Industrial-Organizational Psychology Trend: Employee Health, Well-Being, Wellness and Safety Case Study about AirAsia - Introduction - Describe - Understand - Predict - Suggestion / Control - Conclusion

1. Trend:
Employee Health,
Well-Being,
Wellness and Safety
AirAsia
Case Study

2. PART 01 Introduction
PART 02 Describe
PART 03 Understand
PART 04 Predict
PART 05 Suggestion/Control
PART 06 Conclusion

3. 01 Introduction

4. Introduction
• Since the foundation of AirAsia, it has been providing
everyone with affordable price of dreaming to fly around the
world.
• AirAsia, a low-cost yet the largest airline in Malaysia, was
established in 2007.
• Located in Sepang, Selangor, Malaysia, its main hub is
KLIA2, at Kuala Lumpur International Airport (KLIA).

5. Introduction
• The airline offers services with domestic and international
flights throughout the Asia-Pacific and Middle East.
• It operates on routes to more than 165 destinations covering
25 countries.
• Together with its affiliates in India, Indonesia, Japan,
Thailand and the Philippines, AirAsia has become the largest
low-cost carrier in Asia.

6. Introduction
• AirAsia was chosen mostly in 2008 where the costs are
kept low with online sales and stripped-down service.
• Consequently, AirAsia has earned RM241.72 million on
RM1.05 billion revenue.
• AirAsia has been recognized as the best low-cost carrier
of the world for 11 years in a row in the international
travel and airline awards, together with the latest award
for 2019.

7. Introduction
• The airline started a joint venture with financial services firm
Tune Money to open a frequent-flyer programme called
“BigPay”, “AirAsia Platinum Credit Card” and “AirAsia Gold
Credit Card”.
• This programme provides loyalty points to AirAsia customers
and third-party merchants.
• Collected points can be used to redeem for the AirAsia
customers’ flights.

8. 02 Describe

9. Describe
• Before the Covid-19 crisis in 2020, AirAsia is expecting 360
more aircraft in 2026.
• Earlier, two hundred Airbus A320 NEOs were ordered at the
Paris Air Show.
• The deal costed US$18 billion with a considerable discount.
• In 2012, another 100 Airbus A320 jets were ordered.

10. Describe
• At the Farnborough International Air Show 2016, one
hundred A321 NEOs were ordered (US$12.6 Billion).
• These larger aircraft were planned to fly to airports with
infrastructure constraints.
• A total of 935 aircraft for the Airbus A320 family were
ordered as the biggest airline customer in the aviation
industry.

11. Describe
• Unfortunately, AirAsia and other budget flights were blamed
causing all airplanes were not allowed to fly.
• The air travel was marked as a primary cause for spreading
the Covid-19 crisis in January 2020.
• Many infected people and deaths were reported in the news
from March to May 2020.

12. Describe
• Over 250 staff had been reduced, including cabin crew
members, pilots and engineers.
• The remaining might have salary cut as bonuses and
incentives were abolished.
• Being the future of Asia’s biggest budget airline, this is the
greatest challenge for being in significant doubt in the airline
industry.

13. 03 Understand

14. Understand
• Due to the spread of Covid-19, everyone has been
physically and emotionally affected.
• Burnout occur among staff in this industry due to fear of
getting infected with this virus and stress of losing existing
occupational position as well as insufficient wages due to
paycut.
• Due to that, economic stimulus package is expected to be
implemented to aid this industry.

15. 04 Predict

16. Predict
• Due to the rapid spread of Covid-19, safety precautions has
been prioritized to curb the spread of this disease.
• Lockdown has been implemented to restrict any form of
social interaction which involves travelling.
• It would be difficult to generate income during the era of
pandemic as the flight numbers and passengers dropped
since the start of the lockdown.

17. Predict
• People in this industry are affected mentally and physically.
• Employees here do not sufficient financial support due to
travel restrictions.
• This deteriorates their mental wellness which would lead
them to succumb unpleasant emotions such as anxiety,
depression and stress.

18. Predict
• The employees would fear of losing source of income and at
the same time having concerns for their health.
• Could suffer from mental illness in a form of depression,
anxiety and stress due to overwhelming pressure on them.
• Jeopardizes daily activities as they would not have the
capability to apprehend those unpleasant emotions.

19. 05 Suggestion/
Control

20. Suggestion/Control
• Cognitive Theory is applied here to study the negative impact of
Covid-19 before proceeding to take necessary steps that should be
taken to recover traveling industry’s or Air Asia’s economy crisis.
• Since Cognitive theory is the study of thoughts and processes
within individuals, this should be utilize to evaluate people in this
industry’s emotions due to Covid-19.
• Tourism Crisis and Recovery Strategies (TCDM) to apprehend the
damage caused by the pandemic.

21. Suggestion/Control
• First effective TCDM is not to overuse funds and only use it
when necessary.
• Second effective TCDM would be delegating tasks by
addressing any tasks or issues which requires to be
prioritize.
• Third effective TCDM is providing equal transparent
information to public.

22. Suggestion/Control
• AirAsia has taken initiative to venture in other industries
which are currently high in demand which are food, shop,
delivery and grocery industries.
• Malaysia Airlines, on the other hand, has implemented
counselling sessions to employees in the effort of aiding
them in overcoming the stress in work as well as the fear of
Covid-19.

23. 06 Conclusion

24. Conclusion
• This study is to evaluate the overall impact of Covid-19
towards the flight industry, especially on AirAsia.
• This study will provide a better comprehension on how
affected the staffs are.
• This would aid AirAsia or any related agencies to implement
any required precautions to protect the well-being on
individuals moving forward.

25. Thank You!