AirAsia Balanced Scorecard AnalysisFinancial PerspectiveObjectivePerformance MeasuresTargetsInitiatives

Improve cost structure

Increase asset utilisationPlane Lease Cost5% per yearReduce cash expenses.Eliminate defects.Improve yields.Manage capacity from existing assets.Make incremental investments to eliminate bottlenecks.

Expand revenue opportunities

Enhance customer valueMarket valueSeat Revenue50% per year45% per yearNew sources of revenue streams (new products, market and partners)Improve profitability of existing customers.

Customer PerspectiveObjectivePerformance MeasuresTargetsInitiatives

Customer Retention andIncreasing Market Share:Attract and retain more customersNumber of repeat customers.Number of new customers75% annual target.Increase 10% annually.Implement Customer Relationship Management (CRM) system.Provide sustainable promotions to attract new customers.Enhance the branding image of AirAsia by leveraging on regional media and foreign partnership.

Customer satisfaction andcustomer profitabilityFlights are on time. (On-time performance)Lowest prices.On-time arrivalrating: #1Customer ranking:#1Implementation of customer loyalty program and quality management.Monitor the changes in consumer trends to increase the ancillary income.

Internal Business ProcessObjectivePerformance MeasuresTargetsInitiatives

Operations managementprocesses:Day-to-day processes by which companies produce their existing products and services and deliver them to customers.On-ground timeOn-time departure30 minutes90%Cycle-time optimisation.Achieve HR process excellence.Maintain a reliable IT infrastructure.Achieve financial process excellence.Develop Innovative Marketing Communication Program.

Customer Managementprocesses:This process expands and deepens relationships with targeted customers.Reduction in customercomplaints and grievancesOn-time arrivalrating: #1Customer ranking:#1To provide rapid responses to dissatisfied customers and ensure the operations are handled effectively.Build strategic employee competencies.Develop effective decision support system.Develop effective CRM.

Innovation processes:Developing new products, processes and services to enable the company to penetrate new markets and customer segments.Growth of ancillaryproducts and servicesGrowth rate of ancillary products and service should increase 20% annually.Drive organizational performance.Propose and deliver transformational applications.Develop Financial Information for improved decision making.Develop Marketing BusinessIntelligence

Regulatory and social processes:These processes help organization continually earn the right to operate in the respective countries.To ensure the safety standards of all aircrafts are maintained.To reduce carbon emissions by purchasing aircraft similar to easyJet, that has proven to minimise its carbon emission drastically.Zero aircraft accidents.Creating clean development mechanism projects, with the potential of selling emission rights in the market.Ensure Compliance with regulatory requirements.Accelerate new product development ideas.Implement good environmental policies.

Learning and GrowthObjectivePerformance MeasuresTargetsInitiatives

Human Capital:The availability of skills, talent and know-how required to support the strategyStrategic job readinessYear 1: 65%Year 3: 85%Year 5: 100%Ground crew trainingDevelop strategic and functional finance, marketing, human resource and information technology competence.

Organisation Capital:The ability of the organisation to mobilise and sustain the process of change required to execute this strategy.Strategic brand awarenessPercentage of ground crewstockholders100% within the next 5 years.40% within the next 5 years.Communications ProgramEmployee stock ownership.Building the learning culture.Continue to promote the customer focused culture.Foster creative thinking and innovative solutions.

Information Capital:The availability of information systems, networks and infrastructure required to support the strategy.Availability of information system.100% within the next 5 years.Crew scheduling system rollout.Expand capabilities with technologyUse technology to improve financial information delivery.Enhance IT tools for marketing and IT functions.