...9/25/13 Air Asia Assignment - Term Papers - Haixzzz Get Access to over 1,148,422 More Essays. Upgrade Your Account Now. Upgrade Essays Book Notes AP Notes Citation Generator More | Hi ilaanabila Search essays Home » Business & Economy Air Asia Assignment By haixzzz, september 2011 | 9 Pages (2048 Words) | 2984 Views| | | Upgrade to access full essay This is a Premium essay for upgraded members Air Asia A. Introduction 1. Objective and scope This paper will analyze the internal and external environment of Air Asia and will look into how it uses Management Information System ( MIS ), specifically its online reservation system to gain competitive advantage. And also discuss why and how important is MIS to Air Asia in running its business. 2. The Important of MIS Low Cost Carriers (LCC) business model is based on no frills service. This means that cost savings is a critical success factor in their operations. Air Asia is no different. And Aie Asia uses MIS to runc this LCC business model. So, what is MIS? MIS is the useful information to support management in an organization so that we get what we want. And MIS tool in Air Asia is the Air Asia booking system. In the competition in the airline business, booking system is the advantage for Air Asia. “The early you book the tickets, the cheaper it will be.” This early booking promotion kills two birds with one stone. It gives customers opportunity for cost savings and encourages a lof of people to plan...
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...CASE STUDY – AVIATION AIR ASIA Airline takes off with Comscentre The Business Challenge As Air Asia continue to expand their network of destinations, particularly through their international long-haul brand, Air Asia X, increasing pressure was being placed on their global call centre located in Kuala Lumpur. Additionally, there was increasing demand for a single global data and telephony network which could seamlessly expand with the business into new markets internationally, while remaining centrally managed and keeping overhead costs to a minimum in line with the company’s low cost business model and strategy. “Air Asia operates on a ‘low cost airline’ model globally, which means we need to closely examine every facet of the business to ensure we are operating on as low an overhead cost as possible, in order to keep our prices as low as possible for our passengers” says Air Asia Chief Commercial Officer, Darren Wright. “We found that our global communications network was not only a business system of growing importance to Air Asia, but one of escalating cost as well” he says. What we ideally wanted in place was a single global IP based network which would not only greatly reduce our communications costs, but would deliver us a single, centrally managed infrastructure with full redundancy solutions built in.” The Solution Air Asia initially engaged Comscentre to establish an IP voice and data network between their Australian branch office in Brisbane and their Australian...
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...analysis at air asia Air Asia is the second Malaysian national airline which provides a totally different types of service called low cost no frills. Their vision is to provide affordable price to all worldwide travellers with minimum in-flight service.thier price is slightly lower than to any other full service airlines. Before 2001 Air Asia fails to capture market or attract new customer due to its poor operation against the full fledge service given by Malaysian airlines which was supported by Malaysian government. Turning point of Air Asia was in 2001 when this loss making company bought by Tony Fernandez. Air Asia re-launched in Malaysia in late Air Asia re-launched in Malaysia in late 2001, with low cost domestic airlines. Value Chain Analysis: PRIMARY ACTIVITIES: The primary activities in Porter’s Value Chain are as follows INBOUND LOGISTICS: As inbound logistics involves different categories in air line industry for example how to schedule flights, keeping an eye on their competitors that what strategy they are adopting how to sustain in market, and how to cut off their price as they manage fuel efficiency by purchasing it advance when prices are low, and how to plan routes as they mostly plan short routes so that their costs are low. OUTBOUND LOGISTICS: As air Asia mostly uses their operations through online as their ticketing process is totally online and customer can get their tickets book online and they can also print their boarding card from their homes, Air Asia...
