...Executive summary Air Asia Airline is one of the companies that once facing a critical financial crisis situation within the organisation. However Air Asia has successfully overcome this problem and expand this nearly bankrupt organisation to become million valued company within a short period of time. Air Asia only used 4 years times to change from a heavily debt organisation and become a high profit company that earn a net profit of RM112 million during 2004 (Air Asia 2005). This has illustrate that Air Asia has undergo a radically change within the organisation. Hence this report will mainly discuss and analyze on what has been done and how was the changes has been done to Air Asia so that the company could manage these changes properly as well as creates positive profit in this financial report. Table of content |Executive Summary |1 | |Table of Content |2 | |1.0 Introduction |3 | |2.0 Company Background |3 | |3.0 Drivers of Change ...
Words: 3051 - Pages: 13
...brand is Air Asia……………………………………………………….3 3.1 Favorite brand and the reasons brand makes great………………………4 3.0 Bad brand is Rayani Air…………………………………………………………6 4.2 The reason why the brand are bad……………………………………….7 4.0 The major competitor of the favorite brand…………………………………..8 4.1 Malaysia Airlines (MAS) the major competitor of Air Asia………….....9 4.2 Competing brands in term of strategy marketing……………………….10 4.3 Difference between Air Asia and Malaysia Airlines (MAS)……………11 5.0 Conclusion………………………………………………………………………13 6.0 Reference………………………………………………………………………..14 1.0 Introduction The aim of this individual assignment of subjects BPMM3113 Brand Management is to make a bit of criticism in connection with the preferred brand and the brand also not favored. This task is also to evaluate the performance of a popular brand of airline Air Asia and also the favored brand of Air Rayani. For the main competition for Air Asia is Malaysia Airlines (MAS). The airline industry is a big industry, a large and rapidly growing nowadays. In those years ago, air travel has increased by 6% a year and scheduled airlines carry more than 1 billion passengers in 2008. In addition, in this study, both the company and the challenges will be discussed in more detail in this report. It will be discussed further in this study are the weaknesses, advantages and competitive strategy used in the aviation industry. MAS Airlines and Air Asia on profitability...
Words: 3029 - Pages: 13
...Company – Air Asia Air Asia vision: To become a biggest low cost airline in Asia & serving the three billion of people who are presently underserved with poor connectivity and high fares. A vision is virtually comprises thinking strategically about the direction of the company in the future. After an assessment has been made on Air Asia original vision statement, there are some suggestion and improvement that needed. The new vision can be revised as: ‘To spearhead airlines industry and become most famous low-cost airline that provides the great flying experience in Asia’. Based on the revise vision statement, it showed that the formed is still within its scope as Air Asia is highlighting that they wanted to be the biggest low-cost airline in Asia. When the company expands larger, the more people will know more about Air Asia. And this will improve the strong brand identity to the consumers. Apart from that, the new vision statement shows that Air Asia wants to provide the great flying experience to the consumer or passenger. Other than that, Air Asia also can take noted that as consumers nowadays are more concern about the services quality rather than the facilities for an Airlines company. A vision statement is important to direct a company to be surviving in the future. If a company have a unreliable vision statement, it might lead a company to the wrong direction. The vision that created by Air Asia are achieving the expectations for its business. At the same time, Air Asia...
Words: 2598 - Pages: 11
...AIR ASIA AIRLINES COMPANY COMPANY BACKGROUND Air Asia Berhad is an established in 1993 with commenced operations in 1996. In 2001, Tune Air Sdn Bhd Tony Fernandes’s company purchased this airline from DRB-Hicom. Air Asia never look back after that. Air Asia’s first and main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport, while its secondary hubs are at Kota Kinabalu International Airport, Senai International Airport and Penang International Airport. Air Asia is well known as Malaysian low cost airline and even Asia’s largest low fare, no frills airline. The airlines claims ‘No Admin Fee’, but has some fees for services which are free on other airlines. Air Asia slogan is ‘Now Everyone Can Fly’. Being the home of Air Asia, the LCCT is the budget terminal in KLIA, opened on 23 March 2006. LCCT is said to be carried about 10 million passengers a year. The Air Asia subsidiaries are the likes of Thai Air Asia, Indonesia Air Asia, Viet Jet Air Asia and Air Asia Red Tix. Meanwhile, Air Asia associate companies are Air Asia X, Tune Hotel and Tune Money. MISSION AND VISION OF AIR ASIA Vision 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. Mission 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 Air Asia ...
