Problems and Challenges Faced by Airasia

Published: 2021-06-29 06:32:39
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Category: Business

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PROBLEMS AND CHALLENGES FACED BY AIRASIAAirAsia is a low-cost airline based in Malaysia. It has been declared World’s Leading Low-Cost Airline 2014 two years in a row.  It has also attained the tittle of Asia’s Best and World’s Best Low Cost Airline by Skytrax for six consecutive years from 2009 until 2014. The approach used by AirAsia from prior year until now is to be easy to book, pay and fly and most of the seats are sold through online. This is in line with its motto ‘Now Everyone Can Fly’. AirAsia had expanding the business to neighboring countries such as Indonesia and Thailand years later. Despite all those success, AirAsia faced some challenges and problems where it place AirAsia in declining state. Incident of Airbus 320-200 crashedIrish Times reported that AirAsia encountered biggest challenges as jet goes missing in 2014 when an Airbus 320-200 with 162 people on board went missing during a flight from the Indonesian city of Surabaya to Singapore. Then it was disclosed that the airbus crashed into the Java Sea on December, 28. It killed all 162 passengers and crew. It was reported as the first major accident involving AirAsia plane. As a consequence of that incident, AirAsia dropped fares by 9% in the first quarter to bring back passengers. The Malaysian parent airline carried 3% more passengers in the first quarter than last year, while its capacity grew 10%, leading to a drop in its seat load factor, or the portion of aircrafts filled, to 75% in the first quarter of this year versus 81% in the same period of last year.

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