Introduction AirAsia Asia's leading airline was established with the dream of making flying possible for everyone.

Since 2001, AirAsia has swiftly broken travel norms around the globe and has risen to become the world's best. ith a route network that spans through to over 20 countries,

AirAsia continues to pave the way for low!cost aviation through innovative solutions, efficient processes and a passionate approach to business. "ogether with their associate companies, AirAsia #, "hai AirAsia, $ndonesia AirAsia, %hilippines' AirAsia $nc and AirAsia &apan, they are set to take low!cost flying to an all new high with the belief, '(ow )veryone *an +ly'.

AirAsia started from an airline with two aircraft plying si, routes in -alaysia in &anuary 2002 and revolved to cover ./ destinations in 10 countries for last nine years. As of today, the 1roup, had employed more than 0,000 staff and with a market capitalisation of 2ust over 3-4.0. billion 5as at 61 7ecember 20108, it is the only "ruly AS)A( airline that serving the region's .00 million population from 10 hubs in three countries ! 9uala :umpur, 9uching, %enang and 9ota 9inabalu in -alaysia; <angkok and %huket in "hailand; and &akarta, <ali, <andung and Surabaya in $ndonesia.

As the leading low!cost carrier, they manage to connect people and places across 162 routes, where =0 of which are do not offered by any other airline. "he 1roup, which includes affiliates AirAsia "hailand and AirAsia $ndonesia, reinforced its leadership position with two remarkable milestones> flying its 100 millionth guest and breaking the 3-1 billion profit barriers by 2010.

$n year 2012, AirAsia had e,ecuted several %ubic 3elation campaign and practice as mentioned below>!

Community Relation Efficiency & the Environment AirAsia is fully cogni?ant of the fact the aviation industry contributes to about 2@ of global *A2 emissions and is committed to playing its part to reduce as far as possible the carbon footprint of all the actions and operations. "he fleet is made up of 126 Airbus A620 aircraft which represent the most fuel!efficient narrow body aircraft in the world. hat is more, its

fleet is one of the youngest in the region, with an average age of 2ust 6./ years, lending then an edge not only in terms of fuel efficiency but also ensuring that they meet international standards on noise pollution.

)mphasis on efficiency at AirAsia is such that they have a department dedicated to enhancing efficiency levels of all aspects of their operations. "his department works closely with 1) AviationBs %erformance!<ased (avigation and +uel C *arbon Solutions teams to further fine!tune their operations with highly sophisticated systems. Although AirAsia fuel consumption is already among the lowest in the regionDworld but their ob2ective is to reduce the fuel consumption by a further 6@ in short term.

Among the initiatives action that AirAsia had taken to increase the fuel efficiency as part of the commitment in their parts to reduce the carbon footprint as much as possible for the community> E Tankering Fuel F "here are occasions when it is more cost!effective to carry more fuel on! board than is necessary, for e,ample when the price of fuel at the destination is significantly

higher than the price at the point of departure, therefore strike an optimum level of fuel carried to achieve the greatest cost!efficiency. E Water Load F Aptimise the volume of water carried on!board to reduce the weight of aircraft with the policy is to fill water tanks. E Aircraft Speed F )nsuring their aircraft take off at the optimal speed and subseGuently maintain optimal acceleration until attaining the cruising speed. E Regular Engine Wash *lean engines are more fuel!efficient and increase the interval between engine overhauls. "hese initiatives afford us 0./! 0.4@ savings from fuel consumption. E Engine Thrust Rating ! Airbus 620 aircraft have two engine ratings 526./9 and 2498. here possible, AirAsia use the lower thrust rating to reduce the maintenance costs. "he initiatives action above shown that AirAsia were concerned toward the environmental and harm that had been caused by them with their unavoidable business nature operation. "herefore with such %ublic 3elation practice this will manage to build AirAsia a good corporate image to the public that they do care to the community as well. "hey will reveal the action taken in their annual Sustainability 3eport to inform their shareholders.

Employee relation <elow are the 2 e,ample of the programme that AirAsia did to improve their employee relation in the year 2012>!

ig Red A!esome "dea #et!ork $ RA"#% <ig 3ed AirAsia launched Awesome $dea (etwork 5<3A$(8 in +ebruary 2012, their latest employee engagement programme. "his is a crowd sourcing concept, where the challenges faced in any organi?ation can be at least partially managed by opening the solution process to

all employees. Hnder <3A$(, all Allstars F from ramp staff to senior e,ecutives are encouraged to identify aspects of their daily work that can be improved.

