Air Asia

In: Business and Management

Submitted By dianadfa
Words 1286
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The new competitive edge
A survey conducted by Management Centre Europe shows how managers view service and the key issues affecting future profitability and growth.

customer unless it has been explained to them. Communicating this message is a priority for any company. • There needs to be more systematic measurement of customer satisfaction. Not enough companies have accurate intelligence systems.

Two key points in the questionnaire have been combined in the final analysis to create a 'Service Priority Index'. It shows what importance executives in the three geographic areas place on a series of servicerelated criteria. The index is based on two factors: • How important is a particular criteria in terms of influencing a customer to buy. • How much room is their for this criteria to be improved by the respondent's organisation. A score of 100 would mean that a criteria is both very important and a criteria where there is great room for improvement, ie. a top priority for action. A score of zero would mean that it is either unimportant or there is no room for further improvement (Table 1).


he Management Centre Europe (MCE) has recently completed a survey report which is probably unique. As far as it knows, no other organisation has ever tried, let alone succeeded, to put together a detailed research project on the service ethics in the world's three most dynamic economic areas: America, Europe and Japan. The project evolved from a panEuropean study launched by MCE and John Humble, an international management consultant, in 1988. In 1989, Management Centre Europe's parent organisation, the American Management Association, took the project on board for North America. Simultaneously, the Japan Management Association agreed to participate in the research project. A total of 3,375 top and middle managers took part in the study:…...

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Air Asia

...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 airports, without complex code-sharing and other legacy overheads that weigh down traditional airlines without compromising on safety. Guests continue to enjoy low fares, through cost savings that we pass on to our guests. AirAsia X's efficient and reliable operations are fully licensed and monitored by Malaysian and international regulators, and adhere to full international standards. AirAsia X is committed in offering X-citing low fares, X-emplary levels of safety and care, and an X-traordinary in-flight and service experience to all our guests - spreading the amazing AirAsia experience to X-citing destinations in Australia and Greater Asia. AirAsiaX was setup in 2007 with 20% of......

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Air Asia

...and high turnaround of flights, both of which add to customer convenience and greater cost efficiencies. Its turnaround of 25 minutes is the fastest in the region. In AirAsia there are no frequent flyer miles or airport lounges in exchange for lower fares. Guests have the choice of paying for in-flight meals, snacks and drinks. In addition, a decision was made in December 2004 to convert the existing fleet of ageing Boeing B737s with the higher capacity yet more fuel-efficient, reliable and cost-efficient Airbus A320s. As a result, today, the Group boasts the largest and newest A320 fleet in the region. Innovative use of technology has played a key role in AirAsia’s success story, beginning with online booking. It was the first airline in Asia to go ticketless -in March 2002 - allowing guests to pay for their bookings by credit card over the phone. Over the years, it has built on its IT platform to increase the ease of customer transactions as well as provide greater savings to the Group. In 2010, AirAsia unveiled its latest IT booking innovation in the form of New Skies, which allows customers to better manage their online bookings. With the advent of the social media, tools such as Facebook, Twitter and blogs have become integral to the Group’s customer relationship initiatives. AirAsia is, in fact, recognised as the most popular airline in the region on Facebook in terms of fan base. AirAsia is ultimately a people’s airline. This is mirrored in numerous acts of generosity......

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Air Asia

...Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval of government at the five airports which is Langkawi International Airport, Penang International Airport, Kuching International Airport, Terminal 2, Kota Kinabalu International Airport and the low-cost carrier terminal (LCCT) at KLIA. Air Asia is not happy with the Ministry of Transport and Malaysia Airports (MAHB) decision and trying to ignore as it can increase their cost and some more it makes the flight ticket’s......

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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......

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...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......

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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 (, 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......

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...scheduled flights to offer bargain-basement fares. Budget airlines usually land at and take-off from secondary airports, do not provide in-flight meals or refreshments, and may not even offer numbered seat allocation. Their ticket prices are fixed and non-refundable in case of a cancellation or no-show”. (i) 3.2. Looking at the Organization AirAsia is one of the fastest growing airline companies in the world, with a reputation as a low-cost, ‘no frills’ airline. It was originally a government owned business; yet, due to heavy debt, it was bought by former Time Warner executive Tony Fernandes in 2001, and this is where the real story begins. Their vision, under the slogan "Now Everyone Can Fly", is “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”,(ii) and their mission is, under the banner of 'Affordable Airfares', “To attain the lowest cost so that everyone can fly with AirAsia,” without any compromise to Flight Safety Standards, as well as, creating a world wide recognizable brand with a ‘family’ atmosphere within working conditions for employees. (iii) These statements clearly show AirAsia’s value. Cost advantages through operational effectiveness and efficiency; coupled with strong brand marketing, go straight to the customer. Within two years, Tony Fernandes had gained recognition with numerous awards, including ‘CEO of the Year’ by Business Times and American Express and......

