1) The document discusses green service management practices at AirAsia airline, with a focus on identifying rationales for pursuing green services, current green practices, and challenges faced.
2) It investigates AirAsia's green activities like paperless ticketing, reusable packaging, and onboard waste segregation. Challenges include cultural attitudes, management costs, and developing green infrastructure.
3) Strategies to overcome challenges include staff training to improve green knowledge, focusing on eco-profitability, and facilitating transformative initiatives through policies, suppliers, and teams. The research aims to develop a green service protocol for airlines.
1. GREEN SERVICE MANAGEMENT IN HIGH TECH
SERVICE INDUSTRY: A CASE STUDY AT AIRASIA
AIRLINE
By
Muhammad Azfar Abdullah (PhD), Boon Cheong Chew (PhD)
and Syaiful Rizal Abdul Hamid (PhD)
2. Service sectors contributed
68.4% of total GDP.
How?
Lean Concept:
Cost, Quality, Flexibility
Issues:
a)Lean Service is critical since respect for people and
employment engagement have to be considered.
b)Climate change is effects on human and nature
c)Require a strategy that incorporates environment sustainability
d)Industrial activities towards environmental pollution
e)Changing the attitude of customers, employees, suppliers, and
stakeholders
Motivation research on
Green Service
Management
Targeted to improve 2%
until reach year 2020
(IATA, 2015)
Airlines should encourage pursuing
green initiatives and strive to improve
their environmental footprint
3. 1) Majority of the carbon emissionscarbon emissions are from transportationare from transportation
sectors which road transport contributed 76% whereas
aviation is 12%. Therefore, EU was proposed greenhousegreenhouse
gas (GHG) emissions trading schemegas (GHG) emissions trading scheme in December 2006
to reduce GHG emissions produced by airlines.
2) Airlines should encourage pursuing green initiativespursuing green initiatives and
strive to improve their environmental footprint.
3) To date, there is limited researchlimited research area about green services
in airlines industry and in any operations.
4) Since airline industry is a cross-border business, the
compliance to global green and sustainability standards on
air transport must strictly comply.strictly comply.
4. 1) To identify the rationales for AirAsia company to
pursue green services from developed country to
Malaysia.
2) To investigate the current green service practices in
the AirAsia.
3) To identify the green services challenges in AirAsia.
4) To examine the strategies of AirAsia to overcome the
green service challenges.
5) To develop a green service protocol for an airline
industry.
5. Service Strategy: develop, designing and setting action plan to
achieve strategy.
Service Design: design and development of services processes
to meet the requirements.
Service Transition: ensure the new/modified service design is
appropriate into the operation environment.
Service Operation: ensure, support and deliver service value
to the customers.
Continuous Service Improvement: building and sustaining
competitive advantage among service sectors.
Service Research Framework
Emphasize on Service innovation must fit in into service
management by offering new or improved services to create
value for customers, employees, business owners, alliance
partners and communities.
6. How the research study was conducted?
SocialResearch
Mixed
method
Qualitative
Quantitative
1) Interview
2) Observation
3) Document Analysis
Survey Questionnaire
Research
strategy
Methodological
Choice
Methods
Data Collection
Techniques
AirAsia & Malaysia Airport Holdings Berhad
Green
Service
Management
7. A total of 20 respondents from AirAsia A total of 10 respondents from MAHB
9. Objective 1: To identify the rationales for AirAsia company to pursue green services from developed
country to Malaysia.
10. Objective 1: To identify the rationales for AirAsia company to pursue green services from developed
country to Malaysia.
11. Objective 1: To identify the rationales for AirAsia company to pursue green services from developed
country to Malaysia.
12. Objective 2: To investigate the current green service practices in the AirAsia.
1) Paperless
2)Reduce carbon emission on transportation
3) Reduce food waste on-board
4) Reusable food packaging
Reduce energy consumption
1) Extra charges on extra baggage weight.
2) Recyclable self-baggage tag.
3) Paperless on baggage tag print.
Reduce energy consumption
Allocate integrated recycle bin
1) Recycling activities by cabin crew.
2) Separate the waste into (non)recyclable
waste.
3) Use certified paper in magazines and
menus.
