AirAsia

History of AirAsia:
established by DRB-Hicom Berhad in
late 1996
The death of Tan Sri Yahaya Ahmad
management and financial crisis
8th December 2001, Tony Fernandes
had taken over AirAsia with RM 1
(40mil)
7 month in operation, gained RM 113
million
Going public on 2004 and got its own
airport on 2006
 Air Asia Present Strategy
The quantity and types of planes
• AirAsia has 135 planes which are operating for both
domestic and international flights
• Various types of planes - Airbus 320-200, Boeing 737-200,
Airbus 330-
300, Airbus 340-300, and Airbus 350-900.

AirAsia promotional tools

• Magazine
• Newspaper
• Internet and Email
• Merchandise
Success of Air Asia
1.A low-cost carrier among the airline industry
- Offer low fare for all destination around the world.
2. Low operating cost
- Have a very lean organization structure and operating costs
are
kept to the bare minimum with low wages.
3.Management strategy
Maximize shareholders value
- Profit creation by expending business reach within Asia and
Europe
 Focus on customer needs
- No fuel charge, customers just need to pay tickets price and tax
- Comprehensive distribution channel
 Operation excellence
- All staffs are contribute-no ranks or hierarchy
- Performance based remunerations and incentives

5. Pricing strategy
- Air Asia using randomized pricing strategy and this strategy to increase
the market demand and profit maximize
- With a randomized pricing strategy, a firm varies its price from
hour to hour or day to day basic, consequently. When a firm
randomly changes the prices of their goods, consumer cannot learn
from experience which firm charges the lowest price in the market
6. New routes and frequency of flights
- Air Asia airline now introduced new flights routs to countries
around the world.
- increases the frequency of flights for certain destination not
only in Malaysia but Asia countries too. For example
frequency flights to KL to Jakarta increased to seven times per
day.
Failure of Air Asia
1. Flight delay complaints from passengers
- Air Asia passengers start to complaint about the delay of the
flights for certain destination.
- passengers have to wait for the flights for long hours and this
make them feel not comfortable
Future Outlook
 Technology Innovation
AirAsia can learn from MAS’s iFly services
Offers a remote check-in service in more languages
Replace the self-service check-in kiosks with PCs
and printers
 Business Expansion
Venture into the cargo business
Emphasize more on customers from Japan and
Korea
Improve its influence in the European market
 Brand Awareness
Using corporate social responsibility
Introducing flights powered by bio-fuel
Advertise more in other countries
Conclusion
AirAsia is a leading low fare airline in the Asia.
Has expanded rapidly since 2001.
The products of AirAsia have entered into growth period
in the lifecycle.
More customers are familiar with this brand.
Low cost products are easily acceptable for customers
and thus, AirAsia is able to occupy more market share
and increase its revenue.
The management should pay more attention to
sustainable development and the trend of consuming in
the tourism market.