Jewel Changi Airport took 6 years and S$1.7 billion to build. Why would an airport spend so much on an attraction like this?
The answer is Hypercompetition and that’s what defines Asia today. Take a 5 hour flight from Southeast Asian airports like Singapore or Kuala Lumpur and you can reach 3.5 billion people. By 2030, 2/3 of the world’s middle classes will be living here in Asia
The Air Asia Business Model
AirAsia loses money on every basic seat it sells!
Which is good news because…
… it means the whole company is geared towards upselling “ancillary services”:
– a better seat?
– in flight food and wifi?
– how about insurance, beauty products or even a payment card?
What appears at first a disadvantage actually puts AirAsia in a strong position to navigate the next decade.
Because the next decade will all be about upselling ancillary services.
We are moving from an era of finding customers for our products… to finding products for our customers.