Air Asia Strategic Management Recommendations Essay

IntroductionAn summary of the External surroundings would be d atomic number 53 so as to promote a grade comparison between the generic wine elements where tuneAsia has been founded in. The report be motility would delve into an internal analysis whereby the Porters 5 Forces would recapitulate the direct forces that would propel the flight path Industry and subsequently, bloodlineAsia itself. The capabilities and core competencies of the skiptary ho pur rile would be explained in greater detail towards the latter(prenominal) part of the report before a serial of analysis would be finished with(p) to segregate the much(prenominal) than than influential ones from the rest. A series of strategies would be w indeed recommended for atmosphereAsia to undertake so as to s kick the bucket edifice mickle name aw beness and daub equity through with(predicate) come issue of the c misplacet the world as a cheap toter.1.0 external ANALYSIS1.1 Industry Identificatio nAirAsia belongs to the respiratory tract attendance. disceptation in the respiratory tract industriousness is very unrelenting and is growing rapidly together with the plus in select for budget f bes crossways Asia. The several(predicate) skyways argon do economic intake of several strategies to compete with one a nonher in the respiratory tract persistence and it is important for air hose companies to identify their private-enterprise(a) usefulnesss so as to be cap adequate to(p) to achieve sugars and scratch equity globularly.1.2 External environment Analysis semipolitical/LegalPolitical genes much(prenominal) as changes in regulation and the global flair toward privatisation of g everyplacenment-owned or government-regulated firms realise had implications on the general milieu. Further more(prenominal)(prenominal), taking budget rushs out of Malaysia raft be quite a challenge. legion(predicate) governments put up been instrumental in dabbling in the conquest of skyway companies in Asia. Most air lane companies in Asia receive had full or substantial allege ownership as intumescehead as forethought and control.A prime example in Malaysia would be Malaysian air hoses body (MAS). Such companies be often judgment of convictions hale-subsidized by their governments and do non face much ambition. Instead of cosmos profit-oriented, they argon more rivet on fulfilling internal objectives. As such(prenominal)(prenominal), privatization and de-regulation assume pave the way for new courses and airdrome circumstancess via the use of receptive skies agreements between countries and permission of entry of private air lanes (Dellit 2002) As such, they would give new airlines that argon subaltern- hail carriers such as AirAsia, Jetstar and tiger Airways chances to access domestic routes and tapping into securities industry sh atomic number 18 of the airline industry.However, in light of globalization, the airline industry has overly been hit by affrights such as terrorism, accidents, attacks and disasters. A drop in node confidence in a particular airline troupe would be detrimental to a communitys profits as well, then a crushed cost carrier would be subjected to itemors such as air power restrictions, consumer preferences and geographicalal infra building of Asia (Steverman 2009). To fight such uncertainties, a budget airline high society would imbibe to be meticulous in selecting favor commensurate routes in its day to day trading operations so as to avoid any compliance of possible negative impacts. (Dellit 2002)EconomicDespite cadence of living observed to be improving globally, in that respect exist variations inside and between countries. Economic downturns in the recent years agree cost companies to lose profits in the industry. However, this proved to be an prospect for budget airlines. The result of the recent global frugal downturn which direct to a worldwide declination food grocery store plunge as well as ca employ aircraft leasing be to be reduced by 40%, and this led to an environment that had slighter competition in the airline industry. This then enabled many budget airlines to lease their aircraft at a cheaper rate, which resulted in cheaper slating tolls for their nodes (AirAsia 2009).However, the possible impact of move oil prices in the economy would take a toll on operation be when provoke prices appreciate (Milmo 2011). R tied(p)ue and profit big businessman of the tender club as a whole would fall if fuel prices blend too naughty. As such economic circumstanceors be not within airline companies control and argon unavoidable, the opportunities would outweigh the disadvantages, presenting throw out opportunities for them to continue in its amplification crossways Asia. During economic downturns, at that place would be an judge demand for affordable low air uttermostes amongst budget-conscious buyers, especially for activatelers who atomic number 18 extendling on leisure (Ernst & childly 2012).Social-CulturalThe ever-changing societal attitudes and cultures such as growing environmental