THREE STRATEGY FOR AIRASIA INDONESIA

1.

DOMESTIC MARKET
Indonesia domestic airline companies are able to provide value-added extras like
food and beverages as part of their service to the passengers,although at a
relative cost.Furthermore, Indonesia domestic airlines were already trained with
the low-cost air travel concept, known as tariff war. They have proved
themselves as immune and manage to survive, Last but not least, the Indonesia
government on domestic airlines companies had never announce the availability
of low-cost airline company and this is opportunity for Air Asia.

2. LOWER COST
Air Asia always make sure the lower cost for everyone can fly. For example
here, the fare for a Jakarta to Johor Baru trips cost Rp 100,000 which is
RM88.88. Not only that the price but also the other things to. Combining the
load factor benefit and beneficial distribution cost, lower cost airlines cost per
passenger can reducing price by one-third conventional price. As the advantage
here which is higher seating density and higher daily aircraft utilization. Low
cost airlines strive to achieve the lowest possible price for their products and also
the service. As Datuk Tony Fernandes said they always make a lower cost which
is there is no 1st class seat and everyone were same as Economy Class. Not only
that he also do the different way for the airlines which is one of his statement is,
they provide a different food for the customer like Nasi Padang, Nasi Lemak and
much more. This is one of the strategy or attraction to the customer. He also
concentrate for ASEAN too. ASEAN can be transform into a real economic
community by the end 2015.

3. BRANDING
This is one of the strategy. Datuk Tony Fernandes did mention about the
branding and most of the important is always a lower cost. He did a few things
which is Desi Anwar mention about the Formula One racer is one of the airline
brand. He said that the key strategies of all this is to extend their global brand
that everyone wll be aware of. Furthermore, he also surprise the aviation
industry by striking a sponsorship deal with the National Football Leagues
Oakland Raiders and Air Asia currently does not provide flights to the United
States. That did not seem to matter for Datuk Tony Fernandes who had plane in
the Air Asia fleet redesigned to carry the Raiders name and also team logo. This
is prove that he is always findings a way to do something that no one has ever
thought of. By sponsoring the NFL team, AirAsia will soon be applying
permission to fly to the Cost of the U.S.

BCG MATRIX