Sunday, March 10, 2019

Airasia Essay

Introduction subscriber lineAsia origin every(prenominal)y was founded by political science and on 2 celestial latitude 2001 was bought byTonyFernandes. disseminateAsia was found in category 1993. AirAsia has motivity to a greater extent or less the earthandasc dismiss to become the realisms lift out in year 2001. AirAsia continues to spread out the way for moo- hail aviation through the innovation, effective and passionate approach to problemwith a route a web that expiration through over 20 countries. in that location be some companieswhich affiliate withAirAsia much(prenominal) as AirAsia X, Thai AirAsia, Philippines AirAsia Inc., AirAsiaJapan and Indonesia. In addition, for the vision part in AirAsia, AirAsia aims to be the largest low exist air lanein Asia and destiny the 3 billion pot who argon currently belowserved with poor connectivity and heights f ares. While for the mission of AirAsia, AirAsia wants to be the best air ductcompany to race whereby e mployees are tempered as part of the defective family. Besides, AirAsiatry to maintain the lowest hail hence everyone tin sewer fly with AirAsia. Highest case product,embracing technology to lower the court and improvement in service levels testament be maintained by the AirAsia skyway also. Lastly, create a glob every(prenominal)y recognized ASEAN brand allow be the mission part of AirAsia In the values part, AirAsia leave behind implement through the following key strategies which areSafetyLow fare, no frillsLean distribution system depute to point networkHigh aircraft utilizationStreamline operationThe homage programmed of AirAsia will be mountainous. BIG was known as the phase global programmed where privy earn BIG Points to redeem free airway business flight. Members can enjoythe preference booking, special offers and discount as an AirAsia BIG dedication outgrowth interm and condition apply. (AirAsia, 2013).a) NameAir Asia MalaysiaBranchAlor pencil leadLot 20 , Lapangan Terbang sultan Abdul Halim06200 Kepala Batas, Alor Star, KedahBintuluLot GL.14, Public Concourse, Terminal grammatical constructionBintulu airport 97000 Bintulu, SarawakKuala LumpurLCC Terminal, Jalan KLIA S3, Southern Support ZoneKuala Lumpur supranational aerodrome 64000 Sepang,Selangor Darul EhsanKota Bharu found Floor, Lapangan Terbang Sultan Ismail Petra16 coulomb Pengkalan Chepa, Kota Bharu, Kelantan Darul NaimKota KinabaluGround Floor, Terminal 2, Kota Kinabalu internationalist airdrome Old airdrome Road, Tanjung Aru 88100 Kota Kinabalu, SabahKuchingGround Floor,Kuching International aerodrome 93756 Kuching, SarawakKuala TerengganuLot No. 15 & 17, Terminal Building , Sultan Mahmud aerodrome21300 Kuala Terengganu, TerengganuLabuanLevel 1, Labuan Airport Terminal 87008 Wilayah Persekutuan, Labuan LangkawiLangkawi International Airport 07100 Padang Mat Sirat, Langkawi Miri1st Floor, Miri Airport 98000 Miri, SarawakPenangLot 3, Departure Concourse, Penang Interna tional Airport11900 Bayan Lepas, Pulau PinangSandakanLot 1 & 2, 1st Floor, Terminal Building, Sandakan Airport90719 Sandakan, SabahSibu1st Floor, principal(prenominal) Terminal Building, Sibu Airport 96000 Sibu, Sarawak TawauFL 4, 1st Floor, Tawau Airport Building, Jalan Apas-Balung91100 Tawau, SabahSenaiGL 13 Sultan Ismail Airport 81250 Johor Bahru, JohorContact+603 8775 4000600 85 8888 (AirAsia X Premium Line)Fo at a lower protrude BackgroundTONY FERNANDES classify Chief administrator OfficerTan Sri Dr. Tony Fernandes has a personal religious doctrine Believe the unbeliev fitting. Dream the impossible. Never take no for an answer. He study at Epsom College, UK, and the capital of the United Kingdom School of Economics and qualified as an bear on Member of the Association of Chartered Certified Accountants in 1991. He became a Fellow Member in 1996. He was admitted as a member of the design of Chartered Accountants in England and Wales (ICAEW) in 2008. Tony has been the Gr oup CEO of AirAsia since celestial latitude 2001. Prior to AirAsia, he was the Financial Controller of Virgin Communications London before joining Warner Music International London in 1989. He was bring forwardd to Managing Director, Warner Music Malaysia in 1992 and to Regional Managing Director, Warner Music South vitamin E Asia in 1996. In 1999, he became the Vice President of Warner Music South East Asia. Tonys many awards include Honor of the Commander of the Order of the British