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Wednesday, January 12, 2011

AirAsia strengthens 16 sen to RM2.86 surging into a confident 2011

AirAsia is on the supersonic flight route to a higher ground again going upwards 16 sen. Investors that are going for the airline sector, is watching and investing in AirAsia closely. Not just because of the low-cost model that is working so well in Asia, but of new innovative ways to make it smooth and tweaking these innovations yearly.

For instance, some time ago. There was no seating allocation. Then there was Priority Boarding. And came seating allocation. Then PAID seating selections. Baggage allowance has been tweaked several times to optimise both profitability and also the customer's experience. Now the ongoing momentum is to have self-check-in a compulsory procedure virtually creating a "good habit" to travellers. Shaping the way of travelling.

Shaping behaviour is essential for corporate profits. Yet can be justified to serve a better purpose - such as allowing passengers the freedom to choose optional premiums.

Where would the big investor put their funds into the airline sector? It should be into low cost carriers since this is the major trend and the majority of the new middle-class of Asia and BRIC countries are growing. Growing hungry of the taste to be an intrepid low cost traveller. Braving all the obstacles for a no-frills flight actually is an adventure in itself. Think Bear Grylls.

And among the top choices for Low Cost Carrier - can you say RyanAir, EasyJet, AirBerlin, perhaps Air Arabia? Or even Tiger Airways and Jetstar? Finally the low-cost word itself is a misnomer to the unwitting traveller, to the investor and to the general public. Low-cost is essentially meant as a corporate term for an executive decision! So with AirAsia's no frills and low cost to its own corporate operating cost, it will far succeed (and already has) compared to other Low Cost Carriers.

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