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:References
Corporate profile. (2012). AirAsia. Retrieved from
http://www.airasia.com/ot/en/about-us/corporate-profile.page.
Clerment. Ong & Ivy Wong . Power Point Presentation on Air Asia
Economies of scale
Airport tax
COMPETITVE ADVANTAGES LOW COST
Product and
skillful employees
Courteous,
and simple but limited
aggressive and passenger
focused service ( eg.
management
structure No Meals)
Short Haul ,
point-to- point
High aircraft routes, often
utilization to secondary
airports
Standardizatio Frequent,
n fleet of Reliable
aircraft Schedules
Using single aircraft fleet (reduce the Complaint from customers regarding the
maintenance and training costs) current overcrowded LCCT (handled about 17
million passengers instead of its capability to
Enter and focus on potential market (lower and handle 15 million passengers)
middle income group)
Expansion to new routes based on low cost Accident and disaster affect customer
philosophy (exploit growing markets like confidence (Example: an aircraft skidded off
China, India) the runway while landing at KCH
International Airport on Jan 2011)
Higher fuel costs means less profitable
competitors may be forced out of business Aviation regulation and government policy
(barriers in new routes expansion)
Partnerships with Virgin airline to use
existing strengths (brand recognition, landing Full service airlines start cut costs to
rights) compete (MAS offered discounted fares with
meals and comfortable seats)
Differentiate from old LCC model (include Entrance of other low cost couriers (Firefly,
customer service and operation as full service Tiger Airways)
airline)
Long haul flight to approach undeveloped
market (Air Asia X to Europe)
Will Air Asia be able to sustain its
?Core
: Achievements
Year 2003-
2010
Success factors
Combination of good timing, entrepreneurial vision and
some blind luck that may have run out
Testament to Fernandess capabilities as a effective leader
in a wide range of settings.
The one thing the company managed to keep consistent
was its no-frills model and always offering value in low
fares (Lawton and Doh, P435)
Air Asia
Airlines over
the years
Dates and years Milestones
April 2002 18 .AirAsia became Asias first airline to go ticketless
Year 2007 The lowest cost in the World, 51 000 passengers per
.day, 54 planes
Year 2008 .Launch of Air Asia X
Business Strategy
and Operations
FREQUENT FLIGHTS SAFETY FIRST LOW FARE NO FRILLS
Faster turnaround time
Improving aircraft utilization Ticketless
service
Crew efficiency Internet booking
Using one type of aircraft forReservations
and sales office
saving training cost Easy payment channels and authorized
travel agents
Nationwide call centers
Malaysia
Indonesia
Brunei
Macau and
Thailand Singapore
FUTURE ANALYSIS
SWOT Analysis
15 years Down the Line
STRENGTH WEAKNESS
Brand Name
Relatively high price
Long-term future
High operation cost
Strong management team
Investment cost in high technology
Strategy formulation and execution
Strong competition
Low cost leader in Asia
Excellent utilization of IT
OPPORTUNITY THREATS
Customer care
Yield Management System (YMS)
Business intelligence
Computer Reservation System (CRS)
Diversification
Acquire new know-how in a view to offer more service to the
.consumer
.E.g. To take over an online travel agency
Conclusion
The strategies of Air Asia focus more on the management and access of information rather
For this reason, Air Asia has developed a unique set of guiding principles - simplicity, cost-
Total commitment to these principles makes the airline services of Air Asia very user-
SWOT analysis of AirAsia with reference to sustainability and future growth shows more
AirAsia is fully determined to exploit these opportunities and convert more threats into