AirAsia Airlines: How They Apply Blue Ocean StrategyFrom the article I read recently by Rizal Ahmad in the Asian Journal of Management Cases, he described the development of Air Asia Malaysia from 2005 to 2008. In just four years AirAsia managed to expand its operations to ten more countries. This article also documents Air Asia's marketing strategy and its approach to "market development" and "product development". The concept of Blue Ocean strategy is used as a tool to examine the strategic moves of Air Asia. First of all, we will look at AirAsia's management practices. They provide the low-cost airline (LCC) business model, adopted by AirAsia, based on the principles of creating and delivering passenger air travel solutions to customers at the lowest possible cost without compromising their safety. This has been achieved;1. Offering its base or main product (passenger seats available) as single-class, no-frills air travel. Passengers had to pay for additional services or frills.2. Secondly, AirAsia has maximized the utilization rate of its aircraft. The airline's planes, on average, flew six and a half sectors, or twelve hours a day. AirAsia has continued to strive to achieve a high level of efficiency.3. Third, AirAsia has kept fixed costs low by continuing to adopt management practices. A key strategy that AirAsia continued to use was to treat some of its fixed costs as variable costs. When serving a smaller route (a small airport and a sector with infrequent departures), such as Kuala Lumpur to Chiang Mai in northern Thailand, AirAsia took its ground engineer overseas on its flights instead of stationing him at Chiang Mai airport Never and subcontracted all other aircraft ground services to t...... middle of document ......transaction in progress. Other alternatives are e-vouchers that help customers purchase tickets for someone else, a very effective step taken by AirAsia because anyone with a credit card can use the service to purchase cash vouchers for their friends, family and friends. loved one. AirAsia has clearly recognized the potential emotional appeal of its product. It did so by associating itself with the English Premier League Cup and Manchester United Football Club, which had a large number of fans in Malaysia. As for the conclusion, I can say that AirAsia has done a good job in exploring and creating its own blue ocean. The changes made in the last four years (2005-2008) have led them to achieve great success in the airline industry. They have proven that they can be the most chosen and trusted airlines by Malaysians and foreigners alike.