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AIRASIA

Company profil
Air Asia Berhad is an established in 1993 with commenced operations in 1996. In
2001, Tune Air Sdn Bhd Tony Fernandezs company bought this airline from DRBHicom.
Before 2001, AirAsia fail to either sufficiently stimulate the market or attract enough
passengers from Malaysia Airlines to establish its own niche market
The turnaround point of AirAsia is in 2001, while it was up to sale and bought by
Tony Fernandes. Tony Fernandes then enrolled some of the lending low cost airline
experts to restructure AirAsias business model.
In 2003, AirAsia opened a second hub at Senai Airport in Johor Bahru and launched
its first international flight to Bangkok.
Being the home of Air Asia, the LCCT is the budget terminal in KLIA, opened on 23
March 2006. LCCT said to be carried about 10 million passengers every single year.
AirAsia has been a successful low cost carrier (LCC) operating in Asia region for
these past few years and information technology (IT) is one of the major enablers of
AirAsias low cost business model.

Vision & Mission


Vision of AirAsia is to be the largest low cost airline in Asia
and serving the 3 billion people who are currently
underserved with poor connectivity and high fares. Strategy
of AirAsia includes safety, low fare, service and simplicity.
Mission of AirAsia is creating a globally recognized ASEAN
brand, maintain the highest quality product, embracing
technology to reduce cost and enhance service levels.

Types of Information
technologies use in Airasia
Effective use of information and communications technology (ICT) to
Advance business operations and offer superior services
Adopt internet reservation system to reduce its operating costs.
Support operations across all 10 asean countries and china earned for
the airline recognition
Types of IT that implemented by AirAsia
Computer Reservation System (CRS)
Enterprise Resource Planning System (ERP)
Advance Planning & Scheduling (APS)
E-commerce
Vista gadget.

Enterprise Resource Planning


System (ERP)
In order to increase the efficiency of operational performance and
manage its supply chain, AirAsia had implemented the ERP
system.
It is a system focusing on capturing transactions in daily
operations and helping AirAsia to save its operational costs as well
as to increase the efficiency and integrity in its operation
(Microsoft Press Pass, 2005).

(i) Help reduce operating costs


ERP systems enable AirAsia to help reduce operating costs and it
is useful when running an analysis AirAsia companies. The main
benefits of ERP enhanced coordination process AirAsia into one
streamlined process where all information can be accessed across
departments through a single enterprise wide information
network. An additional benefit of implementing ERP system
reduced operating costs, such as lower costs of production,
marketing, inventory control, and help desk support.
(ii) Facilitate Day-to-Day Management :
Facilitate management of daily activities also one of the benefits
of ERP systems. The implementation of the ERP system, allowing
employees to access real-time information and help with
research, decision-making and management control. In addition,
it can also perform the activity based costing and help AirAsia to
track actual costs of activities.

Advance Planning &


Scheduling (APS)
APS system optimizes AirAsias supply chain management.
It works as the brain of supply chain activities (Ahmed,
2004) by gearing activities in relation with suppliers and
customers requirements. APS system clusters and classifies
customer orders, forecasts future fulfillment requirements,
checks resources availability and sets order priorities.

(i) Visibility Across The Whole Supply Chain:


The benefit of using APS system is visibility across the
whole supply chain. The supply chain management system
will ensure each party, (ie. suppliers and customers) works
together in integration in terms of cross-functional
scheduling and planning. So that AisAsia will have better
connectivity across the supply chain.
(ii) Optimizing profit management:
Trend analysis also benefited in the APS system designed
to maximized revenue AirAsia with system pricing strategy
and optimizing existing YMS. On the other hand, operating
costs will be reduced by AirAsia APS system using YMS
system to generate information to improve AirAsia plans
and schedules for the required facilities.

Computer Reservation
System (CRS)

AirAsia developed CRS (Open Skies software by Navitaire)


to automate ticket handling. It has helped the company to
growth at a dramatic pace. "Navitaire's Open Skies
technology has truly enabled AirAsia's growth from 2
million passengers to 7.7 million passengers in less
than two years.

(i) Reduce Operating Costs:


Using the CRM system, the work and activities undertaken by
AirAsia will become more systematic and coordinated. This
will help AirAsia to eliminate waste of money, such as the use
of web or e-mail to handle customer questions or concerns
some non-call center AirAsia. This leads to reduced labor
costs and business operations will be more effective and
efficient.
(ii) Development of Better Relations with Customers:
Using CRM helps AirAsia to develop relationships with their
customers. CRM system provides a reliable source to deal
with AirAsia in sales, marketing, and services to optimize the
results, customer satisfaction, and customer retention. The
benefits of using CRM is because this system provides better
service to customers.

E-COMMERCE
AirAsia belong in B2C because that company tries to directly sell they
service for customer
enables the passengers to get a low price and choose seats at ease and
customers from other parts of the world are able to use the airline services
customer can also like to searching for airline flights, entering his billing
information and signing up for an e-mail confirmation
In 2013, reservation and payment of tickets via Short Messaging System
(SMS) through mobile phone services (M-commerce) was introduced.
Advantages of E-Commerce
i. To increase the competitiveness of business, promoted online booking,
and helped people dispel of the afraid to shop online because of the
network security
ii. Company can access to customer to collect information and introduce
service to meet customers needs
iii. Reduce the administrative cost by selling the flight ticket on internet.

CONCLUSION
Implementation of IT in AirAsia Company brings a lot of
advantages towards the technology industry and airline
industry. AirAsia innovate a lot of IT that reduce the cost and
higher the profit. Besides that, it also brings benefit to
people that pay for less money to receive the airline services
and also increase the standard of living for all the people
with the slogan that everyone can fly.

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