...Travel Itinerary Booking Details Booking Date Name Address Booking Number: : Thu 06 Dec 2012 : MOCH RIZKY , ARNANDA : JL RESAK NO 8, RT 5/3 PANGKALAN JATI , CINERE, DEPOK, Indonesia : 6287878259759 (tel) 62818882029 (mobile) : bayulaxmanaputra@gmail.com Contact Email E9R98T Guest Details 1. MR MOCH RIZKY, ARNANDA 3. MR BAYU LAKSMANA, PUTRA 5. MS AMANDA SORAYA, OKTAVIANI () denotes infant 2. MR ISKANDAR, SYARIEF 4. MS INDAH, WIDYASTUTI N Flight Details Flight QZ7526 REGULAR Departing Jakarta (CGK) Soekarno Hatta International Airport (Terminal 3) Wed 26 Dec 2012, 0845 hrs ( 8:45AM) Arriving Bali (DPS) Denpasar Ngurah Rai International Airport Wed 26 Dec 2012, 1135 hrs ( 11:35AM) QZ7531 REGULAR Bali (DPS) Denpasar Ngurah Rai International Airport Sun 30 Dec 2012, 1230 hrs ( 12:30PM) Jakarta (CGK) Soekarno Hatta International Airport (Terminal 3) Sun 30 Dec 2012, 1315 hrs ( 1:15PM) In-flight services on next page Travel Itinerary In-Flight Services Guest MR MOCH RIZKY, ARNANDA MR ISKANDAR, SYARIEF MR BAYU LAKSMANA, PUTRA MS INDAH, WIDYASTUTI N MS AMANDA SORAYA, OKTAVIANI ASR Jakarta • • • • • IRDM IRDM IRDM IRDM IRDM • • • • • Bali CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG ASR Bali • • • • • Jakarta CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG CHECK-IN BAGGAGE 15KG Invoice PT. Indonesia AirAsia Office Management Building, 2nd Floor, Soekarno Hatta...
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...Introduction……………………………………………………………………. 2 Air Asia Current Business Strategies…………………………………………..3 Possible Alternative Strategies Evaluation……………………………………. 7 Air Asia Resources Evaluation………………………………………………. 11 Possible Future Strategies For Air Asia Indonesia…………………………… 12 Air Asia Indonesia vs. Adam Air…………………………………………….. 14 Targets For Achievements of The Strategies………………………………… 16 Appendix……………………………………………………………………... 17 Bibliography………………………………………………………………….. 18 2 Introduction Air Asia Indonesia is an originally Malaysian airline company, which started to operate in Indonesia in year 2006. The report is about Air Asia Indonesia and strategies to make it a major player in the Indonesian airline market. 3 Air Asia Current Business Strategies Air Asia wants to be the lowest short-haul airline in every market it goes in. To achieve the goal, it has some strategies such as lean cost structure, different ways of promotion, keeping safety, satisfying guests, and developing human resources (AirAsia.com, 2007, Internet) . Air Asia always tries to keep the operations simple and efficient to keep the costs low, for example by simple and efficient online ticket booking. According to Fu Sen, an ex employee of Awair – the airline company bought by Air Asia , the tickets that have been booked online can printed by the customers or the customers can just remember the booking code and show their identity card for checking-in, so Air Asia can also save...
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...Assignment One Task (One) 1) Cost Leadership Strategy Definition Companies that choose a cost leadership strategy offer relatively standardized products with features or characteristics that are acceptable to customers. In other words, with a minimum level of differentiation and also at the lowest competitive price. This means that companies offer standardized to an industry’s typical customer. Customers receive value when a company successfully implements a cost leadership strategy. Companies that wish to be successful by following a cost leadership strategy must maintain constant efforts aimed at lowering their costs which relative to competitors cost and creating value for customers. Cost reduction strategies include: • Building an efficient scale facilities • Establishing tight control of production and overhead costs • Minimizing the costs of sales. Product research and development, and service. • Investing in state of the art manufacturing technologies. In simply, cost leadership strategy is a type of competitive strategy with which the organization aggressively seeks efficient facilities, cuts costs, and employs tight cost controls to be more efficient than competitors. Undercut competitors’ prices and still offer comparable quality and earn a reasonable profit. Successful strategy to defend against the five competitive forces. Such protected from powerful customers and suppliers, because customers cannot find lower prices elsewhere,...
