Airasiaberhad Provides Low Cost Air Management Essay

AirAsiaBerhad was listed on the Main Market of Bursa Malaysia Securities Berhad in November 2004. Since open uping the low-cost bearer besides known as LCC theoretical account in ASEAN in 2001, it has grown from a domestic air hose to the taking air hose in Malaysia functioning more than 55 finishs from its five ( 5 ) hubs in Malaysia. Along with its affiliates such as Thai AirAsia, Indonesia AirAsia, Philippines ‘ AirAsia and AirAsia Japan, AirAsia Group is the largest low-priced bearer in Asia in footings of fleet size and figure of riders carried.

AirAsia was established in 1993 and began operations on 18 November 1996. It was originally founded by a government-owned pudding stone, DRB-Hicom. On 2 December 2001 the heavily-indebted air hose was bought by former Time Warner executive Tony Fernandes ‘s company Tune Air SdnBhd for the nominal amount of one ringgit ( about USD 0.26 at the clip ) with USD 11 million ( MYR 40 million ) worth of debts.

Fernandes turned the company about, bring forthing a net income in 2002 and establishing new paths from its hub in Kuala Lumpur, underselling former monopoly operator Malaysia Airlines with promotional menus every bit low as MYR 1 ( USD 0.27 ) .

Objective ( s )

AirAsiaBerhad provides low-priced air bearer service. The Company provides services on short-haul, point-to-point domestic and international paths. AirAsia operates from hubs in Malaysia, Thailand, Indonesia, Philippines and Japan.

AirAsiaBerhad ( AirAsia ) is engaged in the proviso of air transit services. As of December 31, 2010, the Company operated a fleet of 90 aircraft and flies to more than 65 finishs in 18 states from hubs in Malaysia, Thailand and Indonesia.

AirAsia carried 611,000 riders in its first full financial twelvemonth. Within three old ages it was transporting about three million people a twelvemonth. As it grew, it opened a preparation centre to keep its flow of flight crews, and to develop pilots for other air hoses.

Tune Air, AirAsia ‘s keeping company, sold bets in the air hose in its first few old ages of ownership in order to finance the acquisition of new aircraft, one or two at a clip. By June 2003, the one time worthless company was valued at $ 100 million, given the 26 per centum interest acquired by foreign investors for $ 26 million ( MYR 99 million ) .

In malice of its young person, or possibly because of it, AirAsia was a rather advanced air hose. In August 2003 it became the first to book tickets via nomadic phone text messages. Another alone enterprise was infixing advertizements in its one-year studies.

Body of the article, which should be separated by subjects

AirAsia Current issues: how to be low cost bearer leader in air hose industry

Why a company needs to see a strategic direction today? AirAsia demand to see a strategic direction because in a company today, general direction which is the procedure of accomplishing organisational ends by prosecuting in the four major maps of planning, forming, taking, and commanding may non sufficient and supportive for the organisation win in the universe of complex environments.

It concerns about the procedure to pull off the company internally but do non concentrate more on making fight sing environments impacting the organisation. Even companies adopt general direction to prolong profitableness by cut downing the defects or costs, and bettering operations procedure in order to increase productiveness, they may non win in the competition because they perform merely similar activities better than rivals but do non make typical fight.

Furthermore, the strategic direction going of import due to the undermentioned ground is because the rapid development in E-Commerce. Nowadays, E-commerce is going a concern tool. E-commerce besides has become a critical strategic direction and allows a company to sell merchandises, advertise, purchase supplies, beltway mediators, path stock list, eliminate paperwork, and portion information. In entire, electronic commercialism is minimising the disbursal and awkwardness, improved merchandises, and higher profitableness.

AirAsia Business Strategy: how to implement and accomplish it.

Why AirAsia stressed to be low cost bearer in air hose industry? Datuk Tony Fernandez as CEO of AirAsiaBerhad said his doctrine is really clear: before a concern can turn, it needs to hold its costs under control. It must be cost-effective and profitable, and it must make value. Costss that do non add value must be contained, reduced and even eliminated. I have been asked by assorted people, “ How much lower can your cost cut down? You ‘re already the lowest in the universe! ” My direct reply is if we do non endeavor to be more efficient and take to be self-satisfied and our yearss are numbered. This is a uninterrupted undertaking we have to confront caput on twelvemonth on twelvemonth ; it is the critical ingredient to run a successful concern.

