Logo of AirAsia
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When it is started?
The entry of AirAsia into the air-transport market during the economic outlook, 'Post- September (2001) has been proved successful and it is started after Tony Fernandes acquired and the then debt-ridden airline.
The founder of AirAsia, Fernandes founded Airasia right after the air travel downturn following the 11 September 2001 terrorist attacks as he believed that it is a golden time for entering the airline market and the timing was just right.
Although AirAsia offers a low price on every flight, AirAsia company can still able to cover its basic costs and make a profit despite the high cost of fuel, stiff competition and other expenses.
Let us continue to explore on how AirAsia could transform from a loss-making enterprise into a profit-realizing one whereby able to withstand the high costs.
Vision and Mission of Airasia
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The vision of AirAsia is to be the largest low-cost airline company in Asia and which can serve at least the 3 billion people who are currently underserved with poor connectivity and high fares.
However, there are four main missions identified by AirAsia. The first mission is to be the best airline company to work for whereby employees are treated as part of a big family. As a team in a company, we need to treat with each other as a family because the most of our time in the life journey is spent with our working partners and the average period of work is from 25 years old to 60 years old.
Besides that, AirAsia has determined to create a globally recognized ASEAN brand where those who need to travel from one location to another location will choose to fly with AirAsia as it is the most recognized brand in Asia.
Moreover, the third mission of AirAsia is to attain the lowest cost so that everyone can fly with AirAsia. AirAsia has offered low fares ticket to customers with an amazing price which is at Rm 0.99 and this gave a big chance for everyone to choose to fly with AirAsia. Thereby, "Everyone Can Fly" slogan has been proved.
Lastly, the fourth mission of AirAsia is to maintain the highest quality product, embracing technology to reduce cost and enhance service levels. For customers, almost everyone is seeking for a product with high quality and low price. High quality but with high price or low quality but with low price is not the needs of the customers. Therefore, a high-quality product but with low cost is important so in order to meet the standard needs of customers.
Key Strategies
There are some key strategies concerned and carried out by the AirAsia. One of the key strategies is Safety First. AirAsia is complying with the world airline operations.partnering with the world's most renowned maintenance providers.
Second, high aircraft utilization is focused so that the AirAsia can implement the regions fastest turn around time in short time duration. AirAsia is able to adjust the turnaround time at only 25 minutes and it has assured the lower costs and higher productivity.
Thirdly, AirAsia has offered Low Fare, No Frills. This strategy provided guests with the choice of customizing services without compromising on quality and services.
Fourthly, the streamline operations of AirAsia has also bring AirAsia to the success. AirAsia always making sure that processes are as simple as possible.
Moreover, AirAsia has focused on Lean Distribution System which offers a wide and innovative of distribution channels to make booking and traveling easier.
Lastly, AirAsia also always make sure the point to point network is keeping the operation at simple and lower costs.
The keys of success
Why the founder of Air Asia, Tony Fernades had made the decision to enter the airline market right after the 11 September 2001?
It is because the aircraft leasing costs had dropped sharply and experienced staff were readily available due to the reasons for airline layoffs.
The successful story of Air Asia is starting from the low-cost carriers and it has come a long way since the concept was first commissioned.
What makes AirAsia popular among the other airlines? Air Asia is so popular because Air Asia offers cheaper ticket prices than the full fare carrier.
Air Asia has provided a ticket for business class with reasonable price as regular ticket although the meals are not provided for free but the prices are affordable and this is one of the reasons of success for Air Asia.
Besides that, Air Asia have broadened their routes, improved their marketing and even their service no matter online or offline. This enables Air Asia to win many awards, and thus it validated its importance both in and to the travel market.
Strategic Plan
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- Hubs
23 (Malaysia 5, Thailand 6, Indonesia 5, India 3, Philippines 3, Japan 1) - Fleet Size
Airbus A320, A321neo, A330
Total=274 - Routes
400+ routes - Destination
150+ in 25 markets - Staffs
22,000+ Allstars - Weekly Flights
11,000+ weekly flights