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Management Information System
1. AIR AISA: Saving On Operational
Costs Through Effective
Information System
Submitted By:
Asna Anna James
Serena Sangeeth
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6. Summary:
Air Asia India is a leading Indo-Malasiya low cost airline launched in 1996. Air Asia
India is currently operating in 7 destinations.
Air Asia’s success can be traced from the time when Tim Fernades purchased and
became the CEO of the company.
CONCEPT: No-frills, hassle free, low cost airline
Implementation Strategy of Low cost carrier.
First, amended the basic facilities provided to the passengers without compromising the
passenger safety.
Second, reduced the operational expenses of the company.
7. Methods used to save the operational cost using information system:
1. Yield Management System
2. Customer Reservation System
3. Operators Management Software
8. Q1. What role does technology play in Air Asia’s success. Assess the contribution of the
systems described in the case study.
Technology played vital role in the success of Air Asia. Some of the instance are:
1.Yield Management System
Ticketing and Routes are two of the most important aspect of the airlines business. It helps sell tickets at the
most appropriate price and optimally manage the routes. This helped the company reap maximum profit from
tickets and also motivate passengers to book in advance. It helped to know the occupancy status of flights. It
has enabled the company to figure out the routes on which the demand is high.
2.Customer Reservation System
It discontinued the conventional system of booking tickets through travel agents, thereby reducing the
airlines’s total expenses by 11 to 15 percent by implementing its own customer reservation system. It also
helped on saving the cost of printing paper tickets, since the system provided the customer with option to print
tickets at their end, hence reducing operation expense by 40 to 45 percent.
9. 3. Operators Management Software
By implementing an airline operators management software, Merlot.aero, to forecast,
organize and report on the airline activities allowed to manage crew requirements easily.
