(5)

synergy in ingormationtechnology and telecommunications, which support AirAsia Internet and mobile phone bookings. ShinCorp. permits subscribers with the Shin cellular phone flagship, Advanced Information Services, being able toreserve tickets through its short-messaging service (SMS). AirAsia having its politically highly effective backermay well grow up to bite. This helps it wide open the Thailand market he IPO tones up AirAsia balance sheet, further cuts its existing lowcosts in 2 . five US cents per QUESTION and increases our expansion plans through Asia. The IPO also allowsAirAsia to expand their fleet of 18 Boeing 737-300s. Low cost flight companies are likely to have greater potential in Asia as there are many Oriental cities with apopulation over one million people each as well as a rising middle section class population. This regarding middle category in Asia provides a large market potential for AirAsia to grow. Yet , as the marketplace isbecoming greater, more airlines or new comers would like to get a bit of the actions. For example , Budget airlines, it really is estimated, will certainly capture

Air Asia was re-launched inside the aftermath from the September 11 events -- Aircraft costs were decreasing at that time

A good market:

-- Geographical circumstances = Pacific Asia is comprised numerous destinations and poor road network

Demography:

- much more than 558 mil inhabitants (ASEAN countries) and also 3 great with Chinese suppliers and India - estate (many towns have more than 1 million inhabitants) and growth of the center class population

(3)Its Technique:

- Difference strategy simply by simplification

–Attractive and competitive ticket price, even compared to shuttle bus and road fare –

Bargaining benefits of customersBargaining power of supplierThreats of potential entrantsThreats of replacement productsRivalry within industry Channel

Many clients but substantial sensibility to prices.

Develop-ment of replacement productLow

Hard competition among Airbus, Boeing, ATR and othersSizeable Complete...

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