Air Asia Case Study

Improved Essays
Air Asia is the biggest airline company in Malaysia which have fleet size and destination. According to the history of Air Asia in Jump Start Malaysia: The Air Asia Definitive Guide to Malaysia, Truly Asia, the company established in year 1993 and begins to operate since 1996 to present. It was founded by government owned conglomerate; DRB Hicom. Unfortunately, in 2001, the company was heavily in debt. It was then bought by the former Time Warner executive; Tony Fernandes who owned the Tune Air Sdn Bhd at that particular moment. Tony Fernandes turn the Air Asia into a profitable business. There will always be a change that profit the company until today. A year after the takeover of the company, Air Asia is capable to produce profit and starts …show more content…
Bureaucratic approach emphasis on the organizational structure, dividing organizations into hierarchies with clear lines of authority and control. Meaning that, managers have authority based on their position in the organizational structure to enforce rules and policy. Air Asia is a big airlines company that need to be catered with a super quality manager to handle the business services. The manager need to carefully plan and the workload have to be divided equally among workers and according to the expertise of workers. The hierarchy system in the bureaucratic approach make sure that the information runs through the right channel and flow from the upper level to the lower level. It is an organized system. For example, one of the Air Asia’s visions is to be established as the leading low-cost carrier in the Asian region. The vision need to be vigilantly planned. It starts with the upper level of the company. The upper level functions to convey the aim, or what the company want to achieve either in the short or long run. Everyone in the company needs to acknowledge the aim to make sure that they know what they are working on or what they are striving for. Next, the task needs to be divided and the manager need to monitor the progress of the work done by the workers. It is to make sure that the work done is in line with the aim that the company set at the beginning. Air Asia may not disclose all the company information due to private and confidential. Overall, the management theory used by Air Asia suit the business of the company and it is the best management theory for the company. They manage to make a lot of victory and stay in the business to

Related Documents

  • Superior Essays

    Bureaucracy is an organization that focuses on a system of government in which the authority within the bureaucracy is a hierarchy which shows who clearly is in change. . “First, authority is hierarchically structured, making a clear chain of command. Second, selection of personal is competitive and based on demonstrated merit. Third, a specialized division of labor allows for the more efficient completion of assigned tasks. Fourth, bureaucracies are governed by formal, impersonal rules that regulate all facets of the organization.”…

    • 1541 Words
    • 7 Pages
    Superior Essays
  • Decent Essays

    Case Study: Westjet

    • 554 Words
    • 3 Pages

    As technology continously change organizations business practices having the essential tools is needed to better understand consumers for marketing initatives, gather valuable information, and look for innovative ways to gain a competitive advantage in its market. Cheryl need to explain this to Westjet that these resources is the way of the future in doing business, and can also testimonials from other companies she have worked with as a CIO, CEO, and other position in information technology how these resources helped aligned IT with business strategies. In addition, she can also present information of companies in the same market that's using such resources this will display clearly to management that the changes are necessary to stay abreast…

    • 554 Words
    • 3 Pages
    Decent Essays
  • Great Essays

    Ethical Codes In Air Canada

    • 2556 Words
    • 11 Pages

    It is known to be the world’s ninth largest airline according to fleet size and a founding member of the Star Alliance. However, before it…

    • 2556 Words
    • 11 Pages
    Great Essays
  • Decent Essays

    The strategy of American Airlines concentrates on enhancing customer experience by providing luxury service to attract more customers. Thus, the company is centered on customer-focused approach to reach greater heights of high returns. United Airlines on its part has focused greatly on acquisition of more airplanes and destinations to attain a better cost-cutting platform that will propel the company to greater height of achievement. However, based on the sentiments by Hartung (2013), it is clear that initial target of United Airlines aborted and never brought the expected results as the company plunged into more competition severity as it did not consider ensuring better customer welfare, especially on provision of a variety of luxuries. American Airlines enjoyed positive returns on its strategy and continued rivaling other companies globally.…

    • 836 Words
    • 4 Pages
    Decent Essays
  • Great Essays

    Organizational Vision

    • 1261 Words
    • 5 Pages

    Understanding and developing the vision is important to have a effective advancement throughout the business. Knowing the organization and becoming…

    • 1261 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Traveling during the holidays can be hectic; and flying is no exception. WestJet airlines decided to do something different in 2013 for their passengers. They wanted to show their guest that they truly value them and go above and beyond customer service and give their customers a “Christmas Miracle”. The video shows passengers talking to Santa on at a kiosk station telling them what they wanted for Christmas.…

