Contemporary Developments in Business and Management

Topics: Low-cost carrier, Airline, Malaysia Airlines Pages: 15 (4322 words) Published: December 13, 2012
Contemporary Developments in Business and Management
1.0 Executive Summary

This report is about the growth of a Malaysian brand low cost carrier - AirAsia Berhad on how they started this business and bring a huge change in the low cost carrier history globally. This report will discuss on how AirAsia business structure is, what is their culture and the expectation to maintain as well as get into the right track of tough time in airline services. The concept of low cost air travel was then new in Malaysia and how does they turned a loss to profit just in seven years?

2.0 Organization Overview
AirAsia is the world most leading low cost carrier airline now as their name had earned a lot of recognition worldwide because consumer as their TOP priority with the tagline of "Now Everyone Can Fly", AirAsia has made flying affordable for more than 61million guest. AirAsia started their business in year 2001 with only MYR1.00 with the partnership with Tune Air Sdn Bhd and AirAsia was remodeled into a low cost carrier by January 2002 where their mission is to make air travel much more affordable for Malaysians took flight.

Valued at MYR2.3 billion, AirAsia is today award winning and the largest low cost carrier in Asia. From a two aircraft operation of Boeing 737-300, AirAsia currently boasts a fleet of 78 aircraft that flies to over 60 domestic and international destinations. The airline has carried, thus far, over 61 million guests since its first day of operation. Low fares is AirAsia's philosophy where it has sparked a revolution in travel as more and more people from all walks of life are now able to fly for the first time. AirAsia's success has taken flight through the continued confidence of our guests who prefer a no frills, hasselfree, low fare and convenient option in air travel. 

AirAsia Berhad Annual Report 2008, pp.4-5

2.1 AirAsia's Mission

To maintain the good result of being the largest low cost airline in Asia serving the 3 billion people who currently are underserved with poor connectivity and high fares, AirAsia has tried very hard to do it's best to:-

1. Be the best company to work for where employees are treated as part of a big famil 2. Create a globally recognized ASEAN brand
3. Strive for the lowest cost so that all of the 3 billion people can fly with AirAsia 4. Maintain the highest quality product using the best technology to reduce cost and enhance service level 5. Develop human capital to capitalize on opportunities for further growth 6. Diversifying the customer base to strengthen market position

2.2 AirAsia's Organizational Chart / Structure
Last updated October 2007

3.0 SWOT Analysis
Strengths: Attributes of the person or company that are helpful to achieving the objective.

Weakness: Attributes of the person or company that are harmful to achieving the objective

Opportunities: External conditions that are helpful to achieving to objective Threats: External conditions which could do damage to the objective 

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3.1 Impact of Internal Influences
3.1.1 Strength Low Fare

AirAsia is known well as the most affordable airline to fly with because of their low fare. It has been their company goal which is to continue to be the lowest cost airline in the world and achieve sustainable profitable growth over the long term. This is strategy that to maintain a solid, long term customer relationship, efficient management of operations in order to grow the business. From time to time, AirAsia offers the cheapest and lowest fare promotions for everyone to fly with them.                     Branding
Branding is the image of one company and for AirAsia it has always been an excellent attention grabber for its RED advertisement everywhere. It gives positive reaction for people to put interest in their brand...

AirAsia Annual Report Year 2007 & 2008
Fred R. David (2007), Strategic Management Concepts and Cases, pp.182
Contemporary Developments in Business and Management (Version 5.0), University of Sunderland BA (Honours) Business Management, pp.270
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