I think that MAS is targeting the large number of people searching for the specific keywords “air” and “asia” who are likely to be (1) inbound customers using Malaysia, (2) inbound passengers using Malaysia as a hub, (3) outbound travellers from various regional cities looking to travel within the region or (4) Malaysia-based travellers looking to travel within the region, as opposed to domestic* or travellers. I like the fact that the (sponsored) link points to a country specific lead generation page, btw.

(Note that searching for AirAsia, pulls up zero sponsored links.)

I wonder if this is the beginnings of a new war ….not just about how many bums you put in seats per flight, but for long-term loyalty.

*If their focus was domestic, Firefly would be marketed instead, being a fully owned subsidiary. Plus, most savvy travellers or local internet users would know to check all local airlines for competing fares.

Just how countless of companies have had to adapt or die in the spate of new and innovative competition, MAS, like Kodak and the music companies before it, has had to re-evaluate their business as well as their offerings. From a cursory look it seems like MAS has adjusted its price point for the short sectors whilst the other 3 Ps are more or less unchanged.

However, with copy like “All Inclusive Low Fares. Visit Our Official site. Book Now. Save More”, it does seems like they’re hard-up to up-sell by hard-selling.

In my mind, it’s not the acquisition tactic that is the problem but the copy, which counters MAS’ brand positioning. Sadly, this reeks of a convoluted messaging and communication strategy that is not aligned to the brand’s values. It’s quite likely, that MAS is either not policing its agencies or its internal comms department.

Offering lower cost alternatives are a great way to enable a wider segment of people to enjoy a given brand. It allows more customers to experience the benefits and advantages that the brand promises. Numerous premium brands have successful offered “lower-cost” alternatives to their main offerings:

• Mercedes A-class
• Apple iBooks/Macbooks
• Armani Exchange
• Leica’s compact camera ranges
• Banyan Tree’s Angsana offerings

As you pointed out, it should be focussed at determining its long-term positioning. To add, to help ensure this, MAS needs to police all customer touch points, communications and conversations to safeguard its brand interested.

On a separate note, AirAsia needs to ensure that the tail-end of its offerings – their services, meet their brand promise and values. Right now, whilst the processes might be adequate-to-good for the young airline, it’s my opinion that they lack a certain quality in customer service; which is disappointing considering how customer and people focussed their senior management is. Sadly, these positive attributes are less genuine and more prevalent the closer one gets to the ground, at the touch points.

Still, it’s a new airline and has time to correct itself ….however, it needs to start doing so soon. Very soon. Otherwise, the attitude begins to corrode the values and establishes itself in the culture.

It should also appreciate the irony of the probability of selling a can of Coke at RM5 on a flight that costs RM10 (before fuel charges and tax). Premium priced drinks on a budget flight, anyone?