13. Objective 2: To investigate the current green service practices in the AirAsia.
14. Objective 2: To investigate the current green service practices in the AirAsia.
15. Objective 2: To investigate the current green service practices in the AirAsia.
16. Self – administered questionnaires
409 respondents
7 main green activities were examined:
ticket booking, check-in, baggage check-in, on-board services, aircraft operations, airport
facilities, and airline green image.
green practices show that it has
positive effect on the green airline
image
green practices from AA still
need to educate and bring
awareness to promote the green
conscious among the passengers
17. Items Detail Green Practices
Frequency (Percentage)
MeanStrongly
Disagree
Disagree Neutral Agree
Strongly
Agree
Ticket
Booking
1. Booking ticket online will reduce paper usage 1 (0.2%) 1 (0.2%) 61 (14.9%) 162 (39.6%) 184 (45.0%) 4.28
2. Offering pre-book meals to avoid food waste onboard 0 (0.0%) 3 (0.7%) 110 (26.9%) 160 (39.1%) 136 (33.3%) 4.05
3. Offer low fares to ensure every trip is full passengers 0 (0.0%) 1 (0.2%) 90 (22.0%) 166 (40.6%) 152 (37.2%) 4.15
Check-in
1. Mobile check-in will reduce paper usage for both customers
and management
5 (1.2%) 8 (2.0%) 17 (4.2%) 120 (29.3%) 259 (63.3%) 4.51
2. Mobile check-in technology can reduce energy consumption
at conventional counter
6 (1.5%) 6 (1.5%) 30 (7.3%) 136 (33.3%) 231 (56.5%) 4.42
Baggage
Check-in
1. Heavier baggage will increase aircraft weight and consume
more fuel
3 (0.7%) 3 (0.7%) 24 (5.9%) 178 (43.5%) 201 (49.1%) 4.39
2. Baggage tag can be reuse for another flight 0 (0.0%) 0 (0.0%) 18 (4.4%) 151 (36.9%) 240 (58.7%) 4.54
3. Pre-book baggage via online help to reduce energy
consumption and save cost
0 (0.0%) 6 (1.5%) 28 (6.8%) 185 (45.2%) 190 (46.5%) 4.37
On-board
Service
1. In-flight magazine, safety leaflet and menus will be recycle
back every month
3 (0.7%) 6 (1.5%) 58 (14.2%) 184 (45.0%) 158 (38.6%) 4.19
2. On-board wastage is segregate by cabin crew into recyclable
waste and non-recyclable waste
5 (1.2%) 15 (3.7%) 68 (16.6%) 146 (35.7%) 175 (42.8%) 4.15
3. AirAsia reducing waste onboard by not offering free food 54 (13.2%)
53
(13.0%)
90 (22.0%) 111 (27.1%) 101 (24.7%) 3.37
4. AirAsia servicing food by using recyclable plates and cups 5 (1.2%) 11 (2.7%) 41 (10.0%) 190 (46.5%) 162 (39.6%) 4.20
18. Aircraft
Operation
1. AirAsia directly fly to the destinations without transit to save fuel and
reduce CO2
emissions
14 (3.4%) 15 (3.7%) 82 (20.0%) 184 (40.1%) 134 (32.8%) 3.95
2. During landing to parking base require one engine to reduce amount of fuel
consumption
13 (3.2%) 14 (3.4%) 160 (39.1%) 133 (32.5%) 89 (22.8%) 3.66
3. The engine frequently wash to keep engine clean and maintain fuel
efficiency
1 (0.2%) 3 (0.7%) 113 (27.6%) 143 (35.0%) 149 (36.4%) 4.07
4. AirAsia using newer aircraft and new engine option for fuel efficiency and
reduce CO2
emissions
5 (1.2%) 9 (2.2%) 126 (30.8%) 149 (36.4%) 120 (29.3%) 3.90
5. AirAsia have initiative to use biofuel to reduce CO2
emissions 5 (1.2%) 7 (1.7%) 143 (35.0%) 144 (35.2%) 110 (26.9%) 3.85
Airport
Facilities
1. Recycle bin is provided at waiting area to segregate the waste 7 (1.7%) 33 (8.1%) 69 (16.9%) 156 (38.1%) 144 (35.2%) 3.97
2. Glazing window give natural light and save energy 5 (1.2%) 10 (2.4%) 63 (15.4%) 195 (47.7%) 136 (33.3%) 4.09
3. Skylights in the terminal serves as an alternative light source and reduce
the use of electricity during the day
1 (0.2%) 14 (3.4 %) 46 (11.2%) 193 (47.2%) 155 (37.9%) 4.19
4. LED lights contain no toxic material and energy efficient 2 (0.5%) 8 (2.0%) 68 (16.6%) 185 (45.2%) 146 (35.7%) 4.14
5. Food waste from the kitchen will be recycle to become fertilizer 4 (1.0%) 16 (3.9%) 89 (21.8%) 150 (36.7%) 150 (36.7%) 4.04
6. Rainwater harvesting is collected to be used for flushing toilets and
watering the landscape
3 (0.7%) 12 (2.9%) 90 (22.0%) 152 (37.2%) 152 (37.2%) 4.07
7. Electric vehicles in airport able to reduce CO2
emissions 3 (0.7%) 8 (2.0%) 74 (18.1%) 165 (40.3%) 159 (38.9%) 4.15