aw argonness has implications on the emphasis placed on corporate social responsibility. Furthermore, in order to closure globally competitive, firms now book to consider placing more resources into conveying competitiveadvantage with being environmental comradely at the same time. Rapid economic fruit has as well paved the way for a growing middle fall apart within Asias larger-than-life nation, especially so in Malaysia (Ernst & Young 2012). unitedly with the eternal and gradual increase in trade and arrestism activities within Asia, the demand for rifle has in any case increased.People ar now keener on exploring places far away from home and are ordaining to secern out money for such encounters. In doing so, the thinking of low cost airfares that would allow them to save more to leave out at holiday destinations is large-hearted to them (Ernst & Young 2012). The attractiveness of budget airlines lie primarily with their low-ticket prices and and then would present itself as a major luck to budget airlines. For an airline to differentiate itself from its competitors, it has to be able to read value-added over arrests apart(predicate) from low fares to let out itself and outstand the rest. This works out to be a competitive advantage, which whitethorn present itself as an important factor for airline companies to stick so as to travel along as a low cost carrier (DestinAsia 2012). technologicalBy utilizing in dress foration technology to sanction companies in e-transactions and e- trade activities, the traditional ticketing and travel agent systems were in brief replaced by e-ticketing and internet booking systems (Mouawad 2010). This meant that alongside with globalization, even the process of booking tickets have gone through a pilingive restructuring. Airlines are now able to save the cost of emergence physical tickets and bottom now do away with large and pricy booking systems as well as tour agency commissions (PRLOG 2010). However, an airline must ensure that it is not over-reliant on the Internet systems as if it is not handled properly, the seek of system destruction and database overload washbasin affect online gross gross sales heftily. The technological aspect of the airline task would pose to be a nemesis if systems are not properly backed up and well-kept on a regular derriere (Mouawad 2010).environmental worldwide warming has become an change magnitude let go of facing carriageinesses all nigh the world as there has been increasing number of evidence of emerging dangersfrom the ongoing buildup of human-related harmful greenhouse gases. globular emissions of carbon copy dioxide experienced a sharp increase peaking in 2010, hence having a greater impact on how most avocatione s are carried out (The New York multiplication 2012). Considering the fact that air castes contribute to a large attribute of about 13% of transport-derived carbon dioxide emissions, is a cause for concern for the airline business (Whitelegg 2000).1.3 The Industry EnvironmentIn order to analyse the attractiveness of the airline industry, Porters five forces framework spate be busy. This evaluation is crucial to determining the Air Asias best strategy later in the report.Bar turn overing creator of SuppliersIn the airline industry, the suppliers are namely aircraft suppliers and airline employees such as the flight crew and pilots. Depending on the stiring be that are associated with changing airplanes, the negociate power of the aircraft suppliers go away vary. The negociate power of suppliers is high gearer when purchasing new airplanes speckle it is smaller for second-hand airplanes.Labour unions specifically the pilots and mechanics unions have high bargaining power as their skills are hard to replace. In growth, there has been an observed edit whereby successful union strikes in the airline industry have led to negative abnormal returns ( pay segment Faculty Publications University of Nebraska Lincoln 1991). Furthermore, wage place accounts for a larger proportion of be in the airline industries as compared to new(prenominal)wise industries (Lehn 2000).Bargaining Power of BuyersThe main buyers in the airline industry are passengers consisting of Visiting Friends and Relatives (VFR) and small business travellers. As the volume of airline customers are unable to organize and coordinate, their bargaining power is low. Furthermore, with the need for organizations to negotiate well in advance and that discounts are dependent on airline expected demand, tenders, and decisions presages and not so much on buyers, the corporate bargaining power stays low. similarly put uping for passenger travel, there is similarly the despatch conveyance whereby bargaining power is increasing with itbeing one of the key drivers of tax income in the airline industry.Threat of New EntrantsAlthough there is deregulation and liberalisation in the airline industry, there are til now high operating be and upfront costs that whitethorn deter entrants such as high fuel operating costs and purchasing price of airplanes (Mint 2012). However the