Essay Example Dedicated to Air Asia Company

Published: 2022-08-26
Essay Example Dedicated to Air Asia Company
Type of paper:  Essay
Categories:  Airline industry
Pages: 4
Wordcount: 854 words
8 min read

Organizations and Institutions in China and Indo Pacific (OICIP)

The organization of OICIP is the most significant forum on economic cooperation in the Asia Pacific and its environs. It will promote economic growth in the Asia Pacific, improve economic exchanges, establish and enhance an open multilateral trading system as well as minimizing trade restrictions among its participants. Asia among other states such as China accords this economic cooperation with great significance and have been vocal in enhancing different institutions and organizations in their respective countries. This work will seek to extend our knowledge of Air Asia Company which is aligned in the objectives of OICIP as well as its application of natural and rational theories in its operations.

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Air Asia Company Description

Air Asia is an aviation company in Asia, and it was formed with the aim of providing flight services and connect Asia with the rest of the world. The airline company was established on 18th November 1996. The government instituted the Airline Company before Tony Fernandes purchased it on 2nd December 2001. This organization is believed to be one of the top flight service providers in the universe, and as a consequence, they have been acknowledged with awards since 2001 (Thomas, 2009). It offers its services to more than twenty nations hence having a large market share. Air Asia Company has also been on the forefront in advocating for low-cost aviation through effective and proficient strategies and willpower for good performance. Therefore, the airline company has been receiving a critical market segment which is attributed to its cost efficiency and this shows that it a significant organization or asset in Asia. Asia is strategically an essential market to air services both local and international flights, and the company has proved to provide the entire region with this essential global competitive services.

Air Asia is among the leading budget airlines in Asia which has been improving significantly since 2001. Notably, they have a fleet of over 70 aircraft which most of them are Airbus A320-200. It is also known for its lowest fare, excellent services, and its tagline "Now Everyone Can Fly." The company serves over 50 local and international flights with 108 routes and runs 400 trips daily from their different outstations in Thailand, Malaysia, and Indonesia among other states. Its primary intention is to offer air transportation services across the globe. The main activities of subsidiaries entail delivering in-flight repast, transporting airplane leasing facilities, trip functioning business among other daily tasks. Moreover, their secondary roles are to tune budget hotels for their brochures as well as booking hotel and tour packages together with the air ticket (Thomas, 2009). They also fund different events hosted at their destination state especially in Malaysia, and they plan large events and clients can purchase tickets for the events along with the air tickets from their website. Natural and Rational System Theories

In an aim to understand how Air Asia Company is structured and designed for the company to attain its common objectives, it is necessary to discuss the different perspective of this company. Therefore, rational theory contains the distinctive features of a company which aids in differentiating an organization from related social forms. This implies that the high goal specificity and extensive formalizations are the critical aspects of this theory in any company (Stern, 2018). Air Asia company is no exception to this perspective. The distinctive feature of Air Asia since its establishment was to provide flight services to everyone by offering services at a fair and reasonable cost hence making high profits. The aspect of maintaining low cost helped a majority of people to fly since the tickets were cheaply provided they booked their tickets earlier.

On the other hand, the rational system theory describes the organization with legal rules and set objectives since it is centered on the normative formation of the company. According to this concept, organizations are viewed as social organization developed by people to attain specific objectives through a collaborative effort (Stern, 2018). In this sense, Air Asia Company has linked with other organizations such as Air Asia X, Philippines' Air Asia Inc., Indonesia, and Air Asia Japan to improve its performance and attain its goal of providing cheap aviation services across the globe. This partnership with other organizations has created the best working conditions for their employees which have translated into high profits due to high-quality services provided at an affordable rate.

Conclusively, today we live in a global village, and multiple companies across the world are involved in generating commodities and offering services that are needed by the societies. Air Asia company has become essential to the very fabric of the modern world. As a consequence, Air Asia among other organizations can be described as a platform where persons come together to perform their duties and accomplish their set objectives. For instance, Air Asia was established to bring individuals together to attain collective goals. Subsequently, organizational theories such as rational and natural systems have been designed after conducting a systematic study of various perspectives of the company.


Stern, M. J. (2018). Organizational theories. Oxford Scholarship Online. doi:10.1093/oso/9780198793182.003.0007.

Thomas, G. (2009). Air Asia Spots Success. Air Transport World, 46(9), 58-61.

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