Air Asia Business Strategy

Yee Mon Phu
Member of Management Team
Business Strategy

Air Asia
 Revenue: 4Q 12 USD 1.62 Billion
 Number of employees: 8,000+
 HQ location: Kuala Lumpur, Malaysia
 Ownership: Listed on the Malaysian stock exchange
 Year founded: 2001
 The company grew from two planes in 2002 to a feet of 120 aircraft fying 30 million people

Vision
“To be the largest low cost airline in Asia and serving 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 fy with
Air Asia
• Maintain the highest quality product, embracing technology to reduce cost and enhance service levels

COPORATE OBJECTIVE
• Leanest cost structure
• Maximize shareholders value
• Safety
• Passion for Guests’ satisfaction
• Transparency
• Human Capital Development

KEY STRATEGIES
• Safety first
• High aircraft utilization
• Low fare, no frills
• Streamline operations
• Lean distribution system • Point to point network

Subsidiaries
• Indonesia Air Asia
• Air Asia Japan
• Thai Air Asia
• Air Asia X
• Air Asia Philippines
• Air Asia India

Destination Map

• 142 routes to 78 destinations
(Over 400 daily fights covering
Indonesia, Malaysia and Thailand).
• International routes:
• Australia
•Over 400 daily fights covering: Indonesia
• Brunei, Cambodia
• Malaysia and Thailand
• People's Republic of China
• India, Nepal
• Japan
• Laos, Philippines, Myanmar
• South Korea, Singapore
• Sri Lanka, Taiwan, Vietnam.

FLEET
Fleet size 120 (+355 orders)

Competitors
•

Air China (CA)

• Tiger Air (TA)
• Bangkok Airways (PG)
• China Southern Airlines (CZ)

• China Airlines (CI)

• Jetstar Airlines (3K)
• Vietnam Airlines (VN)
• Air India (AI)

• Indian Airlines Limited (IC)

• Malaysian Airlines (MH)

• Myanmar Airways International (8M)

COMPETITIVE ADVANTAGE
Low-Cost Differentiation