Posted at 10.01.2018
- performs an important role in the tactical and operation management of airlines, and facilitates the successful airlines in the future. This paper can look at the awarding-winning low priced carriers (LCC) in Asia Pacific region - Air Asia, analyzes the current business environment, competitive advantages, value chain, current execution of Strategic development information technology, and the advised future implementation of technology in customer relationship management (CRM) execution to follow competitive differentiation and success effectively in the future.
Air Asia instantly:
Established: As discount carrier in 2001
Head office: Kuala Lumpur
Employees: 1, 132
Fleet: 17 Boeing 737-300 aircraft
Business: Asia's first low-fare airline serving places in Malaysia, Indonesia, Thailand, Brunei, Singapore and Macau
We make the reduced fare model possible through the implementation of the following key strategies,
Partnering with the world's most renowned maintenance providers and complying with the with world air travel operations.
High Aircraft Utilization:
Implementing the locations fastest turnaround time of them costing only 25 minutes, guaranteeing lower costs and higher production.
Low Fare, No Frills:
Providing guests with the decision of customizing services without diminishing on quality and services.
Partnering with the world's most renowned maintenance providers and complying with the earth airline procedures.
High Aeroplanes Utilization
Implementing the parts most effective turnaround time of them costing only 25 minutes, guaranteeing lower costs and higher production.
Low Fare, No Frills
Providing guests with the choice of customizing services without reducing on quality and services.
Making sure that processes are as simple as possible.
Lean Distribution System
Offering a broad and innovative selection of distribution channels to make reservation and visiting easier.
Point to Point Network
Applying the point-to-point network maintains operation simple and lower costs.
The low cost airlines like Air Asia have modified this is of airlines that flights is an extravagance and it is merely for the top segment of the populace. The key objective of low cost service providers is to increase their reach and offer the services to a large segment. However, the reduced cost carriers are actually facing some challenges in the market.
Air Asia comes after the Low-Cost-Carrier (LCC) business design in the airline industry, that can be characterized as below:
Catering on demand for extra payment
Planes with slim seating in support of an individual class
No chair assignment
No consistent flyer programmes
Non-business people, especially leisure traffic and price-conscious business passengers
Short-haul point to point traffic with high frequencies
Competition with all travel carriers
Low Operating Costs
Low air port fees
Low costs for maintenance, cockpit training and standby crews credited to homogeneous fleet
High resource productivity
Short surface waits due to simple boarding processes
1. Lower operational cost than the other air lines, by having an individual airplane type.
2. Lower maintenance cost strategy
3. Lowest Cost
4. Lowest fare
5. Wide regional network
6. Good Online marketing strategy: Interesting offers offering
7. Time saving: Provide exhibit boarding
8. Clean record of airplane accident or planes broke down
9. Increasing flight time and air travel networks
10. Upsurge in planes and capacity.
1. Lower service quality than other full service airlines.
2. Lower security baggage standard
3. Air travel times are more or less limited by 2. 5 hours which means you cannot operate plane tickets of longer period without the Frill, so No-Frill becomes impossible to execute for individuals.
4. Single school service (economy course only): No other varieties of classes in the service.
1. Gaining costumer from low income level, end up being the alternative of other good deal transportation, as a result of low cost and time cutting down.
2. Gain more benefit from additional services like food, drink, etc.
3. Create maximum value to customer as a one stop for many travel relates activities.
4. Wide types of ticket arranging system.
5. Upsurge in globalization invite people to mobilize more atlanta divorce attorneys way (ex: business, education, leisure).
1. Increasing in Petrol Cost
2. Certain rates like international airport departure, security charges and getting charges are beyond the control of airline operators
3. Full service airlines have or likely to create an inexpensive subsidiary
4. Users' perception that budget airlines may bargain basic safety to keep costs low
5. Increasing in competition from proper providers and other no frill companies.
6. Increasing in competition with local airlines for domestic flights.
7. Politics and inexpensive issues in some countries detained further development in functional and organizational of Air Asia.
Increasing competition because of increasing range of low cost air travel competitors, and intense competition up against the large or traditional flight companies
Customer lower because of poor economy
Rising of the gasoline prices
Higher labour cost
Route and journey utilization
Safety and security issues of aeroplanes crash or being attacked
In todays globalize overall economy; information technology has driven fundamental changes in the type and application of technology in business. The execution of information technology in its value string provides powerful tactical and tactical tools for Air Asia, which if properly applied and used, could bring great advantages in promoting and building up the competitive advantages.
Air Asia has currently adopted information solutions strategically to assimilate the operations and organize all the business enterprise and management functions. The followings are few system implementations that Air Asia has done in its marketing and sales activities as well as operation activity in the value chain.
