2. Threat of New Entrants
• Customer loyalty is low against airline. Increasing of airline competitor such as Jet Star and Tiger Airways who also offering low cost fare will decrease of Air Asia’c customer loyalty.
• High cost to start-up. Airline industry needs a high cost in start-up capital to set up headquarters, purchase or hiring aircraft, appointment pilots and staffs like stewardess and etc. Thus, the threat is low for Air Asia.
• Different of product offered. Air Asia has expanded their product and offer the different product compare to competitors. Air Asia not only sales ticket but also offering a holiday package which affordable around Asia. It must have a good relationship with hotels and tourism company. • Costs of switching low. No significant differences in the price compare to Air Asia’s competitor, their customer do not spend more to shift to another airline. The competitions depending on service and facilities provided in the flight time to customers.
• Strict government regulations. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these years, it is quite difficult to apply for licensing and permit for operating airline company.
2. Threat of New Entrants• Customer loyalty is low against airline. Increasing of airline competitor such as Jet Star and Tiger Airways who also offering low cost fare will decrease of Air Asia’c customer loyalty.• High cost to start-up. Airline industry needs a high cost in start-up capital to set up headquarters, purchase or hiring aircraft, appointment pilots and staffs like stewardess and etc. Thus, the threat is low for Air Asia.• Different of product offered. Air Asia has expanded their product and offer the different product compare to competitors. Air Asia not only sales ticket but also offering a holiday package which affordable around Asia. It must have a good relationship with hotels and tourism company. • Costs of switching low. No significant differences in the price compare to Air Asia’s competitor, their customer do not spend more to shift to another airline. The competitions depending on service and facilities provided in the flight time to customers.• Strict government regulations. Due to competitive in airline industry and protects on national airline, MAS which facing losses in these years, it is quite difficult to apply for licensing and permit for operating airline company.
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