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...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 largest low cost carrier in Asia. From a two aircraft operation equipped with Boeing 737-300, AirAsia currently boasts a fleet of 78 aircraft that flies to over 60 domestic and international destinations. This airline now provides more than 500 domestic and international flights daily from six hubs domestically located at Low Cost Carrier Terminal (LCCT) at KLIA, Senai International Airport in Johor......

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...greater detail in the upcoming paragraphs. The political influence on the aviation industry is instrumental towards the growth of the airline, specifically, in the Asia-Pacific and the ASEAN region. Government support for national carriers and minimal restrictions on migration is pertinent for the growth of an airline. Additionally, security controls should always be maintained to reflect the integrity of the airline. On the economic front, the increasing regional urbanisation is expected to lead the development of new urban centres, creating new destinations for regional travel. The increasing economic growth rates of the ASEAN region would propel the aviation industry to greater heights. The GDP of the Introduction .AirAsia Berhad (AirAsia) is a leading Low-Cost Carrier (LCC) in the Association of Southeast Asian Nations (ASEAN) region. The Group focuses on providing high-frequency services on short-haul, point-to-point domestic and international routes. The Group implemented the low-cost carrier business model in the ASEAN region when it acquired the then loss making AirAsia from its Malaysian owner DRB-HICOM Berhad for a token of RM1 (USD0.25 cents), and agreed to assume the debts of the company. AirAsia was resurrected, re-branded and re-launched as a low-cost carrier following the acquisition of the Company by Tune Air Sdn Bhd in December 2001. With the drive and determination by Dato’ Sri Dr Tony Fernandes and with the support of his partners, the AirAsia Group......

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...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,......

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Air Asia

...Porter's 5 forces analysis on Air Asia Porter's 5 forces analysis on Air Asia Threat of new Entrants The extent of barriers to entry depends on the strength of: Customer has little brand loyalty. If consumers of Air Asia do not have brand loyalty, then the strength of the threat of new entrants is very high. The high numbers of competitors in the industry also decrease Air Asia customer loyalty. Most of the travelers prefer low cost. New competitors which want to come in the industry have to spend little to compete with Air Asia. High capital requirement. The industry of airline needs large volume of start-up capital. The cost of setting up of offices, buying or leasing aircraft, hiring pilots and other staffs like air stewardess and etc incur a high start-up cost. Thus, the threat is low for Air Asia. Different product offered. Air Asia offers different product compared to other competitors in Asia like Bangkok Airways, Tiger Airways, and Air Philippines. Other than the passenger sales ticket, Air Asia also include holiday packages which is affordable around Asia. Air Asia has good connection with hotels and tourism companies around Asia, which it is hard for new competitors to compete. Low switching costs. Customers do not need to spend more on switching to another airline. The price would not be very significant in differences, which it depends on the availability of competitor’s services and suitability of the flight time that prompts them to switch.......

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Air Asia

...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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Air Asia

... | | | |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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...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......

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Air Asia

...costs. 3) The Foundation of Air Asia Company Asia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of Now Everyone Can Fly, Air Asia sparked a revolution in air travel with more and more people around the region choose Air Asia. In the competitive airline industry, Air Asia keeps improving their supportive and constructive management by being supportive and responsive in listening to its employee for any ideas for reducing cost. And as their philosophy “Everyone Can Fly” Air Asia its weapon to corner its other competitor is effect in reducing cost boosted Air Asia to be one of the top in low cost air carrier competition. Air Asia is leading the way for developing low cost airlines and its promises to revolutionize the international market place. And for now, many low cost airline companies in some country have adopted the strategies innovated by Air Asia successfully Regarding on that, Air Asia Company believe by through on their excellent regional passenger base, high levels of service quality and committed customer relationships would leaves them well positioned to continue to deliver cost savings and growth significantly to the Air Asia whilst increased profitability. However, attaining low costs requires high efficiency in every part of the business and maintaining simplicity. Therefore Air Asia had incorporated best......

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