8. Unused equipment will be turned off automatically to save energy 2 (0.5%) 5 (1.2%) 59 (14.4%) 167 (40.8%) 176 (43.0%) 4.25
9. Environmental policy exposed in the airport aims to raise green awareness 3 (0.7%) 6 (1.5%) 61 (14.9%) 166 (40.6%) 173 (42.3%) 4.22
Airline
Image
1. I have always had a good impression of AirAsia airline 10 (2.4%) 24 (5.9%) 110 (26.9%) 184 (45.0%) 81 (19.8%) 3.74
2. I believe that AirAsia has a better green image than its competitors 9 (2.2%) 36 (8.8%) 145 (35.5%) 154 (37.7%) 65 (15.9%) 3.56
3. In my opinion, AirAsia has a good green image in the minds of passengers 10 (2.4%) 40 (9.8%) 156 (38.1%) 147 (35.9%) 56 (13.7%) 3.49
4. AirAsia has positive attitude towards the environment 3 (0.7%) 23 (5.6%) 135 (33.0%) 174 (42.5%) 74 (18.1%) 3.72
5. Green policies often appear to increase environmental awareness 7 (1.7%) 23 (5.6%) 102 (24.9%) 181 (44.3%) 96 (23.5%) 3.82
19. Objective 3: To identify the green services challenges in AirAsia.
Challenges Findings Discussions
1) Cultural challenge
The local culture is not familiar with the green
concept. (less green awareness)
Both companies have to educate people on green
awareness to create green behaviour
2) Management
challenge
Selection of green material & green supplier is
the barriers to pursue green service. Other than
that, cost is the biggest challenges.
The assessment and evaluation from the
management towards the green service was
significantly meet the industrial practitioner
perspective.
3) Infrastructure
challenge
AA was struggling to improve and enhance the
green infrastructure whereas MAHB already
equipped with green infrastructure to maintain
and sustain the environmental sustainability.
The durability of the infrastructure cause to
pursue green infrastructure. In addition, the high
cost of green infrastructure is the biggest
challenge too.
4) Technological
challenge
Developing skills and knowledge of the
employees in order to handle the new
technology
The lack of knowledge on green technology is
the barrier for both companies
5) Policy challenge
The green practices should be grounded on the
green policies in order to standardize to all
management levels.
The industrial practitioners have the same view
with the academic scholar to adopt green policies
a standard towards the environmental
sustainability.
20. Objective 3: To examine the strategies of AirAsia to overcome the green service challenges.
Strategy Findings Discussions
1) Developing
staff holistically
Most of the interviewees are believed that
through green training and green awareness
would enhance in employees’ values and beliefs
upon the climate change issues.
Through green training and green awareness will
improve green behaviour, knowledge and experiences
on handling the green technology.
2) Ingrained
eco-profitability
consciousness
Most of the interviewees understood that to
pursue green technology required high
investment cost.
the green service require high cost structure and at the
same time it is depend on intelligent solution and
creative innovation to reduce cost and environmental
pollution.
3) Facilitate
decisions and
transformative
initiatives
Majority of the respondents are agreed that the
management should make decisions on
transformation initiatives to provide green
service in the marketplace
There are four green initiatives which are shared
value, green policies, green supplier and green team
are the antecedents to promote green service culture
within the firm and forming green behaviour among
the employees.
21. 1) Service innovation and environmental sustainability should be embedded in
service management because of climate change issue and in order to
enhance customer experience
2) Service execution is the process that focus on marketing and customer-
oriented programs to affect the sale. It is involve customer involvement to
improve the quality of the entire service delivery and enhance customer
experience
3) Lean service practices is a catalyst to green service in order to improve
economy perspective and company profitability through the efficient use of
resources and the reduction of redundant and unnecessary materials.