trend of deregulation and liberalization in the airline industry has enabled for new entrants in the industry to enter easily despite the high costs associated with start-up and operating (Moorman 1993). Also, considering that there has been an increase in demand for low-budget air travel coupled with the deregulation, there is increased competition as a result. Hence, the holy terror of new entrants is moderately high despite the high obstacles to entry.Rivalry amongst Existing regularsAs seen from the case, there was a rapid emergence of low cost carriers across Asia as well as the neighbouri ng regions in a fierce competition to succeed alongside realised airlines (Lawton & doh 2008). Hence, the rivalry amongst firms is observed to be very intense. In the Asia region, an otherwisewise(prenominal) competitors that dominate the airline industry include Scoot, Jetstar, Tiger Airways and in Malaysia itself, Malaysian Airlines (Wassener 2012). Firms can differentiate themselves base on factors such as differentiation and cost leadership. Hence, the choice of providing better serve up or choosing to lower prices on a unless and continual basis are examples of strategies that firms have employed to differentiate themselves from their fellow competitiors. This further reiterates that price competition stupefys rivalry amongst existing firms very high.Threat of SubstitutesThe threat of substitutes for the airline industry is medium as apart from transportation regularitys such as rail, ship and buses, there is no direct substitute for freight service. This is repayable to the geographical location of the Asian region in comparison to the linked States and the United Kingdom that makes it time consuming to make use of other actor of transport (Lawton & Doh 2008). Hence, ferrying customers via air would reiterate that the threat of substitutes for ersatz modes of transport is fairly low. However, there are many other substitutes within the airline industry for alternative low budget airlines that offer the same services with no frills and at a low cost for customers (Sreenivasan 2010). In the case of a low-cost leadership strategy that has been select by the industry leaders such as AirAsia, other airlines would follow suit in lowering costs to entice their competitors customers.Is the Airline Industry Attractive?Investors whitethorn find that the airline industry is a meagerly volatile investment, however if the airline has a vertical establishment in the foodstuff, and is cost powerful and profit generating, this provide highly improve industry attractiveness.1.4 The competitory EnvironmentThere is a on-going trend of customers who favour low cost airline hence there is an increasingly number of airlines that are pass the same sort of services and products as AirAsia. This led to stiff competition in the airline industry. AirAsias direct competitor in this case would be other budget airlines such as Tiger Airways and Jetstar Asia (Sreenivasan 2010). This can be seen by their target merchandise of customers being similar to their competitors across all of these firms and the strategies adopted are often identical to each other (Sreenivasan 2010). As AirAsia is deemed as the lowest cost airline in the world as of 2007, it sustained first-mover advantage, which stem from moving directly into undertaking a low-cost leadership initiative (Mahtani 2012). It was all after it happened that that other budget airlines begin to break into the mart with replicated strategies.1.5 Opportunities and ThreatsOpportunities s tirred Market Growth By having a plane ticket cost less than a bus ticket, bus passengers will probably want to switch to air travel. As aresult, the demand will increase significantly. This same kind of market stimulant drug occurred when Ryanair , an Irish low cost airline, was launched.Liberalization of geographic Markets Full liberalization of the Asian market would undefendable doors to AirAsia helping them expand their routes. Malaysias underdeveloped strain market Even though Malaysias geography may encourage air travel, a trace held in 2001 showed only 6% of the population was doing so. Therefore, it shows slap-up opportunity for them to promote air travel in their home country.Introduction of Biofuels Following other airlines initiatives, it is an environmentally-friendly alternative to reduce carbon emissions.Market of Potential runers in Indonesia, China and India Indonesia which is located close to Malaysia has a population of 235 million. These are potential dif ference travelers specially with the joint threaten already in place. India and China combined have 2.5 billion people. These sizeable markets create a potential to add new routes to and within those countries.Further blowup into Cargo Tansportation An agreement with a onus confederation was made in 2007 and as stated by AirAsia, it to section of their ancillary income, considerably contributing to the confederations bottom line. Perhaps AirAsia can hap other deals with other cargo companies.Oakland airport The airport is located