AWESOME

MADE BY:
Muhammad Alif Kusuma
Bhrenda Pitaloka A. M
Muchlis Utomo
Cut Rini Rizani
Ali Anggi Givari
 VIDEO AIR ASIA PROFILE

https://www.ukessays.com/essays/commerce/history-of-air-asia-commerce-essay.php
 Air Asia History
• Setup in 1993 and start operations in November 1996 by
Malaysia government owned conglomerate DRBHicom.
• Purchased in December 2001 by Tune Air a consortium of five
investors, headed by Fernandes purchased Air Asia for 1 MYR,
but debt MYR 40 Mill
• 2002, turn Air Asia into profit
• 2003, Opened 2nd hub in Johor Bahru, launch 1st international
route to Thailand, Singapore and Indonesia
• 2004, Opened route to Macau,
• 2005, Opened route to China, Philippines, Vietnam &
Cambodia
• 2006, Opened route Brunei and Myanmar
• 2007, Started AirAsia X : Long-haul budget airline
• 2013, Started Air Asia India
https://www.ukessays.com/essays/commerce/history-of-air-asia-commerce-essay.php
Key Facts
VISION MISSION
 Porter’s Five Forces Model of Competition : Air Asia
Firms in Other Industries Offering Substitute
Products
Other available mode of transportation as a
substitute product such as trains / busses are less
likely to replace LCC especially for inter island travels.
However full services airline can be the substitute
product to LCC if they fail to manage the price gap.

Suppliers Buyers
Rivalry among Competing Sellers
Air Asia with its strong customer base has a
Air Asia offers flights with low price, but there are Air Asia has lower price and supported with
quite high purchase power seen from the
also some airlines offering services with the lower strong brand compared to its competitors
suppliers side. It has positive impact to Air
prices such as Tiger Air, Scoot, Jet Star. Rivalry among which has led Air Asia to be the preferred
Asia in the cost performance.
LCC competitors are quite high. choice for the customers.

Potential New Entrants

Entering airline industry requires high investment.
Building a strong brand awareness also take some
time. It will not be fast and easy for new airlines to
enter the industry especially low cost carier. This
condition has reduced the competition threat for Air
Asia.
Air Asia Business Model
 Air Asia Business Model
Low Cost Carrier (LCC) BusinessModel
Simple Product - Catering on demand for extra payment
- Planes with narrow seating and only a singleclass
- No seat assignment
- No frequent flyerprogrammes

Positioning - Non business passangers, especially leisure trafic and price- conscious business
passangers
- Short houl point-to point trafic with high freaquencies
- Agresive marketing
- Secondaryairports
- Competition with all transport carriers

Low Operating Cost - Low wages

- Low airport fees
- Low Cost for maintenance, cockpit training andstandby crews due to
homogeneous fleet
- High resourch productivity
- Short ground waits due to simple boardingprocesses
- No air freight, no hub service, short cleaning times,and high percentage of on-line
sales
Air Asia Business Model
Air Asia SWOT Analysis...
 Air Asia SWOT Analysis...

STRENGHT WEAKNESS
• Low Cost Operation
• Fewer Management, Focused and
• Service is limited
aggressive management • Limited human resource
• Good team management and good • Government interference and
strategy regulation about compensation
• Single Type fleet minimize maintenance • New Entrance to provide the
and easy pilot dispatch
• Multi skill staff
price sensitive
• Peneterate and stimulate potential • Non Central location
markets
 Air Asia SWOT Analysis...
OPPORTUNITY
• Long haul flight to get undeveloped
market
• Differentiation from LCC Model and
adding full service with low fare
• Opportunity for new routes and airport
deals
• High fuel prices will sequezee out
unprofitable competitors
THREAT
• Entrance of other LCC
• High full prices
• Accident, terrorist attack and
disaster and effect customer
confidence
• Aviation and government
regulation
• Increase in operation cost
What we present?
EISENHOWER MATRIX VIDEO

What we present?

Source: https://www.youtube.com/watch?v=tT89OZ7TNwc
What we present?
EISENHOWER MATRIX (TEORI)

What we present?

Souce: https://www.developgoodhabits.com/eisenhower-matrix/
What we preseMATRIX
EISENHOWER
URGENT Plan NOT URGENT
Low Cost Operation Good Team Management

What we present?
Single Type Fleep Simple Proven Business Model
IMPORTANT

Easy Pilot Dispatch Fewer Management

Multi skill staff Focus on Aggressive Management
Self Service Check-in Branding through Souvenir Selling
Online Reservation
Branding through Social Media

Eliminate
Aircraft Ownership (GOAL, Bird&Bird) Free Meals on Board
NOT IMPORTANT

Navigation & Survaillance System (Rockwells Lounge

Collins’) On Desk Counter
Avionics Maintenance (Rockwells Collins’) Employee Trainee (No Business Class)
Fuel (Shell Aviation) Free Souvenir
Price Risk Mgt (Mitsui Bussan Commodities Entertainment on Board
Ltd) Free Baggage

Template Source: eisenhower.me

 Airasia Partner

Divestation on aircraft ownership by 2004. Credit Suisse, BNP Paribas, and RHB acted as a
joint financial adviser, and Milbank and ZICO acted as an advisor to AirAsia Berhad
(Kontan, 2018)
Souce: Annual Report Airasia Benhar 2017
What we prese
Airasia Partner
What we present?

Souce: Annual Report Airasia Benhar 2017

What we prese
CONCLUSION
What we present?
 Air Asia di dirikan dengan komitmen sebagai maskapai dengan tarif terendah
 dalam waktu 1 tahun setelah akuisisi, air asia sudah mulai menghasilkan profit (2002)
 Fokus strategi yang dilakukan oleh Air Asia untuk menjadi maskapai bertarif rendah anta
ra lain:
DO : low cost operation, multi-skill staff, self service check in, and online reservation
Eliminate : free meals, free baggage, on desk counter
 persaingan untuk segmen ini cukup ketat sehingga di harapkan air asia tetap fokus pada
strategi low cost tarif namun tetap menjaga kepercayaan dan komitmen ke pada konsumen
misalnya soal ketepatan waktu (no delay)