HQs : Kualalumpur, Malaysia

Existence: Asian Countries

Thailand, Malaysia, Singapore,

India.Formation:Formed in Malaysia.Taken over from Malaysian govt.Got success within two yrs.Indian :Started in Trichy.They have extensive plan for India.148 flights/week from 9 destinations.Low fares in comparison to competitors.

SERVICES-

low cost carrier(LCC).

Courier service. Cargo service. Inter based

megastore. Holiday products. Booking services for

hotels. Rental cars. Medical care.

ADD-ON SERVICES Baggage supersize Pick a seat. Pre book meals. Air Asia

merchandise. Duty free sky shop. Entertainment.

CUSTOMER SERVICE DELIVERY-

TICKET BOOKING- MOBILE ONLINE INFLIGHT SERVICES- FOOD & BEVERAGES AIRASIA MERCHANDISE DUTY FREE SKY SHOP ENTERTAINMENT FLIGHT INFO. TRAVEL INFO.

SALES OFFICES

Tiruchirapalli Chennai Bangalore Hyderabad Trichy Kolkata Cochin Trivandrum

Whats the Funda behind ?

•Rs. 1.57/- Per seat per km as compare to Rs. 2.40/- for other airlines.Cost

•17 to 18 hrs compare to Indian airlines’ 11 to 12 hrs .

Flying hours

•68 employees per flight Employees

•Air Asia has hedged its jet fuel requirements for three years.

Fuel Capacity

BUSINESS PLANNING

Mission: Sustaining cost advantages while maintaining low-cost, high-quality airline status in the time of unstable oil price and heavy market competition.

Goal Formulation: Decrease fuel and oil cost per ASK (Available seat per kilometer), more diversification in air transportation business and more price promotion for customers.

Distinctive Competency: Superior workforce, Purchasing unit and Distribution channel.

MARKETING ANALYSIS CUSTOMER- AirAsia targeted the budget

segment of south eastern Asia’s air passengers

Channel: Multilingual website Telephone booking centre Sales office Travel agent Partnership with local bank and post office By sms for the first time in Asia

SWOT ANALYSIS STRENGTH: o Low operational costo Effective distribution channelo Malaysian government supporto Good alliances WEAKNESS:o Extra charges for baggageo Poor ticketing service OPPORTUNITY:o Asia’s middle class growtho Increasing importance of ASEAN route THREATS:o Volatile fuel priceo Increase in cost of airplanes and its components for

maintenanceo Increasing competition

PEST ANALYSISPolitical : ‘Everyday low fare’ campaign of MAS

was subsidized by Malaysia GovernmentEconomical: Availing opportunity from

recessive market and growth of middle class in ASEAN countries

Social: Tony Fernandez wore official red cap and T-shirt to official functions and gave mobile phone no. to all media representatives

Technolgical: Having more fuel efficient airplanes and more tyre longevity.

OVERALL COST LEADERSHIP

Operation & Maintenance: o Fuel cost reduction due to usage of Airbus 320-200

instead of Boeing 737-300o Doubled no. of landing from same tyreo Less depreciation due to better maintenance by GE

Engine Services and Volvo Aeroo Less aviation and user station charge Service:o Thailand’s Shin Corp. helped in e-booking system in the

allianceo Virgin group provided ticketing system in AirAsiaX HR Department:o Minimum no. of employee and most usage of workforceo To and fro journey on same day

Purchasing :o Purchasing of new air planes on attractive

terms Marketing:o Effective distribution channelo ‘On time guarantee’ campaign for customer

satisfaction Redefining Value Chaino Started offering travel insurance,.o Launched co-branded Citibank- Air Asia

credit card

OVERALL COST LEADERSHIP

STRATEGIC PLANNING To be the Asia’s first low cost carrier AirAsia choose

underused Kuala Lumpur International Airport in very low cost

Took the leadership in implementing the strategy of no flight entertainment and no free meal in flight. It also started no frill concept in Asia which is considered legendary in it's field.

For short-haul flights (less than 4 hours flight) it started returning on the same day to reduce crew accommodation cost and other allowances at the arriving cities.

To save high slotting fees in large airport it focused on secondary airports.

Allowed customers to prebook some hotseats for a certain fees by Pick A Seat Service from February,’09

Started Checked Baggage Handling Fees for insisting passengers for light weight journey which can cause low fuel consumption

RECOMMENDATION On which route AirAsia has multiple flights in a day,

narrow body flights of higher capacity may be used. e.g. : using of Airbus 380 (of seating cap 650) instead of two Airbus 330-300

To reduce no. of vacant seat use less capacity air planes

More fuel economic air plane usage e.g.: using of Air340-600

Must pay more attention for service channel as there is a huge customer complaints against very slow server for e-ticketing.

It can diversify its business more in cargo sector and can use Airbus Bulega flights for economic model.

Can be diversified more in the island countries like Japan, NewZealand etc.

Can charge higher at peak time.

THANK YOU