Case Study 6: Malaysian Airlines versus AirAsia: Customer Satisfaction, Service Quality and Service Branding

The World Airline Report states several reasons such as rapid globalization, increased fuel prices, occurrence of natural disasters, threat of accidents, increased security insurance and deregulation policies to impact the world's airline industry (Flint 2010). The ever changing landscape of world's airline industry coupled with the existing tough situations have been sending out signals to the airline industry to revamp the traditional strategies and venture into new alliances and business models in order to gain the benefits of competitive advantage and effective positioning. As a result many airlines operating globally focused on new interventions either focusing on differentiation or cost leadership strategies. The trigger in the Asia Pacific region is the introduction of the low cost airlines to match with the prevailing economic situation. Now the low cost airlines entered into direct competition with the full service airlines.