Partha Pratim MahantaDibakar SinhaDipankar Nath

Pranjal Pratim NeogSamiron MoranAbhijit Ramchiary

CASE STUDYPartha Pratim MahantaDibakar SinhaDipankar Nath

Pranjal Pratim NeogAbhijit RamchiarySamiron Moran

MBA 3rd SEMESTER SECTION- B

25-5, Block H, Jalan PJU 1/37Dataran Prima, 47301 Petaling JayaSelangor Darul Ehsan, Malaysia

OBJECTIVES

To show the profile of our company i.e. Air Asia.

To know the business strategies and operations of Air Asia by using different strategy models.

To show you the future of Air Asia by SWOT analysis.

To show you some of the future planning with reference to future growth.

Our 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.

AirAsia

Our Mission :To be the best company to work.Create a globally recognized 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 levels.

Asia's leading airline. It was established in 1993 with the dream of making flying possible for everyoneHeadquarters : Sepang, Selangor and MalaysiaNo. of planes (including Joint ventures) : 78 planesNo. of employees : 3,000 employeesNo. of customers : 16,000,000 per yearTurnover per annum : $60,000,000

CORPORATE PROFILE

CORPORATE PROFILE

Our Values :Safety First, Low Fare and No

FrillsHigh Aircraft UtilisationStreamline OperationsLean Distribution System and

Point to Point Network

Our Corporate objectives :Leanest cost structureMaximize shareholders valueSafetyPassion for Guests’ satisfactionTransparency Human Capital Development

WHERE WE FLY

Air Asia Airlines over the years

Dates and years Milestones18 April 2002 AirAsia became Asia’s first airline to go

ticketless.

10 May 2002 It introduced its first online booking.

19 August 2003 It introduced world’s first SMS booking.

8 December 2003 It’s first international flight took off to Phuket.

8 December 2004 It announced a joint venture with PT AWAIR of Indonesia.

21 February & 29 March 2005

Launched Go-Hostel & Go-Car.

Year 2007 The lowest cost in the World, 51 000 passengers per day, 54 planes.

Year 2008 Launch of Air Asia X.

FREQUENT FLIGHTS SAFETY FIRST LOW FARE NO FRILLS

COST OPTIMIZATION OPERATION GUEST’s CONVENIENCE

Business Strategy and Operations

The airline ensures fast turnaround of about half-an-hour which is the fastest in

the region

The airlines complies with the conditions of the

International Aviation Safety and is regulated by the Malaysian Dept. of Civil

Aviation

It’s fares are significantly lower than those of other

operators

Faster turnaround time Improving aircraft

utilization Crew efficiency Using one type of aircraft

for saving training cost

Ticketless service Internet booking Reservations and sales office Easy payment channels and

authorized travel agents Nationwide call centers

ANALYSIS

SWOT ANALYSIS OF AIRASIA

Internal Comp- -etence Factor

Exte

rnal

En

viro

nm

en

tal

Facto

r

STRENGTH

OPPORTUNITY

WEAKNESS

THREATS

Growth in revenue Low distribution cost Low operational costs Attractive ticket price Strong Brand presence in Asia Malaysian government support Diversification strategy + Joint ventures

Does not have its own maintenance, repair and overhaul (MRO) facility. Receives a lot of complaints from customers on their service.

Liberalization of ASEAN capital routes Asia’s middle class growth The “ASEAN Open Skies” allows unlimited flights among ASEAN’s regional air carriers beginning December 2008.

Increasing competitionIncreasing oil priceSubstitute productsIncreasing of maintenance cost

PORTER ANALYSIS OF AIRASIA

Potential Entrants

Suppliers

Substitutes

Buyers

IndustryCompetitors

Rivalry AmongExisting Firms

Bargaining Power of Suppliers

Threat of New Entrants

Bargaining Power

of Buyers

Threat of Substitute Products or Services

Many customers but high sensibility to prices.

Development of substitute products.

Medium

Low

Hard competition between Airbus, Boeing, ATR and others.

Medium

Train, bus and car travel are developing.Mediu

m

Full services Air Line might consider going low cost. Development of new low-cost companies.

BCG Matrix analysis of AirAsia according to the country that their fleets are operating

 Indonesia

Brunei

Malaysia

Macau and

Thailand Singapore

FUTURE ANALYSIS

SWOT Analysis15 years Down the Line

STRENGTH WEAKNESS

OPPORTUNITY THREATS

Brand Name Long-term future Strong management team Strategy formulation and execution Low cost leader in Asia Excellent utilization of IT

Relatively high price High operation cost Investment cost in high technology Strong competition

Demographic advantages Growing of Middle Class Partner with other low cost airlines High fuel prices will squeeze out unprofitable competitors Air Asia will get inherent advantage in long distance travel Developed innovation technology

Entrance of other LCCs High fuel price decreases yield Accident, terrorist attack and disaster and affect customer confidence Aviation regulation and government policy Increase in operation cost in producing value-added services System disruption due to heavily reliance on online sales

FUTURE STRATEGY

Yield Management System (YMS)

Computer Reservation System (CRS)

Enterprise Resource Planning System (ERP)

Travelling planning

Reservations and ticketing

Frequently flyer program

Campaign management

Customer care

Business intelligence

Layered Adaptive Security

“Equivalent Visual” Operation

“Super Density” Airport Operations

Airborne Information Net

FUTURE PLANNING

To maintain the high level of profitability. 1. Act on the prices :

Expensive tickets to be distributed when the demand is high (week-end).

Prices increasing according to the demand. Cheap tickets available during the middle of the week.

2. Act on the cost : Offer more on board services/ products to the

passengers. Taxi booking service Internet WIFI access on board Newspapers Place advertisings on the plane’s cabin

Fund-raising Fresh money could be used to finance strategic

projects.

Invest in joint ventures. Maintain international development across Asia in

association with local budget airlines. It would increase the airline’s offer.

Diversification Acquire new know-how in a view to offer more service

to the consumer. E.g. To take over an online travel agency.

FUTURE PLANNING

Conclusion

The strategies of Air Asia focus more on the management and access of

information rather the creation of irrelevant airline services.

For this reason, Air Asia has developed a unique set of guiding principles

- simplicity, cost-efficiency and effectiveness.

Total commitment to these principles makes the airline services of Air

Asia very user-friendly to its customers.

SWOT analysis of AirAsia with reference to sustainability and future

growth shows more opportunities than threats.

AirAsia is fully determined to exploit these opportunities and convert

more threats into opportunities for success.

THANK YOU