The value chain analysis is used to evaluate the value of each particular functional
activity that is added to the organisation’s products or services as seen in Diagram 1
This involves all areas of receiving, storing of inputs when producing outputs. So
far, AirAsia only operates on a single type of aircraft, the Boeing 737-300. Based on a
report published by Aero Connections in 2004, that particular model was the best selling
commercial jet of all times due to its efficiency and cost effectiveness. AirAsia also has
1382 employees and they received proper on-the-job training workshops so that they can
perform multiple roles effectively within a simple and flat organisation structure.
It processes inputs to provide valuable products/services. AirAsia has always been
stringent about standards and procedures. AirAsia is aware that maintaining its passenger
safety is of paramount importance – as indicated in the surveys in the United States and
Japan. Based on the company’s 2003 annual report, AirAsia had joined ventures with GE
Engine Services for a business alliance that allows the latter to be in charge of
maintaining all AirAsia’s aircraft engines in the next five years. AirAsia had also
managed to achieve good operating benchmarks in terms of flights on time and baggage
handling where in 2004, the company registered 88% and 99.9% respectively.
This involves delivering products/services into a distribution channel or to the
final destination. As of late 2005, AirAsia operated 32 Boeing 737 aircraft that run over
60 routes across Southeast Asian regional network. Not only that, its aircraft interiors are
also outfitted with signature red carpeting and plush leather seats to enable its guests to
travel comfortably. In addition, it was also reported in prominent journals and magazines
such as ABJ and AWM that many customers felt that AirAsia’s cabin... [continues]
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