Air asia presentation


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  • Air Asia is a low fare airline of Malaysia, it had one of the largest number of airplanes and flying destinations. Know what Business Strategy made Air Asia a successful low budget Airline in Asia. SWOT Analysis of Air Asia & Porter Five Forces Model Analysis Watch this Case Study On Air Asia : Copy and open the url in your browser
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Air asia presentation

  1. 1. Ivy Wong<br />Zhang Cen<br />We proudly present to you…..<br />Please fasten your seat belts<br />Clement Ong<br />Keita<br />
  2. 2. Have you flown with AirAsia yet?<br />Video link.<br />
  3. 3. Corporate Profile<br /><ul><li> Established in 1993 and commenced operation on 18 November 1996.
  4. 4. 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.
  5. 5. AirAsiaBerhad is a Malaysia-based low-cost airline.
  6. 6. The largest low-fare, no-frills airline and a pioneer of low cost travel in Asia.
  7. 7. AirAsia is proud to be a truly ASEAN (Association of South East Asian Nation) carrier.
  8. 8. Operates scheduled domestic and international flights to over 400 destinations spanning to 25 countries.
  9. 9. Had flown over 100 million guests upon the core believe that ‘Now Everyone Can Fly’.
  10. 10. Main terminal hub is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA).
  11. 11. 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.
  12. 12. Focusing on the low-cost, haul segment.
  13. 13. Established in 2007 to provide high-frequency and point-to-point networks to the long haul-business.
  14. 14. 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.
  15. 15. Its hotel operates in Kuala Lumpur, Kota Kinabalu, Kuching, Penang, LCCT Sepang and Westminster, London.</li></li></ul><li>
  16. 16. The Star Highlights of…<br />Air Asia Founder & CEO- Dato' Sri Dr. Tony Fernandes<br /><ul><li> Malaysian, aged 48.
  17. 17. Appointed Group Chief Executive Officer of the Company in December 2001.
  18. 18. Financial Controller at Virgin Communication London (1987- 1989).
  19. 19. Senior Financial Analyst at Warner Music International London (1992-1996).
  20. 20. Regional Managing Director, ASEAN (1996-1999).
  21. 21. Vice President, ASEAN at Warner Music South East Asia (1999-2001).
  22. 22. After graduating in London School of Economics, he worked with Virgin Atlantic and Richard Branson became his boss and mentor.
  23. 23. Under his leadership, AA broke even within a mere 12 months and cleared its debt.
  24. 24. 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.
  25. 25. Create a globally recognized ASEAN brand.
  26. 26. To attain the lowest cost so that everyone can fly with Air Asia.
  27. 27. Maintain the highest quality product, embracing technology to reduce cost and enhance service levels.</li></li></ul><li>Key Strategies<br /><ul><li> Safety First
  28. 28. High Aircraft Utilization
  29. 29. Low Fare, No Frills
  30. 30. Streamline Operations
  31. 31. Lean Distribution System
  32. 32. Point to Point Network</li></li></ul><li>
  33. 33. Achievements: <br />Year 2003-2010<br />
  34. 34.
  35. 35.
  36. 36.
  37. 37.
  38. 38. Internal Capabilities<br /><ul><li> Foster a dependency on Internet technology, eg. online booking, online checking (flight status, promotions).
  39. 39. Investment in the AirAsia Academy.
  40. 40. Dynamic environment between employees.
  41. 41. No communication barriers between employers and employees, friendly.
  42. 42. “Employees before customers”.
  43. 43. Aggressive marketing tactics, massive advertising, promotional packages etc
  44. 44. Employees motivation- rewards free flights for their staff.
  45. 45. Offer customers the ticketless concept.
  46. 46. Low operating cost- wages, airport fees, short ground waits due to simple boarding processes.
  47. 47. Keeping cost low- uses one type of aircraft, Airbus.</li></li></ul><li>Welcome to Air Asia Internet Homepage!<br />
  48. 48. AirAsia Electronic Ticket Ordering Process<br />
  49. 49. External Capabilities<br /><ul><li> Partnerships- with Vietnam-Malaysia cooperation forming VietJetAirAsia.
  50. 50. Strong branding strategy: AT&T Williams F1 team, Manchester United, Asean Basketball League (ABL), EPL Referees, Oakland Raiders, NFL, The Amazing Race Asia, Monsoon Cup 2006, etc.
  51. 51. First landing of Air Asia X greeted by Prince Andrew from Kuala Lumpur to Standsted, London.
  52. 52. Linking with Virgin Airlines- landing right in overseas.
  53. 53. Look for suppliers with good quality on certain prices, build long-term relationship.
  54. 54. Airports have low cost terminal hub.
  55. 55. 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
  56. 56. Cost can be cut by 50%
  57. 57. Small inventories ( cube-square rule, power of purchasing)
  58. 58. 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, 2009 <br />
  59. 59.
  60. 60. 2- Synergy between the AA management and the employees <br /><ul><li> Management support and motivate employees to work and creativity
  61. 61. 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 ….
  62. 62. Airport tax </li></ul>Air, 2009 <br />
  63. 63. 5- Frequent, Reliable schedules<br />
  64. 64. 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
  65. 65. No first class </li></ul>8- No Fuel Surcharges Policy<br /><ul><li> despite hike in oil prices.
  66. 66. Fuel surcharge of RM20 will only be made if oil price is $100 per barrel</li></li></ul><li>Air, 2009 <br />
  67. 67. 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, 2009 <br />
  68. 68. Too much to know? Stay Tuned… We will be back!<br />Video link.<br />
  69. 69. Financial Performance<br />(Annual Report 2009)<br /><ul><li>Operating profit margin at 29.1%
  70. 70. Strong deposits, cash and bank balances of RM746 million
  71. 71. Despite a economic downturn period, AirAsia revenue for the year </li></ul>jumped 9.71% to RM3.1 billion and recorded a profit of RM506 million. <br />
  72. 72.
  73. 73.
  74. 74. (Air Asia Press Release Q3 2010)<br /><ul><li>Revenue: RM988 Million (34% growth year-on-year from RM740 million)
  75. 75. Profit after Tax: RM327 million
  76. 76. Had been described as outstanding performance
  77. 77. Looking forward to 2011</li></ul> -> driving down the costs<br /> -> raising the yields<br /> -> increase productivity<br /> -> expand the route network<br />
  78. 78.
  79. 79.
  80. 80. BIG SALE: 1,000,000 seats up for grab now!<br />
  81. 81. Air Asia RM1 Promotion<br />
  82. 82. Special Day Promotions <br />Passport of love – Fly with your loved ones this Valentine’s<br />
  83. 83. 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 />
  84. 84. ~ Problems with the long distance walk between the airplane stop and the terminal entrance.<br /> ~ Problems with crowded seating<br />
  85. 85. Recommendations:<br /><ul><li> Failure of internet system
  86. 86. Leverage competency in creating cost advantage across multiple value chain.
  87. 87. Emphasis on more effective safety & security to avoid accidents. (Eg. demonstrations and procedures for passengers, avoid crash landings)
  88. 88. Punctuality should be their main concern especially AA wants to penetrate into the business travelers market.
  89. 89. Arrangement of seating should be organized. </li></li></ul><li>In summary,<br />Video link.<br />
  90. 90. Thank You!<br />NOW EVERYONE CAN FLY<br />