Case Study of Air-Asia : Strategic Role of Information System in Business
Air Asia is established on 12 December 2001 by Mr. Tony Fernandes, the CEO of Air Asia and expanding rapidly since that. Air Asia is the leading low fare airline in Asia and Air Asia succeed to become the award winning, ‘Asia Pacific Airlines of the year 2003’ by Centre for Air Pacific Aviation (CAPA) in 2003. Air Asia has successfully positioned itself in customers’ mind by using the “ Now Everyone Can Fly” slogan. Air Asia had flown over 55 million guests across the region and continually create more extensive route network through its associate companies. Air Asia flies over 61 domestics and international destinations with 108 routes and operates over 400 flights daily from hubs located in Malaysia, Indonesia, and Thailand with a fleet of 72 aircrafts. Air Asia’s net profit for the second quarter ending 31 December 2004 was reported RM44.4 million, a 323% increase over the previous quarter (Air Asia 2005). The vision of Air Asia is to serve the 3 billion people who are currently underserved with poor connectivity and high fare and to be the largest low cost airlines in Asia. Their mission is to create a globally recognized ASEAN brand, to attain the lowest cost so that everyone can fly with Air Asia, to be the best company to work for as employees are treated as part of a big family, and to maintain the highest quality product, embracing technology to reduce cost and enhance service levels.
Roles of information system in Airline Business
Air Asia’s business strategy is centered on cost leadership§ and targets specific markets which are price sensitive customers (including 1st time fliers) who needing the short haul flights. According to Porter’s generic strategies§ (1985), cost leadership§ is one of them. Air Asia has to offer the lowest possible fare amongst all airlines in LCC (Low Cost Carrier) industry whom compete on costs in order to win the competition in current...
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