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Roles of Information System in Airline Business

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Roles of information system in Airline Business
Air Asia’s business strategy is centered on cost leadership and targets specific markets which are price sensitive customers (including 1st time fliers) who needing the short haul flights. According to Porter’s generic strategies (1985), cost leadership is one of them. Air Asia has to offer the lowest possible fare amongst all airlines in LCC (Low Cost Carrier) industry whom compete on costs in order to win the competition in current markets as well as new markets. The central objective of Air Asia is to achieve bigger cost advantages than the rivals by continuously searching areas for cost reduction along its value chain.
Support of Information System
The operational environment of airline industry is complex due to the continuous daily operation, larger network in supply chain and some external uncontrollable variables such as government regulations and weather condition. These issues are giving big impacts on airlines’ performance. This show how important to implement advanced planning and scheduling as it will be able to determine the success of airlines.
Air Asia has implemented APS (Advanced planning and scheduling) system which is triggered off by Air Asia current market condition that saturated market with high degree of rivalry among the existing competitors. APS system works as the brain supply chain activities (Ahmed, 2004) by gearing activities in relation with customers and suppliers requirements. It helps Air Asia to optimize its supply chain management as clusters and classifies customer orders, forecasts future fulfillment requirements, set order priorities and checks resources availability. APS system provides visibility across supply chain in term of cross functional scheduling and planning with suppliers and customers. APS system will able to further improve Air Asia’s processes performance and it

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