...Company – Air Asia Air Asia vision: To become a biggest low cost airline in Asia & serving the three billion of people who are presently underserved with poor connectivity and high fares. A vision is virtually comprises thinking strategically about the direction of the company in the future. After an assessment has been made on Air Asia original vision statement, there are some suggestion and improvement that needed. The new vision can be revised as: ‘To spearhead airlines industry and become most famous low-cost airline that provides the great flying experience in Asia’. Based on the revise vision statement, it showed that the formed is still within its scope as Air Asia is highlighting that they wanted to be the biggest low-cost airline in Asia. When the company expands larger, the more people will know more about Air Asia. And this will improve the strong brand identity to the consumers. Apart from that, the new vision statement shows that Air Asia wants to provide the great flying experience to the consumer or passenger. Other than that, Air Asia also can take noted that as consumers nowadays are more concern about the services quality rather than the facilities for an Airlines company. A vision statement is important to direct a company to be surviving in the future. If a company have a unreliable vision statement, it might lead a company to the wrong direction. The vision that created by Air Asia are achieving the expectations for its business. At the same time, Air Asia...
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...History. Air Asia was established in 1993 and the operations began in 1996. Air Asia had rather shaky start and the 1997-1998 financial crisis had futher worsen the situation for Air Asia to grow as a low cost carrier. During it dire stage, the company was taken over by Tune Air under the leadership of Dato Tony Fernandes with the help of Conor McCarthy, former Director of Group Operations, Ryanair. Based on Southwest Airlines and Ryanair’s business model, AirAsia offer “No frills” airlines with a catchy tagline of “Now Everybody Can Fly’’. Within 2 years Air Asia posted a net income of 18.8 million and broke the 100 million net income barriers in 2005. Since then nothing has stopped AirAsia from moving forward and setting milestones, notably the first Asian Airlines to go ticketless in 2002, first multi lingual Asian airlines website in 2003 and the world’s first airline to launch a mobile site. All these are aligned with Air Asia’s philosophy to make flying affordable, easy and convenient. Having flown 100 million’s guests Air Asia has been in the spotlights for all the rights reason, for aggressive marketing, for awards and achievements. Air Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. 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. Today, Air Asia has flown...
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...Introduction Air Asia has successfully been xpositioned itself in the market as one of the leaders in the airline industry in Asia with its technical strategies. It has a route network that spans through over 20 countries and is one of the low cost aviation services in Asia. The Business level strategy adopted by air Asia is cost leadership strategy. To gain its market share they focused on specific markets like domestic services, short and long haul regional services and selling their products below the average industry prices. Air Asia adopted a number of actions to compete in the industry. It launches the values added services which are to provide ticketless travel and implement a free seating policy. In 2007 air-Asia became the first airline in Malaysia to offer internet checking services that allowed all the passengers to print their own boarding passes and pay extra money to board first. So, by doing this the passengers can choose their seats easily. In addition, they can also pre-book their checked baggage and meals. This paper describes Air Asia’s each xstrategies that maintain its effective control of low cost/focus business level strategy. Air Asia’s structure, cultures and systems that are used to create loyalty of the customers and satisfied them to lead the organisation to be profitable. SWOT analysis is conducted to focus aspects of Air Asia and business sector. It also evaluates the current business, future prospects and the economic climate. Porter's five force...
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...asia------------------------------------------------- the AirAsia Company strategic management: “ How AirAsia can be a leader in the lowest cost carrier in the airplane industry” August 31, 2009catatanraufmenduniaLeave a commentGo to comments 1.0 Introduction “Without a strategy the organization is like a ship without rudder, going around in circles”. (Joel Ross and Michael Kami) Nowadays, the competition among airplane industries is very tough. According to Daniel Chan (2000), with just about two years to go to the turn millennium, air wars over Asia are hotting up, with some of the world’s biggest airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their competitors. To compete with their competitor in the business environment, a company needs to make a strategy to achieve their long terms objective and can be successful for doing their business. Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management, because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their business. Regarding this issues, the strategic management becomes important due to the following reason such as globalization to survival their business, and...
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...Evaluation of air asias response to tourism Executive summary Air Asia, the market leader of low cost carriers in Asia, shown on the good record of bringing about innovative idea into the industry. The industry itself, especially in the Asian region, is observing a higher growth rate of passenger and profitability. The report examines the organization’s key business structure and operation, products and provides summary analysis of its key revenue lines and strategy. The analysis looks at the impact of external and internal factors on the organization, and evaluate it responses. Essentially SWOT and PESTLE analysis provide a simple framework through which strategic options can be identified in which Air Asia operate. The SWOT process will start by examining the strengths of the Air Asia of today. One of the most dominant strengths possessed by Air Asia is the adding of new Airbus A320 aircraft to its fleet. Airbus A320 gives Air Asia the largest, youngest and most modern fleet in the region. Another strength of Air Asia is the upgrading of the online booking system, in which will offer the ability to passenger to check in online and printing out boarding passes. An opportunity available to Air Asia is fastest growing market in China and India. Both countries give a huge opportunity for Air Asia to expand its business in the region. In the threat part of the analysis is concerned with identifying parts of the Air Asia that might affect its business performance. In recent years...
