NUR ELIDA JAZMEEN BINTI SALIHIN

                                                                     
                                                Winning the World's Best Low Cost Airline at Skytrax World Airline Awards

            When we heard people looking for a low-cost airline, there is no doubt almost all Malaysian will opt for AirAsia. Since 2008, AirAsia has been crowned as the World’s Best Low-Cost Airline at the Skytrax World Airline Awards. According to a case study research written by Stephen Ko in 2009, AirAsia is initially owned by the Malaysian government but offer slightly lower fares compared to its number-one competitor, Malaysia Airlines (MAS). However, in 2001, Tony Fernandes, a private entrepreneur is taking risk to enter the airline market by bringing AirAsia back to life. His determination and perseverance are something to look up to in our life.

            In terms in reviving AirAsia, Fernandes need to come up with creative strategies and strict decisions. He decided to make AirAsia as a ‘No Frills’ airline which also mean an airline with no provided meals and other unnecessary services. By doing so, he can keep on giving 40% to 60% lower fare compare to MAS, and proudly present AirAsia’s tagline as “Now Everyone Can Fly”. He also inventively trying to take advantage of the technology by allowing telephone booking and SMS booking, a mobile phone Short Messaging Service (SMS).

                                                            
                                                                                           Sister airline; AirAsia X

            As an ambitious person he is, Tony Fernandes expanded his business by having short-haul flights to the neighbouring countries. A joint venture with Thailand’s Shin Corporation, a telecommunications company have produced a subsidiary company called Thai AirAsia. Another subsidiary company is Indonesia AirAsia based in Jakarta, former known as Awair. Other than Thailand and Indonesia, AirAsia also have succeeded to be allowed to land in Singapore and Australia. A sister airline called AirAsia X is a long-haul flight which have successfully landed in Gold Coast, Australia in late 2007 as its first destination. By exploring partnerships, AirAsia have grown prosperously throughout the world and now have been flying to 165 destinations spanning 25 countries.

            Moreover, even it does not seem like it, AirAsia is very concern on the environment. It is stated that in the early 2007, AirAsia have introduced online check-in by using the internet and planning to use costumer handheld devices for custom check-in in the near future. As up to 2020, we can say that AirAsia have effectively implement this to their customers. This initiative is taken to reduce paper usage on a daily basis. Other than that, AirAsia also introduced checked-baggage fees to encourage customer to travel lighter. This is because the lighter the weight carried in an airplane, less fuel was burnt and resulting on less pollution.

            However, before enjoying rainbows, there must be rain. In 2008, there have been a price war between AirAsia and its sworn rival, MAS. MAS have unexpectedly launched a campaign called “Everyday Low Fare”. Unfortunately, Fernandes is unhappy with the campaign as he claimed it to be unfair and unhealthy since MAS is subsidised by the government. The managing director of MAS, Idris Jala denied the accusation and stressed that the campaign is not funded by the government but just a way to fill up the unsold seats. In the heat of the moment, Fernandes fought back with a “Sub-Zero Fare” campaign offering ticket with much lower prices compared to MAS.

                                                               
                                                                             One of AirAsia promotion in 2019

            As the government realised on this unhealthy competition which will only ended up with the company cannibalising each other, the government have work on a route to a rationalisation programme for both national airlines. From then, both AirAsia and MAS are working on their targeted market in a healthy competition. For AirAsia, they still with their main vision which to continue to be the lowest cost airline in every market they serve. They aim for a high margin profit together with a sustainable growth. Fernandes believe that a strong foundation is needed to achieve his vision and goals thus he stressed on low-cost, efficiency, stimulating the new markets and a strong cash flow.

            In conclusion, although Fernandes does not really build AirAsia from scratch, we can say that he is an opportunist. He knows when to grab the iron while it is still hot. He is also very optimistic as never once in this journey he thought that he can’t do it. He believes in his staffs, from the ground staff to the cabin crew, that they can make AirAsia as everyone’s first choice. Although it is obvious when you are in the business line, networking and partnership is also one of the main reasons to the prosperous growth of AirAsia. Tony Fernandes is truly a wonderful public figure to look up too and remember the fruit of his hard work is currently flying everywhere across the globe.