Air Asia Case StudyI. A Comprehensive Strategic Assessment Introduction:In 1993, Air Asia was established by the Malaysian government as a sister airline to the major Malaysian cargo airline known as MAS. After its establishment, Air Asia started its operations in 1996 and in early 2002 Air Asia became less recognized as MAS aviation dominated the market. There has been comprehensive support from the government as part of the state enterprise focused on the national goal instead of paying attention to commercialization. Due to the government's partial support for the MAS operation, Air Asia has suffered losses even after reporting profits over the past year. Which was absolutely not served by MAS, even though Air Asia, a sister airline, caters to domestic routes. By 2001, Air Asia was suffering from a huge debt of $37 million, and just then Fernandes introduced a revolutionary low-cost aviation plan. Subsequently, the government saw this as another opportunity to catch up, as The government was trying to bring it above the last two years Pesek (2003) and Ranawana (2001) (Pesek Jr, W. (2003, July 9, 2003 ).The Richard Branson of Asia Shakes Things Up. TheManila Times http://splashurl.com/kypcbye Ranawana, A. (2001, November 30, 2001). A detailed study is shown that will investigate the technical education of Air Asia as a largest contender in the aviation industry. Marco PESTEL Analysis Political Factor: Political interference plays a vital role in the airline industry, especially in Asia-Pacific and ASEAN counties. About 69% of Malaysian airline is owned of the government They protect the air… middle of paper… anyone can fly,” highlighting online ticketing from around the world (no tickets while traveling), the elimination of physical staff, the progress. in IT and constant research into cost reduction in every department with better customer services. Air Asia now enjoys a healthy, sustainable competitive advantage in the LCC sector. Focusing on the right target social class i.e. medium scale, Air Asia has strategically implemented LCC airline to gain huge number of trips. “the low-income market represents a prodigious opportunity for the world's wealthiest companies to seek their fortune and bring prosperity to the aspiring poor.” (Prahalad, 2002 (Prahalad, CK, Hart, LS (2002) The Fortune at the Bottom of the Pyramid, Strategy +Business, 26 pp1-14) Business strategy option Ansoff matrix, with the context in which Air Asia looks to growth and the expansion of the company