Beruflich Dokumente
Kultur Dokumente
up from third place today.1 Airlines product include: On the ground services booking offices, paperwork, tickets In-Flight services Seating configuration, ambience, good interiors, hospitality Asia-Pacific carriers recorded demand improvement of 15.5% compared to June 2009.2 Business model followed The service marketing triangle
Case Overview
Study of a very successful LCC Air Asia Business Strategy followed by Air Asia The Air Asia Value Chain OCL & Product Differentiation at Air Asia Porters Five Forces Analysis Future Prospects
AirAsia
Now Everyone can Fly
Low cost carrier No-frills, hassle-free, low fare business concept A fleet of 84 aircrafts AirAsia flies to over 61 domestic and international destinations with 108 routes Operates over 400 flights daily3 Fourth Quarter results (Oct-Dec09):4 Net profit: RM 549 million Core operating profit: RM 447 million Passenger growth : 21% YoY
Net Income
Net Income (in 1 000's RM)
600000 400000 200000 0 -200000 -400000 -600000 2002 2003 2004 2005 2006 2007 2008 2009 Net Income (in 1 000's RMB)
BUSINESS STRATEGY
Current Products New Products
Value Chain
S E C O N D A R Y P R I M A R Y
Air Hubs, Legal Dept, Finance , Govt. Relations AirAsia Acad., Safety Procedures training, Baggage training Baggage systems, Online Booking systems, CRS Technical Advancement, Key skills procurement
Staff, Passenger s, Fuel, Aircrafts, Catering, Spares Baggage Systems, Security operations, Gate operations , Cargo Operations, Aircraft Mgmt Passengers( at destination), Baggage, Ground shuttles, Safety and Security procedures Targeted promo campaigns, Print media campaigns, Exciting offers, Online sales Lost and found, Baggage Claims, Follow up with existing customers
M ar g
in
Inbound Logistics
Operations
Outbound Logistics
Service
M ar gi
SWOT Analysis
Strengths Strong management team Brand name Low cost leader in Asia Excellent utilization of IT Weaknesses Does not have its own maintenance, repair and overhaul (MRO) A lot of complaints from customers Threats Service rates beyond the control of airline operators Full service airlines have or planning to create a low cost subsidiary Users perception that budget airlines may compromise safety ASEAN Open Skies
Opportunities Increasing oil price ASEAN Open Skies Increasing population of Asian middle class
Countered by Sub-Zero fare campaign Abolished Fuel Surcharges & Ticket booking fee in 20097
Threat of New Entrants Silverfly launched in Malaysia in Sep 20098 Happy Air (Thailand) took over Bangkok- Langkawi route8 Hawaiian Airlines plans to enter Asia9
Air Asia brand loyalty can retain customers New entrants will have high capital investment
fleet Hedged Aviation fuel prices for 3 years from 2008 to Dec 2010 Air Asia X signed MRO contract with Lufthansa Technik , Philippines
contd.
Projected growth Cities being promoted for travel Ties with domestic airlines Places for tourism and important Routes South Africa and Egypt South African air travel market is 50% bigger than any other in Africa (weekly seat capacity) Within central Africa the largest markets are Nigeria and Kenya followed by Ethiopia and Sudan. Ghanas capital Accra will soon be welcoming new international services from Virgin Atlantic to London Heathrow and United Airlines to Washington.
Thank You!
Employees
Back