Case Study: Airasia – Now Everyone Can Fly
INDIVIDUAL ASSIGNMENT
(MANAGEMENT INFORMATION SYSTEM)
ASSIGNMENT 1: CASE STUDY: AIRASIA – Now Everyone Can Fly
Questions: * What is Air Asia Business Model? How does information system support this business model? 1.0) AirAsia business model
AirAsia business model is low cost, low fare and no-frills air line. AirAsia Pan Asia plan targeted to million of Asians who wanted basic air transportation at cheap price
AirAsia achieved low cost by following method: 1) Single class, no frills service
AirAsia operates on single-class service with no amenities such as complimentary in-flight meals and entertainment, loyalty programs and air lounges. AirAsia impose charging for snacks and drinks and passenger need to pre-book in advance. AirAsia seating configuration maximizes seating capacity by fitting 148 seats in its Boeing 737-300 aircraft (compared to the passenger seat capacity of 132 for typical Boeing 737-300 aircraft with a two-class configuration). 2) High aircraft utilization and efficient operations.
AirAsia uses its aircraft and staff efficiently. In general, AirAsia is able to make more round trips per aircraft per day because it operates point-to-point services and maintains low turnaround times (twenty five minutes). AirAsia also able to reduce administrative functions by hiring employees who are able to perform various roles. 3) Low fixed cost
AirAsia has negotiated lower lease charges for their aircraft, lower rates for long-term maintenance contracts and lower airport fees. AirAsia’s high safety and maintenance standards have allowed it to procure favourable rates on its insurance policies. 4) Low distribution cost
To encourage internet bookings, AirAsia offers lowers fares through the internet. Bookings on the internet have increased from 5% of reservations made when online reservations first became available in May 2002 to approximately 50% in August 2004. AirAsia employs a fully ticketless system, which saves administrative costs
(MANAGEMENT INFORMATION SYSTEM)
ASSIGNMENT 1: CASE STUDY: AIRASIA – Now Everyone Can Fly
Questions: * What is Air Asia Business Model? How does information system support this business model? 1.0) AirAsia business model
AirAsia business model is low cost, low fare and no-frills air line. AirAsia Pan Asia plan targeted to million of Asians who wanted basic air transportation at cheap price
AirAsia achieved low cost by following method: 1) Single class, no frills service
AirAsia operates on single-class service with no amenities such as complimentary in-flight meals and entertainment, loyalty programs and air lounges. AirAsia impose charging for snacks and drinks and passenger need to pre-book in advance. AirAsia seating configuration maximizes seating capacity by fitting 148 seats in its Boeing 737-300 aircraft (compared to the passenger seat capacity of 132 for typical Boeing 737-300 aircraft with a two-class configuration). 2) High aircraft utilization and efficient operations.
AirAsia uses its aircraft and staff efficiently. In general, AirAsia is able to make more round trips per aircraft per day because it operates point-to-point services and maintains low turnaround times (twenty five minutes). AirAsia also able to reduce administrative functions by hiring employees who are able to perform various roles. 3) Low fixed cost
AirAsia has negotiated lower lease charges for their aircraft, lower rates for long-term maintenance contracts and lower airport fees. AirAsia’s high safety and maintenance standards have allowed it to procure favourable rates on its insurance policies. 4) Low distribution cost
To encourage internet bookings, AirAsia offers lowers fares through the internet. Bookings on the internet have increased from 5% of reservations made when online reservations first became available in May 2002 to approximately 50% in August 2004. AirAsia employs a fully ticketless system, which saves administrative costs
References: Kotler, Keller, (2012), Marketing Management (14th edition), Pearson Education Limited, England http://www.navitaire.com/faq.aspx www.navitaire.com/res_dist/openskies.asp http://www.utusan.com.my/utusan/Korporat/20120913/ko_01/AirAsia-pertama-guna-Airbus-A320-Sharklets http://www.bizstar.com.my – Fernandes: AirAsia ready for India; collaboration with Malindo sought. SaigonMoney.com – Uneven path for AirAsia’s investment in Vietnam