Air Asia and Tune Group: A Case Study of Business Development

This case study examines the business strategies and development of Air Asia and the Tune Group, focusing on their transformation from a struggling airline to a successful enterprise. The analysis explores how the company, under the leadership of Tony Fernandes, managed to overcome financial challenges and expand its operations significantly. The case highlights the company's approach to cost management, its expansion of services, and its ability to connect with customers through travel and lifestyle offerings. It also investigates the corporate structures and strategic decisions that have facilitated the growth of the group, including the evolution of the company's brand and the impact of external factors such as the 2001 terrorist attacks. The study provides a comprehensive overview of the strategies employed by Air Asia and Tune Group, including its approach to debt management, fleet expansion, and its focus on both domestic and international markets.

Running head: CASE ANALYSIS ON AIR ASIA AND TUNE GROUP
Case Analysis on Air Asia and Tune Group
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1CASE ANALYSIS ON AIR ASIA AND TUNE GROUP
The case study actually focuses on the Tune Group from Malaysia have managed their
vision of the CEO Tony Fernendes. It has beared a strong form of resemblance to the Virgin
group where Fernandes have previously worked. Within ten years, the group has developed from
being the two plane defunct of the Airline company that are burdened with the debt of the
choices of the lifestyle for the millions of the customers that have the array of the products and
the services that can be bought from the group. However, Fernendes and his fellow investors and
his managers have found various ways to monetize the various parts of the core group of the
operations and their main is to keep the cost to be as low as possible. In ten years, the group has
remained very much true to the values of the services that are allowed for serving. The lifestyle
of the brand have evolved for the lifestyle of the brand that are coming up for Asia and
connecting the millions of the people who are both tangibly and virtually through the travel and
remains consistent with the various experiences across the range of the products and services.
The case also explores the structures and a strategy applied for the corporate that are developed
by the groups and asks about the potential in the future.
In the month of December 2001, just a few of the months after the attacks of the terrorist
in New York and Washington made the business of the International Airline reeling. The new
company of Malaysia named Tune Air had them purchased a small group who were
underperforming the domestic Malaysian Airline known as Air Asia for one Malaysian ringgit
and the assumption was of the million ringgits in the debt.
However, within eleven months for acquiring the company, the Tune Air has been able to
repay all the debts and by the end of January 2003, the company was able to operate the six

2CASE ANALYSIS ON AIR ASIA AND TUNE GROUP
aircrafts in their domestic nation. However, it was observes that in the year 2006, Air Asia have
managed to boast a fleet of thirty five Boeing 737-300 aircrafts and eight Airbus 320 with the
orders that was for hundred more A320s. They were literally forecasted to carry nine million
passengers for the fifty-two domestic and the international destinations.