Introduction

Airasia is an airline started by the Malaysia government conglomerate, DRB-Hicom in 1993 and it’s first operation was carried out on 18 November 1996. The current Airasia country CEO of Malaysia is Aireen Omar. Since 2001, Airasia had been growing rapidly and received recognition award for largest low fare airlines in the Asia. It now served over 60 domestic and international countries with a fleet of 72 aircrafts all airbus A320-200 with 108 routes network. Airasia is well known for its belief ‘Now Everyone Can Fly’ and flies over millions of customers believing in the no frills without hassle, cost effective business concept and high efficiency of air travel which more and more customers choosing Airasia as their favourite choice of air transport.

Management Approach

From studying the management strategy that AirAsia has been using, the management approach that AirAsia is currently using is the contemporary approach. The contemporary approach can be separate into two different parts; they are the system approach and the contingency approach. Closed systems are not influenced by and do not interact with their environment. In contrast, open system approach is which organization is described as an open system, that it takes inputs from the environment and transforms these resources into outputs that are distributed into the environment. On the other hand, contingency approach states that organizations are different, face different situations, and require different ways of managing. AirAsia is considered as an open system. Firstly, AirAsia uses a low pricing strategy to create a higher level of output, which are the consumers. The vision of AirAsia is to be established as the leading low-cost carrier in the Asian region. AirAsia is considered as a budget airline comparing to the other company, which is