Airasia and Cost

http://blogs.telegraph.co.uk/finance/theasiafile/9132035/How_Air_Asia_keeps_costs_down/

This article is about how Airasia cut costs in order to provide very low fares tickets to its passengers. Airasia is a budget airlines company founded by a Malaysian and has now become one of the very top choice for travelers to travel around Asia because of its really cheap tickets and sometimes completely free ticket. In this article the chief executive of Airasia X shows us how the company actually cut the price and its cost in operating the company. This topic relates to the marginal cost, sunk cost, the idea of greed, nothing is free concept which is taught by Mr Rizzo recently.

1. Can the company be viewed as greedy? Greediness is self-interest taken too much, but in the field of business is greediness a necessity to earn more profit by cutting of cost as much as you can? Is Airasia cutting too much? Are they exchange the safety of its passengers for lower cost?

2. Are the workers in Airasia being exploited? I would say it is a yes because, for instance the pilot in Airasia, they earn less than a typical pilot in other company for more working hours and less welfare. If the workers are felt exploited then what are the factors that restricted them from making the choice in the market?

3. Are the tickets sold by Airasia Cheap? Think of the opportunity cost that they sacrifice if they buy Airasia ticket (inflexible time, smaller seats, lack of cabin crew, delayed time, waiting time, and so on). The ratio of money spent to the product/ service gain is far more better in other company. Don't the passengers value their life even more than the money spent?

I personally very much anti-airasia because of their shitty services. However, if this is what the majority people want and Airasia manage to produce what the people want in the lowest cost, I cannot deny that Airasia is still a very smart company in making the market even more efficient.