Air Asia - Group 3 - Section C
-
Upload
thecoldassassin -
Category
Documents
-
view
215 -
download
0
Transcript of Air Asia - Group 3 - Section C
-
8/6/2019 Air Asia - Group 3 - Section C
1/17
Deepika Kaur -2010133Dushyant Bhadauria -
2010134Edwin Sneham -2010135Eshita Batta -2010136Gaurav Golwalkar -2010137
-
-
8/6/2019 Air Asia - Group 3 - Section C
2/17
The Asian Aviation
Industry By 2025, Asia will be the worlds largest aviation market
up from third place today.1
Airlines product include:
On the ground services booking offices, paperwork,tickets
In-Flight services Seating configuration, ambience,good interiors, hospitality
Asia-Pacific carriers recorded demand improvement of15.5% compared to June 2009.2
Business model followed The service marketing triangle
-
8/6/2019 Air Asia - Group 3 - Section C
3/17
Case OverviewStudy of a very successful LCC Air Asia
Business Strategy followed by Air Asia
The Air Asia Value ChainOCL & Product Differentiation at Air Asia
Porters Five Forces Analysis
Future Prospects
-
8/6/2019 Air Asia - Group 3 - Section C
4/17
AirAsiaNow Everyone can Fly
Low cost carrierNo-frills, hassle-free, low fare business conceptA fleet of 84 aircraftsAirAsia flies to over 61 domestic and
international destinations with 108 routesOperates over 400 flights daily3
Fourth Quarter results (Oct-Dec09):4
Net profit: RM 549 millionCore operating profit: RM 447 millionPassenger growth : 21% YoY
-
8/6/2019 Air Asia - Group 3 - Section C
5/17
Net IncomeNet Income (in 1000's RM)
-600000
-400000
-200000
0
200000
400000
600000
2002 2003 2004 2005 2006 2007 2008 2009
Net
Income
(in 1000's
RMB)
-
8/6/2019 Air Asia - Group 3 - Section C
6/17
Current Products New Products
BUSINESS STRATEGY
-
8/6/2019 Air Asia - Group 3 - Section C
7/17
The Air Asia AdvantageOverall Cost Leadership
Purchase of fuel efficient Airbus A320-300
Superior pilots Lower fuel consumption,longer tyre life
Pay for meals on board Lesser weight to becarried
Turnaround time between flights 25 minutes5
Route rationalization with MAS
-
8/6/2019 Air Asia - Group 3 - Section C
8/17
The Air Asia Advantage
contd.Product Differentiation
Choose your seat
Online Ticket reservationOnline Check-in
Citibank-Air Asia Credit Card
On-time-guarantee & Air Asia e-gift vouchers
Holiday packages
-
8/6/2019 Air Asia - Group 3 - Section C
9/17
Value Chain
Margin
Marg
in
Air Hubs, Legal Dept, Finance , Govt. Relations
AirAsia Acad., Safety Procedures training, Baggage training
Baggage systems, Online Booking systems, CRS
Staff,
Passenger
s, Fuel,
Aircrafts,
Catering,Spares
Baggage
Systems,
Security
operations,
Gateoperations ,
Cargo
Operations,
Aircraft
Mgmt
Passengers(
at
destination),
Baggage,
Groundshuttles,
Safety and
Security
procedures
Targeted
promo
campaigns,
Print media
campaigns,Exciting
offers, Online
sales
Lost and found, Baggage
Claims, Follow up with
existing customers
Inbound
Logistics
Operations Outbound
Logistics
Mktng &
Sales
Service
S
E
C
O
N
DA
R
Y
P
R
I
M
A
R
Y
Technical Advancement, Key skills procurement
-
8/6/2019 Air Asia - Group 3 - Section C
10/17
SWOT AnalysisStrengths
Strong management team Brand name
Low cost leader in Asia Excellent utilization of IT
Opportunities
Increasing oil price ASEAN Open Skies Increasing population of Asianmiddle class
Threats
Service rates beyond thecontrol of airline operators Full service airlines have orplanning to create a low costsubsidiary Users perception that budget
airlines may compromise safety ASEAN Open Skies
Weaknesses
Does not have its ownmaintenance, repair and overhaul
(MRO)
A lot of complaints fromcustomers
-
8/6/2019 Air Asia - Group 3 - Section C
11/17
Porters Five Forces
AnalysisCompetition rivalry within the Industry
MAS Golden Holidays Great Getaways Package, 20036
Malaysia Airlines Everyday Low Fare campaign 2008
Countered by Sub-Zero fare campaign Abolished Fuel Surcharges & Ticket booking fee in 20097
Threat of New Entrants
Silverfly launched in Malaysia in Sep 20098
Happy Air (Thailand) took over Bangkok- Langkawi route8
Hawaiian Airlines plans to enter Asia9
Air Asia brand loyalty can retain customers
New entrants will have high capital investment
-
8/6/2019 Air Asia - Group 3 - Section C
12/17
Porters Five Forces
Analysis contd.Threat of Substitute products
Tiger Airlines also modeled on Ryanair
Firefly by Malaysia Airlines (10 routes common toAir Asia, 7 new routes)
Bargaining Power of Suppliers
Ordered 175 airplanes from Airbus Uniformity infleet
Hedged Aviation fuel prices for 3 years from 2008to Dec 2010
Air Asia X signed MRO contract with LufthansaTechnik , Philippines
-
8/6/2019 Air Asia - Group 3 - Section C
13/17
Porters Five Forces
Analysis contd.Bargaining Power of CustomersCustomers can switch to another airline
Customer reviews on online forums
-
8/6/2019 Air Asia - Group 3 - Section C
14/17
The Skies AheadKey attributes to help Air Asia sustain its
competitive advantage in the long run :
Better passenger experience
Focus on customer feedback
Advertising on TVs in planes
Market safer travel due to newer aircrafts
Purchase smaller planes for charter servicesand low-traffic routes
-
8/6/2019 Air Asia - Group 3 - Section C
15/17
The Skies Ahead contd. Partner collaboration African skies
Projected growth Cities being promoted for travel
Ties with domestic airlines
Places for tourism and important Routes South Africa and Egypt
South African air travel market is 50% bigger than any other inAfrica (weekly seat capacity)
Within central Africa the largest markets are Nigeria and Kenyafollowed by Ethiopia and Sudan.
Ghanas capital Accra will soon be welcoming new international
services from Virgin Atlantic to London Heathrow and UnitedAirlines to Washington.
-
8/6/2019 Air Asia - Group 3 - Section C
16/17
Thank You!
-
8/6/2019 Air Asia - Group 3 - Section C
17/17
Service Marketing
TriangleCompany
Management
Employees Customers
External Marketing
Setting the promise
The service product
Internal Marketing
Enabling the promise
Service environment
Interactive Marketing
Delivering the promise
Service deliveryBack