Empire, conferred by Her Majesty Queen Elizabeth II in 2011 for operate to promote commercial and educational links between the UK and Malaysia. In 2010, the French political relation had conferred on him the award of Officer of the Legion dHonneur, the tallest award that can be conferred on a non-French national. He was named as one of the homos 100 nearly-nigh creative people in business for 2011 by New York-based business magazine Fast guild, and awarded the Inaugural make a motion none Leaders show winner by CNBC.Dato Kamarudin MeranunDato Kamarudin is the co-fo on a lower floor of Tune Group. He is also the representative Group Chief Executive Director of AirAsia since declination 2001. Prior to joining Tune Group and AirAsia, Dato Kamarudin worked in Arab-Malaysian Merchant vernacular from 1988 to 1993 as a Portfolio Manager, managing twain institutional and high net-worth individual clients enthronement funds. In 1994, he was appointed Executive Director of Innosabah capital letterital instruction Sdn Bhd, a subsidiary of Innosabah Securities Sdn Bhd. He subsequently acquired the shares of its joint venture provide of Innosabah Capital Management Sdn Bhd, which was subsequently renamed Intrinsic Capital Management Sdn Bhd. Dato Kamarudin standard a Diploma in Actuarial Science from University Technology mara (UiTM) and was named the topper Actuarial Student by the Life Insurance Institute of Malaysia in 1983. He received a B.Sc. degree with Distincti on (Magna cum Laude) majoring in Finance in 1986, and an MBA in 1987 from Central Michigan University. annalsAirAsia was established in 1994 and began 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 bought by former(prenominal) Time Warner executive Tony Fernandes company Tune Air Sdn Bhd for the token affectionateness of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes dark the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting former monopoly operator Malaysia respiratory tracts with promotional fares as low as MYR 1 (US$0.27). In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru near capital of Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary, added Singapore itsel f to the destination list, and started flights to Indonesia. Flights to Macau began in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia. In heroic 2006, AirAsia took over Malaysia airliness Rural Air Service routes in Sabah and Sarawak, direct under the FlyAsianXpress brand. The routes were subsequently returned to MASwings a year later, citing commercial reasons.At the end of 2006, Fernandes unvei guide afive-year plan to throw out enhance AirAsias posture in Asia. Under the plan, AirAsia proposed strengthening and enhancing its route network by connecting all of its the existing destinations throughout the character and expanding further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India. done its sister companies, Thai AirAsia and Indonesia AirAsia, the plan called for a focus on ontogen y its hub in Bangkok and Jakarta. With growth frequency and the addition of new routes, AirAsia increased passenger volume to 13.9 million in its 2007 fiscal year. On 27 September 2008, the company announced 106 new routes to be added to its then-current list of 60. The minute of old routes discontinued has not been humanityly disclosed. In August 2011, AirAsia agree to form an bond paper with Malaysia respiratory tracts by means of a share swap. The alliance was struck down by the Malaysian government, in effect void the agreement of both airlines. By early 2013, AirAsia saw a horrid increase in its profitability. The year-over-year comparison had shown a 168% increase in meshwork versus the same period in 2012. For the quarter ending 31 December 2012, the airlines net profit stood at 350.65 million ringgit (US$114.08 million). disrespect a 1% rise in the average fuel price, the airline recorded profits of 1.88 billion ringgit for its full 2012 fiscal year. In February 201 3, AirAsia submitted an exertion to the Indian Foreign investment funds Promotion Board, through its investment arm, AirAsia Investment Limited, to seek approval for commencing its operations in India. AirAsia asked to take a 49% stake in the Indian sister airline, which was the maximum allowed by the Indian government at that time. Initially, AirAsia committed to invest up to US$50 million in the new airline. Operations would begin in Chennai, expanding its network throughout South India, where AirAsia already operates flightsGrowth1946 Air Asia as an airline of cargo transportation in Mainland China for the China National easiness and Rehabilitation administration which was commonly known as CNRRA. 