Air Asia Assignment

Topics: Airline, Low-cost carrier, AirAsia Pages: 7 (2048 words) Published: September 6, 2011
Air Asia
1.Objective and scope
This paper will analyze the internal and external environment of Air Asia and will look into how it uses Management Information System ( MIS ), specifically its online reservation system to gain competitive advantage. And also discuss why and how important is MIS to Air Asia in running its business. 2.The Important of MIS

Low Cost Carriers (LCC) business model is based on no frills service. This means that cost savings is a critical success factor in their operations. Air Asia is no different. And Aie Asia uses MIS to runc this LCC business model. So, what is MIS? MIS is the useful information to support management in an organization so that we get what we want. And MIS tool in Air Asia is the Air Asia booking system. In the competition in the airline business, booking system is the advantage for Air Asia. “The early you book the tickets, the cheaper it will be.” This early booking promotion kills two birds with one stone. It gives customers opportunity for cost savings and encourages a lof of people to plan their trips early and at the same time, Air Asia can confirm a full plane as early as possible so that they have more time to fill the seats if it is not full yet. Air Asia was established in 1993 and commenced operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes' company Tune Air Sdn Bhd for the token sum of one ringgit (about $USD0.40 at the time). This was after great deliberation as the initial offer was fifty cent. Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US$0.27).

B. Body
PEST analysis is also known as external environment analysis. PEST Analysis is the Political, Economic, Social culture and Technology analysis that a company does to determine the overall business environment. A PEST analysis is a look at the external environment of a company or a business that plays an important role in managing and decision making of a company. It is crucial for a company to consider its environment before relating with the public or customers. The PEST analysis examines the impact of each of the factor on the company. •P = Political factors that may influence the business in the long term. Political Analysis mainly states about the aviation acts and regulation which needed by aviation company such as Air Asia to operate their business. The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Political stability is inessential to create a safe economy market that enables the market to grow. Political issues may cause problems in the outcome of the company. Some of the political factors that may affect a company are events that affect the operation of the company; therefore regarding an aviation company such as Air Asia political events will affect the result of the company. Event such as political uncertainty in Thailand on 25 November 2008; when anti-government protesters recently blocked flights for a week in Bangkok's main airport. This issues affects Air Asia's political analysis's because Air Asia as just newly opened franchises in Thailand Air Asia X which begun operating 2 November 2007. Another political issue that came abroad was the 2002 Bali bombings that occurred on 12 October 2002 in the tourist district of Indonesia. The attack was the worst terrorist attack in Indonesia approximately 202 died. This affected the whole flight aviation around South East Asia due to political pressure and death of tourist. Due to this mayhem Air Asia had to make security measure to secure the security of...

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