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Have you flown with AirAsia yet?<br />Video link.<br />
Corporate Profile<br /><ul><li> Established in 1993 and commenced operation on 18 November 1996.
2 December 2001, it was purchased by former Time Warner executive Tony Fernandes’s company Tune Air SdnBhd from the ownership of HICOM Holdings Bhd for the token sum of only RM1, and with only 2 Boeing 737-300 aircraft together with RM40 million in debt.
AirAsiaBerhad is a Malaysia-based low-cost airline.
The largest low-fare, no-frills airline and a pioneer of low cost travel in Asia.
AirAsia is proud to be a truly ASEAN (Association of South East Asian Nation) carrier.
Operates scheduled domestic and international flights to over 400 destinations spanning to 25 countries.
Had flown over 100 million guests upon the core believe that ‘Now Everyone Can Fly’.
Main terminal hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA).
AirAsia’s associates companies- AirAsia X, Thai AirAsia (TAA), Indonesia (IAA) and Malaysia AirAsia (MAA), and VietJetAirAsia.</li></li></ul><li>AirAsia X<br /><ul><li> Previously known as FlyAsianXpressSdn Bhd.
Established in 2007 to provide high-frequency and point-to-point networks to the long haul-business.
AirAsia X is spreading its wing to exciting destinations such as Australia, China, India, Middle East and Europe.</li></ul>Tune Hotels<br /><ul><li> Limited service hotel chain founded by AirAsia CEO Dato’s Tony Fernandes.
Its hotel operates in Kuala Lumpur, Kota Kinabalu, Kuching, Penang, LCCT Sepang and Westminster, London.</li></li></ul><li>
The Star Highlights of…<br />Air Asia Founder & CEO- Dato' Sri Dr. Tony Fernandes<br /><ul><li> Malaysian, aged 48.
Appointed Group Chief Executive Officer of the Company in December 2001.
Financial Controller at Virgin Communication London (1987- 1989).
Senior Financial Analyst at Warner Music International London (1992-1996).
Vice President, ASEAN at Warner Music South East Asia (1999-2001).
After graduating in London School of Economics, he worked with Virgin Atlantic and Richard Branson became his boss and mentor.
Under his leadership, AA broke even within a mere 12 months and cleared its debt.
Outperform Malaysia’s national carrier MAS, in terms of size, revenue, profit and popularity. </li></li></ul><li>Vision Statement<br />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.<br />Mission Statement<br /><ul><li> To be the best company to work for whereby employees are treated as part of a big family.
CSR, recently involve in providing flight services for evacuation of Malaysian students in Egypt.</li></li></ul><li> COMPETITVE ADVANTAGE OF AIR ASIA <br />1- Usage of one type of aircraft <br /><ul><li> Economies of scale
Small inventories ( cube-square rule, power of purchasing)
Reduce time on employees training and learning curve </li></ul>ASK: Available seat kilometers, which is the total number of seats available on scheduled flights<br />multiplied by the number of kilometers these seats were flown.<br />Cost per ASK: Total operating expenses (excluding finance costs and taxation) divided by ASK. In the<br />airline industry, this is comparable to ‘unit cost’.<br /> Air Asia.com, 2009 <br />
2- Synergy between the AA management and the employees <br /><ul><li> Management support and motivate employees to work and creativity
Competitors find it hard to follow </li></ul>3- Productive and Skillful employees<br /><ul><li> Employees create tips to help in procedures and save time, costs. </li></ul> example: the one type concept <br />4- Limited passenger service <br /><ul><li> Food and beverages are not included , transportation from the airplane to the airport not includes etc ….
6- Short haul ( point to point ), often secondary airports<br /><ul><li> Less cost for the company </li></ul>7- High aircraft utilization<br /><ul><li>Space are well used in the airplanes to provide more site
No first class </li></ul>8- No Fuel Surcharges Policy<br /><ul><li> despite hike in oil prices.
Fuel surcharge of RM20 will only be made if oil price is $100 per barrel</li></li></ul><li>Air Asia.com, 2009 <br />
COMPARISON<br />This diagram compare Air Asia with other company in terms of cost per unit.<br />Air Asia was the Best Low-Cost Airline for 2010 <br />Air Asia.com, 2009 <br />
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Special Day Promotions <br />Passport of love – Fly with your loved ones this Valentine’s<br />
Problems Faced by AirAsia<br /> ~ Does not meet every customer’s demand for convenience in terms e-ticketing. (Eg. Not possessing any related card services for transaction, emergency booking (before 24 hours fight) <br />
~ Problems with the long distance walk between the airplane stop and the terminal entrance.<br /> ~ Problems with crowded seating<br />
Recommendations:<br /><ul><li> Failure of internet system
Leverage competency in creating cost advantage across multiple value chain.
Emphasis on more effective safety & security to avoid accidents. (Eg. demonstrations and procedures for passengers, avoid crash landings)
Punctuality should be their main concern especially AA wants to penetrate into the business travelers market.
Arrangement of seating should be organized. </li></li></ul><li>In summary,<br />Video link.<br />