19461954 the company was organize into Civil Air trance and Air Asia Company Limited which were both subsidiaries of Air America. 1955 Air Asia established in Taiwan and was the first MRO in Asia to obtain FAA License. 1987 Air Asias shares ofstock transferred by Mr. Bill Monkman, a major stockholder of Precision Air motive a U.S. flock specializing in various engines and components work in the aviation industry. 1994 Taiwan Aerospace smoke (TAC) acquired Air Asia and made it a subsidiary. Air Asia has been accumulating ample charge experiences and achieved the arduous(p) honor from many customers globally for its outstanding maintenance operation. 1996 Air Asia established the Vertical Flight Center which was the only one helicopter maintenance facility in Asia that obtained the authorization from Bell Helicopter. Air Asia also renowned the 50th Anniversary of its founding. 1998 Air Asia went public on the initial public offering (initial public offering) list. 2000 Air Asia carried out various expansion plans, upgraded facilities and established additional capabilities.Air Asia was also the first Taiwan aviation company to acquire the ISO 9001 International Quality Standard Organization Certifications.Air Asia proactively engaged in the MRO project s of Boeing B737 commercial aircraft. 2001 Air Asia constructed the New Wide Body Aircraft Maintenance Hangar. 2002 Air Asia acquired several OEMs Authorized Distributor Certifications including Boeing, Bell, Hawker Beechcraft, Rolls-Royce, MD Helicopters, Honeywell, BF Goodrich, Sikorsky, Allison and Raytheon. 2007 Air Asia obtained the repair range certification from Japan Civil strain Bureau (JCAB). Air Asia sign the long-term agreement with Japan skyways to provide heavy maintenance services for MD-80 Fleet. 2009 Air Asia obtained the repair station certification from Civil zephyr Administration of China (CAAC). 2010 Air Asia signed the long-term heavy maintenance sign up with Japan Transocean Air Co., Ltd. (JTA). 2012 Air Asia signed a 6-year fleet heavy maintenance contract & line operation service contract with Tway respiratory tracts. Air Asia signed the long-term agreement with Avanti Aviation club to provide maintenance services for CESSNA 208B Fleet.b)ObjectiveFir stly, to provide full-fledged training and tuition to AirAsia pilots, aircraft engineers, cabin crew and guest services staff. Secondly, to develop the academy as aviation training ground towards fulfilling AirAsias aspiration in fair a regional aviation training hub. Lastly, to serves as a broadcast to view as AirAsia All Stars on track with the current industrydevelopments and to integrated best practices into their operations.AimTo be the worlds best low cost airline in the world on a tenacious basis.VisionTo be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high faresMissionTo be the best company to work for whereby employees are covered as part of a big family Create a globally recognized ASEAN brandTo attain the lowest cost so that everyone can fly with AirAsia Maintain the highest tonicity product, embracing technology to reduce cost and enhance service levelsValuesSafety Adopting a zero tolerance to unsafe practices and strives for zero accidents through proper training, work practices, risk guidance and adherence to safety regulations at all times. Valuing our People Committing to our peoples development and well-organism and treating them with respect, dignity and fairness. Customer Focused We care and treat everyone in the same manner that we want to be treated fairness Practicing highest standards of ethical behaviour and demonstrate honesty in all our lines of work in order to command trust and mutual respect. Excellence in Performance Setting goals beyond the best and reinforcing high quality performance standards and achieving rectitude through implementing best practices.c) Organizational Structured) Past/ stupefy projectsi) Past projects that are being done by AirAsia group under AirAsiaRedTix, their entertainment based subsidiary. Most of the projects held are concertsand festivals that focus on attracting youth, peculiarly their staff who are known as AirAsiaAllstars. These are some of the events/projects held by AirAsia