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...Air Asia: The World’s Lowest Cost Airline Air Asia is a Malaysia-based low cost airline which builds its business on the LLC model created by Southwest airlines in the U.S. Air Asia’s mission statement is to be the Asia's leading low fare no frills airline and first to introduce "ticketless" traveling. Now Everyone Can Fly clearly describes Air Asia’s value. Cost advantages created by Air Asia through operational effectiveness and efficiency go directly to the customers. The customers now enjoy much more surplus than before as the fare falls dramatically and Air Asia captures some of the ‘dead weight losses’ by capturing segments of customers that previously cannot afford the airlines’ fare. The cost drivers in the industry are scale, technology, product and process design, input costs, and capacity utilization. The nature of the operational structure of low cost carriers provides them with initial cost advantages. This lean cost structure translates itself into high turnaround time, basic amenities, standard operating procedures and a lean distribution system To maintain a low flight fare, Air Asia uses many sources of cost advantages. First one should be economies of scale. In many activities, increases in output do not require proportionate increases in input. This can be applied to the airline industry. Air Asia offers a single class, which allows more seats per plane. As mentioned in the case, the Boeing 737 can be equipped 12 more seats per plane in the single class...
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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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...11164 Yasmin Yashodha/ Elixir Mgmt. Arts 51 (2012) 11164-11171 Available online at www.elixirpublishers.com (Elixir International Journal) Management Arts Elixir Mgmt. Arts 51 (2012) 11164-11171 AirAsia Berhad: Strategic analysis of a leading low cost carrier in the Asian region Yasmin Yashodha Taylor’s University Lakeside Campus, No. 1 Jalan Taylor's, 47500 Subang Jaya, Selangor Darul Ehsan, Malaysia. A R TI C L E I N F O Art i c l e h i st ory : Received: 9 July 2012; Received in revised form: 13 October 2012; Accepted: 30 October 2012; K ey w or d s Strategic analysis, Region, Low cost, Extensive. ABSTRACT This study examines the extensive strategic analysis of AirAsia Berhad that has enabled it to sustain its competitive advantage as Asia’s leading low cost carrier (LCC). The study demonstrates the diverse business-level, corporate level and competitive strategies of AirAsia Berhad, played crucial roles in the LCC to successfully penetrate the under-served market segment of the airline industry within the ASEAN region. An in-depth analysis using a wide array of academic resources, relevant financial, legal and management resources and authorized websites, including face-to-face interviews were used to provide a more consequential comprehension on the varied business and international strategies that were implemented by AirAsia Berhad. This research exhibits critical analysis pertaining to the current macro environment of the aviation industry which includes...
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...O’Connel and Williams (2005) said that direct competition between full service airlines and no-frills carriers is intensifying across the world. The old business model of most airlines business focused on the full service, while the new business model focuses on using digital technology to make the business becomes more and more efficient, and thus, leading to cost advantage. Facing the digitalization era, by 2007, AirAsia had become one of the most successful budget airlines in the world. Having dominated Southeast Asia and entered China and India, AirAsia was poised to solidify its place as a top budget airline and one of the most consistently profitable globally. AIRASIA X Airasia X subsidiary of Airasia was founded in 2 November 2007 it’s a long-haul, budget airline based in Malaysia. The airline Airasia, is the international operation of the brand Airasia which is Asia's largest low-cost carrier. (LCC) The Airasia X is also affiliated to Virgin group and Air Canada. Focusing on the low-cost, long-haul segment - AirAsia X was established in 2007 to provide high-frequency and point-to-point networks to the long-haul business. AirAsia X's cost efficiencies are derived from maintaining a simple aircraft fleet and a route network based on low-cost...
