Air Asia Competitive Advantage

Competitive Advantage of Air Asia

What is the Competitive Advantage of Air Asia and how do they achieve that?

Competitive Advantage of Air Asia, the famous budget airline in Asia is “Low Cost”. Air Asia is the leading and largest low cost carrier (LCC) in Asia. Air Asia is head-quartered near Kuala Lumpur, Malaysia. They are servicing a network covering more than 175 routes, spread across Malaysia, Indonesia , Thailand, China, India, Bangladesh, Sri Lanka and Australia.

The following is the definition of Competitive Advantage:

Competitive advantage is “a firm’s ability to achieve market and financial superiority over its competitors”. It can be achieved in different ways like outperforming its competitors on price, quality, quick response, flexibility, innovation etc.

In other words, Competitive Advantage is the attribute that allows an organization to outperform its competitors.


Air Asia low cost

The following video shows how Air Asia achieves their Competitive Advantage, Low Cost.


Air Asia’s Mission

The Mission of Air Asia is “to attain the lowest cost so that everyone can fly with Air Asia and maintain the highest quality product, embracing technology to reduce cost and enhance service levels”

Air Asia is providing the low fares by using the following measures:

Fly Maximum

Aircrafts spend less time on the ground and fly as much as possible. This results in high aircraft utilization and staff productivity.

competitive advantage of air asia fly maximum

Space Utilization

Space utilization is a major factor while designing the seating arrangements. This in turn  increases the revenue.

competitive advantage of air asia space utilization

More DIY (Do It Yourself)

Air Asia encourages Do It Yourself (DIY) things like self check-in and web check-in. This helps to reduce manpower and savings in operational costs.
competitive advantage of air asia no frills service

No-Frills Service

Air Asia follows a no-frills business model. This is another factor which helps them to achieve the Competitive Advantage of low cost. If you want additional comforts, you have to pay extra.
For example :

  • There is no “free” food and beverage.
  • You have to pay a fee if you want to “select” your preferred seat.
  • Only cabin baggage is free and check-in baggage is chargeable.

Minimum Types of Aircrafts

Air Asia uses minimum types of aircrafts, mainly Airbus A 320 family. This saves cost on retraining staff and maintaining spare parts stock. Air Asia achieves better fuel efficiency by using Airbus A320 planes installed with ‘sharklet wing tips’.


competitive advantage of air asia

Secondary Airports

Air Asia uses secondary airports in many cities. These airports are cheaper, not busy and provide less turnaround times. This increases the operational efficiency.

Lean Distribution system

They use a lean distribution system. This means, they have very few sales offices and more than 85% of the sales are through their website. Web Hosting $2.65

airasia online sales low cost

The competitive advantage of Air Asia is Low Cost and they are achieving this by efficiently designing and managing their operations.

competitive advantage of air asia low cost

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