Industry Background Transport or transportation definition by Wikipedia stated as “the movement of humans, animals, and goods from one location to another.
Modes of transport include air, land (rail and road), water, cable, pipeline, and space. The field can be divided into infrastructure, vehicles, and operations. Transport is important because it enables trade between people which are essential for the development of the civilization”. (https://en.wikipedia.org/wiki/Transport) For the fastest and usually long distance transportation, it is best for using the air transport method by aircraft, no wonder why air transport is commonly expensive because of the cost that has been set which consist of such as the aircraft that have high technology, the maintenance itself, infrastructure support such as an airport that needs a wide land area, and also the needs of many labors involved in it from experts to fewer experts and the regulation of each nation that may have endless variety.
So we know the big picture of how complex air method transportation could be, but air method transportation is still an interesting industry that still has a lot of room to grow from the number of passengers each year that increasing rapidly, and this is how a business person sees an opportunity as an interesting sector of business to makes a profit. The fact that the number of air passengers in the world is increasing rapidly could be seen in the figure below. Figure 1 Air transport, passengers carried Source: https://data.worldbank.org/indicator/is.air.psgr Another fact that has been proven is, that one of the biggest contributing countries for the air passengers carried is mainly from Asia pacific nation. Based on International Air Transport Association (IATA) the number of passengers carried by the traffic in the Asia Pacific area reaches 31% of all global flights. In 20 years this share of the market could also increase up to 43%, in each year the expected number of passengers carried could reach 1,8 billion, these things could happen because the fact of the economy of southeast Asian countries shows rapid development in recent year years
Income continues to increase making airline ticket prices more affordable for the wider community. (https://www.dw.com/id/5-fakta-penting-tentang-bisnis-penerbangan-di-asia/a-18167253). Now we could focus on the more specific scope of the region which is Asia’s air transportation market. According to the latest edition of IATA’s 20-Year Air Passenger Forecast, Asia Pacific will be the biggest driver of demand from 2015 to 2035 with more than half of the new passenger traffic coming from the region. China will replace the US as the world’s largest aviation market (defined by traffic to, from, and within the country) around 2024. India will displace the UK for third place in 2025, while Indonesia and Japan will be ranked 5th and 7th respectively.
Of the five fastest-growing markets in terms of additional passengers per year over the forecast period, four will be from Asia. ? China (817 million new passengers for a total of 1.3 billion)? US (484 million new passengers for a total of 1.1 billion)? India (322 million new passengers for a total of 442 million)? Indonesia (135 million new passengers for a total of 242 million)? Vietnam (112 million new passengers for a total of 150 million). By 2035, an additional 1.8 billion annual passengers will be transported to, from, and within the Asia Pacific for an overall market size of 3.1 billion. The region will also grow by 4.7% annually. (https://www.iata.org/about/worldwide/asia_pacific/Pages/Asia-Pacific-20-Year-Forecast.aspx)
Those big numbers shown in Asia’s air transportation market should be interesting to be served by many companies in it, and yet this is proven by the number of players that we could see in Asia region itself are very large, so these means the market competition is very competitive among competitors. One of the well-performing airlines in Asia is Air Asia, Air Asia usually has a good position ranked in Asia’s airlines and is one of the biggest airlines in Asia because of its innovation and services.
Brand Profile Air Asia is an airline owned by DRB- HICOM and belongs to the Malaysian government, despite it having a heavy economic burden eventually it bought by a former executive time warner, Tony Fernandes. Tony made a turnaround and Air Asia made its profit in 2002 with new various routes also with cheap price promotions and compete with Malaysia Airlines. (https://id.wikipedia.org/wiki/AirAsia) AirAsia has triggered an air travel revolution as more and more people around the world designate them as the main choice of air transportation. While continuing to strive to encourage air travel, they also strive to create a happy atmosphere for passengers with their range of innovative services and adjust customer needs.
Its mission is to achieve the cheapest costs so that “everyone can fly” with AirAsia while maintaining the highest quality, utilizing technology to reduce costs as well as improve services. AirAsia Group services reach the most extensive network in all of Asia; Australia which is composed of the following airline affiliates: – AirAsia Malaysia – code: AK – AirAsia Thailand – code: FD – AirAsia Indonesia – code: QZ – AirAsia Philippines – code: Z2 – AirAsia India – code: I5 – AirAsia Japan – code: DJ – AirAsia X Malaysia – code: D7 – AirAsia X Thailand – code: XJ – AirAsia X Indonesia – code: XT (https://www.airasia.com/id/id/about-us/corporate-profile.page) Segmenting and Targeting The first step of Airasia overall business statement start from here. AirAsia believes that the low-cost airline is going to be the thing shortly. They mainly focus on the Asia airline market and also try to change how to play in an entire airline business through their innovation. AirAsia believed this business model is going to work to their benefit and advantage in Malaysia and Asia.
The reason is that they believe that Asian people love to travel. The only thing that is a major problem for travelers is because of the cost of the airline ticket which is too expensive at that time. So, it will not only provide a solution for customer based on their needs and want but also help Airasia inline its marketing strategy to acquire its share in the airline industry in Asia.
