Low-cost strategy factors in airline industry: The AirAsia case

A. R. Jeddi, N. G. Renani, A. Khademi, V. Shokri, M. Y. Noordin

    Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

    2 Scopus citations

    Abstract

    Demand for air transportation has boomed extensively in Southeast (SE) Asia during the past decade as a result of economic development and the lack of land routes between destinations. The purpose of this study is to focus on the cost-leadership competitive strategy applied by low-cost carriers (LCCs) in SE Asia airlines and explore the elements that affect the competing capability of these airlines in the region. Furthermore, the study attempts to illustrate the key success factors that have resulted in the superiority of AirAsia (AA) airline among other LCCs airlines in the competitive market of SE Asia. This study shows that the regulatory environment in the region's air transportation business is an important barrier for the development of local LCCs airlines. Hence, AA attempts to cope with these barriers have been illustrated in this research.

    Original languageEnglish
    Title of host publicationMaterials, Industrial, and Manufacturing Engineering Research Advances 1.1
    Pages652-657
    Number of pages6
    DOIs
    StatePublished - 2014
    Event1st International Materials, Industrial, and Manufacturing Engineering Conference, MIMEC 2013 - Johor Bahru, Malaysia
    Duration: 4 Dec 20136 Dec 2013

    Publication series

    NameAdvanced Materials Research
    Volume845
    ISSN (Print)1022-6680

    Conference

    Conference1st International Materials, Industrial, and Manufacturing Engineering Conference, MIMEC 2013
    Country/TerritoryMalaysia
    CityJohor Bahru
    Period4/12/136/12/13

    Keywords

    • Air transportation
    • Airasia (AA)
    • Competitive strategy
    • Cost-leadership strategy
    • Lowcost carriers (LCCs) airlines

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