4) Green service emphasize on environmental benefit that why generally in
any kind of service management could be further enhance and innovated
with the appropriate and relevant advance technology.
5) Green service management refer to the entire of service process from green
input (green supplier) until green output (recycling centre) that guided by
green policies, developing green attitude and organizing green behaviour
supported by green technology and green infrastructures in forming green
corporate image of the firm.
22. Process Flow Technology / Item Description Airline
1.Ticket Booking
Online booking Purchase ticket flight via online AirAsia
Pre-order Meals Book meal through online AirAsia
2.Check-in
Mobile Boarding Pass Generate barcode from the mobile app AirAsia
Google glass
Update passengers on their latest flight information,
weather and local events at their destination and translate
any foreign language information.
Virgin Atlantic
Roaming Agent
Mobile agents (airline staff scan the passengers ticket
barcode)
Air France, EasyJet, America
Airline
Smartwatch Boarding Pass
Check-in through smart watch
(iPhone watch & Samsung Gear 2)
Air Berlin & Iberia
3.Baggage Check-
in
Self Baggage check-in Automatic Baggage Drop AirAsia
Self Baggage Tag Slip in the printed barcode into baggage tag AirAsia
Electronic Baggage Tag
Automatically generate new barcode based on booking
details
British Airways
4.Security Check Body & item scanning Detect prohibited items into the aircarft Malaysia Airport
5.Immigration E-immigration Automated passport inspection Malaysia Airport
6.Waiting Area
Integrated Recycle Bin Segregate the waste Malaysia Airport
Water Bottle Refill Station Refill water into passengers bottle San Francisco Airport
23. Process Flow Technology / Item Description Airline
7.On-board
service
Onboard Smartphone
provide latest passenger information, purchase of food
and beverages in-flight
Delta Airline
On-board picnic service Reusable food box brought by passengers Purchase at Heathrow Airport
E-book & E-magazine electronic version of in-flight magazines Lufthansa & Singapore Airline
Green Makeover environmental-friendly leather and recyclable carpet Southwest Airline
On-board recycling Segregate waste on-board
Lufthansa, Emirates, British
Airways & AirAsia
Lightweight trolley New design of trolley with 35% more lightweight Lufthansa
8.Immigration E-immigration Automated passport inspection Malaysia Airport
9.Baggage claim eTag & eTrack
Electronic baggage label tracked by a Smartphone will
be updated within 5 seconds
Air France
10.Custom Baggage Inspection Scanned the baggage before allowed to destinations Malaysia Airport
11.Leaving
Terminal
Recycle
Recycling newspaper, polystyrene meal boxes, plastics
and cans at recycling machine
Frankfurt Airport
Green Gate Green project marketing on display panels Frankfurt Airport
24. Institutional
Factors
the allocation of resources, green technology, organizational structure, market evaluation and
personnel development are the fundamental criteria in the institutional factor to analyze for green
service performance.
Process
Factors
Emphasize on quality assessments, frequent training and technology diffusion were the factors to
create a unique interaction between employees and customers. Thus, the highly skill workers are
created to make the service process goes smoothly and improve customer perceptions.
Result
Factors
investing in green material and green technology might turn into the long-term business
sustainability. Furthermore, designing new service concept and new service offerings bring high
potential in the marketplace to stay competitive and sustainable.
Current green practices from gate to gate (airline travel process, internal operations, aircraft operations &
ground operations) - Qualitative
green practices show that it has positive effect on the green airline image. - Quantitative
5 green service challenges are identified (Cultural, Management, Infrastructure, Technology & Policy)
3 green service strategies (Developing staff holistically, Ingrained eco-profitability consciousness, facilitate
decisions and transformative initiatives)
Proposed new green service protocol for airline to become green airline
25. Muhammad Azfar Bin Abdullah
Email: muhmmd.azfar@gmail.com
Linkedin:
https://www.linkedin.com/in/azfarabdullah
Primary research interest:
(a)Service Technology Management
(b)Green & Sustainability practices
(c)Quality Management
Boon Cheong Chew
Email: bcchew@utem.edu.my
Linkedin:
https://www.linedin.com/in/bcchew
Primary research interest:
(a)Renewable energy development &
deployment
(b)Clean technologies innovation &
implementation
(c)Green & sustainability practices
(d)Human technology innovation &
introduction