Now Everyone Can Fly

Abstract

The case details how AirAsia, a Malaysian airline, was transformed into a successful low–cost airline through its well–defined business model. The emergence of low–cost airlines in Asia led to increasingly intense competition in the industry. By forming joint ventures across Asia, AirAsia is trying to gain advantages with its Pan–Asia plan. With such a plan, the low–cost carrier would obviously face the risk of over–expansion. This case study explores AirAsia's business model, competitive advantages, and expansion strategy.