Daniel Rodriguez English language 10 Mrs. Toman 03 29, 2011 Research Daily news: Henry Kia Imagine how life will be if the society…...Read
One other force can be power of suppliers. Power of the suppliers is important as it will affect the market. In airline industry, the power of suppliers is quite high since there are only two main suppliers that are Airbus and Boeing consequently there are very few choices to airline industry. Nevertheless, the global economic crisis features limited the new entrant and in addition reducing the upgrade of planes inside the immediate upcoming. However , both suppliers provide almost same standard aircraft and hence the switching to Air Asia is low. The dealer of air travel companies is definitely the fuel supplier, food distributor, merchandise provider and aeroplanes supplier. Different supplier just like foods distributor and gasoline supplier, the word of the supply must be depending on the market state. Hence, the supplier are unable to increase too much of its selling price or risk losing long term business while using aircraft businesses. Besides that, Airasia features high transitioning costs. Most of Airasia's aeroplanes are Airbus models. Recently, the company employed Boeing versions, which they lease contract it as well as the company had since phased out most of the versions and exchange with Airbus. If Airasia is to switch to Boeing again, then the expense will be large. This is because schooling cost for employees to suit the aircraft features must be offered. Furthermore, the technology utilized by Airbus is among the most advanced, as a result Airasia need to rely to the Airbus' technical engineers to do repair of the aircrafts and search for advices. if the Airbus would not to interact personally with Air flow Asia, Surroundings Asia will not have no suppliers to do the maintenance. nThus, negotiating power of suppliers is solid.