EntertainmentFuture Music Festival AsiaAirAsiaBloggers Community Annual ships companyAirAsia Annual Partyii) The owner of AirAsia, Tony Fernandes also took part in 2 high profile projects that involved his AirAsia brand such as the F1 lotus (now known as Caterham) team and the football team, Queens commons Rangers. AirAsia are well known as the main sponsor for each team. Tony Fernandess aim is to reach out to different set of group separate than blend inling junkies and frequent fliers.The Formula One projectQueens Park RangersPast awards/achievements family 2013 Worlds Leading Low terms Airline by World Travel mete outs 2013 Worlds trounce Low appeal Airlineby Skytrax stratum 2012 Worlds outgo Low Cost Airlineby Skytrax 2012 ATW Value Airline of the yrYear 2011 high hat Asian Low-Cost mail carrier By TTG Travel Awards 2011 Worlds beaver Low Cost Airline lift out Low Cost Airline Asiaby Skytra x beat out Company for Investor Relations Mid Cap outstrip Investor Relations Website Mid Cap by Malaysian Investor Relations Associations (MIRA) Asias Best Low Cost burden Carrier Award by Aviation Awards Asia 2011 Fastest Growing Foreign Airline for Cargo by Guangzhou Baiyun International Airport 2010 Asiamoneys Best Managed Company AwardYear 2010Masterclass spherical CEO of the Year awarded to YBhg. Dato Tony Fernandes Worlds Best Low Cost Airlineby SkytraxAirAsia voted the Air Cargo Industry Newcomer Award at the ACW World Air Cargo Awards 2010 by Air Cargo WeekYear 2009 Airline Of The Yearby core for Asia peaceful Aviation (CAPA) Tony received the 2009 Frost & Sullivan Excellence in lead Award by Frost & Sullivan Best Asian Low-Cost Carrierby TTG Travel Awards 2009 Worlds Best Low Cost Airlineby SkytraxYear 2008 The honorable Award for Best Commercial Airport Transport from Aviation Week Tony awarded the Malaysia Brand Icon Award from Deputy Prime government minister YAB Dato Seri NajibTunRazak at the Global Brand Forum MalaysiaAirAsia Malaysias 30 Most invaluable Brands 2008 By Malaysias Most Valuable Brands (MMVB) PIKOM ICT Organisation Excellence Award 2008 By Association of the computer and multimedia industry (PIKOM)AirAsia X Best New Airline Of The Year By Centre for Asia peaceable Aviation (CAPA) Best Asian Low-Cost Carrierby TTG Travel Awards 2008 crest CEO brand & 3rd Best Corporate Brand in Malaysiaby Pulse Group come Worlds Best New Airline (AirAsia X)by budgerygah World Low Cost Airline Awards 2008 Friends Of Thailand Award 2008by tourism Authority of Thailand Asia Pacifics give 1000 Brands 2008 Survey (AirAsia- Top 5 Airline) by Taylor Nelson Sofres Asias Best budget Airline under Best In Travel Poll 2008 by SmartTravelAsia.comAirAsia wins Airline scheme Award in the Finance Category by Airline BusinessAirAsia recognized as one of the 50 Most Innovative Companies In The World by Airline market place Penetra tion Leadership of the Yearby Frost & Sullivan Rising Leaders The Next 10 old ageby Singapore Institute of International Affairs (SIIA) in collaboration with AXN Asia Commendations of Prestige Award for outstanding contribution in Macau by Macau special(prenominal) Administrative RegionYear 2007 Airline Of The Year 2007 by Centre for Asia Pacific Aviation (CAPA) Asias Best Budget Airline under Best In Travel Poll 2007 by Airline humanity Capital Development Strategy Award by Frost & Sullivan Asias Best Emerging Companies with regards to Corporate Governance by The Asset Best Low Cost Airline in Asia by Skytrax The Brand Laureate 2006-07 for brand excellence in the Airlines-Low Cost Carrier CategoryYear 2006 Malaysias Ernst & Young Entrepreneur of the Year 2006 awarded to YBhg. Dato Tony Fernandes Low Cost Airline of the Year in KLIA Awards 2006 by Malaysia Airports Holdings Berhad Merit Award for CAPA Airline of the Year 2006 by Centre for Asia Pacific Aviati on (CAPA) Asias Best Budget Airline under Best In Travel 2006 by Best Managed Company, Best Corporate Governance, Best Investor Relations, and Most Committed to Strong Dividend insurance under The Annual Investor Poll by FinanceAsia.comYear 2005 The CAPA Aviation Executive of the Year 2005 awarded to YBhg. Dato Tony Fernandes Regional/ Low Cost Leadership Award in Airline Business Startegy Awards 2005 by Airline Business awarded to YBhg. Dato Tony Fernandes Airline Market Leadership Award by Air Transport World (ATW) Transport Company of Excellence Award by Ports World Sdn. Bhd Asias Top 200 Best Under A Billion Companies by