has more capacity, more efficient fuel-consume and cost-efficient. d) By utilizing homogeneous aircrafts, the company is able to save human resources cost and reduce spare part stocks. These strategies have brought Air Asia as the lowest-cost airline in the world, with a cost/ASK (available seat kilometer) of US3.67. This great achievement was achieved without compromising safety. Air Asia’s highest priority is safety of all the operations. To keep the aircraft in best condition Air Asia partnered
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Asia uses MIS to runc this LCC business model. So, what is MIS? MIS is the useful information to support management in an organization so that we get what we want. And MIS tool in Air Asia is the Air Asia booking system. In the competition in the airline business, booking system is the advantage for Air Asia. “The early you book the tickets, the cheaper it will be.” This early booking promotion kills two birds with one stone. It gives customers opportunity for cost savings and encourages a lof of
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software Positive Positive Low / Medium low Economic Global Financial Crisis exploded in 2008. The world economic recovery is still facing uncertainties. Negative Medium Market Declining trend in terms of older-style, full-service airline demands. Customers are more price-sensitive. Negative Medium The Asian market is really growing compared with the stagnant markets in North America and Europe. Positive Medium Politics Asia is not at a stage in terms of a common single market and
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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
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and the dominant powers of existing large players create high chances of retaliation. Rivalries: Medium to High Qantas observes sever competition from Virgin Australia domestically and a number of low cost airlines internationally such as China Southern Airline and Malaysia airline. Qantas must always revitalize its product offerings
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adjust to the best business strategy. The heavy competition is also taking place in airlines industry. There are increasing number of new carriers with new business model which has changed the competition pattern in the airlines industry. O’Connel and Williams (2005) said that direct competition between full service airlines and no-frills carriers is intensifying across the world. The old business model of most airlines business focused on the full service, while the new business model focuses on using
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networks to the long-haul business. AirAsia X's cost efficiencies are derived from maintaining a simple aircraft fleet and a route network based on low-cost airports, without complex code-sharing and other legacy overheads that weigh down traditional airlines without compromising on safety. Guests continue to enjoy low fares, through cost savings that we pass on to our guests. AirAsia X's efficient and reliable operations are fully licensed and monitored by Malaysian and international regulators, and
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Transformation Plan (BTP 2) Disclaimer This Business Transformation Plan (BTP 2) document is issued to staff and external stakeholders with the following disclaimer in line with Bursa Malaysia guidelines: 1. These headline Key Performance Indicators (KPIs) in the BTP 2 are targets/aspirations set by Malaysia Airlines to reflect transparent performance management practices. To all intents and purposes, financial figures referred to as ‘forecasts’ and ‘estimates’ in the BTP 2 are KPIs. 2. These KPIs
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Introduction: Management Control System: Methods of collecting information that are used to guide and direct the behavior of staff members and management in order to achieve a company's goals are Management control systems briefly. A management control system may use a variety of techniques to evaluate various areas to improve performance and productivity. Some areas addressed by management control systems may include accounting methods, employee incentive programs and performance measurement
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business in the region. In the threat part of the analysis is concerned with identifying parts of the Air Asia that might affect its business performance. In recent years a whole class of low cost carriers such as Singapore’s Tiger Airways and other airline carrier coming into the market. PESTLE analysis is to conduct an environment analysis in the context of Air Asia international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted
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