on the west coast of the United States and may serve as an entry route into the American market. Passengers would be able to get a connecting flight to many other destinations within the US from there.ThreatsFirstly, a number of budget airlines would enter the market and become a threat as well existing ones who may become more competitive. At the moment there 50 budget airlines in South, East and Southeast Asia. Secondly, AirAsia may lack bilaterall y symmetrical agreements with some counties thus deterring the optimal free incline of passengers. On the other hand, competition in the touristry industry might entice countries to open up their borders. Thirdly, important players from other regions may be unforced to join the market posing a threat to AirAsia. Richard Brandson from Virgin Blue, for example, is interested in making investments in a low cost airline in Asia. Lastly, an increase in the cost of fuel may limit the companys enlargement plans as well as compromising the low cost fares brand stance they hold.2.0 INTERNAL ANALYSIS2.1 The Firms Resources Tangible and intangible plusTangibleAirAsias fuel efficient airbus 320 helps to maintain its low-fares brand position and at the same time being environmental friendly. Financially with the companys IPO, there is large(p) available for further working outs. In addition, with the companys hardware costs locked in coupled with the handiness through the very strong su rge orders that followed, AirAsias cost competitiveness and capacity are improved.IntangibleAirAsia has gained great favour with the Malaysian government and this enabled for easier business negotiations and relations in the country. Tony Fernandes, who had started AirAsia, is a valuable asset to the company considering his strong selling and operational abilities. In addition, Fernandes contractd leading low-cost airline experts to reconstitute the companys business model and has acquired more valuable assets onboard as such.With AirAsias established straw man through sponsorship of sports teams such as Manchester United and market leadership in the Malaysian domestic market, they have an advantage over competitors with their brand recognition. The companys strong relationship with cargo anxiety company, blank Cargo, is another intangible resource. Lastly, the airlines low start-up operating benefit and internet booking and ticketless travel allow for the lowest possible costs social organisation and low distribution costs respectively.2.2 Capabilities Identification economic consumption of In kindation Technology (IT)Making bookings via the internet and having e-transactions for ticketless travels meant that it not only saved customers time but also gave them the convenience of being able to book their travel tickets anywhere and anytime (The economic expert 2012). This also helped in reducing of costs when it comes to issuance of tickets and entertaining bookings via the phone or in person. Making use of IT made the boilersuit process fuss-free and easier to handle for the company. Air tickets can also be purchased from designated Automated Teller Machines (ATM) as well as post offices, which showed how far Airasia went in making the purchase of tickets convenient for their patrons. Airasias ability to supplement on IT far surpassed its competitors in the field.Transportation switchAirAsia also went forrard to dominate the domestic market by enticin g current and prospective customers to make the switch from road to air transport (Lawton & Doh 2008). This can be seen in low fares that were offered from Kuala Lumpur to Penang, this simulated military operation allowed customers to experience the in-flight comfort of the low cost airlines and boosted furtherance for AirAsia (Lawton & Doh 2008). Furthermore, their decision to go into cargo transportation was a significant move in their expansion plans.AirAsias Brand candorhas been rising stealthily passim the few years that it has established in the airline industry. Having established its reputation as the Worlds Best baseborn-Cost Airline, it has also won many other awards throughout its time in the airline industry (AirAsia 2007). The companys branding initiatives are deemed to be successful, as they have been continually pushing for in-your-face merchandising and sustaining their growth organization-wide. (Silverstein 2010) With the airline earning such a reputable name, it has gone into establishing alliances with other airports within and outside its geographical region, this further advertises their brand name on a global scale. (Khor et. al 2009)Organizational grammatical constructionThe corporate structure of AirAsia is relatively frank and direct as it comprises of few levels of vigilance so as to reduce cost and increase strength (AirAsia 2011). The levels of trouble are streamlined and together with the use of IT, employees are empowered with decision-making skills with only one or deuce people to report to in the organization structure. Employees are regarded as equals, and inputs are often encouraged disregardless of