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...1. Briefly describe the trends in the global airline industry. a) Increasing travel demand Two of the top six U.S. airlines saw their best traffic results in 18 months this past November. While Southwest recorded a 12 percent increase, Continental registered a 2.8 percent increase, respectively, in miles flown per passenger. These figures represent absolute increases in ‘warm bodies’ flown – a more reliable metric than passenger load factor. Clearly, the slump in air travel is ending. IATA has now revised its passenger traffic estimates for 2010 upwards by 4.5 percent (as against the previous forecast of 3.2 percent in September 2009). An estimated 2.28 billion people are expected to fly in 2010, bringing the total passenger numbers back in line with the peak recorded in 2007. b) Airline-supplier consolidation As airlines improve services while implementing aggressive pricing strategies, many plan to forge new links with distributors, including travel management agencies that don’t rely on the traditional GDS connections. A trend that first started two years ago, airlines are expected to continue to implement direct-connect models to manage products and inventories, and establish closer ties with their customers. For example, last October, American Airlines indicated its plans to move all indirect volume to direct connections. This will change the nature of Airline-GDS relationships. One notable potential by-product of this trend could be GDS / TMC consolidation...
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...QUALITY AND CUSTOMER LOYALTY: A CASE OF AIR ASIA Nadia Hanum Amiruddin Faculty of Business & Entrepreneurship, University Malaysia Kelantan, Kelantan Email : nhanum@umk.edu.my , Tel : 0163350165 ABSTRACT Nowadays, the market is getting competitive in all aspects of survival of the company. Companies especially in the service industry realize that in order to win the market, they need to explore new ways of approaching customers. Therefore, it is important for the company to foster customer loyalty. In this study, SERVQUAL or Gap Analysis Study has become an adapted model for the researcher in measuring the service quality in Air Asia. SERVQUAL measured tangibles, reliability, responsiveness, assurance and empathy. This research aimed to study the relationship between service quality and price towards customer loyalty in the Air Asia services. For this study, the survey method was used as instrument for collecting data. A mall intercept was the method of data collection used by researchers where passengers at the arrival and departure halls of LCCT were given the questionnaire. Based on this research, the result indicates that there are significant relationship between service quality towards customer loyalty and price towards customer loyalty. Based on the correlation analysis, it shows that between service quality and price, price is the most influencing factor that will affect customer loyalty. It can be concluded that, if Air Asia remains as the low fares to the customers...
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...AIR ASIA AIRLINES COMPANY COMPANY BACKGROUND Air Asia Berhad is an established in 1993 with commenced operations in 1996. In 2001, Tune Air Sdn Bhd Tony Fernandes’s company purchased this airline from DRB-Hicom. Air Asia never look back after that. Air Asia’s first and main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport, while its secondary hubs are at Kota Kinabalu International Airport, Senai International Airport and Penang International Airport. Air Asia is well known as Malaysian low cost airline and even Asia’s largest low fare, no frills airline. The airlines claims ‘No Admin Fee’, but has some fees for services which are free on other airlines. Air Asia slogan is ‘Now Everyone Can Fly’. Being the home of Air Asia, the LCCT is the budget terminal in KLIA, opened on 23 March 2006. LCCT is said to be carried about 10 million passengers a year. The Air Asia subsidiaries are the likes of Thai Air Asia, Indonesia Air Asia, Viet Jet Air Asia and Air Asia Red Tix. Meanwhile, Air Asia associate companies are Air Asia X, Tune Hotel and Tune Money. MISSION AND VISION OF AIR ASIA Vision To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. Mission To be the best company to work for whereby employees are treated as part of a big family Create a globally recognized ASEAN brand To attain the lowest cost so that everyone can fly with Air Asia ...
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...Identify Air Asia's strength and weaknesses. The status of Air Asia as the successful of low cost carrier in aviation industry is depends on their own strengths and weaknesses. These strength and weaknesses is important to be identified in order to design and produce effective strategies for the company. Strength and weaknesses is considered as the internal environment of the company where it can be seen in the controllable activities performed by the company especially well or poorly. These factors of strengths and weaknesses also lie within our control which means that all the things that the company do will affect the strength and weakness of the company. Typically, strengths and weaknesses of a company can be found in every aspects of the firm as these factors located in every functional areas of the firm. The functional areas that were mentioned are including the management function, marketing function, finance and accounting function, production and operations function, research and development function and also computer information systems function of the company. Accessing the firm's strength and weaknesses also means that we are auditing the internal environment of the firm. It gives many benefits for conducting the internal audits which such as below. a) Providing more opportunity for the participants to understand how their jobs, department, and division fit into the whole organization b) It will ensure the staffs will perform well when they understand how their...
