Airasia Corporate Strategies

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Who is Tony Fernandes?
 Malaysian entrepreneur and the founder of Tune Air Sdn.Bhd.  Introduced the first budget no frills airline, AirAsia, to Malaysians with the tagline “Now everyone can fly”

Why we chose him?
 Flying to over 65 destinations in more than 20 different countries. Their revenues have tripled since 2007 taking in 3,948 million Malaysian Ringgit in 2010.  Built a work force and corporate structure that would reflect his own personality

Leadership
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Understanding the operations of the firm Flat Hierarchy Opportunity to grow and voice their opinion Effective communicator – Singleminded and simple approach to operations. Happy workforce ESOS (Employee share ownership scheme) Future plans

Strategic decision 1 – Blue Ocean Strategy
Quality of the decision  By adopting the Blue Ocean Strategy, he significantly reengineered the way in which the airline industry in Malaysia had been previously run and he created a leap in value for customers He introduced: • he went beyond existing market constraints to re-create market boundaries • a low price ticket and no-frills mode of operations in order to create value for customers • Created multiple new routes and frequency of flights etc.

Four Actions Framework

AirAsia’s Strategy Canvas

Outcome of the decision

Developing Airline of the Year 2003 by Airfinance Journal

2012 ATW Value Airline of the Year

Strategic decision 2 – AirAsia X (Long Haul)

 Global strategy-International expansion  Formed in 2007  An associate company that offers long-haul services from Kuala Lumpur to Australia, China, France, India, Iran, Japan, New Zealand, South Korea, Taiwan, and the United Kingdom.

Strategic decision 2 – AirAsia X (Long Haul)

Quality of the decision

 Overall, the long-haul model for AirAsia X is a great success.  But the flight routes to London and Paris have to be cancelled due to high fuel prices and low demand.  “It (the decision) was emotional,” recalled by Fernandes in an interview revealing his emotional attachment to London. This sentimental decision eventually contributed to the failure of long-haul flights.