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...able of Content…………………………………………………………………2 1. Abstract……………………………………………………………………...3 1.1 Conclusions……………………………………………………………...3 1.2 Recommendations……………………………………………………….4 2. Introduction……………………………………………………………….…5 3. Background to AirAsia……………………………………………………..6 3.1. Organization Definition………………………………………………..6 3.2. Looking at the Organization…………………………………………… 4. Industry Framework Analysis……………………………………………….. 4.1. Porter’s 5-Forces Model………………………………………………… 4.2. External factors using a PEST analysis………………………………… 4.3. Internal factors using a SWOT analysis………………………………… 5. Conclusion and Recommendations………………………………………….. 5.1. PEST 5.2. Task 2: Technological Change……………………………….. 5.2.1 Analyze Policies and Decision Making 5.2.2 Evaluate Effectiveness and Response 5.2.3 Demonstrate Areas of Improvement 5.3. SWOT………………………………………………………………… 6. References…………………………………………………………………. 7. Appendices………………………………………………………………… Appendix 1 Porter’s 5 Forces Model………………………………………….. 1. Abstract This report consists of an internal and external analysis of AirAsia using various methods including a PEST, Organization analysis, SWOT analysis and Porter’s 5 forces model. The main outcomes of the report are: 1.1 Conclusions reached: 1.2 Recommendations reached: 2. Introduction The company chosen for this report was AirAsia. The assignment required that: • A management report of 3,500 to 4,000 words is written on an organization. The report should describe, analyze and assess...
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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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...1.0 Introduction AirAsia originally was founded by government and on 2 December 2001 was bought by Tony Fernandes. AirAsia was established in year 1993. AirAsia has travel around the earth and ascend to become the world’s best in year 2001. AirAsia continues to spread out the way for low-cost aviation through the innovation, efficient and passionate approach to business with a route a network that extent through over 20 countries. There are some companies which link with AirAsia such as AirAsia X, Thai AirAsia, Philippines’ AirAsia Inc., AirAsia Japan and Indonesia. In addition, for the vision part in AirAsia, AirAsia aims 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. While for the mission of AirAsia, AirAsia wants to be the best airline company to work whereby employees are treated as part of the big family. Besides, AirAsia try to maintain the lowest cost hence everyone can fly with AirAsia. Highest quality product, embracing technology to lower the cost and improvement in service levels will be maintained by the AirAsia airline also. Lastly, create a globally recognized ASEAN brand will be the mission part of AirAsia. In the values part, AirAsia will implement trough the following key strategies which are: * Safety * Low fare, no frills * Lean distribution system * Point to point network * High aircraft utilization * Streamline operation The loyalty...
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...AirAsia BERHAD MARKETING PLAN No. | CONTENTS | PAGE | 1.0 | Executive Summary | 1-2 | 2.0 | Introduction | 3 | | 2.1 Background and History of AirAsia | 3-4 | | 2.2 Vision Statement | 5 | | 2.3 Mission Statement | 5 | | 2.4 Objectives | 5 | 3.0 | Environmental Analysis | 6 | | 3.1 PESTEL Analysis | 6 | | 3.1.1 Political Factors | 7-8 | | 3.1.2 Economic Factors | 8-9 | | 3.1.3 Social Factors | 9-11 | | 3.1.4 Technological Factors | 11 | | 3.1.5 Environmental Factors | 11-12 | | 3.2 PORTER's 5 Forces Model Analysis | 12 | | 3.2.1 Threats of New Entrants | 12-13 | | 3.2.2 Threats of Substitute | 13-14 | | 3.2.3 Bargaining Power of Buyers | 14-15 | | 3.2.4 Bargaining Power of Supplier | 15 | | 3.2.5 Competitive Rivalry | 16 | 4.0 | SWOT Analysis | 17-18 | | 4.1 Strengths | 19-27 | | 4.2 Weaknesses | 28-31 | | 4.3 Opportunities | 31-34 | | 4.4 Threats | 34-36 | 5.0 | Marketing Objectives | 37-46 | 6.0 | Marketing Strategy | 47 | | 6.1 Target Market | 48 | | 6.1.1 Behavioral Factors | 48 | | 6.1.2 Demographic Factors | 49-50 | | 6.1.3 Psychographic Factors | 50-51 | | 6.2 Marketing Mix | 52 | | 6.2.1 Product | 52-54 | | 6.2.2 Price | 54-55 | | 6.2.3 Place | 55-57 | | 6.2.4 Promotion | 57 | | 6.2.5 People | 58 | | 6.2.6 Performance | 58 | ...
