Air Asia

Key MANAGEMENT (PMS 3393) ‘AIR ASIA’ Prepared by: Ahmad Izzuddin Bin Ahmad Zamri (4102005781) HaslindaBinti Ismail (4092008911) MohdAzuan Bin MohdAbdKadir (4102008091) Muhammad Khairil Anwar Bin Othman (4102004441) Nur A NisaBintiRahmat (4071032881) SitiAisyahBintiMohdYusoff( 4102001031) SitiKhajirahBinti Abdul Aziz (4092008931) Prepared for: Dr. HafsahBinti Ahmad Submission Date: 22nd November 2012 Table of Content Acknowledgement1 Introduction2 History3 The Vision, Mission Statement and Objective5 Value Strategy6 Business Model8 Competitive Advantages10 AirAsia Assumption12SWOT Analysis13 The Air Asia 5 Forces Porter Model16 Air Asia Market Segments19 Five Years Financial Highlights22 Appendix24 References25 Acknowledgment Alhamdulillah. On account of Allah SWT, whom with His readiness has allowing us the chance to effectively finish this Strategic Management task. Most importantly, we might want to communicate our exceptional thank to Dr. HafsahBinti Ahmad, an instruc tor of Strategic Management who had guided us and furthermore give a ton of data with respect to our task from starting to the furthest limit of the semester and furthermore the significant advices that he provided for us during our lectures.We are truly valuing it. Most profound thanks and gratefulness to our folks, family and all kindred companions for their collaboration, consolation, valuable recommendation and brimming with help for the task finishing, from the earliest starting point till the end. Without the assistance and direction from every one of you, it will be hard for us to finish this task. Much obliged to you. 1. 0 Introduction Air Asia is a Malaysian-based ease aircraft. Air Asia will be Asia's biggest low-passage, nitty gritty carrier and a pioneer of minimal effort travel in Asia.Air Asia bunch works planned residential and universal trips to more than 400 goals crossing 25 nations. Its principle center point is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its member carriers Thai Air Asia, Indonesia Air Asia, Air Asia Philippines and Air Asia Japan have center points in Suvarnabhumi Airport, Soekarno-Hatta International Airport, Clark International Airport and Narita International Airport separately. Air Asia's enrolled office is in Petaling Jaya, Selangor while its administrative center is at Kuala Lumpur International Airport. 1. 1 HistoryAirAsia was built up in 1993 and started procedure on 18 November 1996. It was initially established by an administration claimed combination, DRB-Hicom. On 2 December 2001 the intensely obliged carrier was purchased by previous Time Warner official Tony Fernandes' organization Tune Air Sdn Bhd for the token whole of one ringgit (about USD 0. 26 at that point) with USD 11 million (MYR 40 million) worth of obligations. Fernandes turned the organization around, delivering a benefit in 2002 and propelling new courses from its center point in Kuala Lumpur, undermining pr evious restraining infrastructure administrator Malaysia Airlines with limited time passages as low as MYR 1 (USD 0. 7). In 2003, AirAsia opened a second center point at Senai International Airport in Johor Bahru close to Singapore and propelled its first global trip to Bangkok. AirAsia has since begun a Thai auxiliary, added Singapore itself to the goal list, and began trips to Indonesia. Trips to Macau started in June 2004, and trips to terrain China (Xiamen) and the Philippines (Manila) in April 2005. Trips to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the last by Thai AirAsia.On August 2006, AirAsia took over Malaysia Airlines’ Rural Air Service courses in Sabah and Sarawak, working under the Fly Asian Xpress brand. The courses were in this way came back to MAS wings a year later, refering to business reasons. Air Asia's CEO Tony Fernandes accordingly revealed a five-year intend to additionally upgrade its essence in Asia. Under the arr angement, Air Asia proposes to reinforce and improve its course organize by interfacing all the current urban communities in the locale and growing further into Vietnam, Indonesia, Southern China (Kunming, Xiamen, Shenzhen) and India.The carrier will concentrate on building up its center points in Bangkok and Jakarta through its sister organizations, Thai AirAsia and Indonesia AirAsia. With increment recurrence and the option of new courses, AirAsia anticipates that traveler volume should arrive at 18 million before the finish of 2007 On 27 September 2008, the organization had on its rundown 106 new courses to be added to its then-current rundown of 60. The quantity of old courses stopped has not been openly uncovered. On 2 April 2012 Air Asia had their first departure from Sydney to Kuala Lumpur.In August 2011, AirAsia consented to produce a union with Malaysian Airlines by methods for an offer trade. The partnership was struck somewhere near the Malaysian government, basically voi ding the understanding of the two aircrafts. 2. 