1.0 INTRODUCTION
AirAsia is a Malaysian low cost airline that was established in 1993 and begin to operate in 18 November 1996. In 2001, Tony Fernandes bought this airline when it was on the verge of bankruptcy. Since its re-launch in December, 2001, Air Asia has bought four Boeing 737-300s and leased 13 more. It now flies to 28 destinations around the region, including Jakarta, Bangkok, and Macau. Fernandes keeps costs low with short-haul flights, a high rate of aircraft utilization, and a fast turnaround rate. He also makes money with a lucrative cargo service, sales of drinks on board, and marketing tie-ups with other companies. Air Asia 's planes are flying 80% full on average, and analysts say it will earn $16 million in profits on $120
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(philstar.com, 2013)
2.0 CURRENT SCENARIO
2.1 Online booking system
AirAsia management team can preserve their customer information for emergency uses such as flight cancelation or flight delay. It also gives the management information on the availability of seats to avoid overbooking. The system is able to protect customers’ privacy. UK Essays, (2013).
The system allow customer to have a more flexible access mode as they can make purchase by phone and the internet. This enables customers to make an easy and fast reservation. The system can also lessen customer effort in rescheduling their trip as it could reduce their searching effort. UK Essays, (2013).
3.0 OBJECTIVES
3.1 Vision & Mission
Air Asia vision
To be the main affordable airline in Asia and serving the 3 billion people who currently deprived with substandard network and high ticket prices.
Air Asia mission
• To be the best organisation where employees can feel close with each other like
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One of the impacts which is quite obvious is that Air Asia has expanded its services. Not only can people book flight tickets online, now they can also book their hotel and rented car at the same time. This will then impact Air Asia’s dominance over other markets slowly for instance the land transportation market and also the hospitality market thus bringing in more profit. Next is how the online booking system has impacted the reach of Air Asia. Without the online booking system, tickets can only be checked or bought at the counters in the airport or some travel agency but now, it can be done from anywhere in the
Are controls in place to restrict Auscred Services staff’s ability to transmit customer personal information outside of Auscred Services? 56. Do we have a way of identifying and managing solicited information versus unsolicited information ? 57.
Assignment #1 Introduction Air Canada was established in 1937, provides scheduled and charter air transport for passengers and cargo to 182 destinations worldwide. It is the largest airline of Canada by fleet size and passengers carried. Air Canada is governed by an eleven-member Board of Directors committed to meeting high standards of corporate governance in all aspects of the Corporation’s affairs. Our Mission – “Connecting Canada and the World” Our Vision – “Building loyalty through passion and innovation” PESTEL Analysis: Political Factors: "The 'Open Skies Agreement ' between governments of US and Canada in March 2007 came into action as it liberalized the air transportation services.
With the use of this framework in reengineering its call centers and the automation of manual processes through call centers. Malaysia Airlines was able to achieve the following: Cutting call center costs by 18% and tripling sales, through phone, e-mail, fax, and web chat they were able to service customers, Interactive voice response or online ticket payment, and Tracking of agent productivity done by managers. In doing the following, they were able to streamline their processes. Malaysia Airlines measure the strategic metric. It measures the functional goals so that Malaysia Airlines can boost their customer payment capabilities.
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
Hong Kong Dragon Air is Hong Kong-based international airline, belonging to of the Cathay Pacific Group. The airline was established in 1985, and operates a fleet of narrow-body A320s and A321s, which were both powered by V2500 engines manufactured by International Aero Engines AG (“IAE”) for both passenger and cargo service to destinations to destinations across the Asia-Pacific region, and China. Their vision is to be the World’s best regional airline serving China and beyond. Their missions; places emphasis on safety and operational excellence with customer focus. The airline seeks to embrace innovation by implementing ideas that improve their business.
bargaining power of buyers in the industry is high due strong as low switching costs and plethora of options in the market. Now, e-ticketing has improved the chance and flexibility to search for different airlines companies leading to down word cost pulls and upward services push. Furthermore, it eases of switching between different airlines companies. Therefore, for airlines they need to keep customers in the fold by providing air miles system to gain customers' attention and retain them.
Threat of substitutes “The threat of substitutes for Virgin Atlantic is low in the developed countries where people mainly use airlines for both short and long distance travel”. “Virgin has a high group of substitutes. Leading substitutes include innovative products such as IPhones, Blackberries, Times Warner Productions, and Google products. Some of these substitutes products prices are lower, creating buyers to face few high switching costs”. On the other hand, in the developing world, there are threats of different modes of transport for example train.
Economic Environment Factors such as Crude oil prices, aircraft prices, Economies of Scale may also have effect on the airline industry. Social Environment Tourists and Business travellers contribute to the growth of the airline industry. Technological The use of modern technology by the airline manufacturers can contribute significantly to the growth of the
Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to
Delta airline was expanding its business into low-cost airline segment by launching new independent subsidiary by the name of Song. Song’s primary business model was to target women and the segment of business class people. In effect to reduce the cost, Song management decided to fly high load factor on the drag of 900 miles. Moreover, the company increased the number of
United Airlines is the second largest air career in the world. It was established in 1927 from the merger of 4 companies. In this essay, Q1 will discuss marketing environment of UAL and how changes in the environment can impact it; Q2 will define segmentation, market segment, targeting and positioning and how UAL uses to segment its market in order to grow then in Q3 SWOT and its components will be defined and applied on UAL. Q (1.a): Marketing environment refers to “The actors and forces outside the marketing department that affect marketing management’s ability to build and maintain successful relationships with target customers” (Kotler, 2011). And it consists of Micro environment and Macro environment.
> Founded in 1941 and based in Pasay City, The Philippine Airlines is the country 's ultimate flag carrier and oldest airlines. The monopolization of the airline occurred in 1995 when Lucio Tan, an affluent Chinese-Filipino businessman purchased the airline and became its chairman and CEO. . Global competition in the industry > Threat to new entrants: In spite of the low switching costs and the absence of proprietary goods and services, generally speaking, there is a low threat to new entrants in the airline industry. The huge amount of capital make reprisals against new entrants through a price drop.
1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive
Until today, this incident is still affecting Malaysia Airlines in different aspects. Especially, on their corporate image, reputation and finance. Not only Malaysia Airlines, but the image and reputation of our country are also being affected because Malaysia Airlines have strong bonding with the government and they as a representative role stood out to speak for Malaysia Airlines. Malaysia government had given a very bad impression to others on their crisis management and crisis communications. Experts criticized their crisis management by saying “crisis in managing crisis” and “make a crisis worst” due to their failure in crisis communications.