Forbes Asia RHB AirAsia source Card by Superbrands Best Chip Program for MasterCard Marketing Leadership Award 2005 by MasterCardYear 2004 Asia Pacific Low Cost Airline of the Year 2004 by Centre for Asia Pacific Aviation (CAPA) Asia Pacific Aviation Executive of the Year 2004 awarded to Tony Fernandes, Group CEO by Centre for Asia Pacific Aviation (CAPA) Asia Pacific Low Cost Advertising Award for Best Asia Pacific / Middle East Low Cost Airline release Advertisement 2004 by Centre for Asia Pacific Aviation (CAPA) Asias Best Managed Company in the Airlines and Aviation Sector by Euromoney Best freshly Listed Company (3rd place) by Euromoney Triple A Regional Award for Best Airline IPO for 2004 by The Asset Magazine Best IPO of the Year by The Edge Singapore 25 Stars of Asia honoree listing (Tony Fernandes) by Business Week Best Uniform for Miss Airlines International deal 2004 5th China Air Show, Zhuhai Market Leadership Award, 2005 Airline effect Awards by Air Transport World MagazineYear 2003 evolution Airline of the Year 2003 by Airfinance Journal CEO of the Year (Tony Fernandes) by Business Times and American Express CIO Top 100 Honoree for excellence in strategic IT deployment Obtained Malaysian Superbrands status by Superbrands Internationale) grind Analysis for AirAsiaStrengths, Weaknesses, Opportunit ies and Threats Analysis for AirAsia StrengthsAir Asia has a very strong way team with strong links with governments and airline industry leaders. This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials. For example, fight Corp (formerly owned by the family of former Thai Prime Minister Thaksin Shinawatra) holds a 50% stake in Thai AirAsia. This has helped AirAsia to open up and capture a sizeable market in Thailand. With their strong on the job(p) relationship with Airbus, they managed to get big discount for aircraft purchase which is also more fuel efficient compared to Boeing 737 planes which is being used by many an opposite(prenominal) airlines The management team is also very true in strategy formulation and execution. The strategy that they watch formulated at the beginnings was a cunning blend of proven strategies by other low cost airlines is US and Europe. They are Ryanairs operational strategy (no frills, landing in petty(a) airport), Southwests people strategy (employee comes first) and Easyjets branding strategy (linking with other service providers the likes of hotels, car letting). AirAsias brand name is well established in Asia Pacific.Besides the normal print media advert & promotions, AirAsias top management also capitalized on promotions through intelligence agency by being very media friendly and freely sharing the latest information on Air Asia as well as the airline industry. Their partnership with other service providers such as hotels and hostels, car rental firms, hospitals (medical tourism), Citibank (AirAsia Citibank card) has created a very unique image among travelers. Alliance with Galileo GDS (Global Distribution System) that enables travel agents from around theworld to check flight details and make bookings puzzle also contributed to their string brand name. Air Asias local battlefront in some countries such as I ndonesia (Indonesia AirAsia) and Thailand (Thai AirAsia) suffer successfully upgrade the brand to become a regional brand beyond exactly Malaysia. The links with Manchester United (one of the worlds most famous football teams) and AT&T Williams Formula One team have further boosted their image to a niftyer extend beyond just the this regionAirAsia is the low cost leader in Asia. With the help of AirAsia Academy, AirAsia has successfully created a inexpensive airline mentality among their workforce. The workforce is very flexible and high committed and very critical in making AirAsia the lowest cost airline in Asia. The excellent utilization of IT have directly contributed to their promotional activities (email alerts and desktop widget which was jointly developed with Microsoft for new promotions), brand construct exercise (with over 3 million hits per month and on the most widely surfed booking engines in the world) as well accompaniment the cost low by enabling direct purch ase of tickets by consumer therefore saving on airline agent fees WeaknessesAir Asia does not have its own maintenance, repair and overhaul (MRO) facility. It may be a good strategy when they first started with only Malaysia as the hub and few planes to maintain. But