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 is essentials for the development of the civilization”.
For the fastest and usually long distance transportation it is best for using air transport method by aircraft, no wonder why air transport are commonly expensive because of the cost that have been set which consist of such as the aircraft that have a high technology, the maintenance it self, an infrastructure support such as an airport that needs a wide land area, and also the needs of many labor involved in it from experts to less 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 have a lot room to grow from the number of the passengers each year that increasing rapidly, and this is how a business person see an opportunity as an interesting sector of business to makes a profit.
The fact that number of the air passengers in the world are increasing rapidly could be seen by the figure below.
Air transport, passengers carried
Source : https://data.worldbank.org/indicator/is.air.psgr
Another fact that have 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 Asia Pacific area reach 31% from all the global flight. In 20 years this share of market could also increase up to 43%, in each year the expected number of passengers carried could reach for 1,8 billion, these things could happen because by the fact of the economy of southeast Asian countries shows rapid development in recent yeas. 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 more specific scope of 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 Asia Pacific for an overall market size of 3.1 billion. The region will also grow by 4.7% annually.
Those big number shown in asia’s air transportation market should be interesting to be served by many company in it, and yet this is proven by the number of player that we could see in asia region itself are very large, so these means the market competition are very competitive among competitors.
One of the well performing airlines in Asia is Air asia, Air asia usually have a good position ranked in Asia’s airline and one of the biggest airlines in asia because its innovation and services.
Air Asia is an airline that owned by DRB- HICOM belongs to Malaysian government, despite it has 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 at 2002 with new various route also with cheap price promotion and compete with Malaysia Airline.
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.
Their 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 improving services.
AirAsia Group services reach the most extensive network in all of Asia ; Australia which are 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
Segmenting and Targeting
The first step of Airasia overall business statement start from here. Airsia believe that the low cost airline is going to be the thing in the near future. They mainly focus on Asia airline market and also try to change how to play in an entire airline business by their innovation.
Airasia believed this this business model is going to work upon to their benefits and advantage in Malaysia and Asia. The reason is because 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 from customer based on their needs and want but also help Airasia to in line their marketing strategy to acquire their share in airline industry in asia.