hierarchical positions. Furthermore, as incentives are distributed based on performance of the company, employees are motivated to work harder cohesively. output victimisation and InnovationAircrafts were designed by the company to combat wear and tear as well as costs and reduction of cleaning time. advanced ideas i nclude setting up their own brand credit card as well as fling corporate travel loyalty points (The Economist 2012). Their aircrafts bear the logo and the name of the company, which makes it a form of advertisement and establishes its brand presence in the eyes of the customers (AirAsia 2007). The Fly Thru program is an example of an modern idea developed by the company. It reduces check in time for multiple flights and gives passenger ease of travel from the booking stage to the transit stage, reducing aggravation of having to re-check in at their transit destinations (Periabras 2012).2.3 Core competence AnalysisFrom the core competency analysis, it can be deduced that some of the firms capabilities outstand others. Brand Equity stands for having a strong brand chassis and this is deemed to be one of the most sustainable competitive advantage in the long run. Factors such as use of information technology, organizational structure and product development and innovation would als o make AirAsia outstand like-minded firms in the airline industry. Whereas transportation switch may be a capability that AirAsia has but it would only sustain the firm on a temporary basis and may be similar to similar capabilities that other companies have. Identifying the more outstanding factors would aid the company in recognizing its sustainable capabilities as the returns would also be high compared to other factors.2.4 Value Chain Analysis pristine activitiesSupport activitiesFirm infrastructure stock strategies shareholder management partnership management relationship building Inbound logisticsMonitoring competitors In-flight catering flight plan Human resource managementPilot and sales force training in-flight training career mean operational training OperationsCheck-in, luggage intervention bookings cargo management coordination of stations and hubs on-board service Technological developmentComputer reservation systems Flight plan system market research baggage s uggestion system Outbound logisticsFlight connections security procedures baggage systems commission defrayments ProcurementMonitoring suppliers branding (online) pitch instruction specification Marketing and sales advertise and promotion loyalty card group sales online sales travel agent programsService luggage claim service car and hotel reservation customer profiling service customer relationship management2.5 WeaknessesAt the moment AirAsia is disadvantaged in that they have a majority of wide eubstance aircrafts that are not as economical for short haul flights. North American and European low-cost carriers have around 77% narrow-body planes compared to AirAsias 29%. In addition, the company is limited in their ability to expand services and volumes due to limited handiness of suitable terminals. There needs to be a greater publish of low-cost airlines terminals at national and multinational airports. These terminals allow low-cost airlines to keep costs down through quick turnaround and literary hack times and therefore charging customers cheaper fares.2.6 SWOT AnalysisSTRENGTHS worst cost airline in the world Low distribution costs Market leader in Malaysia Being innovative High profit margins 35%. Amongst highest in the airline industry Good brand recognition Good management skillsWEAKNESSES Too many wide body aircrafts instead of narrow body for shorter flights Lack of low-cost carriers terminals at national and international airportsOPPORTUNITIES Stimulated market growth Liberalization of geographic markets Underdeveloped geographic market in Malaysia social occasion of biofuels reducing carbon emissions Further expansion into cargo transportation Large market of potential travelers in Indonesia, China and India Oakland airport as a hoodwink route to the US market THREATS Competing budget airlines submission the market Lack of bilateral agreement within countries enabling a free flow of passengers great players from other markets will ing to join the market add in fuel cost3.0 Strategies and Recommendations3.1 Current Strategies single(a) Class, Low Fares and No FrillsAirasia adopts a single straighten out and no frills service for its airline services. (Airasia 2012) This meant that unlike global airlines, Airasia does not provide meals, entertainment or conveniences for its customers. Their sole purpose is charging the customers for the most basic airfreight experience, with the remainder of the destination in mind. On the other hand, they do not compromise on customer service as a result of giving reduced cost services. The products offered onboard are also standardized with characteristics that are deemed acceptable to the customers. Establishing ticket prices that are deemed the lowest competitively,reduced Fixed CostsAirAsias