AirAsia has two main customers which is the young, fair conscious customer and business travelers whom are looking for low airfares to travel to their destination, safely and comfortably.
AirAsia adopted low cost leadership strategy, hence, all sources such as labour, fuel and aircrafts related to cost reduction must be exploited. AirAsia must reduce operating cost throughout its internal value chain activities. Therefore, we have used value chain analysis as a tool to analyze the effectiveness of AirAsia’s low cost strategy in adding value to their customers and achieve greater cost-efficiency.
AirAsia’s Value Chain Analysis
Inbound Logistic
Fuel Management: AirAsia has been working in partnership with GE’s Flight Efficiency Services (FES) …show more content…
Consequently, the brand AirAsia attracts millions of home viewers all over the world and is currently perceived as the world’s best low cost airline in Asia.
Advertising and Promotions: AirAsia successfully attracts millions of customers by offering ‘The Free Seats Promo’ for both domestic and international flights to Langkawi, Singapore and other selected destinations in 2014. The promotional fares begin from as low as RM0 excluding service tax. Further, if seats are booked along with hotel accommodation, AirAsiaGo offered discount up to 75% and up to 50% for the hotel accommodation. 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 …show more content…
Human Resources Management
Academy Programs: AirAsia has built the AirAsia Academy for the purpose of providing various training programmes for AirAsia’s engineers, pilots and cabin crew such. Training such as Type Rating Training Organization (TRTO) partnership into a joint venture agreement with CAE, a worldwide leader in flight training solutions. AirAsia wants to build an academy capable of building and developing excellent human capital to capitalise on opportunities for further growth.
Safety Training: Safety is the most important value to long-term success. Although AirAsia offers the lowest airfares, yet the customers would also like to be assured that the plans meet aviation standards and the pilots are well- trained and experienced. Hence, AirAsia decided to introduced a cadet pilot training program by setting up its own pilot training simulator facilities since 2003 to maintain a strong focus on customers and employees
AirAsia adopted low cost leadership strategy, hence, all sources such as labour, fuel and aircrafts related to cost reduction must be exploited. AirAsia must reduce operating cost throughout its internal value chain activities. Therefore, we have used value chain analysis as a tool to analyze the effectiveness of AirAsia’s low cost strategy in adding value to their customers and achieve greater cost-efficiency.
AirAsia’s Value Chain Analysis
Inbound Logistic
Fuel Management: AirAsia has been working in partnership with GE’s Flight Efficiency Services (FES) …show more content…
Consequently, the brand AirAsia attracts millions of home viewers all over the world and is currently perceived as the world’s best low cost airline in Asia.
Advertising and Promotions: AirAsia successfully attracts millions of customers by offering ‘The Free Seats Promo’ for both domestic and international flights to Langkawi, Singapore and other selected destinations in 2014. The promotional fares begin from as low as RM0 excluding service tax. Further, if seats are booked along with hotel accommodation, AirAsiaGo offered discount up to 75% and up to 50% for the hotel accommodation. 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 …show more content…
Human Resources Management
Academy Programs: AirAsia has built the AirAsia Academy for the purpose of providing various training programmes for AirAsia’s engineers, pilots and cabin crew such. Training such as Type Rating Training Organization (TRTO) partnership into a joint venture agreement with CAE, a worldwide leader in flight training solutions. AirAsia wants to build an academy capable of building and developing excellent human capital to capitalise on opportunities for further growth.
Safety Training: Safety is the most important value to long-term success. Although AirAsia offers the lowest airfares, yet the customers would also like to be assured that the plans meet aviation standards and the pilots are well- trained and experienced. Hence, AirAsia decided to introduced a cadet pilot training program by setting up its own pilot training simulator facilities since 2003 to maintain a strong focus on customers and employees