On September 21, 2012, AirAsia Bhd may be expanding its company to India through a new start-up with Indian partner. After India’s cabinet decides to allow foreign investors own up to 49% stake in its airline, AirAsia might be the first carrier to invest at the aviation industry in India.
Because the India’s cabinet decides to allow foreign investors to own up to 49% stake in its airline, AirAsia was looking to start-up with Indian partner instead of investing in an existing airline from India.India is a good place to invest by AirAsia because India is the second most populous country in Asia with over 1. 2 billion people. Moreover, AirAsia also move to acquire the Philippines-based low cost carrier Zest Airways. Although Yao declined to confirm negotiations with AirAsia, Zest Airways had been approached by several parties possibility of joining hands with new investor to compete in the Philippines crowded sky. The newspaper also reported that Asia’s largest low-cost carrier was looking at the possibility of a start-up with a strong Indian partner instead of investing in an existing airline.
” Prove that it is a press agency. There is few target audience for this activity. Firstly, this activity can prove to the customers or the public that how strong is AirAsia doing and also to show people that AirAsia also have the quality although is a low cost airline.Besides that, with this activity where AirAsia may be to invest in the India market, it will attract more investors to the company because the share price will rise after the company invested to the India market.
The first impact of this activities to the AirAsia is that more and more people will interested to the company where people see that the company will grow more stronger and the company shares will increase with AirAsia invested ton of money to the India market. Because of this, the investors of AirAsia will eventually increase.Besides that, with AirAsia investing in India or maybe Philippines, AirAsia will create a lot of job opportunities to the local people.
Since AirAsia is expanding fast, they need of human power is increasing too. The advantage of this activity is that this activity will attract more inventors because people will think that the share of AirAsia will increase if AirAsia invested it at India market. This activity actually is like a hints to the investors where AirAsia shows to the public that what they are going to do next in the future.Besides that, people around the world will know more about AirAsia since AirAsia expanding internationally rapidly.
The disadvantages of this activity where investors thinks that it is a dangerous move for AirAsia to invest at India because of the instable economy and it will cause the investors of AirAsia to decrease so do the share of AirAsia. Besides that, this activity will also effect the profit of the company because buying a share or join venture of a company has a very huge risk.