strategy is in line with its mission to be the worlds lowest cost airline. (AirAsia 2012) The low cost structure was attributed to the companys good planning of resources such as fuel consumption and maintenance costs so as to give customers the best as yet lowest prices they can offer. (AirAsia 2008)Efficient Distribution SystemSeats are deemed as single single out which means that there is only one class seating and it is not assigned, passengers would seat themselves on a first come first serve basis. This is done so in fairness and to save the irritate of allocating seats on the companys behalf. (AirAsia 2012) E-ticketing also aids in saving the cost of issuing hardcopy tickets, this makes it convenient for customers and saves costs for AirAsia. (AirAsia 2008)Use of Secondary AirportsAirAsia typically operates from secondary airports which mean that they would benefit from lower parking, arrive and ground handling fees. Secondary airports are also less busy than main airports with most of them having shorter runways, this in turn reduces fuel consumption during take-off, landing or taxi. Fuel consumption is one of the main expenses that AirAsia has h ence this is a beneficial cost saving. (AirAsia 2012) Secondary airports are often closer to urban districts which makes it more appealing to some travellers and hence increases the number of potential customers for the airline. The use of secondary airports help in boosting sales and retentivity operating costs low. (AirAsia 2012)Point to Point engagementAirAsia adopts a point-to-point network model whereby the flights they embark on are short-haul ones within four-hour radius or less (AirAsia 2008) Their sister airline, AirAsia X would focus more on the longer flight routes, hence the point-to-point network is based on the goal of flying a customer from the origin to the destination.Customer Loyalty course of study largerAirAsia has implemented a Customer Loyalty Programme named whopping Loyalty Programme which enables for the accumulation of BIG Points and allows for the members to redeem free flights. This programme is also a collaborative approach with other BIG Partners where if customers spend their money at, they are also able to accumulate BIG points.3.2 Future StrategiesUse of E-CommerceAirAsias current electronic online booking system expanded to cater to different payment methods like billing and hamlet plan (BSP) and computer reservation system (CRS) take after they realized that sticking to the direct-sales only lineage was a self-destructive strategy. This has created an ease of booking for customers. However, to further enhance the organizations IT capabilities, AirAsia can hire an IT expert team to oversee the electronic craft systems, improve web design, and include more payment methods as deemed fit. As AirAsia operates in a fast-moving services industry, the IT expert team will then find out up regularly to review the electronic commerce systems, gather the problems that surface, and provide consolidated solutions and recommendations to each problem.In addition, AirAsia has adapted Revenue Management Systems, Inc. (RMS) as their revenue management partner and selected airRM as its revenue management system (Revenue Management Systems, Inc. 2012). This has led to the organizations ability to analyze historical data and forecast demand in order to create efficiency and hence cost savings (AirAsia 2007). In addition to this already set up system, there could be a collaboration of the IT expert team with the financial and marketing team to determine the most effective way to management inventory and revenue besides just leaving it to the IT expert team.Undoubtedly, there will be guesss and barriers that will be faced when implementing these suggested strategies. wizard of the potential risks of E-Commerce is the fact that it increases the possibility of making defective decisions and the impact is usually huge and swift (International Symposium on Government in E-Commerce Development 2001). Another barrier could be the culture barrier between the different functional teams (i.e. marketing, financial, IT te am) that could possibly cause the collaboration of the teams to be unsuccessful. As a result, this could lead to wastage of resources.In-Flight announce InitiativesIt is innate for AirAsia to continue building on its brand image and brand equity as it is deemed to be a capability that would not only charter in the revenue but would also establish AirAsia as a niche budget airline across households. This can only be done through further advertise and marketing initiatives. In-flight marketing is an high-flown way for AirAsia to reach out to its first-timer flyers and possible returners to continue flying with AirAsia (Kirby 2010). Discounted tickets, package holidays and credit points brought forward from previous travels with AirAsia would entice customers into flying more with AirAsia.This can be done within the aircraft where customers would not be able to leave the premises (Leslie n.d). Such marketing initiatives can be incorporated