AirAsia was founded in 1993 in Kuala Lumpur, Malaysia and began operations in 1996. In 2001, Tony Fernandes purchased AirAsia and successfully turned the company around, posting its first profit in 2002. AirAsia aims to be the largest low-cost airline in Asia, serving the billions of people with poor connectivity and high fares. It follows a low-cost business model using strategies like high aircraft utilization, low fares with no frills, and point-to-point networks to keep costs low. Information technology helps AirAsia reduce costs through systems like its website, reservation system, yield management system and ERP system.

3. • based in Kuala Lumpur, Malaysia
• originally founded in 1993 and began operations
in November 1996 by the government-owned
conglomerate DRB-Hicom
• in December 2001, Tony Fernandes was
purchased AirAsia which in the heavily-indebted
through his company Tune Air Sdn Bhd.
• Fernandes successfully hailed business circle by a
remarkable turnaround and making first profit in
2002.

4. 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.

5. • To be the best company to work for
whereby employees are treated as part of
a big family
• Create a globally recognized ASEAN brand
• To attain the lowest cost so that everyone
can fly with AirAsia
• Maintain the highest quality product,
embracing technology to reduce cost and
enhance service levels

6. AirAsia make the low fare model possible through the implementation of
the following key strategies,
• Safety First • Streamline Operations
Partnering with the world’s most Making sure that processes are as
renowned maintenance providers and simple as possible.
complying with the with world airline • Lean Distribution System
operations.
Offering a wide and innovative range of
• High Aircraft Utilization distribution channels to make booking
Implementing the regions fastest and travelling easier.
turnaround time at only 25 minutes, • Point to Point Network
assuring lower costs and higher
Applying the point-to-point network
productivity.
keeps operations simple and costs low.
• Low Fare, No Frills
Providing guests with the choice of
customizing services without
compromising on quality and services.

7. The characters of the low cost carrier (LCC) business model that AirAsia follows in the
airline industry shown as below :

11. • Information technology has led fundamental changes
in the application of technology in business.
• helps to reduce the operation cost and cut down
unnecessary needs.

12. • Akamai Technology
helps AirAsia to provide a premium online experience to their
customers with the improvement of site speed and performance.
This system very significant to support AirAsia ever expanding fleet
and route network.
• Computer Reservation System (CRS)
An integrated web-enabled reservation and inventory system
observed by Navitaire’s Open Skies technology that includes
Internet, call center, overbooking management, flexible inventory
booking capability, customer information retained and generates
confirmation numbers on all reservation.
• Yield Management System (YMS)
By using this system as revenue management system, the operating
costs and aids will be considered. It helps to allocate capacity and
optimize prices to maximize expected revenues by seat and route.

13. • Enterprise Resource Planning System (ERP)
Helps to integrate business process, reduce financial month-end
closing processing time, speeds up reporting and data retrieval
process. It increase efficiency and integrity and also saves
operational costs.
• E-Commerce
AirAsia provides, everything become easy and more comfortable, it
can be used for anything that the customer wants such as searching
for airline flights, entering his billing information and signing up
for an e-mail confirmation in anywhere as long as customers have
an internet.

14. • hosted by Navitaire Open Skies helps AirAsia track customers
booking and their schedule flight activities with real time, on
demand reporting feature by centralized customer data.
• integrates with the already implemented Yield Management System
(YMS), thus the systems can be used in unison for pricing and
revenue maximization (by providing information on bookings,
schedules etc) and driving down the costs of operation at the same
time. AirAsia could offer a good price to customers by reducing the
costs.

16. • how to achieve to be a lowest carrier in the
world in Airplane industry.
- the most successful carriers came to
dominate their hub markets allowing them to
exert greater control over pricing and capacity.
- the very small price is needed for continued
and greater access to the world’s most
prospective air travel markets. AirAsia needs
to offer the lowest possible fare.

17. • facing internet treat in order to survive in
cyberspace.
- consumers don't need to pay anything by
booking flights through travel agents. (This is
because the airline pays the agent a fee for
booking the consumer on one of its flights.)
- but CRS provides direct service to customer,
which means there are no middleman (travel
agents). This will charge customers directly by
using this system.

18. • Increasing competition because of increasing number
of low cost airline competitors, and aggressive
• Competition against the large or traditional airline
companies
• Customer decrease because of poor economy
• Rising of the fuel prices
• Higher labor cost
• Inadequate infrastructure
• Route and flight utilization
• Safety and security issues of aircraft crash or being
attacked

19. Customer Relationship Management (CRM)
• that AirAsia can focus to achieve high values to both
shareholders and customers
• AirAsia need to find other alternative in managing
customer relationships and suppliers or partners to
optimize customer loyalty, supplier relationships, and
revenue in order to gain market share and sustain its
competitive advantages to be the low cost carrier in the
high demanding environment.

21. • Customer segmentation
mileage-based segmentation is inadequate, rather should focused on
value-based and needs-based approaches can guide investment decisions
and drive greater insight into the needs of high value customers
• CRM initiative development
to differentiate from other competitors, AirAsia should not adopt the
“fast follower” approach to CRM initiative development. AirAsia should
implement CRM program in favour of investing in initiatives with a high
return, which respond to the needs and desires of their own customers.
• Organizational design and management
AirAsia needs to train the employees, empowering them with a complete
view of the customer and clearly articulating the employee’s role in the
CRM strategy.

23. • Cost Savings • Customer Satisfaction and
Technology makes it easier to Loyalty
reach customers, to sell to them Good CRM tools make it easier
and to service them. CRM tools for customers to do business
also produce cost savings by with an organization through
boosting employees’ flexibility of self-service, ability
productivity. to get what they need faster or
receiving target information
• Increased Profits that is immediately useful.
Highly satisfied customers tend
Profits are the ultimate test and to buy more, cost less to
a consequence of both the cost service, less price-sensitive and
savings and the increased are happy to spread the word
customer loyalty. about the organization.

24. • Increased Internal
Accountability • Better Business Intelligence
By assigning and tracking tasks, means that an organization can
the CRM tools makes it possible get to know its customers better
for everyone in the so that it can adapt the
organization to follow the flow products, marketing strategies
of requests, to analyze and support levels accordingly.
adherence to SLAs (service-level CRM tools with better built-in
agreements) and to note any analytics can really take
delays or errors. advantage and exploit customer
data.
• Employee Satisfaction
Good tools are essential to
promote employees
satisfaction. They tend to stay
and reduce costly turnover and
are likely to be more productive.