Analysis on AIRASIA

We will not buy any stock that we do not understand about it. Only buy which company you can understand the company's product and how it make profit.

Therefore, let me list down the reason why i bought AIRASIA and how i understand about AIRASIA.

1)Great management
2)High profitability
3)Leader in the LCC industry
4)It's Brand Name

Let me elaborate the points above.

Great Management

Two years ago, many people don’t like AirAsia. The only reason they choose AirAsia just because it is cheap. The reason they don't like is

-Attitude of its staff were bad.
-The food on flight is lousy.
-It doesn’t assign seat numbers for passengers.
-Delays and cancellations are common.
-Sometimes combined the passengers of two flights into one.

Previously, people has such complains because they are not familiar with LCC. Most of them is first time took LCC Airline. They just compared with MAS with the service, food, assigned seat and etc. However now people has used to it and know about what is LCC Airline.

An important thing which can prove AIRASIA has a great management is reduction of delayed flight. More people now prefer AirAsia than MAS, even when they are on business trip (employers will pay ticket's fees ), because they are fed up with the (infamous) flight-delays of MAS and AirAsia makes their schedules more flexible, because it has a higher flight frequency than MAS. They have more choice for the departure time.

Lets look at the chart below:

AIRASIA that has a consistent punctuality which the customers' respect and build up its name, thus gain a bigger market share in long run.

It has prove that it's management is great. Of course i also have confidence to Tony Fernandes:)