Air Asia: Background, Issues, and Crisis Management

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AIR ASIA
Name of the Student
Name of the University
Author note

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Table of Contents
Provide the background and profile of the company.........................................................2
Explain the problems/issues that faced by the company based on the following
phenomenon (current/before)............................................................................................2
Cultural Diversity................................................................................................................2
Organizational Policies and Culture..................................................................................4
Rapid Changes of Technology..........................................................................................5
Crisis Management............................................................................................................6
Explain the effect of the ABOVE ISSUES to the company...............................................7
Case study.......................................................................................................................11
Data analysis...................................................................................................................12
Conclusion of the case study...........................................................................................12
References.......................................................................................................................14

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Provide the background and profile of the company
Air Asia Berhad has been a Malaysia based Aviation Company that has its headquarters
in Kuala Lampur. It is considered as a low cost airlines. Domestic airlines are considered as a
major aspect that is considered by Air Asia for business making. Scheduling of domestic flights
have been acting as a major constraint. Operating scheduling of International flights has also
been a responsibility of the Air Asia Aviation Company (Ling, Kothe & Mullan 2019). There are a
total of 165 destinations being served by Air Asia for performing that spans a total of 25
countries. The cost incurred is recorded to be the lost in the aviation industry as the lowest fare
is just US$0.023 per available seat km. a total of 52% of breakeven load was noticed in the
process. Air Asia have several sectors in the name of Air Asia China, Air Asia India, Air Asia
Vietnam, Air Asia X, and Air Asia Japan and so on. In the year 2019, best low cost Airlines
award was provided to them. This process has been continuing for last 11 years at a stretch
now and they have been the best low cost carrier for such a long span.
Explain the problems/issues that faced by the company based on the following
phenomenon (current/before)
A tragedy has occurred for regarding 2 flights getting crashed. Hence the problem that
was faced is considered as a crisis. This has been a major instance that has been affecting the
functioning process of Air Asia. There has been an aviation crash in between Malaysia Airlines
and Air Asia. Data analysis is performed as per the management process.
Mergers and Acquisition (Nicholls 2017).
Indonesia Air Asia X is a joint venture of Air Asia X. Long hauls are provided in case of
international flights. Philippines Air Asia has been a joint venture in between the Filipino
investors and the Air Asia. The joint venture was well described and approved by the year 2010,
7th December. Air Asia Zest Airways Inc. had a venture with Air Asia and Air Asia Zest (Ryan &
Deci 2017).
Cultural Diversity
Cultural diversity of Air Asia Berhad: the diversification strategy is usually distinct
because the organization moves away from its present products as well as markets in new
places. The related strategy of diversification within the organization had been manly in the form
of forward, backward as well as horizontal integration (Taneja, 2017). The backward strategy of
integration of the airline had been executed because the company had extended their

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operations at the growth of the ancillary services as well as products. Due to more
diversification of Air Asia Berhad, the organization had faced number issues in the field of
cultural diversity (Papatheodorou, 2016). The personnel belonging to the HR department failed
to be aware of the numerous challenges that were associated with the concept of diversity such
that it is allowed to be addressed and prevented. The assignment presents the list of diversity
issues faced by Air Asia Berhad. The issues are as follows
1. Acceptance: respect is usually considered as a fundamental value which aims in
contributing into a particular workplace that is diversified in nature includes acceptance
as well as respect (Aponso, Coppenbarger & Jung, 2015). There exists a lack of
acceptance of culture that is diverse along with their beliefs. The employees denied to
accept the different behaviours, attitude and personalities of other employees, this
affected the working environment of the workplace and the data sharing process among
the employees. This had resulted into numerous conflicts among the employees, there
had been disagreements as well (Shaw, 2016). The employee did not initiate any
training for the purpose of improving the diversity within the employees of the
organization and help them in understanding, accepting as well as respecting everyone’s
differences.
2. Accommodation of various beliefs: the organization faced a major issue while
implementing the idea of diversity within the organization because some of the staffs
tried to impose their opinions and thoughts on other staffs, this had resulted in numerous
spats as well as disputes (Van Belle, Scholtz & Njenga, 2018). Some of the staffs who
belonged to different ethnic as well as personal beliefs were not allowed to express
them, this had also been supported by some of the supervisors as well.
Generation: it has been proved by various researchers that by the year of 2025, the
millennial would be present in around 80 percent of the workforce and they would contribute in
changing the culture of the work (Kleymann & Seristö, 2017). In Air Asia Berhad, employees
belonging to different generation faced numerous difficulties in coping up with the changes that
are being undertaken by the organization along with the work culture which the young
generation are undertaking within Air Asia Berhad. In some of the cases, the people belonging
to older generations got involved into various disagreements with the management or other
staffs of the Air Asia Berhad in order to explain that how technology must not be implemented
for every operation that is undergone by the organization, this is because most of the older
people fail to understand how various machines work or how the technology works (Mills, 2017).