Ather than that, Allstars are also given the opportunity to contribute, comment on and vote for ideas put forward to improve the business related tasks and services. "he initial phase of the pro2ect was conducted in -alaysia from 1/ +ebruary to I -ay 2012, attracting 1I/ suggestions from over 100 Allstars. Since then, the <3A$( has gone 1roupwide reaching out to all Allstars to e,press and present their creative and innovative ideas to improve their daily tasks.

Employee Relations &rogramme AirAsia also provide the services of an in!house counselor to help their staff manage work! related or personal grievances. "his is to provide the employee a place to e,press the dilemma and stress that might caused from their daily hectic work task. $n addition, there are also some other employee relations programme which AirAsia is offering like coaching, mentoring, yoga and meditation classes, soft!skills classes like communication, values of life and leadership.

Public Affair As a result of enabling air travel, AirAsia had opened up many possibilities for the people of Asean and beyond by making lifelong held dreams come true and taking AirAsia commitment to local communityBs one step further. AirAsia 5:8 +oundation 5AirAsia +oundation8 in -arch 2012 provides more focus and structure to their social sustainability commitment. ith the +oundation, they are able to reach targeted society and achieve desired

impact in giving back to the people who have made it possible for AirAsia to come this far. Ane of the public affair services that AirAsia did in year 2012 was>!

'eritage & (onservation AirAsia +oundation awarded its first grant in Actober 2012 to *ambodian :iving Arts 5*:A8, where they are seeking to revive *ambodian performing arts after two decades during which many artistes and musicians perished. AirAsia +oundationBs begin their partnership by sponsoring its participation in the 2012 %enang 1eorgetown +estival. Hnder the resulting %lae %akaa 5+ruitful8 %ro2ect, AirAsia +oundation is funding year!long classes for 100 students and also bearing the start!up costs to establish a daily show at the museum, which is one of the most visited in the region.

&ust two months from the commencement of the show on 1 (ovember 2012, %lae %akaa %ro2ect it had attracted 2,02/ visitors, earning 3-.1, /00 in ticket sales, product sales and donations. "hey also had been featured in AirAsia in!flight maga?ine, "ravel6Si,tyJ, to promote sustainable tourism activities to %hnom %enh visitors.

Publicity AirAsia Recogni)ed at the *st Asian E+cellence Recognition A!ards $n . April 2011, AirAsia the worldBs best low cost airline picked up three awards F <est $nvestor 3elations *ompany for -alaysia, <est *)A for -alaysia and <est $nvestor 3elations Afficer for -alaysia at the first Asian ),cellence 3ecognition Awards by *orporate 1overnance Asia that held in Kong 9ong on -arch 61. AirAsiaBs *hairman 7atoB A?i? Abu <akar on behalf of the airline received the <est $nvestor 3elations *ompany for -alaysia award while -r <enyamin $smail was awarded the <est $nvestor 3elations Afficer for -alaysia.

"he first Asian ),cellence 3ecognition Awards recogni?es e,cellence in investor communications, business ethics, corporate social responsibility, environmental practices and financial performances and this recognitions are awarded based on interviews conducted with investors. "he recognition award is part of *orporate 1overnance AsiaBs mission to enhance corporate governance practices throughout Asia. "his is the fourth award picked up by AirAsia in 2011, after receiving AsiaBs <est :ow *ost *argo *arrier Award 2011 at the Aviation Award Asia; +astest 1rowing +oreign Airline for *argo from the 1uang?hou <aiyun $nternational Airport and AsiamoneyBs <est -anaged *ompany Award 2010 in the last two months.

"hrough this award winning, AirAsia manage to create e,posure and publicity for the organi?ation. $n addition, it will build up a trusted brand among the competitor and prove to their customer that they are best within the industry.

