Globalization brings a lot of chances for companies to expand its operation to capture more benefit, however, it also bring many challenges such as more competitors. Airline industry is an industry which has captured a lot of benefit from globalization, and AIRASIA is one of the most successful companies in the air industry. AIRASIA was founded by a government owned organization DRB-Hicom in 1993 and started operation on 18 November. However, it was not successful and fallen in heavily-indebted until the end of 2001 when AIRASIA was purchased by Tune Air Sdn Bhd for the token sum of one ringgit. With promotional fares low as RM1 (US $0.27), AIRASIA has turned profit in 2002, and since that time it became an award winning and the largest low cost carrier in Asia . With the mission statement:
* To be the best company to work for whereby employees are treated as part of a big family. * Create a globally recognized ASIAN 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 .
And the suitable business-level strategies such as maximize shareholder’s value, safety, focus on customer’s need, operational excellent and management transparency, AIRASIA is more and more success in the airline industry. To maximize shareholder’s profit, AIRASIA has expanded its business reach within Asia by started it subsidiary in Thailand and launched international flight to Vietnam, Indonesia, Macao, China, Philippines, Cambodia. However, low cost does not mean poor safety, so safety is one of most importance strategies of AIRASIA. Airline does not the same as other transportation such as car, when airline accident happen it usually more serious than other transportation accident, and the customer will not want to use the airline company which own poor safety. So to attract customers, AIRASIA must make them feel safe when use its services. To do that, AIRASIA never compromise safety, so it complies with every regulations, maintain the airplanes with highest International Aviation Safety standard and practices. To do that, all airplanes machines of AIRASIA are taken care by GE engine service . AIRASIA also ensure the security o staff and guests. To do that, it has provided many training courses for employees included pilots, and to ensure the security for guests AIRASIA has pay more attention in check in process to avoid terrorists. Focus on customer’s need is another main business strategy of AIRASIA, it has stimulated the demand by offer the lowest fares. AIRASIA offers various choices to customers such as they can choose to avoid meals and drink to save money, frequent flyer miles or airport lounges in exchange, so it helps customers save money up to 80% to compare with the same convenience offer by other airline company. It also comprehensive distribution channel to make the cost lower, to do that, it provided many way for customers booking the ticket such as through internet, mobile phone booking, it also offers various ways for customers to pay the fares such as by credit card and it is using the electronic ticket to reduces cost . AIRASIA also focuses on the operational excellence, in fact, it treats all staff as contributors, so the staff will feel that they are working in a big family and they will work with the highest responsibility. AIRASIA also consisted of no ranks or hierarchy, so it will treat employees equally. More than that, it is pursuing the cost management and the performance based on the remunerations and incentives, so employees will try to work more effective and more efficient to get a higher salary and rewards. Last strategy AIRASIA applies is management transparency, it made the policy to transparency in decision making, so it can select the best idea to make decision. AIRASIA also provide the disclosure-higher than...
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