External opportunities and threats of air asia

This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials. This has helped AirAsia to open up and capture a sizeable market in Thailand. The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines is US and Europe. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals medical tourismCitibank AirAsia Citibank card has created a very unique image among travellers.

External opportunities and threats of air asia

The company has been benefiting from lower fuel costs over the past few months, which has boosted earnings. Management has also done a great job of managing costs.

The company is also expanding its premium service offerings, which should help to expand margins. Investors interested in the stock will see that its price has risen significantly over the past few months, driven by its strong profitability and positive outlook.

Sales are expected to rise at a nice clip inwhile earnings will likely more than double. The question is not whether the stock is too richly valued at its current price.

Rather, can the price continue to rise over the coming quarters? We will address these issues by performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats. The Business JetBlue is a passenger carrier company that provides air transportation services.

Inthe company carried over 32 million passengers with an average of daily flights. JetBlue was the fifth largest passenger carrier in the U. The company was incorporated in Delaware in August ofand commenced service on February 11, Strengths Exceptional Customer Service: JetBlue is well known in the airline industry for its strong customer service and innovative products.

It is also the only major U. The airline caters to the majority of travelers who have been underserved by other airlines, rather than those high-traffic business travelers or ultra-price sensitive travelers.

It offers free brand name snacks and non-alcoholic beverages. It provides the most legroom in the main cabin of all U. These are amenities that have helped attract customers, which has supported top- and bottom-line growth. Historically, fuel costs have been subject to wide price fluctuations.

While the company does enter into a variety of derivative instruments to help hedge these expenses, they do not fully protect the company against higher prices. While the company has seen profits strengthen over the past year, due to the sharp decline in global crude oil prices, the opposite can also hold true if oil prices recover.

And due to the competitive nature of the industry, JetBlue may not be able to adequately increase fares to offset higher fuel costs. The company also has a significant amount of other fixed obligations related to its aircraft, airport terminal space and facilities, and office space.

External opportunities and threats of air asia

It will also likely take on additional debt in order to take delivery of new aircraft and other equipment. This relatively high level of debt will require high interest payments, and interest expense, which will temper profitability.

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Opportunities Expanding into New and Existing Markets: The Company plans to grow its high-value geography in the coming quarters. Over the past few years, the company was focused on business travelers in Boston, as well as travelers to the Caribbean and Latin America.

It is now focusing on expanding its presence in Fort Lauderdale-Hollywood, which could be a hub to increase operations to destinations throughout the Caribbean and Latin America.

The company also expanded its network this year, opening up destinations to Cleveland, Ohio; Reno, Nevada; and Grenada. What has not been addressed is whether the company will eventually expand to markets in Europe and Asia. These are potential long-term opportunities. JetBlue has typically attracted cost-conscious travelers who are looking for good service.

But management is also interested in offering customers premium services, for a higher price, and higher margins. A year ago, the company introduced its premium transcontinental product called Mint.

The service, from New York City to Los Angeles and San Francisco, includes 16 fully lie-flat seats, four of which are in suites with a privacy door, a first in the U. It recently expanded Mint to select Caribbean destinations. The service has been well received by customers, and has helped the company boost margins.

JetBlue has also upgraded its Wi-Fi service, Fly-Fi, which gives customers access, for a fee, to significantly faster Wi-Fi than most competitors. We expect the company to expand these margin-enhancing products, and look for other services to be promoted, as well.To begin, a PESTEL framework will enable us to understand all the macro-environmental factors affectingAirAsia.

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1. PoliticalOpportunitiesDeregulation and privatization present Air . SWOT ANALYSIS FOR AIR ASIA Strengths, Weaknesses, Opportunities and Threats Analysis for AirAsia Strengths The first phase of the swot analysis is the strengths analysis for Air Asia.

There are some unique strengths of Air Asia that others company could not defeat them. Air Asia: Strategic management report Intoduction Air Asia was founded in and has since grown to be one of the biggest airlines in the world.

It initially operated in Malaysia and currently operates in over 25 countries (Ricart and Wang ). Feb 06,  · We had a discussion today in my Stragegic Management class about internal and external threats and opportunities in the nascar industry and was wondering what the car lounge thought about in terms of identifying some.

However there are opportunities in Asia Pacific and Latin America, where increasing disposable incomes among a growing middle class are boosting air travel. LCCs also continue to erode the market share of schedule operators. opportunities and threats of external environment ram & som Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

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Key Threats and Opportunities Facing Global Airlines