Question: 1 What is the macro and industry environment in the

1. What is the macro and industry environment in the Southeast Asian region for the entrance of new budget airlines? What opportunities and challenges are associated with this environment?
2. How might demand for low-fare service differ in the Asia-Pacific region from North America and Europe?
3. Compare AirAsia’s generic strategy (cost leadership, differentiation, focus) with the strategies of other incumbent carriers and with Southwest and Ryanair. How is it similar to and different from the strategies of those carriers?
4. Did Fernandes weigh the range of political, economic, and operational uncertainties and risks when he took over AirAsia? What risks might he have overlooked?
5. How would you describe Fernandes’s entrepreneurial strategy?
6. How should AirAsia respond to the challenges posed by
(a) New low-fare carriers entering the Asian marketplace and
(b) Low-fare strategies pursued by incumbent carriers? How would you characterize the competitive dynamics in this market?
7. How do you think the Asian passenger air transport marketplace will shake out? What lessons can be drawn from the North American and European experience?
8. What is your assessment of AirAsia moving beyond its historic strength in Southeast Asia to Australia, China, India, and Europe?

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