E-Commerce Strategies for Airasia

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AIR ASIA E-COMMERCE STRATEGIES

Low cost per average seat kilometer

AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.

Low distribution cost

AirAsia focus on Internet bookings and ticketless travel allowed it to lower the distribution cost.

Attractive ticket price

With the average fare being 40-60% lower than its full-service competitor, AirAsia has been able to achieve strong market stimulation in the domestic Malaysia air market (Thomas 2003). For instance, the fare for the trip from Kuala Lumpur to Penang on AirAsia starts from 39 ringgit. Comparing to trip by bus charge 40 ringgit and 80 ringgit by car. The effect of attractive low fare is more travelers switching from bus to air, similar case as Ryanair in Europe.

Good Management Team

AirAsia value proposition is more sophisticated than Ryanair placing equal emphasis on brand reputation and customer service/people management, by a senior advisor to AirAsia’s top management team. AirAsia pursue a Ryanair operational strategy, Southwest people strategy and an EsyJet branding stategy.

AirAsia is the best organizations among others s because of their :-

Xpress Boarding
AirAsia practices a free seating policy. This policy has enabled them to consistently achieve a turnaround time of 25 minutes for all of their flights. They now offer, as an option, the choice of seats through Xpress Boarding. Xpress boarding allows guests to board on aircraft first, and choose a seat of their liking-be it a window seat, asle seat, front of aircraft or next to the lavatory. This service has proven to be exceptionally popular for time hungry business people, corporate employees on business trips, and families travelling together.

Web Check-in
For a seamless, quick and convenient check-in, We
B Check-in was introduced to enable those travelling without luggage. Guess may simply check-in via thewebpage from the comfort of their homes of office, print out their boarding pass and proceed to the airport at their leisure.

Self Check-in Kiosk
Self Check-in also available. Their fiery red kiosks are located at the LCC Terminal, KLIA to enable a self check-in with a touch of the screen.

E-Gift Voucher
The E-Gift Voucher is an innovative gift for all occasions as well as being a much-appreciated to corporate gift for its high-perceived value. Since its launch, the E-Gift Voucher has proven itself to be a popular choice for those who want to present imaginative gifts.

MALAYSIA AIRLINES E-COMMERCE STRATEGIES

E-Freight Program

The e-Freight Partnership Program of MASkargo is a strategic e-commerce framework that aims to develop a paperless environment that will enable collaboration among various key players of the logistic industry to adopt electronic channels as the way of transacting business processes with each other.

MASkargo Pioneers the Use of the FPX System

MASkargo was recently recognized as one of the early adopters for Malaysia's first real time online inter-bank Internet payment gateway, Financial Process Exchange (FPX). FPX, a national project, facilitates online payments for e-commerce transactions in particular B2B and B2C (business to business and business to consumer) transactions on a secure and multi-bank platform.

E-Commerce

E-Commerce encompasses all business operations and transactions based on communication via the electronic media. The major activity includes

e-Bookings

e-Tracking

e-Schedules

e-Air Waybill Stock Distribution

e-Air Waybill Submission

e-Invoicing & Payment

Malaysia Airlines’ needs Malaysia Airlines, having...
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