Air Asia's Strategy

{draw:frame} MGMT102 - Strategy Term Project An In-Depth compend into AirAsia Team Members: Arlianawati Binte Abdul Rahman Bek Wei Da Edmund Lee Jing Yang Loo Wen Xiang Seah Suat Peng self-possessed Yeo Kok Wee Eugene Table of Contents 4.6.4 - Threats Fuel Cost AirAsias ability to increase profitability is largely dependent on how well the group succeeds in maintaining cost-efficient operations. Price of coal-black fuel has increased to levels that only two or common chord years ago would have seemed impossible. This leave result in increase in cost as fuel represents a huge factor of the costs of an airline industry. However, a portion of this scourge has been mitigated due to its procurement of A320, which is more fuel-efficient. However, this threat should not be neglected and the costs of fuel should be keep tracked closely. Financial Risk AirAsia is also undecided to a numbers of risks related to liquid funds, trade receivables, borrowings, commodities and derivative instruments. The group employs a wide range of financial instruments to address these risks. AirAsias exposure is especially great as 70% of operational costs are USD linked. AirAsia tries to reduce this threat by constantly looking for opportunities to hedge more aircraft and to hedge receivables.

Regulations AirAsias success is subject to various regulatory approvals. Changes in rendering of current regulations or introduction of new laws or regulations go out have a adverse impact on the company. geographic AirAsia is subjected to risks associated to each country it serves. This geographical risk exposure will be reduced as AirAsia continues to expand its network and ray the revenue stream to a wider market. {text:bookmark-start} {text:bookmark-end} 5 Issues & Recommendations {text:bookmark-start} {text:bookmark-end} 5.1 - Type of Customer AirAsia derives almost degree centigrade% of its revenue from regional leisure travelers. In poor economical climates, such customers might hold back their... If you want to seduce a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.