Special Events Air Asia receives its *,,th A-., from Air/us !ith a special flair An 2= -ay 2012, Air Asia marked another milestone on the way to becoming the largest A620 operator worldwide by accepting its 100th aircraft, celebrating this event with a special touch that underscores the close relationship established between this low!cost carrier and Airbus. 7uring a event ceremony at AirbusB "oulouse, +rance delivery centre, the A620 was unveiled in the presence of 1allois, who was welcomed by Air Asia 1roup *)A "ony +ernandes, and 2oined by Airbus %resident and *)A "homas )nders, along with &ohn :eahy, AirbusB *hief Aperating Afficer *ustomers. Attending the event were members of the international press, who gathered in "oulouse for AirbusB annual $nnovation 7ays event.

"he airline currently has 64/ unit of A620s on order, including AirbusB A620neo 5new engine option8 version. +ernandes said Air AsiaBs innovative route structure includes /0 percent of routes that were not previously operated by other carriers, with many of these segments using the A620Bs operational fle,ibility F including opening access to many airports.

Fund-raising "he AirAsia 5:8 +oundation 5AirAsia +oundation8 aims to leverage on AirAsiaBs entrepreneurial edge to empower communities, thus help them to improve their socio! economic standing in the long term. "o date, AirAsia have LadoptedB two -alaysia!based social enterprises which they are supporting via funds as well as training. "hey are the 1erai Arang Asal, which serves to promote the livelihood of indigenous minorities in -alaysia; and Silent ")7dies, which focuses on providing the hearing!impaired with income!generating skills. <elow mentioned are the fund!raising activities had been done to support them>!

0erai 1rang Asal $0erai 1A% 1erai AA is a volunteer!run, non!profit venture which will collect craft products from the artisansB villages for sale at craft fairs as the fund!raising to support the artisan villager. All fund!raising profits will be return to the artisans together with donations of medicines, clothes and food. 1erai AA currently supports 60 villages and more than 100 indigenous artisans across -alaysia. $n the mean while, AirAsia play their parts by provides 1erai AA volunteers with complimentary return flights and baggage allowance to facilitate their work. So far, AirAsia have provided one free passage from 9ota <elud, Sabah to 9uala :umpur for a volunteer to participate in the annual (ational *raft ),po in -arch 2012; and two flights in September 2012 for coordinators to participate in techniGue!e,change workshops at the orld )co!+ibre and "e,tile 5 )+"8 +orum in 9uching, Sarawak.

Effect of the Public Relation Practice Employee $n 2012, AirAsia was named the -ost %opular 1raduate )mployer in :eisure, "ravel and Kospitality at -alaysiaBs 100 :eading 1raduate )mployers 2012 Awards. "his was the first time AirAsia won this award and they are always strategically!driven in approaching to human capital development. AirAsia truly believe that their Allstars 5name given as being AirAsia staff8 are the greatest assets, therefore they invest significantly in recruiting and retaining the best talents. AirAsia goal is to provide a conductive environment in which their Allstars feel motivated to realise their potential while contributing in a meaningful way to the attainment of their vision and goals.

AirAsia employee programme allowed their employee to know the organi?ation better as well. )mployee will felt more secure if they know the organi?ation management and things that are on!going and the reason behind it. "his will also indirectly increase the productivity as the employees are able working willingly, enthusiastically, knowledgeable, proudly and efficiently. $t can be reflected from the reduction of the employee absenteeism that cause by poor motivation and boredom.

(ompany (ampaign Airsia manage to e,ecute many %ublic 3elation practice in variety of area that cover e,ternally and internally stakeholders. "hey manage to create an identical image like corporate image of their logo and mirror image of the *)A with their effort in the %ublic 3elation campaign. <esides that, AirAsia able to create a new identity to the public conventional impression towards airline with their slogan M)veryone can flyN where taking flight is no longer as e,pensive and lu,ury as they used to think.

Airsia also taking care of their employee by launching program such as <3A$( to make their employee felt the sense of belonging when their voice and idea actually was needed and appreciated by the organi?ation. ith such strong and good image of the organi?ation, they

manage to attract more caliber 2ob applicant as well. An organi?ation that has strong identity and caliber employee will indirectly strengthen the company against the risk to be taking over.

Society AirAsia fully used of the latest media channel F Social -edia to regain the public confident after crisis disaster. <esides that, some of their program also dedicated to improve community relation from public criticism. Airsia %ublic 3elation practice also is a channel for them to update about their organi?ational internal stories of the management as well as the employee activities in order for the public to understand them better. As a result, they will gain credit and understanding from it. )ven their *)A was making use of this channel to get closer to their customer and make them felt they are being heard and treasured. "his indirectly will gain the public confident towards the organi?ation as well.

