Airasia Berhad
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UNIVERSITY OF MALAYA
STRATEGIC MANAGEMENT ACCOUNTING
CAEA 3301
AIRASIA BERHAD
DATE OF SUBMISSION: 2 APRIL 2008
QUESTION 1
COMPANY BACKGROUND
AirAsia is one of the businesses that have successfully adopted cost leadership through operational effectiveness and efficiency. The cost advantages have enabled AirAsia to become the Asia’s leading low fare airline. Established on 12 December 2001, AirAsia has been such a big phenomenon in airline industry especially in Asia. By using a simple but strong slogan “Now Everyone Can Fly”, AirAsia has successfully positioned itself in customers’ mind. Its net profit for the second quarter ending 31 December 2004 was reported RM 44.4 million, a 323% increase over the previous quarter (AirAsia, 2005).
The leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our philosophy of ‘Now Everyone Can Fly’, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As AirAsia continuously strives to promote air travel, we also seek to create excitement amongst our guests with our range of innovative and personalized service.
QUESTION 2
VISION
UNIVERSITY OF MALAYA
STRATEGIC MANAGEMENT ACCOUNTING
CAEA 3301
AIRASIA BERHAD
DATE OF SUBMISSION: 2 APRIL 2008
QUESTION 1
COMPANY BACKGROUND
AirAsia is one of the businesses that have successfully adopted cost leadership through operational effectiveness and efficiency. The cost advantages have enabled AirAsia to become the Asia’s leading low fare airline. Established on 12 December 2001, AirAsia has been such a big phenomenon in airline industry especially in Asia. By using a simple but strong slogan “Now Everyone Can Fly”, AirAsia has successfully positioned itself in customers’ mind. Its net profit for the second quarter ending 31 December 2004 was reported RM 44.4 million, a 323% increase over the previous quarter (AirAsia, 2005).
The leading low fare airline in the Asia - AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, AirAsia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, AirAsia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Thai AirAsia and Indonesia AirAsia. AirAsia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Efficiency creates savings which are then passed on to guests so that affordable air travel can become a reality. Through our philosophy of ‘Now Everyone Can Fly’, AirAsia has sparked a revolution in air travel with more and more people around the region choosing AirAsia as their preferred choice of transport. As AirAsia continuously strives to promote air travel, we also seek to create excitement amongst our guests with our range of innovative and personalized service.
QUESTION 2
VISION