AirAsia Airlines: How they apply the Blue Ocean strategyAccording to the article I recently read by Rizal Ahmad in Asian Journal of Management Cases, it described the development of Air Asia. Malaysia from 2005 to 2008. In just four years, AirAsia managed to expand its operations to ten more countries. This article also documents Air Asia's marketing strategy and its approach to "market development" and "product development". The Blue Ocean Strategy concept is used as a tool to examine Air Asia's strategic moves. First, we will review AirAsia's management practices. They provide that the Low Cost Carrier (LCC) business model, adopted by AirAsia, is based on the principles of creating and providing passenger air transportation solutions to customers at the lowest possible cost without compromising their safety. This has been achieved;1. By offering its basic or core product (available passenger seats) as single-class, no-frills air travel. Passengers had to pay for additional services or frills.2. Second, AirAsia has maximized the utilization rate of its aircraft. The airline's planes flew an average of six and a half sectors, or twelve hours, per day. AirAsia has continued to strive to achieve a high level of efficiency.3. Third, AirAsia reduced its fixed costs by continuing to adopt management practices. A key strategy that AirAsia continued to use was to treat some of its fixed costs as variable costs. When serving a minor route (a small airport and an area with infrequent departures), such as Kuala Lumpur to Chiang Mai in northern Thailand, AirAsia took its ground engineer overseas for its flights instead to park it at Chiang Mai airport and subcontracted all the others. aircraft ground services middle of paper......purchase transaction. Other alternatives are e-vouchers which help customers purchase tickets for someone else, which has been a very effective step taken by AirAsia as anyone with a credit card can use the service to purchase cash vouchers for friends, family and loved ones. AirAsia clearly recognized the emotional potential of its product. It did this by partnering with the English Premier League Cup and Manchester United Football Club, which had a large number of football fans in Malaysia. In conclusion, I can say that AirAsia has done a good job in exploring and creating its own blue ocean. The changes they have made over the past four years (2005-2008) have allowed them to achieve great success in the airline industry. They have proven that they can be the most chosen and trusted airlines by Malaysians and even foreigners..