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...org/AJBM ISSN 1993-8233 ©2011 Academic Journals Full Length Research Paper Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia Kee Mun, Wong* and Ghazali, Musa Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia. Accepted 23 March, 2011 Brand is crucial in differentiating the superiority of products or services over others. This is an exploratory study examining the differences in brand satisfaction between Malaysian Airlines (full service airlines) and Air Asia (low cost airlines) in Malaysia. 350 usable questionnaires were obtained from respondents in the two main airlines terminals in Kuala Lumpur. Exploratory factor analysis revealed seven brand satisfaction dimensions which are tangibles, price, core service, reputation, publicity, word-of-mouth, and employee. Generally, respondents were not satisfied with all brand dimensions of both airlines. The level of brand dissatisfaction is also higher for Malaysian Airlines compared with Air Asia. Air Asia was perceived better than Malaysian Airlines in price, publicity, and word-of-mouth. On the other hand, Malaysian Airlines was perceived better in tangibles, core service, reputation, and employee. The paper highlights some of its theoretical, managerial and marketing implications to the development of airline industry. Key words: Airlines, branding, satisfaction, Malaysia Airlines, Air Asia. INTRODUCTION The world airline industry has...
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...Jet Star What type of organisation is Jet Star? Jetstar is a value based carrier network providing all day every day low fares with an open approach to air travel serving in excess of 50 markets across the Asia and Asia Pacific region. We believe in fostering a culture that is focused on our customers - ensuring we deliver the lowest fares and provide a travel experience that is refreshing and enjoyable, alongside our commitment to all day every day low fares both to our passengers and our staff. The Jetstar Group includes wholly owned Qantas subsidiaries operating from Australia and New Zealand, Express Ground Handling and partner carriers including Jetstar Asia and Valuair in Singapore and Jetstar Pacific in Vietnam. Jetstar is Australia's low fares carrier and fare leader now operating to 19 Australian domestic destinations and an existing 11 short and long haul overseas destinations. Jetstar Group airlines employ directly 7,000 staff across the Asia Pacific region. Mission Statement Jetstar's mission is to enable more people to fly more often and also to extend air travel to those who have previously never been able to afford to fly by offering customers low fares, all day, every day. About Jetstar / Valuair in Singapore Jetstar Asia and Valuair are part of the Jetstar Group's value based network which aims to provide all day every day low fares to South East Asia's most popular leisure destinations. The creation of the airline came six months after...
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...Malaysia's Air Asia keen to promote its new product through launch blog or micro-site and insist on a long-term and multi-faceted target. The social media of the Air Asia has been confronting a big change over time due to the revolution of the world. Until immediately, Air Asia currently has opened a Facebook page in 11 countries round the globe and a fans quantity of Air Asia have been named first on Facebook compared to other flies company. Also, Air Asia can be supposed to be in the first post for all original and interaction rates, comment, and forwarding capacity. Air Asia gave a high degree of concern and attention on their social media. Hence, social media has changed the way of the Air Asia communication with society. Nowadays, the main function of Air Asia's social media network is to serve passengers, branding and marketing, public relations, criticism of the gathering, and business operations. Air Asia can give such a high attention, investment, and continue to sustain long-term on the social network all need thanks to support from the top management. On the other hand, every piece of information released by the Air Asia is not empty, but there is content, whether it's fun or knowledge, it always fulfils with their commitments, commit to give the fans something which was already agreed and promise and they always start a genuine dialogue with the society. This is why social media is real important for Air Asia over the time. In recent years, Air Asia is concern in...
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...Introduction: Management Control System: Methods of collecting information that are used to guide and direct the behavior of staff members and management in order to achieve a company's goals are Management control systems briefly. A management control system may use a variety of techniques to evaluate various areas to improve performance and productivity. Some areas addressed by management control systems may include accounting methods, employee incentive programs and performance measurement. Accounting methods are often implemented and evaluated as part of a management control system. To control financial activities within a company, the area may be broken down into financial and managerial accounting. Financial accounting generally focuses on internal issues, such as reporting sales costs, while managerial accounting may focus on methods for determining product costs. While both areas cover business accounting issues, their methods of application generally differ, and separate systems implemented by a management control system may aid in ensuring reports remain accurate and impartial. Managerial accounting is typically responsible for providing management with information on controlling costs and improving the production process. Managerial accountants may also provide cost information on new products, make pricing decisions and monitor actual and budgetary costs. General financial accounting within management control systems aims to focus on a company's internal...