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...1. BACKGROUND Air Asia Berhad is the only Malaysian-based low cost airline and also a pioneer of low- cost travel in Asia. The main hub is the low-cost carrier terminal (LCCT) at Kuala Lumpur International Airport. Air Asia was established in the year 1993 and started its operations on the 18 November 1996. Originally, it was founded by a DRB-HICOM which is the government owned conglomerate. Then, Tony Fernandes’s company which is Tune Air Sdn. Bhd. bought the company on the 8 September 2001 with estimation of RM 40 million debts. The operations of Air Asia began on 8 December 2001 until now. There are many continuous transformations that Air Asia makes in order to succeed, to achieve its strategic mission and vision and also to sustain in the industry. According to the continuous transformations by the Air Asia, we can classify it into three main phases which are Phase I (from the year 2001- 2004), Phase II (from the year 2005 to 2008) and Phase III (from the year 2009 to present). For further overview, we narrow down the changes based on the: 1. The company and its marketing 2. The customer relationship management The company is includes how Air Asia planning the changes they want to implement and what Air Asia do in order to increase its effectiveness. Then, the marketing is refers to the changes in terms of marketing. Lastly, the customer relationship management is refers to the ways and strategies that Air Asia used to build and maintain its relationship with...
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...Management Infotmation System INTRODUCTION OF AIR ASIA [pic] Air Asia is one of the Malaysian Airline, as the second Malaysian National Airline, Air Asia was born in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one ringgit. Normally low-costs Airline has a lot of differences with traditional Airline. These differences such as ticketless travel, online ticket booking & pay, no international offices, no free food and beverages, use second city airports. These doesn’t make Air Asia hard to survive in Airline industry, whereas became the features of Air Asia. By using a simple but strong slogan “Now Everyone Can Fly”, Air Asia become a successful company in Airline industry. Now in this era Air Asia is one of the succeed low-costs Airline company in the world. Nowadays, Air Asia has put their investment to other areas. Air Asia is not only focus on Airline industry. Tune hotel is one of the good examples. Air Asia boasted total assets worth RM9.52billion in 2008, is the one of growing rapidly company in Malaysia. Nowadays, people use computer to let their life easier. Management information system is systems that use hardware, software, people, procedures and data to help companies work more efficiency. It included...
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...destinations in six continents across the world. It is based at the Kuala Lampur International Airport where its core operations are run, and recent statistics indicate that it has the strongest influence in East and south Asia regions. However, it is also important to note that its influence is also growing in Europe and Australia, which technocrats believe to be the growing influence in the kangaroo routes leading to Australia and the pacific (Alamdari & Fagan, 2005). The organization has undergone tremendous changes to position itself strategically in the rapidly changing world of air transport. With the increased competition ranging from the swiftly growing carriers including the Emirates, Qatar airways and Etihad airways, and the low cost competitors such as Air Asia and Jetstar to the well-established carriers such as Cathy Pacific and Singapore airlines, the organizations have enacted strategic changes to position itself on the global air transport market. The wakeup call came in 2005 when the airline experienced its worst experience. The Malaysia Airline System achieved success in two years and braced the impact of the financial meltdown that rocked the world at around that time. The underlying success factor behind its swift recovery attributes to the strategic and competitive strategies implemented, and effective decisions made that have since sustained its competitive advantage over other airlines (Alamdari & Fagan, 2005). It is not for any organization, let alone an...
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...international joint ventures conducted by one of the world best low cost airlines, Air Asia, through their operation years. In particular, Air Asia Indonesia, Thailand, Expedia and Air Asia Japan are being chosen to probe into This research put priority on the factors that turn Air Asia Indonesia, Expedia and Air Asia Thailand into a success throughout their operational year. The Successful International Joint Ventures of Air Asia have gained themselves the benefits from acquainting the right market orientations, in which they have secured a great amount of customers respectively. This leads Air Asia Indonesia and Air Asia Expedia to gain a massive profit and become the dominant airline being in their respective nations. Besides, the commitment is also one of the main contributing factors to the success of Air Asia IJV as well as Economy conditions of host countries had been a major factor to success in IJV. In depth analysis of local GDP of Thailand had granted Thai Air Asia to achieve their business objectives. Throughout the research, it shows that Air Asia Expedia and Thai Air Asia and Indonesia Air Asia have spared no efforts in order to succeed in the aviation industry. Conversely, this research also identified a failed IJV in Air Asia operation with Japan. The main reason behind this failed IJV was usage difficulties found in online booking website of Air Asia. These factors have led to Air Asia Japan to suffer losses throughout their operation. Moreover, misunderstanding...
