Management Air Asia Essay

4132 words - 17 pages

1.0 Company Background/ Company History.
Air Asia was established in 1993 and the operations began in 1996. Air Asia had rather shaky start and the 1997-1998 financial crisis had futher worsen the situation for Air Asia to grow as a low cost carrier. During it dire stage, the company was taken over by Tune Air under the leadership of Dato Tony Fernandes with the help of Conor McCarthy, former Director of Group Operations, Ryanair. Based on Southwest Airlines and Ryanair’s business model, AirAsia offer “No frills” airlines with a catchy tagline of “Now Everybody Can Fly’’.
Within 2 years Air Asia posted a net income of 18.8 million and broke the 100 million net income barriers in 2005. ...view middle of the document...

2.0 Company Goals And Objectives.
Air Asia’s goal is to establish itself as a leading low-cost carrier in Asia. The principle components of Air Asia stragies are as follows:
i. Maximize shareholder’s value
ii. Profit creation by expanding business reach within Asia.
iii. Expand routes and network via a prudent calculated manner.
iv. Invest and enhance brand- raising investor’s returns.
v. Focus on customer’s needs
vi. Stimulate demands by offering the lowest fares
vii. Develop various products and services while maintaining simplicity
viii. Operational excellence
ix. All staffs are contributors- no ranks or hierarchy
x. Continuous cost management
xi. Performance based remunerations and incentives

3.0 Mission And Vision of Air Asia
Vision
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.
Mission
i. To be the best company to work for whereby employees are treated as part of a big family
ii. Create a globally recognized ASEAN brand
iii. To attain the lowest cost so that everyone can fly with AirAsia
iv. Maintain the highest quality product, embracing technology to reduce cost and enhance service levels

4.0 Air Asia Key Strategies.
i) Safety First
Patnering with the world’s most renowned maintenance providers and complying with the world airline operations.
ii) High Aircraft Utilization
Implementing the regions fastest turnaround at only 25 minute, assuring lower costs and higher productivity
iii) Low Fare, No Frills
Providings guests with the choice of customizing services without compromising on quality and services.
iv) Streamline Operations
Making sure that processes are as simple as possible
v) Lean Distribution System
Offering a wide and innovative range of distribution channels to make booking and traveling easier.
vi) Point to point Network
Applying the point-to-point network keeps operation simple and lower costs.

5.0 Director/ Management Team
Source: (http://www.airasia.com/my/en/about-us/ir-organizational-structure.page)

6.0 SWOT Analysis For Air Asia Airlines Company.
6.1 Strengths.
Air Asia has a well-built management team with strong links with governments and airline industry leaders. This is partly contributed by the various background of the executive management teams which consists of industry experts and ex-top government officials. This has helped Air Asia to bring in and has a view of sizeable market in Thailand. With their strong working relationship with Airbus, they managed to get big discount for aircraft purchase which is also more fuel efficient compared to Boeing 737 planes which is being used by many other airlines. The management team is also very good in strategy formulation and effecting. The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines is US and Europe. Air...

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