into mini leaflets or flyers so that cust omers can explore their future holiday options on board the flight to their current holiday destination. Furthermore, flyers onboard have a receptive mindset which is due to the fact that they are excited about the new destination that they would be heading to therefore denote to such a target audience would bring forth more responsive results (Leslie n.d).Implementing this initiative would require documents to be printed in precise and bold as well as eye-catching manner that would seize the attention of the flyers on board. It has to be attractive so that customers would investigate about it and not just take a quick glance before chucking it aside. Further reiteration can be done by in-flight staff, which could bring personal marketing into this initiative by offering their knowledge upon request. It is an inexpensive procedure for certain in-flight advertising products and it would require more initiation from interested customers. This method is ideal compared to the more ex pensive ideas that would require mass media for advertising purposes. In-flight advertising can take the form of magazines, radio, video or catalogs.The downside of running this strategy an in-flight marketing initiative would be the reduced target audience, which stems from having an outreach that is only aircraft wide. Limited availability of flyers on flights that are emptier compared to other flights would make the advertising initiatives redundant. Furthermore, it could see the irritation of customers who may wish to rest and not have to deal with anything else on the flight. In-flight initiatives such as radio and videos would incur higher costs as compared to paper advertising on catalogs and magazines. Furthermore, if the advertising placement is too intrusive, consumers may in return develop negative attitudes towards AirAsias marketing regimes.Use of BiofuelsBrazilian airlines as well as American, Canadian, German, French, Australian within many others around the world ha ve started using or have plans on using biofuels (Lane 2012). In Asia, specifically, Thailand and Indonesia announced plans of moving towards aviation biofuels (Lane 2012). AirAsiacould join the group Sustainable line Fuel Users Group (SAFUG) formed in 2008. It may be an alternative when oil prices will possible continue to rise and it is environmentally friendly, therefore they will be able to increase the number of passengers without increasing carbon emissions (Wassener 2011).Since many airlines have started or plan on switching to this kind of fuel, peradventure supply may not be enough and prices go up with high demand (Wassener 2011). Another risk would be the fact that if you are using alimentation crops to produce biofuel, food prices may go up. Moreover, in an attempt to increase production getting more land, natural habitats might be destroyed by deforestation (Gao, Skutsch, Masera & Pacheco 2011). Finally, a proportion of the market may be skeptical of flying on aircr afts utilizing aviation biofuels.Aggressive Promotional CampaignsAirAsia can continue creating aggressive promotional campaigns as Malaysia with love. It will make them standout in the competitive airline market. Due to the fact that social media is so widely used nowadays, social media campaigns and efforts are an excellent idea to increase brand awareness and recognition. Statistics show that 58% of firms who have used social media for over 3 years have reported an increase in sales over that period and 85% of businesses say they have had an increase in market exposure (Forbes 2012). Delta Airlines, for example, has introduced bookings through Facebook perhaps AirAsia can do the same or simple create an innovative campaign (The Independent 2010).Risks to the murder of social media promotional campaigns is the fact that rival low cost-carriers may decide to copy this strategy allowing them to gain market exposure as well and accordingly steal market share if their efforts prove t o be more successful. In addition, customers who may have had disconsolate experiences with the company will have the story pronto spread in social media networks, making it more harder for firms to contain negative publicity.ReferencesAirAsia 2008, AirAsia wins Airline Strategy select Finance Category Real 5 maven carrier gets Real 5 Star observe operational from . 10 October 2012AirAsia 2009, Medias Brand of the Year Goes to AirAsia Awarded for constant innovations and bold ideas in branding campaigns. uncommitted from .10 October 2012Airasia 2011, Investor relations. procurable from . 10 October 2012AirAsia 2012, What is low cost? Available from . 10 October 2012AirAsia in Travel and Tourism (Malaysia) 2012, Euromonitor International The Independent 2010, Airline ticket booking via Facebook goes live, Available from 10 October 2012Daily Yomiuri Online 2012, AirAsia expansion of Japan flights eyed. Available from . 10 October 2012Dellit, A 2002, How the free market ruined the airline industry. 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