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... | | | |The leading low cost airline in Asia – Air Asia has been expanding rapidly since 2001, to become an award winning and the largest | |low fare transporter in Asia. With a fleet of 72 aircrafts, Air Asia flies to over 61 domestic and international destinations with | |108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, Air Asia has flown | |over 55 million guests across the region and continues to spread its wings to generate broader route network through its associate | |companies, Thai Air Asia and Indonesia Air Asia. Air Asia believes in the straightforward hassle-free, low cost business idea and | |feels that keeping costs low requires high efficiency in every part of the business. Good organization creates savings which are | |then passed on to guests so that reasonably priced air travel can become a reality. Through our philosophy of ‘Now Everyone Can | |Fly’, Air Asia has sparked an uprising in air travel with more and more people around the region choosing Air Asia as their number | |one choice of transport. As Air Asia endlessly strives to promote air travel, we also seek to create excitement amongst our guests | |with our range of innovative and modified service. ...
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...Analysis 7 5.1 Corporate and International Strategy 7 5.2 Business Strategy 9 6 Strategy Fit 9 6.1 Financial Performance Analysis 9 6.2 SWOT Analysis 11 7 Strategy Recommendations 14 References 15 * Figures page Figure 1: Structure of AirAsia 8 Introduction AirAsia is a Malaysian low-cost carrier (LCC) and has been established in 1994 by DRB-Hicom. In 2001 Tony Fernandes took over the company and remains the CEO of the AirAsia Group. Fernandes turned the company from a small airline with two aircrafts operating to one destination with 250 staff (AirAsia 2015a) into the number one LCC operating in Asia. Today it operates on 132 routes, connecting 65 destinations in 18 countries with over 8,000 staff (AirAsia 2015b). The group services almost 12 million passengers per year with 171 aircrafts (AirAsia 2015c). This report provides a comprehensive strategy analysis of Air Asia. First the mission, vision and core values of AirAsia are presented. Next the external environment of the company will be analysed, followed by the internal environment analysis. Then the current strategy corporate, international and business is described. The strategy fit with the internal and external environment is analysed by looking into the financial performance and...
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...Low Cost Airline: AirAsia A study of opportunities, challenges and critical success factors LGT 3007 Air Transport Logistics [pic] Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States, where it was pioneered in the 1970s by Southwest Airlines, the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel, online ticket sales, no international offices, no frequent flyer points, no free food and beverages, no inflight magazines, no club lounges, use of secondary city airports. Not all low cost airlines have these features, and not all airlines that have some of these features are low cost airlines. For example, Virgin Express is a low cost airline, but it still offers complimentary coffee and inflight magazine, and they are based at Brussels primary airport. Case Study—AirAsia Story of AirAsia Air Asia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia. Their vision is "Now Everyone Can Fly" and their mission is to provide 'Affordable Airfares' without any...
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...As stated in the chapter 4, in the section of business model reconstruction had explained enough on how Air Asia make their name available to customers and they can enjoy the profit without abandon the existing name which is Malaysia Airlines. Herewith, what can be explained is it still the same organization, but they changed the business to the new ones which just focusing on the new while they are not abandoning the existing business and bring in new business which there was no one as the first mover? Business model reconstruction can be explained as whenever a business is established, it either explicitly or implicitly employs a particular business model that describes the architecture of the value creation, delivery, and capture mechanisms employed by the business enterprise. Malaysia Airlines are once a privilege to fly where the firm applies entrepreneurial thinking to the design or redesign of its core business models in order to improve operational efficiencies or otherwise differentiate itself from industry competitors in ways valued by the market. And now, Air Asia are been introduced to everyone where the business come out with a new business model of Now Everyone Can Fly that lower the cost that are not necessary. To fly, it is obviously not a need but a want. Air Asia introduced a low cost concept which enhanced travelers to easily travel without stressing their mind about money just for the accommodation which include ticketless travel, online ticket sales, no international...
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