CLIENT: ASIA AIRLINES
BSBADV510A – CREATE MASS ELETRONIC MEDIA ADVERTISING
Marcio Della Serra Gallo
AirAsia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of 72 aircrafts, AirAsia 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, AirAsia has flown over 55 million guests across the region and continues to create more extensive route network through its associate companies. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport.
AirAsia creates values through the following vision and mission:
“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.”
“ 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 AirAsia • Maintain the highest quality product, embracing technology to reduce cost and enhance service levels.
AirAsia makes the low fare model possible and create values through the implementation of the following key strategies:
AirAsia Key Strategies
Safety First Partnering with the world’s most renowned maintenance providers and complying with the world airline operations.
High Aircraft Utilization Implementing the regions fastest turnaround time at only 25 minutes, assuring lower costs and higher productivity.
Low Fare, No Frills Providing guests with the choice of customizing services without compromising on quality and services.
Streamline Operations Making sure that processes are as simple as possible.
Lean Distribution System Offering a wide and innovative range of distribution channels to make booking and travelling easier.
Point to Point Network Applying the point-to-point network keeps operation simple and lower costs.
LOW COST CARRIER (LCC) BUSINESS MODEL
The low cost airlines like AirAsia have changed the definition of airlines that air travel is a luxury and it is only for the upper segment of the population. The key objective of low cost carriers is to increase their reach and provide the services to a large segment. However, the low cost carriers are now facing some challenges in the market.
AirAsia follows the Low-Cost-Carrier (LCC) business model in the airline industry, which can be characterized as below: Low Cost Carrier (LCC) Business Model
• Catering on demand for extra payment
• Planes with narrow seating and only a single class
• No seat assignment
• No frequent flyer programmes
• Non-business passengers, especially leisure traffic and price-conscious business passengers. • Short-haul point to point traffic with high frequencies • Aggressive marketing
• Secondary airports
• Competition with all transport carriers
Low Operating Costs
• Low wages
• Low airport fees
• Low costs for maintenance, cockpit training and standby crews due to homogeneous fleet • High resource productivity • Short ground waits due to simple boarding processes
• No air freight, no hub services, short cleaning times, and high percentage of online sales
Asia Airlines Products
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