0 The Vision, Mission Statement and Objective The Vision To be the biggest ease aircraft in Asia and serving the 3 billion individuals who are as of now underserved with poor network and high charges. The Mission Statement †¢ To be the best organization to work for whereby representatives are treated as a component of a major family. †¢ Create an all inclusive perceived ASEAN brand. To accomplish the least expense so everybody can fly with Air Asia. †¢ Maintain the best item, grasping innovation to lessen cost and upgrade administration level. Future Objective for AirAsia Kuala Lumpur, Malaysia-based AirAsia has as of late reported in a question and answer session that they plan to buy an extra twenty-five airplane. The buy is the second this year for the carrier and fourth since the 2005. The buy understanding is for 25 Airbus A320 arrangement airplane. This will bring the all out A320 arrangement airplane worked via Ai rAsia to well more than 200 aircraft.Air Asia bunch CEO Tony Fernades says at the public interview that this buy is a significant advance for Air Asia as it means their future forceful course extension designs pair to their normal traffic development throughout the following decade. It additionally shows their pledge to improve AirAsia's situation on the systems by joining the most current and effective airplane in the market. The option of airplane will be utilized to include recurrence over the course arrange and present new courses. First experience with the avionics business as a pioneer has developed to the degree it is currently a pioneer that sets the benchmark to other people. Additionally talking at the question and answer session was Airbus CEO John Leahy. Leahy was amped up for this most up to date request and says that their organization have been incredibly pleased to be a piece of AirAsia's exceptional achievement and charmed that the trust in the A320 has brought abou t the carrier currently turning into the biggest carrier client for this airplane on the planet. With its top notch financial aspects and gigantic traveler advance, he is sure that the huge A320 armada is bound to move AirAsia to the bleeding edge of industry in the years ahead. 2. 1 Value Strategy * SafetyAdopting a zero resilience to dangerous practices and makes progress toward zero mishaps through appropriate preparing, work rehearses, hazard the board and adherence to security guidelines consistently. * High Aircraft Utilization Air Asia actualizing the areas quickest turnaround time at just 25 minutes and guaranteeing the lower costs and higher efficiency. * Low Fare, No Frills Providing visitors with decision of redoing administrations without settling on the quality and administrations. * Valuing their People Committing to their people’s advancement and prosperity and approaching them with deference, respect and reasonableness. Client Focused They give it a second tho ught and treat everybody in a similar way that they need to be dealt with. * Lean Distribution System They additionally offer a wide and creative scope of circulation channels to make booking and voyaging simpler. * Integrity Practicing best expectations of moral conduct and show trustworthiness in the entirety of their professions so as to deserve trust and shared admiration. * Excellence in Performance Setting objectives past the best and fortifying great execution guidelines and accomplishing greatness through actualizing best practices. 2. AirAsia Business Model 1. Minimal effort Carrier An ease transporter (otherwise called a nitty gritty or rebate bearer) is an aircraft that offer low admissions yet wipes out all â€Å"non-essential† administrations. The run of the mill ease bearer plan of action depends on: * A solitary traveler class * A solitary sort of plane (diminishing preparing and administrations costs) * A basic tolls conspire (ordinarily charges increment as t he plane tops off, rewards early reservations) * Free seating ( which urges travelers to load up right on time) * Direct, point to guide trip with no exchange Flying toward less expensive, less blocked optional air terminal * Short flights and quick turnaround times (permitting most extreme usage of planes) * â€Å"Free† in-flight cooking and other â€Å"complimentary† administrations are disposed of, and substituted by ideal paid-for-in-flight food and drink. 2. Straightforward Products An ordinary ease aircrafts item is amazingly essential. It centers around getting traveler from guide A toward B, cutting all the â€Å"extras†. This implies there are no suppers, beverages and tidbits served free on the board. In specific carriers, these might be bought on request.The airplane have Narrow seating to allow more prominent limit. Minimal effort aircrafts offer all-economy trips with no extra space prerequisite for more extensive business class seating. This implie s more travelers can be oblige on every division. There are no offices for seat portions as this free-seating makes passenger’s load onto the flights right on time to get themselves a respectable seat. The evaluating structures of ease carriers take into consideration no extra plans or deals advancement exercises, including regular customers customized. 3. PositioningThe minimal effort carriers the world over are known to target non-business travelers, relaxation traffic and the cost cognizant business traveler fragment. The l