PoliticalFlying outside Malaysia has been a challenge to AirAsia airline. This is based on bilateral agreement affecting the way in which Pan-Asia budget carriers. Landing and navigation charges are expensive in major destinations including Beijing, Hong Kong, Singapore and Bangkok. There are also no cheaper secondary airports hence, a crisis for the airline.
This is worsened by the fact that the airline market is regulated by bilateral air rights agreements.AirAsia is a low cost airline and it faces stiff competition from Malaysian Airline. The good thing is that AirAsia offers cheap flight services and highly affordable tickets that attract many clients in the region. Asia in theory has the most attractive ingredients making a budget airline successful.
This is enhanced by the fact that the region is wide and densely populated. Additionally, economic growth in the region and improved cost of living has empowered many Asians to board flights to different destinations hence, an advantage to AirAsia airline.