Words: 1571 - Pages: 7
...History. Air Asia was established in 1993 and the operations began in 1996. Air Asia had rather shaky start and the 1997-1998 financial crisis had futher worsen the situation for Air Asia to grow as a low cost carrier. During it dire stage, the company was taken over by Tune Air under the leadership of Dato Tony Fernandes with the help of Conor McCarthy, former Director of Group Operations, Ryanair. Based on Southwest Airlines and Ryanair’s business model, AirAsia offer “No frills” airlines with a catchy tagline of “Now Everybody Can Fly’’. Within 2 years Air Asia posted a net income of 18.8 million and broke the 100 million net income barriers in 2005. Since then nothing has stopped AirAsia from moving forward and setting milestones, notably the first Asian Airlines to go ticketless in 2002, first multi lingual Asian airlines website in 2003 and the world’s first airline to launch a mobile site. All these are aligned with Air Asia’s philosophy to make flying affordable, easy and convenient. Having flown 100 million’s guests Air Asia has been in the spotlights for all the rights reason, for aggressive marketing, for awards and achievements. Air Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, Air Asia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, Air Asia has flown...
Words: 4095 - Pages: 17
...Introduction Air Asia has successfully been xpositioned itself in the market as one of the leaders in the airline industry in Asia with its technical strategies. It has a route network that spans through over 20 countries and is one of the low cost aviation services in Asia. The Business level strategy adopted by air Asia is cost leadership strategy. To gain its market share they focused on specific markets like domestic services, short and long haul regional services and selling their products below the average industry prices. Air Asia adopted a number of actions to compete in the industry. It launches the values added services which are to provide ticketless travel and implement a free seating policy. In 2007 air-Asia became the first airline in Malaysia to offer internet checking services that allowed all the passengers to print their own boarding passes and pay extra money to board first. So, by doing this the passengers can choose their seats easily. In addition, they can also pre-book their checked baggage and meals. This paper describes Air Asia’s each xstrategies that maintain its effective control of low cost/focus business level strategy. Air Asia’s structure, cultures and systems that are used to create loyalty of the customers and satisfied them to lead the organisation to be profitable. SWOT analysis is conducted to focus aspects of Air Asia and business sector. It also evaluates the current business, future prospects and the economic climate. Porter's five force...
Words: 2816 - Pages: 12
...Assignment One Task (One) 1) Cost Leadership Strategy Definition Companies that choose a cost leadership strategy offer relatively standardized products with features or characteristics that are acceptable to customers. In other words, with a minimum level of differentiation and also at the lowest competitive price. This means that companies offer standardized to an industry’s typical customer. Customers receive value when a company successfully implements a cost leadership strategy. Companies that wish to be successful by following a cost leadership strategy must maintain constant efforts aimed at lowering their costs which relative to competitors cost and creating value for customers. Cost reduction strategies include: • Building an efficient scale facilities • Establishing tight control of production and overhead costs • Minimizing the costs of sales. Product research and development, and service. • Investing in state of the art manufacturing technologies. In simply, cost leadership strategy is a type of competitive strategy with which the organization aggressively seeks efficient facilities, cuts costs, and employs tight cost controls to be more efficient than competitors. Undercut competitors’ prices and still offer comparable quality and earn a reasonable profit. Successful strategy to defend against the five competitive forces. Such protected from powerful customers and suppliers, because customers cannot find lower prices elsewhere,...
Words: 4896 - Pages: 20
...Business and Law International Business Strategy Analysis Group Assignment (35%) INB70012 Global Business Strategy Semester 1, 2015 Strategy Analysis of AirAsia Convenor : Dr Aron Perenyi & Lecturer Students : Natalia Knets Emma Dalton Gautham Raju Markus Arian Shakoor (1704583) * Executive Summary * Content page Executive Summary II Content III Figures IV 1 Introduction 1 2 Mission, Vision and Core Values 1 3 External Environment Analysis 2 4 Internal Environment Analysis 4 5 Current Strategy Analysis 7 5.1 Corporate and International Strategy 7 5.2 Business Strategy 9 6 Strategy Fit 9 6.1 Financial Performance Analysis 9 6.2 SWOT Analysis 11 7 Strategy Recommendations 14 References 15 * Figures page Figure 1: Structure of AirAsia 8 Introduction AirAsia is a Malaysian low-cost carrier (LCC) and has been established in 1994 by DRB-Hicom. In 2001 Tony Fernandes took over the company and remains the CEO of the AirAsia Group. Fernandes turned the company from a small airline with two aircrafts operating to one destination with 250 staff (AirAsia 2015a) into the number one LCC operating in Asia. Today it operates on 132 routes, connecting 65 destinations in 18 countries with over 8,000 staff (AirAsia 2015b). The group services almost 12 million passengers per year with 171 aircrafts (AirAsia 2015c). This report provides a comprehensive strategy analysis of Air Asia. First the mission, vision and core...