Media Analysis Social 2edia Apart from the conventional media channel like newspaper, "O or radio advertisement, customerBs newsletter, AirAsia is going beyond than that to approach the latest media tool ! Social -edia. AirAsia are going into the direction of being young, vibrant and, most importantly, driven by a strong people focus which make AirAsia became one of the most inspiring success stories of use of the social media by a corporation. hile others grapple

with the intricacies of gaining fans and keeping them, AirAsia are ahead of the game,

incorporating social media into the 1roupBs core values and using platforms such as +acebook, "witter, Pou"ube, $nstagram and blogs rather like :ego F to build relationships, build their business, build efficient communication channels, build e,citement, and of course building their brand as well.

<y holding the principles Listen3 Engage and (onnect close to the customer heart, AirAsia have been able to revolutioni?e the social networking the same way as they had successfully done in the air travel. Af course, with the high!profile personalities like the 1roup *)A "an Sri 7r. "ony +ernandes who have embraced this new paradigm full!heartedly where every time there is something interesting to report whether it is new routes, or updates on the running bet with OirginBs <ranson, the performance of the Queens %ark 3angers, or the search for new Allstars to staff the upcoming $ndia operations, the public can e,pect a Guick blip from his twitter. )ven the new in the role of AirAsia <erhad *)A, Aireen Amar also has begun to tweet actively to build relationships with the public where in fact, she has even started an $nstagram account where she shares sneak peeks into her life as *)A as well as beautiful photos of some destinations F all the better to entice her followers to fly with AirAsiaR

"he fact is, AirAsia have not 2umped on the social network bandwagon for the sake of it but is because they are a Mpeople companyN and social media is a great platform to connect with their guests and fans in the easiest and fastest link. AirAsia 1roup *)A ! "an Sri "ony +ernandesBs tweets arenBt 2ust one!way bytes of info; often they lead to running conversations with complete strangers who eventually feel a closer, more emotional connection with AirAsia. <y acting on their tweets operationally, their fans feel a sense at least of Lpart ownershipB of AirAsia airline, further reinforcing the brand as a peopleBs airline. According

to ee?er.com, a social network site that features tweets and location!verified reviews related to travel, AirAsia has the greatest number of two!way tweets between itself and its consumers among all airlines. Suddenly with this current wave make AirAsia no longer 2ust another low! cost airline, but an airline that values and respects people who make the time to interact with them.

So whatBs ne,t for AirAsia to e,pand furtherS "hey were already on +acebook, "witter, Pou"ube and blog, and in late 2011, started an $nstagram account 5TAirAsia8 to showcase AirAsia Allstar culture, allowing fans a peep into happenings at the AirAsia headGuarters. "he photo!sharing app proved to be a success as fans all around the globe able to follow them to get a better feel of what goes on at AirAsia behind the scenes. "heir $nstagram success was even noted by &aunted.com, a popular pop culture travel guide, which named AirAsia as the top airline to follow on this social media platform. -eanwhile, recogni?ing the obvious advantages of connecting with the worldBs most populated country, "an Sri "ony started a eibo account in late August. ith AirAsia in!country social media team providing Guick

translation services, he currently has over 4.,000 followers. *urrently there are 1.0million of M:ikesN on AirAsia +acebook and $nstagram +ollowers are 20.

Air Asia Crisis involved in the company campaign An August 0, 2012, AirAsia as the worldBs largest low!cost airline officially opened their regional headGuarter in &akarta in order to enhance their operational effectiveness in Southeast Asia. 7uring the event, AirAsia 1roupBs *)A "ony +ernandes commented that the AirAsia AS)A( regional office would help the airline to better prepare itself for the implementation of the AS)A( Apen Sky policy and the AS)A( )conomic *ommunity in 201/. <esides $ndonesia, AS)A( comprises <runei 7arussalam, *ambodia, :aos, -alaysia, -yanmar, the %hilippines, Singapore, "hailand, and Oietnam.

