PEST Analysis: Air Asia

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The management information systems play a big role in business. Management information systems are providing accurate and up-to-date data and information and help the company to perform effectively and efficiently. The company has to make sure the management information system they choose is matching with their information’s format and the system has the features the company needs. Suitable management information systems can arrange the basic data available from the company operations and records into information or reports which is needed by the company.
The world’s most popular airline, Air Asia is one of the airlines that apply management information system into their business. Air Asia applied the term of computerized management information
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II. Air Asia’s PEST Analysis
Political
Flying internationally is difficult. Bilateral agreement is one of the obstacles in the main of low cost carriers. Landing charges at so-called "gateway airports" and navigation charges are often prohibitively expensive, and in key destinations like Bangkok, Beijing, Hong Kong and Singapore there are no cheaper, secondary airports. The budget airline industry in south-east Asia has been underdeveloped because the aviation market is tightly regulated by bilateral air rights agreements. Threat of terrorism, people is afraid to fly after the September 11 terrorist attacks incident.
Opportunities: Deregulation of goverment presented an opportunity for new routes and airport deals through open-skies agreements between countries, or the permission of entry of private airlines.
Threats: Being a low cost airline, Air Asia is subjected to aviation regulations, government policy and government restraints, and dependent on the geography and infrastructure of Asia and travelling preferences of customers.
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Technology In todays globalize economy, information technology has given fundamental changes in the nature and application of technology in business. Air Asia provides online service that combines air ticketing with hotel bookings, car hire and travel insurance. In August 2003, Air Asia became the first airline in the world to introduce SMS booking where the customers are able to book their seats, check flight schedules and obtain latest updates on Air Asia promotions from their mobile phones. Air Asia also introduced GO Holiday, which allows the customers to book holiday packages online in real time.
Opportunities: By utilizing information technology, Air Asia was able to be the first airline in Southeast Asia utilize e-ticketing and bypass traditional travel agents. This enabled the airline to save on the cost of buying physical ticket, it also can eliminated the need for large and expensive booking and reservation systems, and agents’
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