NAIMEY ABD JALILNOR AKMA ABDULLAH

W. NORHAFIZAINEE

MANAGEMENT INFORMATION SYSTEM

(MIS 750)

‘AIRASIA’

Presentation outline

PRESENTATION OUTLINE

COMPANY FOUNDER

AirAsia chief executive • Tony Fernandes is a Malaysian entrepreneur who introduced the first budget no frills airline, AirAsia, to Malaysians with the tagline "Now everyone can fly".

• He rose to prominence by turning AirAsia, a failing government-linked commercial airline, into a highly successful budget airline public-listed company.

• AirAsia, the heavily-indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom, was losing money speedily.

• Instead of starting from scratch, Mahathir advised Fernandes to buy an existing airline instead.

• Fernandes mortgaged his home and sank his savings to acquire the company, comprising two ageing Boeing 737-300 jets and USD$11 million (RM40 million) worth of debts, for 26 US cents (RM 1), and transformed it into an industry player.

• Coming just after the 11 September 2001, undoubtedly the worst day in the history of commercial aviation when nobody wanted to fly, everyone thought that Fernandes had gone "crazy", predicting that the company would fail miserably.

• one year after his takeover, AirAsia had broken even and cleared all its debts.

• Fernandes has also been honoured by the Malaysian government with title Dato Seri and also by the government of France with the Legion d'Honneur title.

Dato' Sri Anthony Francis Fernandes

COMPANY BACKGROUND

CORE BUSINESS

Low-cost, long-haul segment

Efficient and maintaining a simple aircraft fleet and

a route network based on low-cost airports.

ANOTHER PRODUCT OFFER

BUSS INESS

MODEL

Value Proposition

Revenue Model

AirAsia operates with the world’s

lowest unit cost of US$0.023/ASK

and a passenger break-even load

factor of 52%

100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes,

Crew productivity level that is triple

that of Malaysia Airlines and

achieves an average aircraft

utilisation rate of 13 hours a day

MARKET OPPORTUNITY

Competitive Environtment

12 other Asian low budget carriersSingapore’s ValuAirSingapore Airlines’ Tiger AirwaysQantas Airways’ Jetstar Asia

Competitive advantages

Marketing Strategies

Organisational Development Expert team in

administration and production

Expert team in administration and

production

Exposure in administration and

also entertain people

Exposure in administration and

also entertain people

Some of head department have

experienced in Warner Music

Some of head department have

experienced in Warner Music

Systematic management team

and teamwork

Systematic management team

and teamwork

Various experience ability and skills

Various experience ability and skills

Management Team

Operation: CAPTAIN ADRIAN

Deputy CEO: DATO KAMARUDDIN

CEO Indonesia :DHARMADI

Quality and Safety: SAIDULKHADRI HAMZAH

IT: LAU KIN CHOY

Secretary: BO LINGAM Commercial: KATHLEEN TAN

Engineering: AZHARI

CEO Thai: TASSPON

Bus Dev: CAPTAIN CHIN NYOK

Communication: JOYCE LAI Finance: ROZMAN OMAR

CEO: DATO SERI TONY FERNANDES

IT APPLICATIONSystem that AirAsia used in maximized IT to meet the lowest cost during their business activities is the implementation of:

Yield Management System (YMS)

•AirAsia can understands the behavior of their customer and offering the effectives and efficiency strategy and also can allocate capacity to maximize the expected revenue. •By this system, AirAsia can make efficiency to know their customer using IT technology with lowest cost.

Customer Reservation

System (CRS)

• CRS is an integrated web-based reservation and inventory system. It includes Internet; call center, airport departure control and more. •It is a direct sales engine that effectively eliminates the middleman (travel agents) and the sales commissions that need to be paid to them. •customer friendly because customer can buy or make a reservation of a ticket directly via online, and no need to come to the ticket counter.

IT APPLICATION

IT APPLICATION•From the view of managers in a company, the emphasis is on the word planning; ERP represents a comprehensive software approach to support decisions concurrent with planning and controlling the business.

•Based on the definition, ERP is the system that integrated comprehensive software to make the IT system is more effectively and efficiently.

•By implementing this package AirAsia is looking to successfully maintain process integrity, reduce financial month-end closing processing times, and speed up reporting and data retrieval processes, (Microsoft Malaysia).

•In addition, it is a system focusing on capturing transactions in daily operations and helping AirAsia to save its operational costs as well as to increase the efficiency and integrity in its operation (Microsoft Press Pass, 2005)

Enterprise Resource System (ERP)

AirAsia also a passionate user of technology in its branding and marketing

efforts

Social media is one of AirAsia’s important branding campaign mechanisms, which allows the airline to address the conventional

limitations of direct push marketing. With its own Facebook page, it is akin to a forum that invites participation from the public, creating an

extension for them to be passionate and connected to the AirAsia brand. Twitter is another interesting tool that is utilized for

transmission of short marketing blurbs, updating guests with new developments and promotions.

SUCCESS STORIES• AirAsia has become one of the most successful airlines in the Southeast

Asian region and the pioneer of low cost and no frills travel in Malaysia.• AirAsia have a lot of achievement and awards since year 2001 until

present

Masterclass Global CEO of the YearAwarded to Ybhg. Dato’ Tony Fernandes

World’s Best Low Cost AirlineBy Skytrax

AirAsia voted the Air Cargo Industry Newcomer Award at the ACW World Air Cargo Awards 2010

By Air Cargo Week

AWARDS IN YEAR 2010

AWARDS IN YEAR 2009

Tony received the 2009 Frost & Sullivan Excellence in Leadership Awardby Frost & Sullivan

Best Asian Low-Cost CarrierBy TTG Travel Awards 2009

Airline Of The YearBy Centre for Asia Pacific Aviation (CAPA)

The Laureate Award for Best Commercial AirportTransport

from Aviation Week

Tony awarded the Malaysia Brand Icon Award from Deputy Prime Minister YAB Dato' Seri Najib Tun Razak at

the Global Brand Forum Malaysia

Best Asian Low-Cost CarrierBy TTG Travel Awards 2008

AirAsia - Malaysia's 30 Most Valuable Brands 2008 By Malaysia’s Most Valuable Brands (MMVB)

PIKOM ICT Organisation Excellence Award 2008By Association of the computer and multimedia industry (PIKOM)

AWARDS IN YEAR 2008

Lesson learnt Big company especially in airline industry should generated a strategic

business plan to make sure they can compete and survive in the economies fluctuate.

Company should understand the customer need and problem by increasing customer insight, where it able to develop new product and solve the customer needs and problem.

Applied an effective IT program in company operations.

A good leader should able to make a good decision and take a risk for their company.