Business proposal “Airasia” Essay

The company selected for this descent final cause is AirAsia Berhad (hereafter referred as AirAsia) and both the business and monetary deed of AirAsia would be dissectd from 1st January 2009 to thirty-first December 2011. The company was unified in 2001, as a private particular(a) liability company both incorporated and domiciled in Malaysia. AirAsia was converted into a common limited liability company on 8th June 2004 and became listed on the Main venire of Bursa Malaysia Securities Berhad on 22 November 2004. The principal natural action of AirAsia is providing Air Transportation Services. The mental imagery of AirAsia has been to be the largest low cost airline in Asia and serving the 3 zillion people who be currently underserved with poor connectivity and high fares.AirAsias mission is to pull in a glob exclusivelyy recognized reproach in the ASEAN (Association of seceast Asian Nations) and bring forth profitability growth with the highest quality go and tech nological advancements. The philosophy of AirAsia is to make brief possible for everyone. Since 2001, AirAsia had swiftly broken spark off norms across the globe, where it is a leading affordable carrier that does not need promote introduction in ASEAN. With the tagline Now everyone usher out fly, AirAsia ferried 135 million guests as at 31 December 2011. moreover during the past decade AirAsia established fortunate ventures with Thai AirAsia, Indonesia AirAsia, AirAsia Philippines, AirAsia Japan and AirAsia X (primarily center on long-haul segment), allowing AirAsia to take low-cost speedy to a throw out level with a route network that spans over 20 countries.Reasons for doing this business proposal Prior acquaintanceThe main ground for selecting this topic is to present prior intimacy obtained from the business and monetary modules previously covered in the ACCA syllabus. Moreover, financial analysis is crucial in interpreting results disclosed in the financial state ments. handiness of randomnessAlso availability of gradely reports and some other(a) business sources provided me with adequate schooling to analyse the act of AirAsia that further advance in choosing this topic. The annual reports were readily on tap(predicate) from the company website and no time was nitwitted on extraction of it. Reasonsfor choosing AirAsiaExtensive growth of AirAsiaIn January 2002, AirAsia had totally two airplanes that had been flying to six destinations deep down Malaysia. During the past decade AirAsia had significantly grow to fly over 80 destinations with a fleet of 97 aircrafts as at 31 December 2011. Hence I was motivated to find out how AirAsia managed to hand successful growth and a wakeless bottom line. Famous in South East Asia (SEA)AirAsia is one of the largest and most popular low cost airlines in SEA, which had facilitated change of location at affordable prices which is the main reason behind passengers preferring AirAsia for both domestic and foreign flights. Moreover the destinations flown by AirAsia covers more hubs compared to other airlines and passengers are presented with bundled travel package options, which imply air ticket, hotel accommodation, travel services. In addition, AirAsia was chosen as the lands trounce Low-Cost Airline faceed by Skytrax World Airline for four consecutive age (from year 2009 to 2012). Moreover, in the year 2009 and 2011, AirAsia was awarded with topper Asian Low-Cost Carrier award by TTG Travel Awards. Project objectives and enquiry questionsProject objectives To analyse and evaluate the financial performance of AirAsia over a 3 year period by comparing its performance against Tiger Airways Holdings Limited using germane(predicate) financial ratios. To analyse and evaluate the business performance of AirAsia over a 3 year period using the be three perspectives of the Balance Scorecard technique To assess, with reasons whether AirAsia is a worthwhile investment p robability Research questionsHow did AirAsia financially perform in comparison with its competitor Tiger Airways?How does AirAsias financial performance impact on its shareholders? How was AirAsias business performance at heart the 3 years? How does AirAsia manage to vex its no-frills strategy and position amidst the change magnitude competition? Sources of informationPrimary information sourcesPrimary selective information refers to radical data collected by a seeker relating to the issues of the study. The methods employ to collect elemental data involve questionnaires, observations, surveys and interviews. The researcher who collects the data is referred as primary user(s). Primary data would not be utilise in this project as it is time consuming to collect such(prenominal) data and single information is readily available. Therefore information availablefrom secondary sources will be use to meet the project objectives and research questions defined earlier. Secondary data sourcesSecondary data refers to data gathered by person else and already used for their (primary users) purpose. The person toil the research is referred as the secondary user, who would go about desk or library research for the tell project. The main sources of secondary data used for project areTextbooksTextbooks were used as the main source of information as they were complied by people who have spacious knowledge in the subject part and tend to be more accepted and accurate compared to other sources. The main types of textbooks referred in this project for financial analysis are ACCA BPP study materials and academic reference books such as Accounting Principles by Weygandt, Kimmel and Kieso and pecuniary and managerial accounting by Horngren, Harrison and Oliver. To analyse the companys business performance, concretion using the balanced scorecard to compose corporation synergies by Kaplan, Roberts and Norton had been referred to. Electronic sourcesE-sources were used due to convenience and effectiveness. The main e-source used was AirAsias website to abstract the annual reports and all information regarding the company. Additionally, Internet had been used for further reading to enhance academic knowledge and obtain relevant newspaper articles and other information about the company.