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...cost airline would be accepted and can be operated successfully in the Southeast Asian region. Therefore, Tony Fernandes, who’s started his career as a music industry executive at Virgin Records and Time Warner Music, resigned and returned to his homeland, Malaysia. As Tony did not have any experience in running an airline, nor had any capital to start one, he raised money by mortgaging his house and using up his savings. He also brought-in three of his associates that is Datuk Pahamin A. Rajab, Abdul Aziz Abu Bakar and Kamarudin Meranun to start a low cost airline in Malaysia. Tony with the three as mentioned formed a partnership and set up Tune Air Sdn Bhd and bought AirAsia for a token sum of RM1.00 with RM40 million worth of debts. AirAsia was remodeled into a low cost carrier and by January 2002, their vision to make air travel more affordable for Malaysians had taken off. Tony turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting the former monopoly held by the national airline operator, Malaysia Airlines with promotional fares as low as RM1.00 (US$0.27). In 2003, AirAsia opened a second hub at Senai International Airport, Johor Bahru and launched its first international flight to Bangkok. Valued at RM2.3 billion, AirAsia is today an award winning and the...
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...Air Asia Case: Q 1) Comment on business level strategy adopted by Air Asia? How has Air Asia achieved cost leadership? Answer 1) High aircraft utilization: Air Asia uses the aircraft in very high frequency and high turnover of flights; these add value to customer convenience and enable low cost. Air Asia has the fastest turnover in its region; is 25 minutes. a) Low fare no frills: Air Asia does not have frequent flyer miles program and private airport lounge. No free foods and beverages even snack in flight, additional meal and service required passenger to pay more. b) Point to point network: All Air Asia both short-haul (4 hours or less radius) and medium to long-haul are non-stop flight, by doing that; save human recourses cost, facilities cost, airport cost, etc. c) Air Asia changed all existing old aircraft Boeing B737 with Airbus A320, which has more capacity, more efficient fuel-consume and cost-efficient. d) By utilizing homogeneous aircrafts, the company is able to save human resources cost and reduce spare part stocks. These strategies have brought Air Asia as the lowest-cost airline in the world, with a cost/ASK (available seat kilometer) of US3.67. This great achievement was achieved without compromising safety. Air Asia’s highest priority is safety of all the operations. To keep the aircraft in best condition Air Asia partnered with the best maintenance provider. e) Air Asia R&D not only works on the aircraft utilization but also...
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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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...THE RISE OF TONY FERNANDES AND AIRASIA IN MALAYSIA1 SHAHRIL EASHAK ISMAIL Monash Asia Institute, Monash University, Caulfield East Vic 3145, Australia Email: seism1@student.monash.edu 1 This paper was presented to the 18 Biennial Conference of the Asian Studies Association th of Australia in Adelaide, 5-8 July 2010. It has been peer reviewed via a double referee process and appears on the Conference Proceedings Website by the permission of the author who retains copyright. This paper may be downloaded for fair use under the Copyright Act (1954), its later amendments and other relevant legislation. 2 The Rise of Tony Fernandes and AirAsia in Malaysia This article discusses the emergence of Tony Fernandes and AirAsia. At first, when AirAsia was relaunched as a Low-Cost Carrier (LCC) under the leadership of Fernandes, no one thought the airliner would survive, let alone become a symbol of the liberalisation of the aviation industry in Southeast Asia. Second, Fernandes, a Malaysian Indian of Portuguese Malaccan descent – obviously not a Bumiputra2 - was able to thrive as an entrepreneur in an environment where the government gave top priority to Bumiputra entrepreneurs. These issues are discussed in this paper. Malaysia’s New Economic Policy (NEP) The Malaysian Government has played a significant role in Malaysia’s rapid economic growth. After the independence in August 1957, the economy shifted...
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