The airline also provides service to Abu Dhabi and London. Key to the success of AirAsia has been their ability to capitalise of the liberalisation of the Asian airline industry, this has significantly helped the airline grow. In Kuala Lumpur. AirAsia is, in fact, recognised as the most popular airline in the region on Facebook in terms of fan base. This is SWOT analysis of Air Asia. The general strategy of AirAsia is based on the no-frills, low-fare concept. AirAsia feels proud of such endorsement and is committed to living up to guests' expectations by continuing to keep costs down while providing the highest levels of service and efficiency as it spreads its wings further and wider across the skies. Usage of the AirAsia website states your compliance of our Terms of use and Privacy policy © 2021 AirAsia Group Berhad. Expansion of the AirAsia network in a prudent and disciplined manner. 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. There are several marketing strategies like product/service innovation, marketing investment, customer … Taking the success stories of Ryanair and Easyjet back in Europe as their vision, AirAsia team convinced that the low-cost airline is the way forward. As a result, today, the Group boasts the largest and newest A320 fleet in the region. AirAsia uses a single type of aircraft that enable the staffs (pilot, mechanic, flight attendant, etc) are specialized in a single type of aircraft; which is maintaining cost in … Air Asia is a low-cost airline headquartered in Malaysia. Dare to dream is alive at AirAsia, as the CEO and his team drive and support the business through the empowerment of their staff. Bhd. AirAsia X is the only long–haul LCC currently flying the European–Asia Pacific corridor. Rajab, Datuk Kamarudin Meranun and Dato' Aziz Bakar - bought over the loss-making, debt-riddled AirAsia from HICOM Holdings Berhad (now DRB-HICOM Berhad) for a token sum of RM1. Innovative use of technology has played a key role in AirAsia's success story, beginning with online booking. Demand for air transportation has boomed extensively in Southeast (SE) Asia during the past decade as a result of economic development and the lack of land routes between destinations. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. Air Asia: Strategic management report Intoduction Air Asia was founded in 1993 and has since grown to be one of the biggest airlines in the world. AirAsia makes the process as simple as possible and it is the key of LCC business. The enterprising group quickly settled the airline's debts and set about rebranding and relaunching AirAsia as a low-fare carrier. AirAsia makes the low fare model possible and create values through their key strategies such as: Safety first, high aircraft utilization, low fare- no frills, streamline operations, lean … Academia.edu uses cookies to personalize content, tailor ads and improve the user experience. 1. Marketing Mix of AirAsia analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the AirAsia marketing strategy. Its turnaround of 25 minutes is the fastest in the region. Today, employing more than 20,000 staff and with a market capitalisation of just over RM9.7 billion (as at 17 July 2019), it is the only Truly ASEAN airline, serving the region's 3.3 billion population from 24 hubs in six countries - Kuala Lumpur, Kota Kinabalu, Kuching, Penang, and Johor Bahru in Malaysia; Bangkok, Phuket, Chiang Mai, Krabi, U-Tapao (Pattaya) and Chiang Rai in Thailand; Jakarta, Bali, Medan, Surabaya and Lombok in Indonesia; Manila, Kalibo (Boracay) Cebu and Clark in the Philippines; Bengaluru, Delhi and Kolkata in India; and Nagoya in Japan. Resilient profit growth through our lower cost base. Invest and enhance the AirAsia brand to increase investors' returns. As a conclusion, AirAsia is doing a wonderful job in terms of satisfying its customers by providing them with quality services. The company implemented no-frills, low-fare concept by offering prices that were nearly 50% lower than the prices of the competitors. Air Asia has been consecutively designated as the leading low-cost carrier in the Asian region. Maximise Shareholders' Value. The firm was founded in 1996 as a low cost domestic airline, and was purchased by Tony Fernandes in 2001. In 2010, AirAsia unveiled its latest IT booking innovation in the form of New Skies, which allows customers to better manage their online bookings. They decided to focus and roll in Asia. This is about to change in Malaysia, where Air Asia has been transformed by its CEO, Tony Fernandes, and now uses the tag–line quoted in the title above The company can be considered as an innovator in the sphere of air traveling in Asia. Strategic Growth of AirAsia With Respect to Time: Cost-efficiency, low complexity and profitability are always the cornerstones of building a strong business. SEPANG: AirAsia Group Bhd (AirAsia) has announced a management team shakeup today with five key appointments involving Aireen Omar, Captain Adrian Jenkins, Rozman Omar, Bo Lingam and Riad Asmat. All short-haul AirAsia flights (four-hour flight radius or less) and medium- to long haul AirAsia X flights are non-stop, doing away with the need for human resources, physical infrastructure and facilities at transit locations. In 2018, the Group, which includes AirAsia Group Berhad (Consolidated AOCs â AirAsia Malaysia, AirAsia Indonesia, AirAsia Philippines), AirAsia Thailand, AirAsia India and AirAsia Japan reinforced its leadership position with two remarkable milestones: flying over 500 million guests and grew from 2 aircraft in 2001 to 226 aircraft as at end-2018. