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Airasia Research

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Introduction (256) Air Asia is the world low fares airlines and had won the Skytrax World's best low-cost airline award in 2009, 2010 and 2011. Air Asia group operates scheduled domestic and international flights to over 400 destinations spanning 25 countries. The co-founder of Air Asia is Tan Sri Anthony Francis Fernandes or also known as Tony Fernandes. Tony bought 2 boeing airplanes 9M-AAA and 9M-AAB for around RM40 million after Mahathir advised him to buy it due to the plane is making debt for them. Tony dares to do so because he believes that Malaysian traveler will be attracted with the low fares airline according to the economic tight. In fact, he can clear all the debt within his periodic time and it was all out of the people prediction that he can do that. Air Asia now became famous with the slogan of “Now everyone can fly”.
Although Air Asia is famous because of its price, but there are also a few problems occur at the management system such as delay problem, facilities problem and also the customer services problem. On this assignment, we try to give suggestions on how Air Asia should deal with these problems based on the management system. Management system is very important for a company because it can determine whether the company can achieve their goal on time or not. Besides that, customer will more concern on the quality that they get in order to decide for their next trip. Hence, they should solve the problems to compete with its competitors.
Causes (163) Although Air Asia is the world low fares airlines, but we can see that too many complain from Air Asia customers about their problem like flight delayed problem. Flight delayed usually caused by machines problems, weather problems, aircraft arriving late, and not sufficient plane.
Usually, machines problem occur because the flight staff did not check the plane machines carefully before they take off. Hence, when they detect the problems and it end up by flight delay because they need to solve the machines problem. In addition, weather problems it the one that we cannot control because it can result the pilot meet with difficulty when take off and landed. Aircraft arrive late also one of the cause because according to the law, the plane need to wait if there are any aircraft arriving late. Besides that, Air Asia also did not have sufficient plane so if one of the plane did not function well, they need to wait while the staff fixing it.
Cases (133) Based on the Ms.Yosi cases, she experience delay when she go back to Jakarta from Padang and the delay period is about 2-4 hours. She very disappointed because when she asked the crew, they just simply answer her that the delay is caused by waiting flight from particular destination. She felt that low fare means low service to customer. In addition, based on Mr.Frank experience, his flight delay for more than 2 hours and the delay problem is detected earlier but he did not get any notification like SMS or email. When he go to the counter and ask for the reason, the staff told him that they had sent SMS or email to all passenger but the reality is Mr.Frank did not receive it and it caused his late for his meeting.

Effects (175) These problems will affect the costumer trust to the company because it will end by the customer will not make the next trip with Air Asia because of their bad experience. Passenger loyalty is very important for a company because customers are their biggest income. Besides, if the costumers get their satisfaction, they also will share to people around them. For example, when they get the very cheap ticket from Air Asia, they will share with others and it surely will increase the sales. It also happens if Air Asia keep with these problems, this issue will spread and it also will pull down the Air Asia shares and customers satisfaction too. In addition, Air Asia is using the low cost, high demand strategic so they must rely to the customer demand. So, they should treat their customer nicely for their trust and loyalty to make profit and stay compete with their competitors. Hence, they must do something effective for solving their problem and prove that low cost also can provide a high class quality.

Solutions (498) To deal with this problem, Air Asia should be stricter to their staff which had been responsibility to check the plane condition before or after take off. It is important to check the plane machines carefully because beside caused the delay problem, it also will caused customer safety problem. Besides that, Air Asia should provide on-time guarantee. Air Asia had it as one of their services, but we need to pay extra money to guarantee us that the flight will not delay longer than 2 hours. In fact, not every passenger is willing to buy the on-time insurance because most of them will think that is wasting their money. Air Asia also should provide passenger a free hotel to stay and also for their meal as Air Asia had their own hotel called Tune Hotels if the delay is overnight. Air Asia also can give passenger who experience delay for too long an extra compensation like giving them money rebate voucher for their next trip. This action is to make passenger feel that Air Asia is really regret for the delay and trying to compensate them. The management of Air Asia also should be improved because it is important to solve the delay problem too. Air Asia should know how to manage the air traffic control system and make it more professional. They must arrange flight schedule wisely and they must make a gap between the first planes to the next plane so that the aircraft arriving late can be avoided. Management staff also must have a professional communication with the pilot and also with the different airport if the bad weather occurs so they can plan where to land and it will avoid the actual airport to keep waiting for the plane. The other important section is Air Asia management should tell their passenger what actually caused the delayed because they have the right to know it. Air Asia always did not confirm the passenger clearly and it caused them to wait without knowing reason and how long they need to wait. Besides, Air Asia should inform passenger if there is any delay for their flight through SMS or email if the delay problem is detect earlier so that passenger with important purpose can know earlier and they can plan for their time.
Besides that, Air Asia should provide more planes to prevent delayed caused by aircraft arriving late. It is just so normal that we hear the delayed because waiting for the other flight and this reason is mostly unacceptable by customers. On the other hand, lack of planes will result to another problem like canceling flight for suddenly and they just simply inform the passenger who had bought the ticket for that journey and give back their credit to buy another flight. In addition, if there is mechanical problem Air Asia can straight use the different plane but not to wait until the problem is fixed because it will caused delay for the others route.

My references: http://en.wikipedia.org/wiki/Tony_Fernandes http://blog.airasia.com/index.php/fly-with-air-asia-indonesia-which-is-del http://airasiareviews.blogspot.com/2009/03/air-asia-flight-delay-problems.html

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