air asia story
TRANSCRIPT
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NAIMEY ABD JALILNOR AKMA ABDULLAH
W. NORHAFIZAINEE
MANAGEMENT INFORMATION SYSTEM
(MIS 750)
‘AIRASIA’
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Presentation outline
PRESENTATION OUTLINE
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COMPANY FOUNDER
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AirAsia chief executive • Tony Fernandes is a Malaysian entrepreneur who introduced the first budget no frills airline, AirAsia, to Malaysians with the tagline "Now everyone can fly".
• He rose to prominence by turning AirAsia, a failing government-linked commercial airline, into a highly successful budget airline public-listed company.
• AirAsia, the heavily-indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom, was losing money speedily.
• Instead of starting from scratch, Mahathir advised Fernandes to buy an existing airline instead.
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• Fernandes mortgaged his home and sank his savings to acquire the company, comprising two ageing Boeing 737-300 jets and USD$11 million (RM40 million) worth of debts, for 26 US cents (RM 1), and transformed it into an industry player.
• Coming just after the 11 September 2001, undoubtedly the worst day in the history of commercial aviation when nobody wanted to fly, everyone thought that Fernandes had gone "crazy", predicting that the company would fail miserably.
• one year after his takeover, AirAsia had broken even and cleared all its debts.
• Fernandes has also been honoured by the Malaysian government with title Dato Seri and also by the government of France with the Legion d'Honneur title.
Dato' Sri Anthony Francis Fernandes
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COMPANY BACKGROUND
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CORE BUSINESS
Low-cost, long-haul segment
Efficient and maintaining a simple aircraft fleet and
a route network based on low-cost airports.
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ANOTHER PRODUCT OFFER
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BUSS INESS
MODEL
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Value Proposition
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Revenue Model
AirAsia operates with the world’s
lowest unit cost of US$0.023/ASK
and a passenger break-even load
factor of 52%
100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes,
Crew productivity level that is triple
that of Malaysia Airlines and
achieves an average aircraft
utilisation rate of 13 hours a day
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MARKET OPPORTUNITY
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Competitive Environtment
12 other Asian low budget carriersSingapore’s ValuAirSingapore Airlines’ Tiger AirwaysQantas Airways’ Jetstar Asia
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Competitive advantages
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Marketing Strategies
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Organisational Development Expert team in
administration and production
Expert team in administration and
production
Exposure in administration and
also entertain people
Exposure in administration and
also entertain people
Some of head department have
experienced in Warner Music
Some of head department have
experienced in Warner Music
Systematic management team
and teamwork
Systematic management team
and teamwork
Various experience ability and skills
Various experience ability and skills
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Management Team
Operation: CAPTAIN ADRIAN
Deputy CEO: DATO KAMARUDDIN
CEO Indonesia :DHARMADI
Quality and Safety: SAIDULKHADRI HAMZAH
IT: LAU KIN CHOY
Secretary: BO LINGAM Commercial: KATHLEEN TAN
Engineering: AZHARI
CEO Thai: TASSPON
Bus Dev: CAPTAIN CHIN NYOK
Communication: JOYCE LAI Finance: ROZMAN OMAR
CEO: DATO SERI TONY FERNANDES
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IT APPLICATIONSystem that AirAsia used in maximized IT to meet the lowest cost during their business activities is the implementation of:
Yield Management System (YMS)
•AirAsia can understands the behavior of their customer and offering the effectives and efficiency strategy and also can allocate capacity to maximize the expected revenue. •By this system, AirAsia can make efficiency to know their customer using IT technology with lowest cost.
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Customer Reservation
System (CRS)
• CRS is an integrated web-based reservation and inventory system. It includes Internet; call center, airport departure control and more. •It is a direct sales engine that effectively eliminates the middleman (travel agents) and the sales commissions that need to be paid to them. •customer friendly because customer can buy or make a reservation of a ticket directly via online, and no need to come to the ticket counter.
IT APPLICATION
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IT APPLICATION•From the view of managers in a company, the emphasis is on the word planning; ERP represents a comprehensive software approach to support decisions concurrent with planning and controlling the business.
•Based on the definition, ERP is the system that integrated comprehensive software to make the IT system is more effectively and efficiently.
•By implementing this package AirAsia is looking to successfully maintain process integrity, reduce financial month-end closing processing times, and speed up reporting and data retrieval processes, (Microsoft Malaysia).
•In addition, it is a system focusing on capturing transactions in daily operations and helping AirAsia to save its operational costs as well as to increase the efficiency and integrity in its operation (Microsoft Press Pass, 2005)
Enterprise Resource System (ERP)
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AirAsia also a passionate user of technology in its branding and marketing
efforts
Social media is one of AirAsia’s important branding campaign mechanisms, which allows the airline to address the conventional
limitations of direct push marketing. With its own Facebook page, it is akin to a forum that invites participation from the public, creating an
extension for them to be passionate and connected to the AirAsia brand. Twitter is another interesting tool that is utilized for
transmission of short marketing blurbs, updating guests with new developments and promotions.
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SUCCESS STORIES• AirAsia has become one of the most successful airlines in the Southeast
Asian region and the pioneer of low cost and no frills travel in Malaysia.• AirAsia have a lot of achievement and awards since year 2001 until
present
Masterclass Global CEO of the YearAwarded to Ybhg. Dato’ Tony Fernandes
World’s Best Low Cost AirlineBy Skytrax
AirAsia voted the Air Cargo Industry Newcomer Award at the ACW World Air Cargo Awards 2010
By Air Cargo Week
AWARDS IN YEAR 2010
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AWARDS IN YEAR 2009
Tony received the 2009 Frost & Sullivan Excellence in Leadership Awardby Frost & Sullivan
Best Asian Low-Cost CarrierBy TTG Travel Awards 2009
Airline Of The YearBy Centre for Asia Pacific Aviation (CAPA)
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The Laureate Award for Best Commercial AirportTransport
from Aviation Week
Tony awarded the Malaysia Brand Icon Award from Deputy Prime Minister YAB Dato' Seri Najib Tun Razak at
the Global Brand Forum Malaysia
Best Asian Low-Cost CarrierBy TTG Travel Awards 2008
AirAsia - Malaysia's 30 Most Valuable Brands 2008 By Malaysia’s Most Valuable Brands (MMVB)
PIKOM ICT Organisation Excellence Award 2008By Association of the computer and multimedia industry (PIKOM)
AWARDS IN YEAR 2008
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Lesson learnt Big company especially in airline industry should generated a strategic
business plan to make sure they can compete and survive in the economies fluctuate.
Company should understand the customer need and problem by increasing customer insight, where it able to develop new product and solve the customer needs and problem.
Applied an effective IT program in company operations.
A good leader should able to make a good decision and take a risk for their company.