Words: 4189 - Pages: 17
...CONTENTS Page No 1. Introduction 2 2. Company Background 3 3. Asset Management and Leverage 5 4. Classification of Ratios 6 5. Ratio Analysis of the Performance of Air Asia and Malaysian Airlines System for the year 2011 7 6. Conclusion 11 Bibliography/Reference 13 QUESTION: Select any two listed companies of Bursa Malaysia from the Trading/Services sector and evaluate the companies’ asset management and leverage ratios using their financial statements for the year 2011 ANSWER 1. INTRODUCTION Malaysian Airlines System (MAS) and Air Asia are currently the two main airlines operating in Malaysia. These two companies are competing in the airline industry which is fiercely competitive. This is a very large and continuously growing industry giving the industry players the opportunity for immense financial gains. The different categories in the airline industry usually comprise of: International Category which has airplanes with adequate seating capacity that makes it possible for passengers to travel to any destination in the world. The earnings in this category gross over a billion dollars. National Category which has a lesser seating capacity and the gross revenues are less than one billion dollars. Regional Category with planes that operate short-haul flights. Cargo Category which has planes transporting goods. The airline industry is characterized by its large...
Words: 2846 - Pages: 12
...Company Background and analysis of AirAsia This report conducts an analysis of AirAsia, the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom, a government owned- conglomerate. On 2 December 2001, the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of Southwest Airlines and proposed to start a Low-Cost Carrier but the government refused to issue a new license and requested Tony to buy an existing airline. Hence Tune Air set up by Tony and his investors bought Air Asia for a token sum of RM1. Before 2001. AirAsia failed to attract enough passengers from Malaysia Airline to establish its own stand in the market. The turning point for AirAsia was in 2001 subsequent to its purchase by Tony Fernandes. Tony Fernandes enrolled low-cost airline experts to restructure the business model of AirAsia. He invited Connor McCarthy, formerly the director of the group operation Ryanair, to join his executive team. In the late 2001, AirAsia airline was re-launched in Malaysia as trendy, no-frills operation with three B737 aircraft as a lowfare, low-cost domestic airline. AirAsia’s simple slogan “Now Everyone Can Fly” has won the heart of customer’s. AirAsia’s profit for the second quarter (i.e.,ending 31 december 2004) was reported RM 44.4 million, which is a 323 %...
Words: 3704 - Pages: 15
...Table of Content Contents Marketing Audit 2 External analysis 2 Macroenvironment 2 Microenvironment 5 Internal analysis 9 AirAsia Marketing Mix (4ps) 9 SWOT Analysis 11 Marketing Objectives 17 Marketing strategy 17 Action Programs 25 Financial Budgeting 26 Implementation Control 27 References 31 Marketing Audit External analysis * Macroenvironment Political Environment Government regulates Airline industry heavily as in other country. In Government regulations of the Malaysian domestic and international aviation industry significantly affect financial performance of Air Asia. All aspect of Air Asia’s domestic airline operations in Malaysia, including slots allocation granting of rights under Malaysia’s air service agreements (“ASAs”) and insurance of AOCs, are subject to regulation by DCA. Aviation activity is managed by the organization within the MOT called DCA. The objective of DCA is to ensure direct service provider operates the air transportation (aviation) system is always safe for passenger. The growth of the AirAsia’s strategy is obtained by increase the flight’s frequencies to the market that is currently serves and expanding market’s number that is serves. The growth strategy can be success depends on additional traffic right that is obtained to suitable airports located in targeted geographic markets of AirAsia. Ministry of Transport and Malaysia Airports (MAHB) decided to increase the airport tax by RM7 and RM14 with the approval...
