name and reputation for the company.

Bargaining power of Buyers: The airline industry market is fully saturated and major airlines are
competing for the same customers. This aspect ends up strengthening the buyers’ power. Air Asia has
maintained its low cost of travelling, and this has reduced their customers bargaining power. The
company should do more advertisements for their services and low-price travelling costs to give them an
advantage with the buyers or customers.

Threat of Substitute Products or Services: The availability of substitutes is low for international airlines.
The threats are low because air travel is the only means to move across long distance destinations. The
threat becomes high in national level because travelers may opt to use train, buses, and personal vehicle.
Air Asia: have made their low-cost fare for travelers to afford travelling through airplanes.

Threat of New Entrants: Because the airline industry requires significant investments to maintain new
businesses viable and long-term authority of the airline to draw customers, the threat of new entrants
might be viewed as low threat. Although established businesses have a lot of opportunity to address
new risks by investing their resources in the tools to counter new enterprises, new entrants have few
chances to pose a challenge to such well-known firms as AirAsia. Also, as experience and trust are
important factors in the airline industry, clients frequently select reputable airlines. For AirAsia's
overseas flights, the threat of substitute goods or services can be regarded as being relatively low.

Rivalry Among Existing Competitors: The intensity of competitive rivalry can be considered the main
threat to AirAsia as the competitiveness of the airline industry is high. Malaysian Airlines is considered
the main competitor of AirAsia at the domestic market, as the company tries to attract the customers of
AirAsia by launching loyalty programs. Short-haul flights of AirAsia are also vulnerable to the impact of
rivalry with Malaysian Airlines. However, AirAsia appears to be rather successful in dealing with the
competitors, as it is recognized as one of the best companies offering low-cost flights, and its success is
rather difficult to be repeated.

Top 10 Competitors of Air Asia: 10 competitors of Air Asia, first is Air Paz,