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...1.0 Introduction "Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment." Strategic Management can also be defined as "the identification of the purpose of the organization and the plans and actions to achieve the purpose. It is that set of managerial decisions and actions that determine the long term performance of a business enterprise. It involves formulating and implementing strategies that will help in aligning the organization and its environment to achieve organizational goals."( Hambrick, D. C.; Chen, M.-J (2007).) Air Asia was established in 1993 and commenced operations on November 18, 1996.Initially established by the Government of Malaysia, state-run group DRB-Hicom. December 2, 2001, the former Time Warner manager Tony Fernandes private company Tune Air Sdn Bhd M & A heavily indebted airline, in order to 1 Ringgit acquire, together with the debt of 40 million ringgit. The turnaround in 2002, the creation of a number of new routes to the hub airport...
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...Management Infotmation System INTRODUCTION OF AIR ASIA [pic] Air Asia is one of the Malaysian Airline, as the second Malaysian National Airline, Air Asia was born in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd for the token sum of one ringgit. Normally low-costs Airline has a lot of differences with traditional Airline. These differences such as ticketless travel, online ticket booking & pay, no international offices, no free food and beverages, use second city airports. These doesn’t make Air Asia hard to survive in Airline industry, whereas became the features of Air Asia. By using a simple but strong slogan “Now Everyone Can Fly”, Air Asia become a successful company in Airline industry. Now in this era Air Asia is one of the succeed low-costs Airline company in the world. Nowadays, Air Asia has put their investment to other areas. Air Asia is not only focus on Airline industry. Tune hotel is one of the good examples. Air Asia boasted total assets worth RM9.52billion in 2008, is the one of growing rapidly company in Malaysia. Nowadays, people use computer to let their life easier. Management information system is systems that use hardware, software, people, procedures and data to help companies work more efficiency. It included...
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...STRATEGY PROCESS MODELS 1.0 STRATEGIC ANALYSIS Business Process And Operation Air Asia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. The following shows the home page of Air Asia.com as the company key channel of marketing and sales. Exhibit 1 – Air Asia.com Home Page To book a flight with Air Asia, customers can either choose the following channels or simply visit the Air Asia.com home page and follow the below 5 steps. 1. Call centre 2. Sales office and airport sales counter 3. Authorized travel agents 4. Mobile booking via mobile.Air Asia.com or 5. Online (http://www.Air Asia.com) in 5 easy steps as shown below. Step 1 - Search Step 2 - Select Step 3 - Guest & Contact Step 4 - Payment Step 5 – Itinerary The Product Life Cycle (PLC) Air Asia, Airlines Company with 58 flight destination is in the growth phase position of Product Life Cycle (PLC) stage. The growth phase is when loyalty begins to be built up. Some products or services can be taken up by the customer base very quickly and achieve rapid growth. Sales of Air Asia Airlines grew tremendously in every country in which they were available. It is during the growth phase that the product will begin to recover its development and launch costs and slowly move through the break – even mark to begin to make a profit for the organization. During the growth stage of a new...
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...Asian Low Cost Airlines A Strategic Management Analysis Analysis is made from Strategic Alliances between Batch 20 and Batch 21 of SGU MBA Program Written by YopieRissa Pahlawan Arfianto RiaHutari RonyHariadi If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. Rollin King and Herb Kelleher, founder of Southwest Airlines in 1971 SECTION 1 – Budget and Low Cost Airlines 1.1. Budget Airlines The original concept of budget airlines is basically outsourced business. It puts together other businesses into and integrates those separate businesses into a form of operation and put effort to create a brand. Basically, it will try to minimize capital investments and cover it with operational expenses. And by nature of its business model, the cost structures are all variable costs, or very minimum fixed costs. With this business model, the company is not only rent the aircraft, but also outsourced its pilots, flight attendants, and other employees. It will sell tickets through agents and use service from company doing aircraft maintenance and services. And to ensure the profitability, it is critical that the operational costs, which is the main source of expenses, to be as low as possible. Therefore, it is typical that companies using this business model to use old airplanes which are close to end of the service-life...
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...Strategic Analysis Report Flux Consulting – Airline Division Queensland University of Technology MGB309 – Strategic Management Pei San Chew – 0 8000492 Tutor: Christophe Garonne (Tutorial 8) Word Count: 2160 1.0 Executive Summary The air transportation industry within Australia is highly competitive. However, there is solid evidence and a strong indication that Virgin Australia can seize power over the current market and outrun its competitors for its long-term survival. Virgin Australia should optimise opportunities and remain competitive by either strengthening its alliance with SIA or outsourcing to a specialist company in ground handling. The key challenge for the company is to create strategies that ensures effectiveness. The strategies will draw upon previous internal and external analysis conducted and focus on developing strategic alliances and strategic outsourcing. This report analyses the benefits and limitations of these potential strategies and provides practical recommendations to ensure long-term strategic sustainability. The results of the evaluation between the two strategies illustrate that the first strategy is more appropriate for Virgin to be sustainable in the long-term. There are several advantages that Virgin possesses which includes its strategic alliance’s strong position in the Asian market, and its ability to integrate newly planned flight routes. This means that Virgin is able to benefit from the strengths of its alliance. Moreover...
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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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