Kowever, in one of the event photos that was posted in +acebook, where their flight crew spotted traditional dresses from AS)A( countries to promote their diversity of destinations, a lady wearing a cheongsam, a body!hugging one!piece *hinese dress for women was spotted instead of the Ao 7ai 5traditional dress of Oietnam8. "he photo was Guickly spread like wildfire within Oietnam local online community attracting hundreds of angry comments and suggestion of boycotting the airline. Kot bloggers 2umped in the conversation with their anger over the national dress mis!representation. :ocal popular newspapers such as "hanh (ien (ewspaper article also featured the news. Social media, again, showed their prowess as the main engine behind the internet rage.

ith this incident, AirAsia will likely be simmered in a big %ublic 3elation crisis in Oietnam market. $t does affect the companyBs latest effort in penetrating the market. Strangely, the %ublic 3elation and Social -edia team at headGuarter did not take any prompt measure to solve this situation. $nstead, they kept the photo and tried to talk their way out of this situation, which further angers the local neti?ens. Kowever, the e,planation is completely in contrast to the fact highlighted in the original article that M<esides $ndonesia, AS)A( comprises <runei 7arussalam, *ambodia, :aos, -alaysia, -yanmar, the %hilippines, Singapore, "hailand, and Oietnam.N

AirAsia is faring Guite well in Oietnam, and they are one of a few low cost carriers in this potential market. "he Guestion is do we have a case of nationalism and business interest conflict hereS hen they insulted the national pride of a country, either by mistake or on

purpose, it would turn out to be bad for their business. "he company has let the incident prolong for a few days, and has not taken any decisive action to put an end to this crisis.

-eanwhile, the photo is still kept on their +acebook fan pages and still being shared around the internet.

ith AirAsiaBs corrective actions; it seems like AirAsia refused to admit and apologi?e to Oietnamese neti?ens with regards to this incident. $nstead, AirAsia 2ust issued vague e,planations that make the Oietnamese neti?ens, their potential customers, even angrier. "hey even let the crisis go on for so long without any solution.

"he crisis management strategy used by AirAsia in this situation could possibly e,plained that AirAsia intends to let the case die down by itself or rather a source of ride on this wave to spread awareness of their brand thou its negative. $n either case, great damage will be done to their business in Oietnam if the case gets unresolved. e still did not see any involvement

from their senior management team in the social media aspect of the case.

"here are some actions or measures that AirAsia could have taken for better mitigation in this situation. "hey could have taken down the photo when the incident started to breakout. M*ustomer is always rightN should be in the company culture or core values. "hey could have also issued an official statement with a clear and straight!forward e,planation or rather contacted the public media outlets to rectify the situation.

e must advocate the great impact this incident has caused to the companyBs %ublic 3elation, and this blows up within a few days thanks to the prowess of social media. +or an international company like AirAsia, cultural sensitivity should be their no.1 priority. Kowever, they slipped on this case and hurt the pride of Oietnamese citi?ens.

Conclusion

hen a long!cherished dream of "an Sri 7r. "ony +ernandes to own an airline came true, the new management announced their plan to create a low!cost carrier so that everyone in Asean can fly, it was a dream promised to the regionBs .00 million or so population.

"oday, AirAsia was able to build a trusted brand with a great corporate image. $n order to establish such ama?ing branding, %ublic 3elation plays a big part to sustain their status as the leading low cost carriers. AirAsia will always looking beyond of what conventional in communication by fully utili?e available channel like social media as well as they aware they have a duty to be transparent and to keep their stakeholders informed of their plans and strategies. AirAsia are taking the level of their %ublic 3elation proficiency even further by producing a Sustainability 3eport.

<eside branding and corporate publicity of their services to customers, Airsia never ever neglect their valuable asset to make their dreams come true by supporting the career ambitions of their employee ! Allstars; and by promoting the sporting aspirations of hundreds of talented youth in the region. As a payback to the public that make them where they are now, setting up of the AirAsia +oundation in 2012, also championing entrepreneurial development, heritage conservation and social issues. hile in the community aspect they do

initiate action to reduce their footprint within their daily operation.

"herefore, as conclusion %ublic 3elation practice in AirAsia did play a great part in all area within the organi?ation internally and e,ternally. $t had grown and groomed the company to be globally well recogni?ed and established leading brand for low cost carriers we all acknowledged today.

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