Air Asia Competitive Advantage

Abstract. Introduction – Air Asia Berhad Air Asia is a Malaysia Low Cost Carrier Airline Company which was founded in 2001 by Tony Fernandes. It was the first successful and is one of the largest low cost airlines in Southeast Asia. Also, it has become Malaysia first international low cost carrier. Air Asia Company’s simple philosophy ‘Now Everyone Can Fly’ has successfully positioned itself in customers’ mind where majority of the customer would choose Air Asia as their choice of transport. In add, Air Asia succeed through the company’s effective and efficient operational.

The company provides a totally different type of service in line with the nation’s goal which is to benefit all people and worldwide travellers. The main service takes the form of no frills. Before 2011, it is a money losing airlines operated by the government which after that became a successful airline company after being taken over by Tony Fernandes. It can be said it is a remarkable transformation of the airline.

Kuala Lumpur International Airport serves as the main hub for Low Cost Carrier Terminal in Malaysia.

By the year 2005, Air Asia has operates in 6 countries worldwide which serves more than 5millions customer. Until today, the company is currently operating in 25 countries which provide domestic and international flight. In this assignment, we are going to discuss regarding the information system and technology implemented by Air Asia which make the company become so successful, the current and future business alignment strategy and business operation of Air Asia. History – Air Asia Establishment AirAsia was established in 1993 and commenced operations on 18 November 1996.

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It was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former Time Warner executive Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit (about $USD0. 26 at the time) with USD$11 million (RM40 million) worth of debts. Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US$0. 7). Second hub In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary, added Singapore itself to the destination list, and commenced flights to Indonesia. Flights to Macau started in June 2004, while flights to Mainland China (Xiamen) and the Philippines (Manila) started in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia. Expansion abroad

On August 2006, AirAsia took over Malaysia Airlines’s Rural Air Service routes in Sabah and Sarawak, operating under the FlyAsianXpress brand, the routes were subsequently returned to MASwings a year later citing commercial reasons. AirAsia’s CEO Tony Fernandes subsequently unveiled a five-year plan to further enhance its presence in Asia. [9] In the plan, AirAsia will strengthen and enhance its route network by connecting all the existing cities in the region and expanding further into Indochina, Indonesia, Southern China (Kun Ming, Xiamen, Shenzen) and India.

The airline will focus on developing its hubs in Bangkok and Jakarta through its sister companies, Thai AirAsia and Indonesia AirAsia. Hence, with increase frequency and addition of new routes, AirAsia expects passenger volume to hit 18 million by end-2007. Route expansion On 27 September 2008, have on its list 106 new routes to be added to its current list of 60 over the next few years. The number of old routes discontinued has not been publicly disclosed.