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. Sorry, preview is currently unavailable. 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 fact, one unique thing about AirAsia flights is its inflight magazine Travel 3Sixty, which has this reminder: “Touch me, feel me and flip me over, but you can’t take me home. AirAsia’s overall business and marketing strategy started here. Essay type Research . In this case study, AirAsia’s business plan and strategy, sustainability, cost and competitive advantage it has and its management style has been discussed in details. From an airline with two aircraft flying six routes in Malaysia in January 2002, AirAsia has soared in the last seventeen years to cover over 152 destinations in 22 countries. The Internet plays a vital part in the Air Asia business and has proved to be critical to the success of the business. AirAsia needs to also address their threats and delve into new opportunities if it wishes to still remain profitable. Collectively, these strategies have established AirAsia as the lowest-cost airline in the world, with a cost/ASK (available seat kilometre) of 3.67 (US cents) as at FY2018. 12 success strategies of AirAsia boss Tony Fernandes. This content was … 1.0 Executive Summary 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 firm was re-launched as a no-frills airline in … Topics: AirAsia, ... Key Partners 18 Resources 19 Value Propositions 19 Customer segmentation 20 Customer Relationship Management (CRM) 21 Revenue Model and Cost Structure 22 Revenue Recognition 24 Market Demand 25 What Customers’ Want 25 Lowering the price of that product for a time in order to stimulate sales is a tactic.The Internet plays a vital part in the Air Asia business and has proved to be critical to the success of the business. This means no frequent flyer miles or airport lounges in exchange for lower fares. Gaining 40 percent market share for a product in order to boost profits is a strategy. The Group's entire business model centres around a low-cost philosophy which requires its operations to be lean, simple and efficient. Vision: 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. The Group also partners with the most renowned maintenance providers to ensure its fleet is always in the best condition. Lowering the price of that product for a time in order to stimulate sales is a tactic. AirAsia creates values through the following vision and mission: AirAsia Values Vision 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. Year 2019, AirAsia officially embark on the AirAsia 3.0 transformation journey into a travel and financial platform company consisting of three main cores - Teleport, which manages the aircraft freight belly space of AirAsia and third-party airlines; AirAsia.com, a full-fledged travel and lifestyle platform; and BigPay, our financial services provider. This award from Skytrax, reflects the opinions of about 20 million travellers worldwide who were polled by the London-based aviation consultant. The largest airline in Malaysia the business is known to be highly employee centric. The following shows the home page of AirAsia.com as the company key channel of marketing and sales. Enter the email address you signed up with and we'll email you a reset link. This website is owned and operated by AirAsia Group Berhad ("AirAsia"), 5 Year Financials & Key Operating Statistics, Anti-Bribery and Anti-Corruption Policy Statement. … AirAsia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. BULL MARKET, BULL SHEET - Wilson Lee Flores (The Philippine Star. To learn more, view our. The company has a current fleet of ninety-two aircraft that include Airbus A321neo, Airbus A320neo and Airbus A320-200. As a result, the system that AirAsia implemented by using strategy to maximized the IT system (yield management system (YMS), computer reservation system (CRS), and enterprise resource planning (ERP) system) can be a great strategy to make AirAsia more effective and efficiency and possibly able to reduce the cost and eliminated inefficiency in their business. The highest priority is given to safe operations, and AirAsia complies with conditions asset by regulators in all the countries