AirAsia Background
irAsia is one of a Malaysia airline which is very common named transport company and popular to their low cost of ticket to travel from one place to another. The founder of this airline company is Tony Fernandes who is a Malaysian born in Kuala Lumpur. He is the person who introduced the first budget no-frills airline to Malaysians with the tagline " Now everyone can fly ". Tony Fernandes saw great potential for a no-frills LCC in Asia after witnessing the successof LCCs in the West. The Air Asia's business model have been restructured and produced a first airline operator in Asia to give a low-fare , no-frills concept. This airline company have been the first airline in this region to introduce fully ticketless travel and implement a free seating policy. The way of line its " Easy to Book, Easy to Pay and Easy to Fly " approach, seats also being sell through smartphone booking center, sales offices, travel agents and partnership with local banks and post offices. This encourage people to be more excited to have AirAsia to be their travel transportation due to its facilities to customers. In term of facilities, passengers could pre-book their checked baggage for a low rate that encourage customers to travel lighter so that less air pollution occur in term of fuel burning. The LCC also proud of its " Real 5 Star " offering with cosy leather seats and in flight served meals which selection of popular local Malaysian and Asian cuisine. After experiencing another type of airlines services from other international airlines, AirAsia have created " AirAsia X " which is for a better services in term of seats and food serving. AirAia had evolved from a classic LCC into an integrated service provider by not just offering on no-frills tickets but also financial services such as travel insurance. AirAsia also have launched their co-branded Citibank-AirAsia credit card which allow eligible cardholders to earn free flights. AirAsia also have struggling price war with the local airlines which is Malaysia Airlines. AirAsia have became the threat to former monopoly operator who is more receptive towards the low-cost and no-frills concept. In 2008, Malaysia Airlines have launched its unexpected campaign which is " Everyday Low Fare ", offering million free seats for domestic flight. Positive response have been obtained from the public from the campaign. But AirAsia fought back with its " Sub-Zero Fare " which is offering tickets prices below price offered by Malaysia Airlines. AirAsia can sustain the profitability from 2008 till now from the low-cost but high-quality airlines.
Summary
The vision of AirAsia is to continue to be the lowest cost airline in every market they serve with their own goal, strategy and foundation. FireFly which is owned as low-cost subsidiary of Malaysia Airlines is one of the low-cost carrier founded in Singapore, Thailand and Malaysia which its primary hub is at Penang International Airport, Penang while Malaysia Airlines as parent company. Based on the comparison on (EXHIBIT 3) between AirAsia and other airline operators, AirASia have many advantages and facilities that not applicable to other airline operators such as sister airline, destination countries, aircraft seats, cabin, seat option, refund and changes options and checked baggage fees. Then, the comparison between AirAsia and AirAsiaX have been made to know the difference in term of concept, flying range,aircraft, seat type, seat option and in-flight dining. It is stated that AirAsiaX have more option and advantages of the above measures. AirAsia also listed on one of the low share price change compared to other airline operators. It shows that AirAsia have made profit from the low-cost and no-frills. From 2003 until 2008, there are many award have been achieved and collected from AirAsia Airlines due to their services.
What I have learned
From this case study, I have learnt on how the commitment were used to compete with each other to achieve something towards the vision and mission. Also, creativity and initiative of ideas to keep challenge each other to obtain the goal and be one of the best company in Malaysia is one the value that can be learned from this case study. And the most important thing that can be apply to any people is the attitude on keep working hard and smart in order to achieve something that turn impossible things to possible. Good attitude and self-discipline to work in an organizations will make a good achievement in the future.