The micro factors that would affect AirAsia's performance in the current competitive environment Publics : AirAsia maintained a customer friendly relationship through offers as well. For example, they offered 1 million free seats to all their major destinations, customers having to pay only for the airport tax. This was a super-smart idea as during many flights, some seats remain empty, and AirAsia had just the right plan to use it in order to promote themselves. The company : By keeping costs down and insuring a quick aircraft turnaround of 25 minutes its cabin crew multitasks by serving costumers and helping clean, AirAsia's workers are being cooporative Suppliers: To counter the increase in fuel prices problem, AirAsia has introduced fuel surcharges. They have also considered using more fuel-efficient carriers to reduce the fuel consumptions. Here, the airlines can use a secondary airport as well in order to reduce the landing charges. Competitors: Another step to keep up with the prices is to offer more flight options for the customers in order to fill up all the seats. For instance, if an airline cannot reach very long distances, then agreements can be made with other airlines who can offer customers a flight for the rest of the journey.
The growth of LCCs has been a threat to full service carriers Economical environment Economical environment:which consists of factors that affect consumer purchasing power and spending patterns