Based on the Datuk Tony Fernandez said, AirAsia can be turning in the air hose concern if they can command their cost. The cost that they have to running at that place must be efficient and dependable. Everything that can do inefficiencies must be reduced and perchance to extinguish. What a Datuk Tony Fernandez said is really strong sentiment about their company to running their concern. AirAsia can be perchance viing with another aeroplane industries if they can do efficiencies to cut down cost and do the low possible menu than another aeroplane industries.

AirAsiais the low cost leader in Asia.

With the aid of AirAsia Academy, AirAsia has successfully created a “ low-priced air hose outlook ” among their work force. The work force is really flexible and high committed and really critical in doing AirAsia the lowest cost air hose in Asia.

The first-class use of IT

The first-class use of IT have straight contributed to their promotional activities such as electronic mail qui vives and desktop doodad which was jointly developed with Microsoft for new publicities, trade name edifice exercising ( with over 3 million hits per month and on the most widely surfed booking engines in the universe ) as good maintain the cost low by enabling direct purchase of tickets by consumer therefore salvaging on air hose agent fees

Maximized IT and implementing E-commerce in AirAsia concern

Presents, E-commerce is going a concern tool. E-commerce besides has become a critical strategic direction and allows a company to sell merchandises, advertise, purchase supplies, beltway mediators, path stock list, eliminate paperwork, and portion information. In entire, electronic commercialism is minimising the disbursal and awkwardness, improved merchandises, and higher profitableness. Harmonizing to this statement, E-commerce can alter the manner of making concern presents.

Discussion

Presents, the competition among aeroplane industries is really tough. Harmonizing to Daniel Chan ( 2000 ) , with merely about two old ages to travel to the bend millenary, air wars over Asia are hotting up, with some of the universe ‘s biggest air hoses engaged in intense over Asiatic skies. Each Of Airplanes Company in the universe seeking to carry on some schemes to vie with another rival in their industry. A batch of aeroplane companies come out with different schemes to do their company better than their rivals. To vie with their rival in the concern environment, a company needs to do a scheme to accomplish their long footings nonsubjective and can be successful for making their concern.

Furthermore, to be successful in their long footings objective and their concern, company demand to place their strategic direction, because with good strategic direction company can be accomplishing their vision and mission to accomplish the prosperity in their concern. Sing this issues, the strategic direction becomes of import due to the following ground such as globalisation to survival their concern, and than e-commerce go the critical success to the company today.

E-commerce becomes a major success to Airplane Company to do efficaciously and efficiency in their concern. AirAsia is one of the aeroplane companies, which is implementing E-commerce and maximized their information engineering use to do the efficiency and efficaciously in their company and do possible low cost bearer in their concern. Harmonizing to Pultorak ( 2004 ) , when the concern scheme and IT are aligned, the IT substructure can continuously feel the changing concern demands and respond by purveying or redeploying resources to fit the demands of the concern.

Decision

In decision, Air Asia is need to aware and see with the strategic direction. The ground of the air hose industry is a alone and complex industry, non merely how to cut down cost and do the operational activities running efficaciously. But, AirAsia needs to come out with the scheme that can do competitory place that the company performs different activities from challengers or executing similar activities in different ways to accomplish their concern successfully, and the last 1 is because the consequence of globalisation and E-commerce going an effectual tool in a company today.

The current issues in AirAsia Company are more focussed in the competition of the cost among an aeroplane industry. AirAsia as an industry company which is more focusing in the low cost bearer aeroplane industry demand to see to do the lowest possible cost to vie with the other rivals in their aeroplane industry. To accomplish the lowest possible cost, AirAsia Company has some scheme to accomplish it.

The competition among aeroplane industries is really tough. Each Of Airplanes Company in the universe seeking to carry on some schemes to vie with another rival in their industry. To vie with their rival in the concern environment, a company needs to do a scheme to accomplish their long footings nonsubjective and can be successful for making their concern. The strategic direction becomes of import due to the following ground such as globalisation to survival their concern, and than e-commerce go the critical success to the company today. a company needs to see the company ability and how to incorporate it with the every bit good as chief factor in the internal and external factor.

How AirAsia can be a leader in the lowest cost bearer in the aeroplane industry? To be a leader in the low cost bearer, foremost, AirAsia need to see about their strategic direction. The ground why demand to see strategic direction because the first ground is because the air hose industry is a alone and complex industry. The 2nd ground, the scheme that AirAsia need is non merely how to cut down cost and do the operational activities running efficaciously. But, AirAsia needs to come out with the scheme that can do competitory place that the company performs different activities from challengers or executing similar activities in different ways to accomplish their concern successfully, the 3rd ground because a globalisation and implementing E-commerce.