now, with few hubs (Malaysia, Thailand and Indonesia) and over 100 planes currently owned and about another 100 planes to be received in the next few years, AirAsia have to condition proper and continuous maintenance of the planes which will also help to keep the overall costs low. It is a competitive disadvantage not to have its own MRO facility AirAsia receives a lot complaints from customers on their service. Examples of complaints are around flight delays, being charged for a lot of things and not able to change flight or get a refund if customers could not make it. Good customer service and management is critical particularly when competition is getting intense.OpportunitiesThere are 2 major events that are taki ng place now or going to take place in less than 6 months from now. First, is the ever increasing oil price. Second, is the ASEAN discourteous Skies agreement that has been reached. Theincreasing oil price at the first gleam may appear like a threat for AirAsia. But being a low cost leader, AirAsia an upper hand because its cost will be still the lowest among all the regional airlines. Thus, AirAsia has a great opportunity to capture some of the existing customers of full service and other low cost airlines customers. However, there will be also some reduction in overall travel especially by casual or budget travellers.The ASEAN Open Skies allows unlimited flights among ASEANs regional air carriers beginning December 2008. This will definitely increase the competition among the regional airlines. However, with the first mover advantage as well as its strengths in management, strategy formulation, strategy execution, strong brand and low-cost culture among its workforce, this agree ment can be seen as more of an opportunity. There is also some opportunity to partner with other low cost airlines as Virgin to tap into their existing strengths or competitive advantages such as brand name, landing rights and landing slots (time to land). The population of Asian marrow class will be reaching almost 700 million by 2010. This creates a larger market and a huge opportunity for all low cost airlines in this region including AirAsia.ThreatsCertain rates like airport departure, security charges and landing charges are beyond the control of airline operators and this is a threat to all airlines especially low cost airlines which tries to keep their cost as low as possible. For example, Changi airport in Singapore charges SGD21 for every person who departs from Singapore. AirAsias profit margin is about 30% and this has already attracted many competitors. Most of the full service airlines have or planning to create a low cost subsidiary to fence directly with AirAsia. For example, Singapore Airlines has created a low cost carrier tiger Airways.f) ConclusionAirAsia will be the best airline company as they provide the cheapest price for tickets and granting everyone the affordability to fly around the world. As travelling via aircraft are becoming the norm these days, especiallyduring vacation time, the low cost airline are always the target for travellers and thus, aiming to be the best among the rest will prove profitable in the future. To make the company better, AirAsiawas recommended via surveys to provide more choices of foods and drinks in order to reach thesatisfaction of passengers. In addition, AirAsia can certainly welfare fromthe increment of luggage allowance to 20 Kg to the passengers, if the upgrade do took place.Furthermore, a good leadership style can affect the inviolate company in a good way andmotivate employees to be more creative and innovate. With the motivation and innovation, consumers believe that AirAsia can be untouchable in the low cost airline scene and strive towards becoming the world best airline company. Tony Fernandes innovative and out of the box thinking led him into creating the current best low cost airline in the world. This shows the quality he possesses and the vision he owned. Dethroning AirAsia as the worlds best low cost carrier would be a monumental parturiency for others because of its credibility alone. I hope AirAsia will remain the best in the future and will not be too complacent with their feat. As a last note, hopefully incidents such as the recent MH370 that occurred to MAS can be avoided, especially to a Malaysia-owned airline.ReferenceWebsite1) http// http// https// 4) https//

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