Business proposal “Airasia” Essay

Category: Organization,
Published: 16.12.2019 | Words: 858 | Views: 1745
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The company selected for this business pitch is AirAsia Berhad (hereafter referred since AirAsia) and both the organization and financial performance of AirAsia will be analysed by 1st January 2009 to 31st 12 , 2011. “The company was incorporated in 2001, like a private llc both included and domiciled in Malaysia. AirAsia was converted into a general public limited liability company upon 8th Summer 2004 to become listed on the Primary Board of Bursa Malaysia Securities Berhad on twenty two November 2004. The principal activity of AirAsia is providing Air Transportation Services”.

The vision of AirAsia has become “to always be the largest affordable airline in Asia and serving 3 of the billion those who are currently underserved with poor connectivity and high fares”. AirAsia’s quest is to build a globally recognized brand inside the ASEAN (Association of Southeast Asian Nations) and support profitability development with the best quality services and technological advancements. The philosophy of AirAsia is to help to make flying feasible for everyone. Seeing that 2001, AirAsia had rapidly broken travel around norms around the world, where this can be a leading low-cost carrier that will not need additional introduction in ASEAN. While using tagline “Now everyone can fly”, AirAsia ferried 135 , 000, 000 guests because at 23 December 2011.

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Furthermore in the past decade AirAsia established successful ventures with Thai AirAsia, Indonesia AirAsia, AirAsia Philippines, AirAsia The japanese and AirAsia X (primarily focused on long-haul segment), allowing for AirAsia to consider low-cost traveling to a additional level using a route network that ranges over 20 countries. Reasons for accomplishing this business pitch Prior know-how The main reason for selecting this subject is to apply prior expertise obtained from the organization and financial modules recently covered in the ACCA syllabus. Moreover, economical analysis is important in interpretation results revealed in the economic statements.

Availability of information Likewise availability of gross annual reports and other business resources provided myself with enough information to analyse the performance of AirAsia that further encouraged in picking this theme. The annual reports had been readily available from the company internet site and no time was wasted upon extraction than it. Reasons for selecting AirAsiaExtensive growth of AirAsiaIn January 2002, AirAsia had simply two planes that had been traveling by air to six destinations inside Malaysia. During the past decade AirAsia had substantially expanded to fly more than 80 destinations with a fleet of 97 aircrafts as at 31 January 2011. Therefore I was determined to find out how AirAsia managed to achieve powerful growth and a healthy bottom line.

Famous in South East Asia (SEA) AirAsia is one of the largest and many popular inexpensive airlines in SEA, which will had caused travelling at affordable prices; which is the key reason behind individuals preferring AirAsia for both equally domestic and international flights. Moreover the destinations flown by AirAsia covers even more hubs when compared to other flight companies and passengers are presented with bundled travel and leisure package choices, which include air flow ticket, lodge accommodation, travelling services. Additionally , AirAsia was chosen because the “World’s Best Cheap Airline” awarded by Skytrax World Air travel for four consecutive years (from yr 2009 to 2012).

In addition, in the year 2009 and 2011, AirAsia was awarded with “Best Asian Low-Cost Carrier” honor by TTG Travel Accolades. Project targets and research questionsProject targets To examine and evaluate the financial functionality of AirAsia over a several year period by contrasting its performance against Gambling Airways Cooperation Limited employing relevant economic ratios. To analyse and evaluate the organization performance of AirAsia over the 3 12 months period making use of the remaining 3 perspectives in the Balance Scorecard technique To assess, with reasons whether AirAsia is a useful investment option Research questionsHow did AirAsia financially execute in comparison with the competitor Tiger Airways? How can AirAsia’s economical performance influence on its investors?

How was AirAsia’s business performance in the 3 years? How does AirAsia find a way to sustain the ‘no-frills’ approach and placement amidst the increasing competition? Sources of informationPrimary data sourcesPrimary data refers to new info collected by a researcher relating to the issues from the study. The methods used to gather primary info involve forms, observations, studies and selection interviews. The specialist who collects the data is definitely referred while primary user(s).

Primary data would not be applied in this project as it is time consuming to collect this kind of data and respective data is readily available. Therefore information available from second sources to be used to meet the project aims and study questions identified earlier. Supplementary data sourcesSecondary data identifies data obtained by somebody else and previously used for all their (primary users’) purpose. The individual undertaking the study is known as the secondary end user, who would take on desk or perhaps library study for the said project.

The main sources of secondary data used for project are: E-sources were employed due to convenience and effectiveness. The main e-source used was AirAsia’s web page to subjective the annual reports and information about the company. In addition , Internet was used for further reading to enhance academic understanding and obtain relevant newspaper content articles and other advice about the company.