Words: 10894 - Pages: 44
...STRATEGY PROCESS MODELS 1.0 STRATEGIC ANALYSIS Business Process And Operation Air Asia has fostered a dependency on Internet technology for its operational and strategic management, and provides an online ticket booking services to traveler online. The following shows the home page of Air Asia.com as the company key channel of marketing and sales. Exhibit 1 – Air Asia.com Home Page To book a flight with Air Asia, customers can either choose the following channels or simply visit the Air Asia.com home page and follow the below 5 steps. 1. Call centre 2. Sales office and airport sales counter 3. Authorized travel agents 4. Mobile booking via mobile.Air Asia.com or 5. Online (http://www.Air Asia.com) in 5 easy steps as shown below. Step 1 - Search Step 2 - Select Step 3 - Guest & Contact Step 4 - Payment Step 5 – Itinerary The Product Life Cycle (PLC) Air Asia, Airlines Company with 58 flight destination is in the growth phase position of Product Life Cycle (PLC) stage. The growth phase is when loyalty begins to be built up. Some products or services can be taken up by the customer base very quickly and achieve rapid growth. Sales of Air Asia Airlines grew tremendously in every country in which they were available. It is during the growth phase that the product will begin to recover its development and launch costs and slowly move through the break – even mark to begin to make a profit for the organization. During the growth stage of a new...
Words: 4373 - Pages: 18
...asia------------------------------------------------- the AirAsia Company strategic management: “ How AirAsia can be a leader in the lowest cost carrier in the airplane industry” August 31, 2009catatanraufmenduniaLeave a commentGo to comments 1.0 Introduction “Without a strategy the organization is like a ship without rudder, going around in circles”. (Joel Ross and Michael Kami) Nowadays, the competition among airplane industries is very tough. According to Daniel Chan (2000), with just about two years to go to the turn millennium, air wars over Asia are hotting up, with some of the world’s biggest airlines engaged in intense over Asian skies[1]. Each Of Airplanes Company in the world trying to conduct some strategies to compete with another competitor in their industry. A lot of airplane companies come out with different strategies to make their company better than their competitors. To compete with their competitor in the business environment, a company needs to make a strategy to achieve their long terms objective and can be successful for doing their business. Moreover, to be successful in their long terms objective and their business, company need to identify their strategic management, because with good strategic management company can be achieving their vision and mission to achieve the successfulness in their business. Regarding this issues, the strategic management becomes important due to the following reason such as globalization to survival their business, and...
Words: 6436 - Pages: 26
...1. INTRODUCTION OF PROJECT Information system is the study of complementary network of hardware and software that people and organizations use to collect, filter and process, create and distribute data. The system is many have in all organization or company in this world that act as a catalyst in managing their data perfectively. For this case, the company has chosen to identify what the system that they use in managing their information and data in their company. The company that has chosen is Air Asia Airlines. Air Asia has been successful low cost carrier in operating in Asia region for these past few years and IT is one the major enables for the Air Asia’s low cost business model. Every single primary activity is supported by specific information technologies, for example, utilization of Computer Reservation System (CRS) and Yield Management System (YMS) are critical in the aviation Industry. Besides that, without employing these systems, no airline including AirAsia can operate. In addition, all airlines in LCC industry compete on costs, AirAsia Airlines needs to offer the lowest possible fare in order to win the competition in lower the costs as possible as need. In the way they want to lower the cost regarding the others airlines agency also do the same thing in lower the cost, AirAsia Airlines must more cheaper and affordable. However, this AirAsia Airlines are situated in many place in Malaysia. AirAsia Airlines opened many branches in this country to make sure...
Words: 6387 - Pages: 26
... 3. Symbiosis, Charisma and Integrity 3 4. ORGANIZATIONAL STRATEGY 3 1. Safety First 3 2. High Aircraft Utilization 4 3. Low Cost 4 4. Streamline Operations 4 5. Lean Distribution System 4 6. Point to point network 4 7. Managing Stakeholder’s interests 5 5. ORGANIZATIONAL STRUCTURE 6 1. Centralization 6 2. Hierarchy level 6 3. Formalization 6 4. Departmentalization 7 6. ORGANIZATIONAL CULTURE 7 1. Open Communication, Break down hierarchy 7 2. Encourage people to pursue their passions 7 3. Work-hard, play-hard culture 8 4. Staff Welfare 8 7. RELATION BETWEEN STRATEGY, STRUCTURE AND CULTURE 8 8. CHALLENGES OF AIRASIA 9 9. CONCLUSION 9 10. REFERENCES 10 11. APPENDIX 10 1. Organizational Structure 10 2. Survey 10 1. INTRODUCTION Our group would like to study about successful organization to enhance our learning experience. We have discussed few topics and finally AirAsia was selected for our group project because AirAsia is one of the role model for Low Cost Carrier industries. We also conducted a survey on low cost airways (Appendix 1). Tony Fernandez is a great leader and he has unique strategy, his courage lead AirAsia as a one of the powerful organization. Tony...
Words: 3791 - Pages: 16
