Comprehensive Analysis of AirAsia's Business Operations and Strategies

This presentation provides a detailed analysis of AirAsia's business operations and management strategies. It begins with an introduction to AirAsia's goals and vision, emphasizing its ambition to become a leading low-cost carrier in Asia. The presentation then delves into the core of AirAsia's operational management, highlighting its efficiency and profitability. It discusses the significance of operational management and how AirAsia enhances efficiency through its organizational framework. Furthermore, it explores AirAsia's primary initiatives, including security protocols, cost-effective services, and simple operations. The presentation also examines specific policies, including internal and external operations, human resources, financial resources, and IT-enabled resources. Finally, the presentation concludes with a summary of the key aspects of AirAsia's business processes and operational management. The presentation references multiple academic sources to support its claims and provides a comprehensive overview of AirAsia's business model.

• In this presentation we are going to study about various aspects of the management and business operation strategies of Air Asia.
• As a part of the whole academic study trip, previously a discussion was conducted collaborating with the Qatar Airways. The
study was about Qatar Airway’s business strategy and administrative system (Adler et al.,2017).
• The part of this interactive study is study about Air Asia, their business strategies and management system. So various strategies
and management policies and theories are presented throughout the whole presentation and proof for the claims are also provided.
INTRODUCTION

• AirAsia's dream is to be Asia's first low-cost carrier to cover 3 billion people with weak connectivity and high fees at
present (Stockport, 2012).
• Dreaming big and working towards those dreams is the goal of most of the business operations at Air Asia.
• In all countries where the airline works, AirAsia follows the requirements imposed by regulators. To ensure that
it’s Flotte is still in the highest shape, AirAsia partners with the most respected service providers of the globe.
DREAM & GOAL OF AIRASIA

• Operational control is at the core behind too many industry improvements.
• This is essential for managers to evaluate their organizations ' activities and to recommend and execute the required
improvements to address these challenges.
• The operational management (OM) is one category of activities that an organization uses to turn different inputs into end
goods and services (raw materials, infrastructure, etc.). Control of operations is directly related to efficiency and
profitability. The core determination of how inputs are converted to products and services is a robust operational
management framework (OMS) (Adapa and Roy, 2017). A well built and operated operating system plays a significant
part in efficiency and profitability determination.
• The International Air Transportation (IATA) affirmed its world-class safety quality with the Operating Health Audit
(IOSA), which was concluded by Air Asia Thailand (FD), a low-cost carrier of Air Asia.
. OPERATION MANAGEMENT
(OM)

• Here we are going to see how significant Air Asia’s operational management is and how they manage the
operations.
• ·With the latest organizational management framework, Air Asia enhances efficiency. The modern cutting-edge
method is intelligently preparing, arranging, forecasting, calculating and recording the everyday usage of aircraft
and passengers.
• It also allows the carrier to conform to laws by ensuring that the crew travels with their time limits (Mamrina et
al., 2020).
SIGNIFICANCE OF THE
OPERATIONAL
MANAGEMENT

• Clean AirAsia was founded in 2001 under the aegis of the World Bank, the Asian Development Bank and the United
States-Asia Environmental Partnership (SAP).
• The Asian Air Initiative for Asian Cities (CAI-Asia) was launched in 2001. Southeast Asia, and East Asia are bound by
CAI-Asia.
• The primary focus is on cities that have big environmental issues and can cope extensively with environmental
contamination (Jafari and Vasili, 2006). The group works on four programs: climate change and air quality, reduced
carbon and sustainable sustainability, renewable energy and cars, eco freight and logistics.
• Security Protocols, efficient service at a cost-effective rate, simple operations, etc. are some of the primary initiatives of
Air Asia.
PRIMARY INITIATIVES

