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 … Invest and enhance the AirAsia brand to increase investors' returns. 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. 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 By using our site, you agree to our collection of information through the use of cookies. The company has a current fleet of ninety-two aircraft that include Airbus A321neo, Airbus A320neo and Airbus A320-200. There are several marketing strategies like product/service innovation, marketing investment, customer … It’s also why now I will personally look at AirAsia differently, and not just as a low-cost airline. Innovative use of technology has played a key role in AirAsia's success story, beginning with online booking. 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). Resilient profit growth through our lower cost base. … 1. Gaining 40 percent market share for a product in order to boost profits is a strategy. Guests have the choice of paying for in-flight meals, snacks and drinks. AirAsia needs to also address their threats and delve into new opportunities if it wishes to still remain profitable. According to the company, the low fare model is made possible by the implementation of key strategies. The firm was re-launched as a no-frills airline in … 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. Lowering the price of that product for a time in order to stimulate sales is a tactic. 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. 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. Dare to dream is alive at AirAsia, as the CEO and his team drive and support the business through the empowerment of their staff. 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. The company can be considered as an innovator in the sphere of air traveling in Asia. As a result, today, the Group boasts the largest and newest A320 fleet in the region. Air Asia: Strategic Management Report 4189 Words | 17 Pages. BULL MARKET, BULL SHEET - Wilson Lee Flores (The Philippine Star. Academia.edu no longer supports Internet Explorer. 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. 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 … Expansion of the AirAsia network in a prudent and disciplined manner. Sorry, preview is currently unavailable. 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”. 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. This content was … AirAsia’s overall business and marketing strategy started here. While a strong foundation does not guarantee a solid house, it is the only basis upon which to build. The Internet plays a vital part in the Air Asia business and has proved to be critical to the success of the business. Strategic Growth of AirAsia With Respect to Time: Cost-efficiency, low complexity and profitability are always the cornerstones of building a strong business. This has been achieved without compromising safety. Perhaps most notably AirAsia has been voted the World's Best Low Cost Airline for eleven consecutive years from 2009 to 2019. 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. Essay type Research . 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. This website is owned and operated by AirAsia Group Berhad ("AirAsia"), 5 Year Financials & Key Operating Statistics, Anti-Bribery and Anti-Corruption Policy Statement. Usage of the AirAsia website states your compliance of our Terms of use and Privacy policy © 2021 AirAsia Group Berhad. The people of AirAsia, the “Allstars” are integral to every strategy, every vision that Tony Fernandes has had. 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 The firm was founded in 1996 as a low cost domestic airline, and was purchased by Tony Fernandes in 2001. To learn more, view our. The enterprising group quickly settled the airline's debts and set about rebranding and relaunching AirAsia as a low-fare carrier. 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. AirAsia is, in fact, recognised as the most popular airline in the region on Facebook in terms of fan base. The study. The Group's adherence to best practices has been recognised via numerous awards over the years. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. 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. 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. AirAsia has the distinction of being the largest airline in terms of destinations and fleet size in its home country Malaysia. The Group's entire business model centres around a low-cost philosophy which requires its operations to be lean, simple and efficient. This is SWOT analysis of Air Asia. AirAsia makes the process as simple as possible and it is the key of LCC business. 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. Gaining 40 percent market share for a product in order to boost profits is a strategy. 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. 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. Its turnaround of 25 minutes is the fastest in the region. 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. 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. AirAsia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. 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. 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. 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. 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. 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. 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. Airasia Strategy . The general strategy of AirAsia is based on the no-frills, low-fare concept. 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. The following shows the home page of AirAsia.com as the company key channel of marketing and sales. The Group also partners with the most renowned maintenance providers to ensure its fleet is always in the best condition. The largest airline in Malaysia the business is known to be highly employee centric. The company implemented no-frills, low-fare concept by offering prices that were nearly 50% lower than the prices of the competitors. 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. 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. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. As a conclusion, AirAsia is doing a wonderful job in terms of satisfying its customers by providing them with quality services. 12 success strategies of AirAsia boss Tony Fernandes. Air Asia is a low-cost air carrier providing service between its main hub in Kuala Lampur, Malaysia and destinations in East Asia. This award from Skytrax, reflects the opinions of about 20 million travellers worldwide who were polled by the London-based aviation consultant. In Kuala Lumpur. Bhd. 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. Air Asia has been consecutively designated as the leading low-cost carrier in the Asian region. Maximise Shareholders' Value. The highest priority is given to safe operations, and AirAsia complies with conditions asset by regulators in all the countries where it operates. 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. They decided to focus and roll in Asia. AirAsia X is the only long–haul LCC currently flying the European–Asia Pacific corridor. 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. 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. 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.