Yield Management System (YMS)
Anticipates and reacts to the behavior of customers to maximize the income - taking into account the operating cost and products AirAsia to enhance prices and allocate capacity to maximize the expected income by 2 levels:
Seat - Seats can be found at various prices in several details of time. A reservation done at a later date will be recharged more than the one done previously for the same seat
Route - By modifying prices for routes / places that have an increased demand when compared to others.
Results increased income (3-4%) by taking benefit of the forecast of the high / low demand habits, lower prices as YMS has aided AirAsia to improve the income by offering higher special discounts, more often during off-peak times while elevating prices only marginally for peak times.
Computer Booking System (CRS)
An involved web-enabled reservation and inventory system collection power by Navitaire's Open up Skies technology which includes Internet, call middle, and international airport departure control functionality.
Satisfy the unique needs of AirAsia employing a low-cost business design to transform the business enterprise process to effectively streamline businesses.
Helps AirAsia to expand at a remarkable pace before couple of years as mentioned below:
"Navitaire's Open Skies technology has truly allowed AirAsia's progress from 2 million passengers to 7. 7 million travellers in under two years. Open Skies scaled easily to support our expansion. " - Tony Fernandes, CEO, AirAsia
Enterprise Learning resource Planning System (ERP)
An included ERP solution run by Microsoft Business Alternatives (MBS) on Microsoft technology platform which is implemented by Avanade consultants in Ma 2005.
With the robust ERP technology system, AirAsia can efficiently maintain process integrity, reduce financial month-end final processing time, boosts reporting and data retrieval process.
In order to gain market share and support its competitive benefits to be the reduced cost carrier in the high demanding environment, AirAsia must develop new ways to control both customer human relationships and suppliers or partners to optimize customer loyalty, company relationships, and earnings. The next diagram shows the tactical causes of value proposition of the flight industry, exhibiting that the give attention to Distributor and Alliances and Customers will drive positive ideals to AirAsia can achieve. Customer Romance Management (CRM) application will be one of the region of proper IT implementation that AirAsia can target to attain high values to both shareholders and customers.
Customer Romance Management (CRM)
In long term, customer interactions should be fostered for AirAsia to maintain competitive benefit and success. When planning and putting into action CRM program, management is preferred the following approaches:
Customer segmentation - mileage-based segmentation is inadequate, rather should focused on value-based and needs-based methods can guide investment decisions and drive greater insight into the needs of high-value customers.
CRM initiative development - to differentiate from other opponents, AirAsia shouldn't adopt the "fast follower" approach to CRM effort development, i. e. learning from other competitors' methodology (e. g. installing kiosks for fast check-in). AirAsia should apply CRM program in favor of investing in initiatives with a higher return, which react to the desires and needs of their own customers
Organizational design and management - AirAsia needs to educate the employees, empowering them with a whole view of the customer and obviously articulating the employee's role in the CRM strategy.
Advanced and superior CRM information system should include the next key functions:
Site personalization for on-line customer to create travel plan, bundled services information, flight notification systems, and gate information shows etc.
Reservations and ticketing
ITA se's, roving agent check-in, kiosks, internet check-in, and telephone check-in etc.
Frequently flyer program
membership-based or point-based satisfying design offering to the appropriate customers.
Email campaigns and campaign.
Web-based self service such as e-ticket reservation and booking, online baggage tracing, RFID baggage tags, internet in lounge, and in air Internet services.
Dynamic, up to date, multi-dimensional records that helps management to do analytics in various areas such as customer profiles.
To justify the investment and execution scope of the CRM program, AirAsia is recommended
The balance sheet of Thai Air Asia is just about with good revenue in '09 2009, because of recovering from downturn in 2008, when it was strike by way of a "significant" reduction in petrol hedging and the Bangkok international airport closure crisis. The principle executive of Thai Air Asia [Tassapon] said that the major impact is a negative factor, therefore the airline loss profit in the last calendar year. Thai Air Asia reportedly betted greatly on brief- and long-term hedging agreements in 2008 when essential oil prices shot through the roof structure before collapsing around the end of the entire year. The airline ceased new hedging agreements towards the finish of 2008 though it continues to be burdened with earlier contracts.
On 12 November 2008 Thai Air Asia abolished gasoline surcharges. It is the first airline in the world to abolish gas surcharges. While other airlines are downsizing in line with decreasing in travel, because of global monetary. The budget companies Thai Air Asia extend its functions in time 2009. It really is targets holding about 1 million more individuals, adding four new jets and adding up to six new routes in India and China, while keeping existing frequencies and routes in year 2009.
