Pre3 airasia

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Pre3 airasia

  1. 1. FACULTY OF COMPUTER SCIENCE AND MATHEMATICS INTRODUCTION TO E-BUSINESS (ITS450) NUR HAKMA BT JUHARI (2009600066) SHARIFAH SYAHIRAH BT SYED MUHD KAMAL (2009249956) NUR FARAHAIN BINTI SUFIAN (2009627474)
  2. 2. Company Founders Company Background Core Business Business Model IT Application Success Stories Lesson Learned CONTENT
  3. 3. Company Founders  AirAsia was established in 1993 and commenced operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. Then, instead of starting from scratch, Mahathir advised Tony Fernandes, a Malaysian entrepreneur to buy an existing airline instead because of their heavily-indebted ‡He turning AirAsia, a failing government-linked commercial airline, into a highly successful budget airline public- listed company. ‡He introduced the first budget no frills airline, AirAsia to Malaysians with the tagline "Now everyone can fly".
  4. 4. Fernandes mortgaged his home and sank his savings to acquire the company, comprising two ageingBoeing737-300 jets and RM40million worth of debts and transformed it into an industry player. ‡Coming just after the 11September 2001, undoubtedly the worst day in the history of commercial aviation when nobody wanted to fly, everyone thought that Fernandes had gone "crazy", predicting that the company would fail miserably. One year after his takeover, AirAsia had broken even and cleared all its debts. ‡Fernandes has also been honored by the Malaysian government with title Dato Seri and also by the government of France with the Legion d'Honneur title.
  5. 5. Company Background Air Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of72 aircrafts, Air Asia flies to over 61 domestic and international destinations with 108 routes, and operates over400 flights daily from hubs located in Malaysia, Thailand, and Indonesia Air 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 has sparked a revolution in air travel with more and more people around the region choosing air Asia. The best philosophy of Air Asia “Now everyone can fly” means to giving an opportunity to all the people to flight with the lowest possible fare and making them can flight even they only have the less money
  6. 6. Air Asia Broken travel norms around the globe and has risen to become the world best. Route network through more than 21 countries with applied low cost as core business. Efficient and maintaining a simple aircraft fleet and a route network based on low-cost airports. CORE BUSINESS
  7. 7. Another Product Offer Go Medic Air Asia Credit Card Air Asia Go Insure Snack Attack Air Asia Merchandise Go Holiday Theme Park Go Holiday Mobile.air.asia. com
  8. 8. Business Model Value Proposition Air Asia Key Strategies Descriptions Safety First Partnering with the world’s most renowned maintenance provide and complying with the world airline operation High Aircraft Utilization Implementing the regions fastest turnaround time at only 25 minutes, assuring lower cost and higher productivity. Low Fare, No Frills Providing guests with the choice of customizing services without compromising on quality and services. Streamline Operation Make sure that processes are as simple as possible Lean Distribution System Offering a wide and innovative range of distribution channels to make booking and travelling easier.
  9. 9. Revenue Model Air Asia operates with the world’s lowest unit cost and passenger break-even load factor of 52% 100% of its fuel requirement for the next three years, achieves an aircraft turn around time of 25 minutes Crew productivity level that is triple that of Malaysia Airlines and achieves an average aircraft utilization rate of 13 hours a day
  10. 10. Market Opportunity Huge market potential with it differentiation in no frills products, Air Asia have opportunity to enter in a large market which is locally and around the world. At this present, Air Asia across to 11 countries around ASEAN.
  11. 11. Competitive Environment 12 other Asian low budget carries Singapore’s Airlines Tiger Airways Singapore’s ValuAir Qantas Airways’ Jetstar Asia
  12. 12. Competitive advantages Courteous but limited passenger service Productive and skilful employees and simple, aggressive and focused management structure Standardized fleet of aircraft Frequent, reliable schedules Short haul-point to point routes often to secondary airports High craft of utilization
  13. 13. Marketing Strategies Advertising -Media -newspaper Merchandising -T-shirt -Cap, pen Joint venture -Ministry Sponsorship -M.United -Formula 1 Website -Facebook, Air Asia.com, twitter, youtube Promotion -Seasonal Promotion -Zero Fares
  14. 14. Organizational Development Expert team in administration and production Various experience ability and skills Some of head department have experienced in Warner Music Systematic management team and teamwork Exposure in administration and also entertain people
  15. 15. CEO: DATO SERI TONY FERNANDES Deputy CEO: DATO KAMARUDDIN CEO Indonesia :DHARMAD CEO Thai: TA S SPON Secretary: BOLINGAM Finance: ROZMAN OMAR Bus Dev: CAPTAINCHIN NYOK Quality and Safety: SAIDULKHADRI HAMZAH Engineering: AZHARI IT: LAU KINCHOY Commercial: K ATHLEEN TAN Communication :J OYCE LAI Operation: CAPTAIN ADRIAN Management Team
  16. 16. IT Application System that AirAsia used in maximized IT to meet the lowest cost during their business activities is the implementation of: Yield Management System(YMS) AirAsia can understands the behavior of their customer and offering the effectives and efficiency strategy and also can allocate capacity to maximize the expected revenue. ‡By this system, AirAsia can make efficiency to know their customer using IT technology with lowest cost
  17. 17. Customer Reservation System (CRS) CRS is an integrated web-based reservation and inventory system. It includes Internet; call center, airport departure control and more. ‡It is a direct sales engine that effectively eliminates the middleman (travel agents) and the sales commissions that need to be paid to them. ‡customer friendly because customer can buy or make a reservation of a ticket directly via online, and no need to come to the ticket counter
  18. 18. AirAsia also passionate user of technology and marketing efforts Social media is one of AirAsia is important branding campaign mechanisms, which allows the airline to address the conventional limitations of direct push marketing. With its own Facebook page, there is a forum that invites participation from the public, creating an extension for them to be passionate and connected to the AirAsia brand. Twitter is another interesting tool that is utilized for transmission of short marketing blurbs, updating guests with new developments and promotions.
  19. 19. AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. ‡AirAsia have a lot of achievement and awards since year 2001 until present AWARDS IN YEAR 2010 Masterclass GlobalCEO of the Year Awarded to Ybhg. Dato Tony Fernandes World’s Best LowCost Airline By Skytrax AirAsia voted the AirCargo Industry Newcomer Award at the ACW World AirCargo Awards 2010 By AirCargo Week Success Story
  20. 20. AWARDS IN YEAR 2009 Airline Of The Year ByCentre for AsiaPacific Aviation (CAPA) Tony received the 2009 Frost & Sullivan Excellence in Leadership Award by Frost & Sullivan Best Asian Low-CostCarrier By TTG Travel Awards 2009
  21. 21. AWARDS IN YEAR 2008 The Laureate Award for BestCommercial Airport Transport from Aviation Week Tony awarded the Malaysia Brand Icon Award from Deputy Prime Minister YAB Dato' Seri Najib Tun Razak at the Global Brand Forum Malaysia AirAsia - Malaysia's 30 Most Valuable Brands 2008 By Malaysia’s Most Valuable Brands (MMVB) PIKOM ICT Organisation Excellence Award 2008 By Association of the computer and multimedia industry (PIKOM) Best Asian Low-Cost Carrier By TTG Travel Awards 2008
  22. 22. Lesson LearNED Big company especially in airline industry should generated a strategic business plan to make sure they can compete and survive in the economies fluctuate. Company should understand the customer need and problem by increasing customer insight, where it able to develop new product and solve the customer needs and problem. Applied an effective IT program in company operations. A good leader should able to make a good decision and take a risk for the risk.

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