EMMANUEL SAMSON ANAK BANYAH

Introduction   

          AirAsia is globally known for the services as a low cost carrier and was established in 1993 which based at Kuala Lumpur International Airport, Malaysia. This carrier is managed by CEO Tony Fernandes and pioneered the cross-border joint venture in Asia. With its tagline, “Now Everyone Can Fly” is a strong slogan for an airplane to empower all people to fly with this low cost carrier.

The beginning of AirAsia

          AirAsia begin as a Malaysia government-controlled, full service regional airline which provide a lower fares that Malaysia Airlines (MAS) which is its closest competitor. Tony Fernandes, a private entrepreneur seized the debt-ridden airline for amount of US$0.26 although the airline has been involved in downturn in 11 September 2001. Although the case, Tony Fernandes still keep a positive view to enter the airline market even aircraft leasing costs had decreased and experienced staff were readily available. Consequently, this airline become the first no-frills, low-cost carrier (LCC) in Asia and the business had successfully generated impressive profits after its relaunch in January 2012. However, the company keep moving forward to face any obstacles such as the surge of oil prices and competition from other airline companies.

Keeping No-Frill, Low Cost

          As the CEO of AirAsia, Tony Fernandes planned on enhanced the Team Management to become stronger and broaden with qualified person. For example, he invited former director of LCC Ryanair, Connor McCarthy for joining AirAsia’s executive team. This is a very good step following the success of Western LCCs to use his experiences and knowledge to make AirAsia globally known around the globe. As a result, AirAsia become the region’s first airline to launch ticketless travel and perform a free seating policy. The package is not include with in-flight entertainment or free meal, but the sale is ready on board. By doing this, their airfare become up to 60% lower that their closer competitor which is suitable with their tagline “Now Everyone Can Fly”.

         For a better domestic market, AirAsia set up four other hubs which are located at Kuching International Airport (KIA), Penang International Airport (PIA), Kota Kinabalu International Airport (KKIA) and Senai International Airport. AirAsia’s domestic plane can do round trip since its short-haul flights took less than four hour. Hence, the cost for crew accommodation and allowance can be reduced at the arriving cities.

          Besides the domestic market, AirAsia also launched AirAsia X where it is the long-haul regional service. AirAsia X’s flight cover the destination to Hangzhou, Perth and Gold Coast. This airplane also use the same services as AirAsia such as the ticketing website, crew uniform and management style. The difference is that AirAsia X offer two-class cabins that are economy seats and premium XL seats.

Distinctive Image and Leadership

          AirAsia possessed 72 aircraft which served more than 100 routes in Asia-Pacific region in 2008 and over than 300 flights per day compared to in 2012 with only three aircraft operation. This results depict that AirAsia has go through remarkable expansion and with the support of their advertising strategy. For example, their ads focussing to low fares with high quality and innovative airline. In consequence, their company become the official airline sponsor for Manchester United football club and AT&T William Formula One team.

          Besides that, AirAsia also involve in humanitarian activities such as transporting aid to cyclone-hit in Myanmar at year of 2008. Tony Fernandes often wearing AirAsia official red cap and T-shirt to nearly every occasion and even give his phone number to the media representatives. As a result, he obtain free publicity on numerous occasions. The greatest achievement by AirAsia is had been named as the World’s Best Low-Cost Airline for 11 years in a row from 2008 until 2019 by Skytrax whereas AirAsia X as the World’s Best Low-Cost Airline Premium Cabin for sixth consecutive year in 2018.

Conclusion

          In conclusion, Tony Fernandes has brought the transformation of debt-ridden airline into globally known airline and the best LCC in the world. His positive thinking to take any opportunities to find partnerships and with continuous effort help to achieve this achievement not only AirAsia, but for himself and Malaysia. This good actions should become our motivation and example to continue pursuing for our dream.