• Air Asia is developing and retaining its competitive edge through delivering facilities at a level that is far cheaper than
those for rivals. To maintain its competitiveness in the market Air Asia must withhold some specific policies throughout
their workforce (Arif Kamisan and King, 2013).
• The organizational performance and outstanding performance of low-cost firms, like AirAsia, are two main
characteristics.
• The key goal is to gain more considerable cost benefits than rivals in the continuing quest for cost savings areas in the
supply chain.
SPECIFIC POLICIES

Like all other organizations Air Asia also conducts their business through various
• Internal and external operations.
• In the picture, we can see the pillars of proper business Operation.
• Some forms of services, such as personnel, documents, materials, technology, and facilities,
are being used to handle the business cycle (Bait, 2017).
Natural, psychological, financial and technical capital are the main
categories of money which are known as the' four management foundations.
BUSINESS OPERATION

• Conducting proper Human Resources is a vital part of business operations in Air Asia.
• Each portion of the company makes sure that their business has all of its staff well placed
• . The company is considered accountable for training and development of their own staff.
HUMAN RESOURCES

• Financial resources are highly valuable and also are useful in business planning, because they make it easier for
the corporation to assess how best the resources are spent and how effectively the enterprise does (Albers et al.,
2017).
• The dream and goal of AirAsia are to build a value: Asia is the largest low-cost carrier in it which supports 3
trillion individuals who seek access which low fees.
GLOBAL CULTURAL CAPITAL

• AirAsia has fostered its financial and strategic management reliance on Internet technologies and is supplying passengers
with on-line ticket booking services.
• The website AirAsia.com is considered as the primary communication and distribution portal for the airline (Lim et al.,
2009).
• It is accompanied by several development steps of the program carried out by AirAsia through its marketing and
distribution phase (Enterprise Resource Planning Framework and Yield Control Systems) and operating activities.
RESOURCES ENABLED BY IT

• It is an automated reservation and distribution network on the Internet, which includes email, contact centre, airport
check-out and more.
• It is a direct selling engine which effectively eliminates the intermediary (travel agents) and the selling commissions to
pay for them ((Niyomsart and Khamwon, 2015).
• Open Skies also manages consolidated passenger data to assist AirAsia in tracking booking and arranging flight
operation on-demand in real-time.
COMPUTER BOOKING
SERVICE

• The organizational quality assessment attempts most notably to assess the efficacy of a quality management system
(QMS) within a company.
• Management first must accomplish the overarching duty of creating and sustaining a framework in quality control,
priorities, personnel, procedures and productive output, including the evaluation and assessment of the effectiveness of
the program.
• Concerning quality, the primary duty of a company is to establish a management framework for excellence. This role
begins with the definition of process implementations that are part of the quality framework.
AUDIT OF CONSISTANCY

It is can be concluded that Air Asia might face some turmoil in recent time but they have a state of the art business process
and operation management. Furthermore, the organization has established themselves significantly in their business
industry.
CONCLUSION

• Abdullah, M.A., Chew, B.C. and Hamid, S.R., 2017, March. Factors on green service industry: Case study at AirAsia. In AIP
Conference Proceedings (Vol. 1818, No. 1, p. 020001). AIP Publishing LLC.
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Branding. In Services Marketing Cases in Emerging Markets (pp. 67-75). Springer, Cham.
• Adler, R., Stringer, C., Shantripriyan, P., Birch, M.G. and Tohmatsu, D.T., 2017. AirAsia: Towards a ‘new world’carrier strategy and
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319-333). Routledge.
• Ahmad, R., 2010. AirAsia. Asian Journal of Management Cases, 7(1), pp.7-31.
• Arif Kamisan, P. and King, B.E., 2013. Transactional and transformational leadership: A comparative study of the difference between
Tony Fernandes (Airasia) and Idris Jala (Malaysia Airlines) leadership styles from 2005-2009. International Journal of Business and
Management.
• Albers, S., Baum, H., Auerbach, S. and Delfmann, W., 2017. Strategic management in the aviation industry. Routledge.
REFERENCES

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Universitas Muhammadiyah Surakarta).
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International Marketing Management Conference.
•
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