1. Partha Pratim Mahanta Dibakar Sinha Dipankar Nath Pranjal Pratim Neog Samiron Moran Abhijit Ramchiary Partha Pratim Mahanta Dibakar Sinha Dipankar Nath Pranjal Pratim Neog Abhijit Ramchiary Samiron Moran MBA 3 rd SEMESTER SECTION- B 25-5, Block H, Jalan PJU 1/37 Dataran Prima, 47301 Petaling Jaya Selangor Darul Ehsan, Malaysia Welcome to Our AirAsia

2. OBJECTIVES  To show the profile of our company i.e. Air Asia.  To know the business strategies and operations of Air Asia by using different strategy models.  To show you the future of Air Asia by SWOT analysis.  To show you some of the future planning with reference to future growth.

3.  Our 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. AirAsia  Our Mission :  To be the best company to work.  Create a globally recognized ASEAN brand.  To attain the lowest cost so that everyone can fly with AirAsia.  Maintain the highest quality product, embracing technology to reduce cost and enhance service levels.  It is founded by Malaysian Govt.  Group Chief Executive Officer is Tony Farnandes  Asia's leading airline.  It was established in 1993 with the dream of making flying possible for everyone.  Headquarters : Sepang, Selangor  No. of planes (including Joint ventures) : 78 planes  No. of employees : 3,000 employees  No. of customers : 16,000,000 per year  Turnover per annum : $60,000,000 CORPORATE PROFILE

4.  Our Values :  Safety First, Low Fare and No Frills  High Aircraft Utilisation  Streamline Operations  Lean Distribution System and Point to Point Network  Our Corporate objectives :  Leanest cost structure  Maximize shareholders value  Safety  Passion for Guests’ satisfaction  Transparency  Human Capital Development

5. WHERE WE FLY

6. Air Asia Airlines over the years Dates and yearsMilestones 18 April 2002AirAsia became Asia’s first airline to go ticketless. 10 May 2002It introduced its first online booking. 19 August 2003It introduced world’s first SMS booking. 8 December 2003It’s first international flight took off to Phuket. 8 December 2004It announced a joint venture with PT AWAIR of Indonesia. 21 February & 29 March 2005Launched Go-Hostel & Go-Car. Year 2007The lowest cost in the World, 51 000 passengers per day, 54 planes. Year 2008Launch of Air Asia X.

7. FREQUENT FLIGHTSSAFETY FIRSTLOW FARE NO FRILLS COST OPTIMIZATION OPERATION GUEST’s CONVENIENCE Business Strategy and Operations The airline ensures fast turnaround of about half-an-hour which is the fastest in the region The airlines complies with the conditions of the International Aviation Safety and is regulated by the Malaysian Dept. of Civil Aviation It’s fares are significantly lower than those of other operators  Faster turnaround time  Improving aircraft utilization  Crew efficiency  Using one type of aircraft for saving training cost  Ticketless service  Internet booking  Reservations and sales office  Easy payment channels and authorized travel agents  Nationwide call centers

8. ANALYSIS

9. SWOT ANALYSIS OF AIRASIA Internal Comp- -etence Factor External Environmental Factor STRENGTH OPPORTUNITY WEAKNESS THREATS  Growth in revenue  Low distribution cost  Low operational costs  Attractive ticket price  Strong Brand presence in Asia  Malaysian government support  Diversification strategy + Joint ventures  Does not have its own maintenance, repair and overhaul (MRO) facility.  Receives a lot of complaints from customers on their service.  Liberalization of ASEAN capital routes  Asia’s middle class growth  The “ASEAN Open Skies” allows unlimited flights among ASEAN’s regional air carriers beginning December 2008.  Increasing competition  Increasing oil price  Substitute products  Increasing of maintenance cost

10. PORTER ANALYSIS OF AIRASIA Potential Entrants Suppliers Substitutes Buyers Industry Competitors Rivalry Among Existing Firms Bargaining Power of Suppliers Threat of New Entrants Bargaining Power of Buyers Threat of Substitute Products or Services  Many customers but high sensibility to prices.  Development of substitute products. Medium Low  Hard competition between Airbus, Boeing, ATR and others. Medium  Train, bus and car travel are developing. Medium  Full services Air Line might consider going low cost.  Development of new low-cost companies.

11. BCG Matrix analysis of AirAsia according to the country that their fleets are operating  Indonesia  Brunei  Malaysia  Macau and  Thailand  Singapore

12. STRATEGIC PLANNING WHERE WE ARE ? WHERE WE WILL BE ? HOW ? WHERE WE WERE ?

13. FUTURE ANALYSIS

14. SWOT Analysis 15 years Down the Line

15. STRENGTHWEAKNESS OPPORTUNITYTHREATS  Brand Name  Long-term future  Strong management team  Strategy formulation and execution  Low cost leader in Asia  Excellent utilization of IT  Relatively high price  High operation cost  Investment cost in high technology  Strong competition  Demographic advantages  Growing of Middle Class  Partner with other low cost airlines  High fuel prices will squeeze out unprofitable competitors  Air Asia will get inherent advantage in long distance travel  Developed innovation technology  Entrance of other LCCs  High fuel price decreases yield  Accident, terrorist attack and disaster and affect customer confidence  Aviation regulation and government policy  Increase in operation cost in producing value-added services  System disruption due to heavily reliance on online sales

16. FUTURE STRATEGY  Yield Management System (YMS)  Computer Reservation System (CRS)  Enterprise Resource Planning System (ERP)  Travelling planning  Reservations and ticketing  Frequently flyer program  Campaign management  Customer care  Business intelligence Diversificati on  Our own aviation oil company  Own MRO facilities  Diversification on Hotel business

17. FUTURE PLANNING  To maintain the high level of profitability. 1. Act on the prices :  Expensive tickets to be distributed when the demand is high (week-end).  Prices increasing according to the demand.  Cheap tickets available during the middle of the week. 2. Act on the cost :  Offer more on board services/ products to the passengers. Taxi booking service Internet WIFI access on board Place advertisings on the plane’s cabin

18.  Fund-raising  Fresh money could be used to finance strategic projects.  Invest in joint ventures.  Maintain international development across Asia in association with local budget airlines.  It would increase the airline’s offer.  Diversification  Acquire new know-how in a view to offer more service to the consumer.  E.g. To take over an online travel agency. FUTURE PLANNING

19. Conclusion The strategies of Air Asia focus more on the management and access of information rather the creation of irrelevant airline services. For this reason, Air Asia has developed a unique set of guiding principles - simplicity, cost-efficiency and effectiveness. Total commitment to these principles makes the airline services of Air Asia very user-friendly to its customers. SWOT analysis of AirAsia with reference to sustainability and future growth shows more opportunities than threats. AirAsia is fully determined to exploit these opportunities and convert more threats into opportunities for success.

20. THANK YOU