In January, 2009 the carrier packed 76-78% of seats and projects an average load factor of 85% for those 2009. The flight required delivery of the to begin four new A320 jetliners from the Western european plane machine Airbus, bringing up its current fleet to 15 airplane. The remaining three planes are planned to become listed on Thai Air Asia's procedures later part of 12 months 2009. Next Thai Air Asia will raise its capacity by about 30%. The carrier focuses on holding 5. 1 million people in '09 2009, up from 4. 2 million documented in 2008. The new jetliners will be essentially used to operate Thai Air Asia's planned new routes, several will be each assigned to India and China. The Thai Air Asia main declined to mention the planned metropolitan areas but said they are really inside a radius of 3-4 trip time from Bangkok.
Thai Air Asia invited you to join Photo Competition in principle "Make a happy trip with Thai Air Asia" the individual who is the victor will get free ticket Bangkok- Phuket and luxury accommodation.
It is the second calendar year, for Air Asia scholarship or grant. Air Asia provided scholarship or grant for the person who wants to research in pilot curriculum.
Air Asia allowed using interpersonal security check for buying solution in special price.
RedMegastore is online service. This channel makes more convenience for the guests who wish to buy Air Asia's travel accessories.
SINGAPORE, April 29 (Bernama) -- DHL, one of the world's leading express and logistics companies, announced today that a Boeing 747-400F has been put into service its vital Singapore-Hong Kong route through Air Hong Kong, a jv between Cathay Pacific and DHL.
The 110-tonnes Boeing freighter replaced the current 45-tonnes A300-600F, and would operate between both cities six days weekly, more than doubling capacity on the SIN-HKG road, a vital link for Intra-Asia trade, the business said in a statement here.
The addition of the Boeing 747-400F service emerged on the back of increased air capacity for flights between Hong Kong and Nagoya, Taipei, Seoul and Singapore, it said.
Operated by Air Hong Kong, the plane tickets were increased in the fourth quarter of 2008 to six times per week, up from five times weekly, representing a 20 % increase in capacity for every of these four cities, the business added. -- BERNAMA
The client satisfaction on Air Asia is depending on 4 factors which are promotion, charges, service quality and security. The dimensions in each factor are given in details as follow:
Interesting of the promotion
Frequency of releasing promotion
Appropriate length period of each promotion
Fairness of ticket price
Setting price at low
Affordability of customer in the ticket
Politeness of flight attendants
Skilled and Educated of journey attendants
Serving with service-mind
Personal things (Suitcase) concerned
Travel insurance concerned
What are the factors affecting the customer satisfaction toward Air Asia?
To study the attitude toward client satisfaction of Air Asia.
To study ramifications of promotion, price understanding, safeness and service quality to Air Asia.
To analysis the important factor affects customers' decision to journey with flight.
To measure the level of the client satisfaction on advertising, price perception, safeness and service quality to Air Asia.
To analyze the difference in client satisfaction of Air Asia among demographic factor e. g. time, occupation.
Hypothesis 1: Customer satisfaction of Air Asia can be predicted by Advertising, Price Conception, Service Quality and Safety
Hypothesis 2: There is a difference in CLIENT SATISFACTION in Promotion, Price Notion, Service Quality and Protection of Air Asia between Learner and Non-Student
Hypothesis 3: There is a difference in Campaign, Price Belief, Service Quality and Safety of Air Asia among Occupation
Hypothesis 4: There's a relationship between Soar time per calendar year and get older groups
Hypothesis 5: The level of customer satisfaction in Promotion, Price Notion, Service Quality and Safe practices of Air Asia is high
Hypothesis 6: There's a difference in the purpose of flying with low cost airline
Data collection is one of the main steps or the study methodology because we have to gather and clarify this data to interpret the research questions. From the countless ways of collecting data, we use kind some review where information is compiled from the sample from the populace of people who used to take a flight with low priced air line to study the satisfaction of the customers of Air Asia. We were choosing study method because with this way we can gather data faster, inexpensive, productive and appropriate.
After the questionnaires were designed to collect the info, we have pretest for our questionnaires. To avoid the mistake from the questionnaires and the misunderstanding, we examined the questionnaires by distributing 15 models of the questionnaires to students in Assumption University, at Suvarnabhumi campus where we considered as the pretest area. However, these 15 collections were not contained in our study, because there were still some errors and problems. Therefore following the pretest we corrected our questionnaires until we were sure that the questionnaires were ready for the Data collection.
Then, for real data collection, we sent out our questionnaire at the Assumption College or university both Huamark and Suvarnabhumi campus, Suvarnabhumi air-port, and other public places. Moreover, in a few review locations we allocated it to the customers of Air Asia who had been just went back from traveling through the Songkran holiday as because our amount of data collection was during Songkran Holiday break. We were also creating a web questionnaire via www. google. com to obtain additional variety of sample human population. Finally, we received 227 useable questionnaires.