Airasia Case Study

Air Asia Company and the Approaches

Based on the history, AirAsia, one of the most prestigious airlines with a good strategic management in Asia, was first established in 1993 with its first operations in 1996 (The AirAsia Story, 2008). It is often renowned as Malaysian low cost airline and even the largest low fare airline company in Asia. Based on AirAsia’s annual report (Annual Report, 2008), AirAsia’s “Now Everyone can Fly” philosophy has been always focused on middle income customers as its main marketing target to make everyone’s dream “flying to any corner of the world” is possible. Therefore, AirAsia embrace the Demin and Juran’s Total Quality Management Philosophy and Fayol’s General Administrative Theory as the pillar of its visions

This will definitely bring benefit to the company as the more consumers the company gets, the more profits the company earns. Furthermore, the other good service provided by AirAsia to increase the customer’s satisfaction and enjoyment is it permits payment through banks, post office, travel agents and so on at AirAsia’s airport sales counters or through bank ATMs (Ahmad, 2010). On the other hand, AirAsia’s openness in declaring its upcoming events, posting its ticket’s online prices, and offering transparent practices make the customers feel more convenient to make decisions and eventually it will bring more benefits to the company itself as well. Despite of only focusing on the result or the customer’s satisfaction, AirAsia focuses on the work processes, too, by preserving and ensuring the safety operational machines. Every airplanes of AirAsia has been complied with the highest system called International Aviation Safety Standards and Practices so that the

According to Henry Fayol, managerial excellence is the most essential part and it can be obtained. He then introduced the 14 principles of managements. Due to this case, AirAsia applies some of the Fayol’s notable principles in order to increase its sales and obtain the customer’s satisfaction and trust. The first principle used by AirAsia is the division of labor. AirAsia only selects capable, competent, generous and hard workers, so the workers will have works done effectively and efficiently. Besides, they increase the number of the flight attendants and train them to be more sociable with the passengers. Generally, first line staff is advisable to have good listening skills, analysis and problem solving skills. Employees shall have the ability to the delivery delight services and provide more tempted promotions to enhance the number of customers. In the divisional labor, AirAsia has 12 departments divided (Figure 1.1) with the charge of the head of department each department. Regarding to this divisional labor, it will ease the AirAsia’s to achieve its goal and compete with the competitors. Indeed, AirAsia’s company procedure will not pay employees who work inefficiently and this proves the discipline principle of the company as well. In addition, AirAsia always manages to decline the number of flight delays in order to maintain its