E-Commerce Strategies for Airasia - 1576 Words

AIR ASIA E-COMMERCE STRATEGIES Low cost per average seat kilometer AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001. Low distribution cost AirAsia focus on Internet bookings and ticketless travel allowed it to lower the distribution cost. Attractive ticket price With the average fare being 40-60% lower than its full-service competitor, AirAsia has been†¦show more content†¦E-Commerce-Allowing Malaysia Airlines to reduce distribution costs by providing a convenient, easy to use Internet Booking Engine. E-Ticketing and DCS-Moving from traditional paper toe-tickets by May 2008, in line with IA TAs requirements. This included an upgraded Departure Control System so that Malaysia Airlines could offer new self-service options to passengers, including kiosk and web check-in. Revenue Integrity-To authenticate every booking ensuring it produces an actual passenger upon departure, avoiding the revenue leakage which occurred in the past. Fares Management-To enable Malaysia Airlines to distribute fares more efficiently around the world and to improve pr icing decisions. A critical success factor was the ability to integrate all five work streams with other existing systems in place throughout Malaysia Airlines. SITA’s solution in a first for the region, and with a contract worth more than US$80million over a ten-year period, SITA has been undertaking a comprehensive overhaul of Malaysia Airlines existing passenger applications and services, covering the five work streams -reservations, e-commerce, ticketing and departure control, revenue integrity and fares management. To date, SITA has met the needs of Malaysia Airlines by implementing several Horizon solution components including: Implementing SITA Ticketing and DCS around existing passenger applications, saving MalaysiaShow MoreRelatedAir Asia Structure1698 Words   |  7 PagesIntroduction AirAsia is the airline industry started based on the low cost carrier (LCC) concept in Malaysia. The low cost concept is introduced in the year of 2001 with the belief that â€Å"Now Everyone Can Fly† by Tony Fernandes. AirAsia was first established in 1993 and began its operation on 18 November 1996. In the year 2001, Anthony Fernandes (or known as Tony Fernandes) bought the airline which is suffering a loss. It was re-established as the low cost carrier after the bought over. AirAsia’sRead MoreE-Commerce Air Asia4563 Words   |  19 PagesTABLES OF CONTENTS 1.0 Introduction 2.0 Importance of e-Commerce and m-Commerce 3.0 Corporate Appraisal 4.0 Competitive Advantages 5.0 m–Commerce 5.1 Differences of m-Commerce e-Commerce 6.0 Recommendations 6.1 Benefit of Microsoft Vista and m-Commerce to AirAsia 6.2 Benefit of Microsoft Vista and m-Commerce to Customers 7.0 Conclusions APPENDIX REFERENCES 1.0 Introduction Purcel and Toland (2004, 241) said â€Å"Internet and Communication Technology offer the opportunity to reduceRead MoreAir Asia Introduction3308 Words   |  14 PagesBACKGROUND AirAsia was established in 1993 which founded by government. In 2001 it was bought by Tony Fernandes. AirAsia aims to be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares. With a fleet of 72 aircrafts, AirAsian flies to over 61 domestic and international destination with 108 routes, and operate over 400 flights daily from hubs located in Malaysia, Thailand, and Indonesia. Today, AirAsia has flown overRead MoreAir Asia Strategic Management Recommendations Essays5769 Words   |  24 PagesAnalysis 3.0   STRATEGIES AND RECOMMENDATIONS 3.1   Current Strategies 3.2   Future Strategies 4.0 REFERENCE LIST Introduction An analysis of the External Environment would be done so as to facilitate a direct comparison between the generic elements where AirAsia has been founded in. The report then would delve into an internal analysis whereby the Porter’s 5 Forces would reiterate the direct forces that would affect the Airline Industry and subsequently, AirAsia itself. The capabilitiesRead MoreCompany Background and Analysis of Airasia3736 Words   |  15 PagesCompany Background and analysis of AirAsia This report conducts an analysis of AirAsia, the world’s Lowest Cost Airline. AirAsia is a Malaysian low cost airline. AirAsia was found in 1993 and it started its operations from 18 Nov 1996. It was established initially by DRB-Hicom, a government owned- conglomerate. On 2 December 2001, the heavily- indebted airline was purchased Tony Fernandes former Time Warner Executive. Tony was inspired by the Low-Cost Carrier business model of SouthwestRead MorePorter Five Forces of Air Asia Essay1625 Words   |  7 Pagesthe strength of:- †¢ Customers have a little bit of brand loyalty. If customers of AirAsia do not have brand loyalty, then the threat of new entrants will be very high. But the higher numbers of competitors in the industry also will decrease AirAsia’s customer loyalty. Due to most of the travelers prefer low cost. New competitors which want to come in the industry need to spend a little to compete with AirAsia. †¢ Higher Capital Requirement The airline industry needs large volume of start-up capitalRead MoreAir Asia Company Analysis3169 Words   |  13 PagesAccounting amp; Finance TP 023513 UC1F1007BMP (AF) Utari Asmelia Introduction of Management 08 Fall AirAsia Company Analysis Background of AirAsia Company Dato’ Tony Fernandez was the entrepreneur that brought up AirAsia to be the one of the award wining the largest low fare airlines that is currently well known for now in Asia. Since then it has been flying to over 61 domestic and international destination with 108 routes, and furthermore it operates over 400 flights daily from hubsRead MoreOrganizational Behavior in Airasia3807 Words   |  16 PagesPage 1.0 INTRODUCTION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 1.1 Background of AirAsia Berhad †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 1.2 AirAsia’s Achievement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 2 2.0 CONTENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 2.1 Decision Making Model Theory †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 2.1.1 SWOT Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 2.1.2 The Six-Step Rational Decision-Making Model †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 2. 2 AirAsia’s Practices Operations in Decision Making †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 2.2.1 Operation of SWOT Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 2.2.2 OperationRead MoreAirasia Corporate Strategy2742 Words   |  11 PagesPart 2 1.0 Introduction AirAsia, a famous low cost airline in Asia, as Malaysia second National Airline, provides a different type of service to benefit all citizens and worldwide travelers. Low cost airlines generally have several differentiate to the traditional carriers. For example, low cost airline implement ticketless travel, online ticket, no free food and beverages and etc. AirAsia provides low airfares flight to the travelers, offering 40%-60% lower than other airline. This low airfaresRead MoreAir Asia Advertising Types4337 Words   |  18 Pages2001, Dato’ Tony Fernandes along with Dato’ Pahamin Ab. Rajab (Chairman, AirAsia), Dato’ Kamarudin bin Meranun (Deputy Group Chief Executive Officer, AirAsia) and Abdul Aziz bin Abu Bakar (Director, AirAsia) formed a partnership and set up Tune Air Sdn Bhd (Tune Air), an airline holding company then bought over AirAsia from government-owned conglomerate DRB-Hicom on December 2, 2001 which Air Asia was originally founded. AirAsia has been expanding rapidly since 2001 where Dato Tony Fernandes later