AirAsia, Asia’s leading airline was established with the dream of making flying possible for everyone. It is one low cost airline, which offers very competitive rates throughout the year. Air Asia is well known for offering free seats campaign on such a high scale. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the continent’s best low-cost airline. In February 2013, this Malaysian low cost airline announced setting up of its Indian operations in a joint venture with Tata Sons and Telstra Tradeplace.
The move looks both interesting and daring given the tremendous opportunities in India and the present turbulent state of the Indian aviation industry. The young population and the expansion of its vibrant middle class are expected to see India achieve one of the fastest growths of any aviation market in the world over the next 20 years. AirAsia wants to be there to take advantage of this growth.
To survive in the highly competitive Indian aviation industry, AirAsia not only has to match up with other carriers such as Indigo, GoAir and SpiceJet, but also create a unique value proposition niche for itself. Being the only foreign owned airlines operating in domestic skies, it will have an intrinsic propensity to copy its operation model that has been so successful in the rest of Asia, in India as well. However, this may be fatal as Indian customers are very different both culturally and attitudinally as compared to their other Asian counterparts. What worked in Malaysia and Thailand may not work in India.
Air Travel is a dissonance reducing behaviour with high involvement and no significant difference between brands. It thus should follow a “Do–Feel–Learn” model. Synonymous with this model, their first aim is to attract initial customers to fly with AirAsia. An introductory promotional fare can be offered and the customer has to pay only the airport taxes and fuel surcharge; i.e., offer the ticket for free. To add more spice, Air Asia will offer more promo tickets in 2014. This would attract a large volume of the price-conscious Indian customers to fly with AirAsia who will later become word of mouth promoters for AirAsia.
It has introduced a new service called Fly-Thru from Chennai to several places via Bangkok. Meanwhile, Air Asia has completed successful 5 yrs in India and celebrating the success by offering Rs 500 base fare. The total fee, including taxes and other fuel charges, will be Rs 2,704 from Chennai to Bangkok/Kuala Lumpur, Rs 2,259 from Kochi to Kuala Lumpur, Rs 3,228 from Kolkata to Kuala Lumpur, and Rs 3,269 from Bangalore to Kuala Lumpur. To avail such promotional offer.
These promotional offers and tickets will ensure that Air Asia gets a big share of the market and then as it grows it will raise the market along with its growth. Promotional tickets will thus play a very vital role in the growth of Air Asia India.
Author Bio: James Nelson is a travel agent working for a leading agency that organizes several overseas and local travels.