where it operates. General Strategy of AirAsia No-frills, low-fare. Gaining 40 percent market share for a product in order to boost profits is a strategy. This has been achieved without compromising safety. The people of AirAsia, the “Allstars” are integral to every strategy, every vision that Tony Fernandes has had. Air Asia has adopted a generic strategy of cost leadership by reducing the cost of operations and passing the savings through to customers with very low ticket prices. It initially operated in Malaysia and currently operates in over 25 countries (Ricart and Wang 2005). Air Asia: Strategic Management Report 4189 Words | 17 Pages. â founded in 2001 by Tan Sri Tony Fernandes, Dato' Pahamin Ab. Air Asia envisions itself “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”. Academia.edu no longer supports Internet Explorer. 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. Air Asia’s Statement of Mission, Values and Guiding Principles Mission Air Asia’s leading airline was established with the dream of making flying possible for everyone. To have a strategy to achieve the company long term objective would help the company to compete with other competitor and to be successful for doing their business. Perhaps most notably AirAsia has been voted the World's Best Low Cost Airline for eleven consecutive years from 2009 to 2019. Air Asia is a low-cost air carrier providing service between its main hub in Kuala Lampur, Malaysia and destinations in East Asia. You can download the paper by clicking the button above. The quest to democratise air travel began when Tune Air Sdn. Airasia Strategy . Read me online.” I think Fernandes isn’t scrimping on publishing costs, it is part of his clever marketing strategy to make passengers discover and enjoy his website. Several key strategies have been employed towards this effect, including: AirAsia focuses on high frequency and high turnaround of flights, both of which add to customer convenience and greater cost efficiencies. Operational Information Management in Strategy and Operations: A Case of Air Asia to venture into Regional and International Markets 1.0 Introduction This study was intended to analyze the electronic marketing strategy on a selected budget airline based in Malaysia, Air Asia which aims to identify its potential future market segments. What are the major elements (mission /vision, objectives and strategies) of Air Asia’s strategy? Air Asia Overview. In the business globalization environment, AirAsia should focused on the strategic management to sustain the operation and e-commerce would be the key elements for the company nowadays. AirAsia needs no introduction in ASIA and ASEAN, where it is the leading low-cost carrier, connecting people and places across 388 routes, 104 of which are categorised as unique routes. By using our site, you agree to our collection of information through the use of cookies. The study. It operates both internationaland domestic flights with help of its affiliated airlines AirAsia India, Philippines AirAsia, Indonesia AirAsia, Thai AirAsia and AirAsia X to deal with long-hauling routes. With the advent of the social media, tools such as Facebook, Twitter and blogs have become integral to the Group's customer relationship initiatives. It’s also why now I will personally look at AirAsia differently, and not just as a low-cost airline. The Group's adherence to best practices has been recognised via numerous awards over the years. According to the company, the low fare model is made possible by the implementation of key strategies. SAFS EVALUATION FRAMEWORK 7.1 Suitability AirAsia strategies to increase the flight frequencies from Bangkok to Chiang Mai (Ross,2017), Manila to Kuala Lumpur (AirAsia Annual Report, 2016) and Kuala Lumpur to Kaohsiung (Malaymail Online,2017) due to the … AirAsia has the distinction of being the largest airline in terms of destinations and fleet size in its home country Malaysia. Guests have the choice of paying for in-flight meals, snacks and drinks. While a strong foundation does not guarantee a solid house, it is the only basis upon which to build. In August 2011 AirAsia and MAS, Malaysia’s national carrier, announced a partnership called the ‘Comprehensive Collaboration Framework’, whereby a share swap deal was agreed between Tune Air, the owner of AirAsia, and Khazanah Nasional, the government backed investment arm owner of MAS. Air Asia: "The first low fare airline in Asia" April 2002 Text; Apart from Virgin Blue in Australia, Asia has yet to produce a genuine low–cost carrier. Several key strategies have been employed towards this effect, including: High Aircraft Utilisation AirAsia focuses on high frequency and high turnaround of flights, both of which add to... Low Fare, No Frills This means no frequent flyer miles or airport lounges in exchange for lower fares.
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