Attractiveness of Macau International Airport to AirAsia

The purpose of this research study is to provide strategic recommendations to Macau International Airport in reinforcing further cooperation with AirAsia in Macau OR attracting potential low cost carriers (LCCs) with the interest to develop the aviation industry in long term. Through the collection of secondary data and participant observation, the qualitative research analyses the perspectives of Macau International Airport (MFM) and AirAsia when dealing with a business relationship.
The arrival of AirAsia stimulated the airport's traffic growth and led to a phenomenon of LCCs by flying into Macau. The simple layout and flexibility of MFM created favorable environments to the low cost business model. Chapter two contains the summary of the operational characteristics of an LCC as well as the resources and capabilities of MFM in fulfilling an LCC's requirements. It also discusses on the impact of AirAsia since its arrival regarding on how it changes the composition of MFM traffic.
It is equally important to understand the perspective of an airline in terms of its criteria for the selection process of a new destination operate to. The airline owns its business strategy on how it develops the route and market. With the case study of AirAsia, it discusses on its China's expansion, particularly the strategies that affect its growing momentum at MFM. It further summarizes the contribution to MFM after the 10th year of operation.