Air Asia Strategic Mgt Plan (Smp)

Topics: AirAsia, Low-cost carrier, Airline Pages: 15 (4134 words) Published: September 8, 2010
It has been a great pride in the history of AirAsia that despite the challenges that they have faced, AirAsia continues to defy the odds. Since December 8, 2001, when the company was taken over by the new Air Asia management, AirAsia has grown to become the largest low-cost carrier in Asia. Today the airlines are operating in Malaysia, Thailand and Indonesia. With more than 6,000 talented, hardworking and committed employees and a market capitalization in excess of RM2billion, Air Asia has earned a reputation as a consistent performer no matter what the external environment. They have seen a future in which their success is not constrained by resources or opportunity.

Company Background
AirAsia is Malaysia’s second national airline was incorporated in 1993 as a full-service regional airline under DRB-Hicom. They started their operations on 1996. After starting their operations for few years, AirAsia failed to attract enough passengers to establish its own niche market. AirAsia was also facing problems such as the demise of Tan Sri Yahaya Ahmad and 1997-1998 Asian financial crisis. Due to 1997-1998 Asian financial crisis, AirAsia was heavily indebted. On 8 December 2001, music mogul Dato’ Seri Tony Fernandes decided to retire from music industry and purchased 99.25 per cent equity (51.68 million shares) in shares from DRB-Hicom via his company Tune Air Sdn. Bhd. with a token sum of one ringgit. Without looking back, Tony Fernandes transformed AirAsia as a low fare airline together with Conor McCarthy, the former Ryanair director of group operation. Known of its corporate tagline “Now everybody can fly”, AirAsia became the first successful low cost and ticket-less airline in the Southeast Asian region. AirAsia offers a simple service at fares lower than those offered by other full-service airlines. It was modelled on U.S.-based Southwest Airlines and Dublin-based Ryanair. AirAsia was established to create a new aviation product in Malaysia, revolutionize air travel, and grow the local aviation market by providing low fares so more people can fly. AirAsia now flies to over 60 destinations in Malaysia, Thailand, Indonesia, Singapore, China, Philippines, Brunei, Cambodia, Laos, Vietnam and Myanmar. It also formed 2 successful joint ventures in Thailand through Thai AirAsia, and Indonesia through Indonesia AirAsia, expanded its fleet from the two to twenty eight. To date the AirAsia group, has carried over 35 million guests.

AirAsia Group of Companies

Corporate Vision, Mission and 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 recognised 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 level| Values | * Safety FirstPartnering with the world’s most renowned maintenance providers and complying with the world airline operations * High Aircraft UtilisationImplementing the regions fastest turnaround time at only 25 minutes, assuring lower costs and higher productivity * Low Fare, No FrillsProviding guests with the choice of customising services without comprising on quality and services * Streamline OperationsMaking sure that processes are as simple as possible * Lean Distribution SystemOffering a wide and innovative range of distribution channels to make booking and travelling easier * Point to Point NetworkApplying the point to point network keeps operations simple and costs low|

Strengths| Weaknesses|
* Low cost operations i.e. offering “no frills” * Low cost per average seat kilometre (ASK) of 2.5 cents * Fewer management level, effective, focused and...

AirAsia Annual Report (2009)
The Air Asia Story –Revised Edition
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