Strategy Management Report on Airasia

Topics: Airline, Low-cost carrier, Southwest Airlines Pages: 10 (3085 words) Published: November 7, 2012
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:

AirAsia Values|
Vision| • 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.| 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 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 traveling easier.| Point to Point Network| Applying the point-to-point network keeps operation simple and lower costs.|

General Environment Analysis
Before we can proceed further in deciding whether investing in Air Asia is a good choice or not, we have to do a market analysis on the market condition of the airline industry. Our market industry is based on five main elements which are: 1. Legal

Like all industries in the market, the airline industry is also tied to certain legal policy of the government so as to ensure the safety and the consumer's rights. For the airline industry worldwide, the rules and regulation are set by the International Civil Aviation Organization and is revised from time to time. The rules and regulations are mostly about flight's safety measurements and also the management of safety during flight such as making the providence of first-aid kit compulsory on every aircraft in case anything happen during flight. Not only that, the air stewardess and air steward must have basic knowledge of first aid. 2. Politics

Politics play a major role in the performance of the airline company as well. Any political policy that is to the airline company's disadvantage will affect the performance and annual profit of the airline. For example, airline deregulation according to the Wikipedia encyclopedia is the process of removing entry and price restrictions on airlines affecting the carriers permitted to serve specific routes. Before deregulation happened, the airline company has to abide by the instructions of the government concerning the routes and the choice of which airports to land on and depart from. Whereas after deregulation, the airline company has the freedom to choose any routes that they want and whichever airports that they want to stopover at. There are pros...
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