Air Asia Berhad with the impact of the global economic environment and its financial and human resources.

Most of these carriers including Air Asia follow the low-cost model pioneered by Southwest that records passenger-load factors exceed 70 by conducting discount-airline model with small airplanes

The trend to use new aircraft is economically cost efficient than to use 20-year old aircrafts such as Boeing 737-200 or 737-300 that many airlines in the Asia still use these type of aircrafts . The reason to buy new planes rather than shopping for used jets is to save money . This is because new airplanes are more efficient and productive

These relieving facts further

bring down the price of air travel since travelers are comfortable to flying with new airplanes so that the occupancy reaches full potential . Moreover , maximum occupancy coupled with low maintenance and more airplanes that are efficient are the reasons we witness the decline in the price of air travel

III .2 How globalization affects economy

The term of globalization has been around within the past decades to show how important to target overseas market is . While each market in diverse countries has also diverse rules of conduct , the followers of globalization believe that the aim of globalization is to adopt a superior business model and to extend it geographically , with necessary customization in to maximize the firm 's economies of scale

The sentence above implies that a firm in one country can expand its presence in another country . This is made so in to give opportunities for the company to expand into foreign market once the local market is saturated or the competition in home country is fierce This situation is especially giving benefits for developed countries where the competition within the country is fierce and the market is towards saturated

In to achieve the objective , usually , the provision of bilateral or multilateral agreements is the key factors to...