    • 594 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Aerospace Partners, Inc manufactures communications and radar systems for the aerospace industry. Work is performed alone or in partnership with other contractors using the following contract types: fixed priced, fixed price with incentive, and cost plus fixed fee. Contract length varies by project but typically last for approximately three (3) years. Use of Estimates Preparation of financial statement to conform with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions which affect the amounts in the financial statements and related notes during reporting period.…

    • 1428 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    C. Education and skills development: (CSI as a tool to improve education and skills in society) RESEARCH QUESTIONS RESEARCH OUTCOME EDUCATION AND SKILLS (Posed to current and former SAA employees) o Where is SAA’s biggest shortfall in terms of skills? How does that affect the airline?…

    • 1250 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Rickenbacker believed in the growth of the company through the growth of its people. His main focus was improving salaries, working conditions, increasing and improving maintenance and passenger service, and providing stock options to the employees. After the acquisition of Eastern by Rickenbacker and his partners he continued to operate under the same work ethics as when he was just the general manager. Rickenbacker’s work ethics and operational philosophies allowed Eastern to be the first airlines in the industry to operate without governmental assistance (subsidies). During his 25 years of head of Eastern, the company never operated in the red and profited each year.…

    • 1329 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Due to these days, there are many low cost airways appear worldwide. Thus, the firms that can tender the cheaper price will be gain the customers. Jetstar want to reach the lower price than others fare airlines so the company designs to adapt another strategy such as partnership strategy to transaction with the main competitors. For instance, according to Business Traveller Asia-Pacific (2010), Alan Joyce state that ‘‘Jetstar and AirAsia offer unmatched reach in the Asia-Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale.” “Figure 3 is image of Tony Fernandes, Alan Joyce and Bruce Buchanan share a laugh at the January 6 launch of the Jetstar - AirAsia alliance”.…

    • 747 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Etihad Airways Case Study

    • 3310 Words
    • 14 Pages

    OVERVIEW: Background: Etihad airway is one of the most successful airlines as it has already been recognized as the World’s leading airline three times consecutively. The success of Etihad airways just established within just ten years as is recognized as one of the fast growing airlines in the history of commercial aviation. The airline was founded in July 2003 by the Royal (Amiri) decree and started its operations on November 2003. They are known to be the national airlines of United Arab Emirates with their head offices being located in Abu Dhabi which is the capital of United Arab Emirates.…

    • 3310 Words
    • 14 Pages
    Great Essays
  • Decent Essays

    Air Asia positioned itself as a moderate standard with lower rates. As the company offers lower rates to their customers. Their taglines “Now everyone can fly” explained that Air Asia is offering the lowest rate among the airline industry to everyone. Hence, everyone includes the rich and poor are able fly with Air Asia. Lastly, Air Asia is trying to meet their customer’s expectations by improving their services and facilities in the…

    • 904 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Business And Management Challenges Report by Kim Donggue 1. Profile of Singapore Airlines Singapore Airlines, or SIA, is the national airliner of Singapore which established on the year of 1972. With its home being located at Changi International Airport, according to their website, it currently has direct flight services to more than 60 destinations, 30 different countries worldwide. Singapore Airlines has Scoot, Tigerair and SilkAir as their subsidiaries. Current C.E.O. of Singapore Airlines is Mr. Goh Choon Phong, this Airline aims to become high-standard service operator by stating in their Mission Statement, which is “A global company dedicated to providing air transportation services of the highest quality and to maximizing returns…

    • 1363 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    The balanced group of managers has an advantage, in which the managers help in resolving the conflicts, since they are the ones who are always exposed to the day-to-day operations of the Alaska Airlines. On the other hand, the leaders would ensure unbiased reasoning and a just approach in dealing with the problems. Most managers are keen on maintaining the status quo in their respective domains. In Alaska Airlines, for example, low standards in terms of service delivery were not seen as a problem in almost all aspects of the business. It was fairly entrenched in the company’s culture that “being late was not a problem in itself”.…

    • 1215 Words
    • 5 Pages
    Great Essays
  • Decent Essays

    AirAsia’s famous slogan ‘Now everyone can fly’ have become successful marketing icons in Southeast Asia, hence, created a strong image of safe and cheap airlines as the ‘World’s Best Low Cost Carrier’. AirAsia enable everyone to fly by offering the lowest…

    • 995 Words
    • 4 Pages
    Decent Essays