AirAsia X 2

let’s talk about the case you just completed–the AirAsia X Case.  Questions I’m interested in discussing are:

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1.  How would you describe the AirAsia X model? What elements of its business model are the same or different from a traditional airline? What elements are the same or different from a traditional airline?

2.  What is your assessment of the strengths and weaknesses of the X model?

3.  What are the greatest threats to X? Where are its best opportunities?

4.  How does X manage to achieve a cost structure that is less than one-fourth the cost per mile of a U.S. budget airline?  How are they really different from other budget airlines?

5.  What drives their cost advantage?  Cost drivers mentioned in our text were economies of scale, diseconomies of scale, learning curve economies, technological hardware, policy choices, differential access to low-cost inputs and technological software.

6.  What are risks of an ultra-lean model?

7.  How sustainable are X’s advantages?  In other words, how easy will it be for other airlines to imitate what X is doing?

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It is not necessary to answer all these questions.  Pick a couple and offer your thoughts and ideas.