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based in Kuala Lumpur, Malaysia

originally founded in 1993 and began operationsin November 1996 by the government-owned

conglomerate DRB-Hicom

in December 2001, Tony Fernandes waspurchased AirAsia which in the heavily-indebted

through his company Tune Air Sdn Bhd.

Fernandes successfully hailed business circle by a

remarkable turnaround and making first profit in

2002.

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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.

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To be the best company to work forwhereby employees are treated as part ofa big family

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 andenhance service levels

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Safety First

Partnering with the worlds most

renowned maintenance providers and

complying with the with world airline

operations.

High Aircraft Utilization

Implementing the regions fastest

turnaround time at only 25 minutes,

assuring lower costs and higher

productivity. Low Fare, No Frills

Providing guests with the choice of

customizing services without

compromising on quality and services.

Streamline Operations

Making 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 Network

Applying the point-to-point network

keeps operations simple and costs low.

AirAsia make the low fare model possible through the implementation of

the following key strategies,

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The characters of the low cost carrier (LCC) business model that AirAsia follows in the

airline industry shown as below :

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Information technology has led fundamental changes

in the application of technology in business. helps to reduce the operation cost and cut down

unnecessary needs.

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Akamai Technology

helps AirAsia to provide a premium online experience to theircustomers with the improvement of site speed and performance.This system very significant to support AirAsia ever expanding fleetand route network.

Computer Reservation System (CRS)An integrated web-enabled reservation and inventory systemobserved by NavitairesOpen Skies technology that includesInternet, call center, overbooking management, flexible inventorybooking capability, customer information retained and generatesconfirmation numbers on all reservation.

Yield Management System (YMS)

By using this system as revenue management system, the operatingcosts and aids will be considered. It helps to allocate capacity andoptimize prices to maximize expected revenues by seat and route.

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Enterprise Resource Planning System (ERP)

Helps to integrate business process, reduce financial month-endclosing processing time, speeds up reporting and data retrievalprocess. It increase efficiency and integrity and also saves

operational costs.

E-Commerce

AirAsia provides, everything become easy and more comfortable, itcan be used for anything that the customer wants such as searching

for airline flights, entering his billing information and signing upfor an e-mail confirmation in anywhere as long as customers havean internet.

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hosted by Navitaire Open Skies helps AirAsia track customersbooking and their schedule flight activities with real time, ondemand reporting feature by centralized customer data.

integrates with the already implemented Yield Management System(YMS), thus the systems can be used in unison for pricing and

revenue maximization (by providing information on bookings,schedules etc) and driving down the costs of operation at the sametime. AirAsia could offer a good price to customers by reducing thecosts.

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how to achieve to be a lowest carrier in theworld in Airplane industry.

- the most successful carriers came to

dominate their hub markets allowing them toexert greater control over pricing and capacity.

- the very small price is needed for continued

and greater access to the worlds mostprospective air travel markets. AirAsia needsto offer the lowest possible fare.

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facing internet treat in order to survive incyberspace.

- consumers don't need to pay anything by

booking flights through travel agents. (This isbecause the airline pays the agent a fee forbooking the consumer on one of its flights.)

- but CRS provides direct service to customer,

which means there are no middleman (travelagents). This will charge customers directly byusing this system.

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Increasing competition because of increasing numberof low cost airline competitors, and aggressive

Competition against the large or traditional airlinecompanies

Customer decrease because of poor economy Rising of the fuel prices

Higher labor cost

Inadequate infrastructure

Route and flight utilization Safety and security issues of aircraft crash or being

attacked

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Customer Relationship Management (CRM)

that AirAsia can focus to achieve high values to both

shareholders and customers

AirAsia need to find other alternative in managing

customer relationships and suppliers or partners to

optimize customer loyalty, supplier relationships, and

revenue in order to gain market share and sustain its

competitive advantages to be the low cost carrier in the

high demanding environment.

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Customer segmentation

mileage-based segmentation is inadequate, rather should focused on

value-based and needs-based approaches can guide investment decisions

and drive greater insight into the needs of high value customers

CRM initiative development

to differentiate from other competitors, AirAsia should not adopt the

fast follower approach to CRM initiative development. AirAsia should

implement CRM program in favour of investing in initiatives with a high

return, which respond to the needs and desires of their own customers. Organizational design and management

AirAsia needs to train the employees, empowering them with a complete

view of the customer and clearly articulating the employees role in the

CRM strategy.

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Cost Savings

Technology makes it easier toreach customers, to sell to themand to service them. CRM toolsalso produce cost savings by

boosting employeesproductivity.

Increased Profits

Profits are the ultimate test anda consequence of both the costsavings and the increasedcustomer loyalty.

Customer Satisfaction andLoyalty

Good CRM tools make it easierfor customers to do businesswith an organization through

flexibility of self-service, abilityto get what they need faster orreceiving target informationthat is immediately useful.Highly satisfied customers tendto buy more, cost less to

service, less price-sensitive andare happy to spread the wordabout the organization.

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Increased InternalAccountability

By assigning and tracking tasks,the CRM tools makes it possiblefor everyone in theorganization to follow the flow

of requests, to analyzeadherence to SLAs (service-levelagreements) and to note anydelays or errors.

Employee Satisfaction

Good tools are essential topromote employeessatisfaction. They tend to stayand reduce costly turnover andare likely to be more productive.

Better Business Intelligence

means that an organization canget to know its customers betterso that it can adapt theproducts, marketing strategies

and support levels accordingly.CRM tools with better built-inanalytics can really takeadvantage and exploit customerdata.

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