Airasia Business Model Essays Ready

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Introduction of Air Asia
AirAsia is Asia’s largest no-frill and hassle-free airline which based on the low cost carrier (LCC) concept in Malaysia. Dato’ Sri Dr. Tony Fernandes introduced this low cost concept with his believe of “Now Everyone Can Fly”. In year of 1993, AirAsia was established and started its operations on 18 November 1996. Mr. Tony Fernandes’s company Tune Air Sdn Bhd purchased this heavily in debt airline which was originally founded by a government-owned conglomerate DRB-Hicom for the price of RM1 in the year of 2001. Dato’ Sri Dr. Tony Fernandes also took up the RM40 million debts as part of the purchase. Dato’ Sri Dr. Tony Fernandes and his group settled the airline's debts quickly and started to focus on rebranding…show more content…

AirAsia Zest, AirAsia India and Philippines AirAsia are also AirAsia associate companies and AirAsia X focuses on long-haul routes.

AirAsia was the first airline in the region to launch ticketless. Passengers can choose to pay for their bookings by credit card over the phone in March 2002.
A simplistic fare structure has also been adopted based on the time value relationship for seats. For instance, a guest will get cheaper fare if he books the ticket earlier. The first few tiers are targeted to value conscious the passengers so that they can get cheaper tickets if they book ticket earlier. However, the system will move on to the top tier fare bucket where the prices began to bring profits to the company when the operational cost of the flight in the mid tier bucket is sufficient to be cover by the revenue collected.
In 2010, the Group, which includes affiliates AirAsia Thailand and AirAsia Indonesia, reinforced its leadership position with two remarkable milestones: flying its 100 millionth guest since its first day of operation and breaking the RM1 billion profit barriers. On the other hand, AirAsia had won several rewards for many years and one of the most significant awards is Air Asia being the World's Best Low Cost Airline for six consecutive years in 2009, 2010, 2011, 2012, 2013 and 2014. Hence, AirAsia is committed to satisfy their guests' expectations by continuing to keep costs

Essay on 7s Airasia

657 WordsSep 16th, 20133 Pages

2. INTERNAL ANALYSIS (7S)

McKinsey’s 7s framework will be utilized to analyze AirAsia’s internal environment. By using this framework, companies can understand their current situation and strategies so that they can improve company performance. Table 1 McKinsey’s 7s framework

2.1 Shared values

The common shared value of AirAsia is to be the largest low cost airline in Asia by continually insisting on the development of the low-cost carrier model. AirAsia always tries to attain the lowest cost so that a majority of people can afford to fly through its planes and hubs. Although AirAsia expanded its business to many countries, the shared values of AirAsia as a Low-Cost Carrier never change. Value consistency…show more content…

These points can then be converted into free AirAsia Flights. AirAsia’s members can also enjoy priority booking, other special offers and discounts as well.

2.3 Structure

The structure of AirAsia is flexible and flat in order to make the business environment more open and creative. Senior managers communicate with middle managers and employees via the Internet and employees can share information with other same or different level employees via the internet as well. The company collects ideas and thoughts on how to save money from every member in the company thanks to the horizontal structure, and this helps achieve the cost-savings business model. AirAsia has three main business structures, which are subsidiaries, associates and jointly controlled entities. The chart below shows the structure of AirAsia:

Table 2. The structure of AirAsia (AirAsia 2011 annual report)

2.3 Skills & Staff

AirAsia provides appropriate training to employees to make sure their skills are well developed for the required jobs and tasks. What’s more, employees are encouraged to get different roles with a flexible work schedule. This approach maintains employee satisfaction, loyalty and retention while involving every individual in the main cost-reduction strategy.

2.4 Systems

AirAsia holds the world’s most modern and

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