Professional Documents
Culture Documents
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Case Agenda
Background
Central Challenge
S.W.O.T Analysis
Management Alternatives
Mgt 4880
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Jonatha
AirAsia Background
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Jonatha
AirAsia Background
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Jonatha
AirAsia Aircrafts
Mgt 4880
Naomi
Jonatha
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Conor
McCarthy
Tony
Fernandes
Mgt 4880
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Jonatha
Critical Partner
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Mgt 4880
Naomi
Jonatha
Credit Suisse
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Mgt 4880
Naomi
Jonatha
Expansion in Asia
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Mgt 4880
Naomi
Jonatha
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Column2
Mgt 4880
Naomi
Jonatha
Perio
d
Destinations
Served
Jan-02
Jun-03
11
Jun-04
26
Jun-05
52
Jun-06
65
Aug07
75
Now Everyone
Can Fly
Mgt 4880
Naomi
Yahya
1
0
Challenge Drivers
Now Everyone
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Alliance
Joint Venture
Bilateral
Deregulation
Liberalization
Privatization
Rise of
- LCCs
- Traffic
Old Airlines
Government
Controlled
- Seat Capacity
- Routes
- Fares
New Airlines
- Entry to
market
- Reduce Prices
Mgt 4880
Naomi
Competition
- Low prices
- Better Service
Yahya
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1
Cost Drivers
Basic
products
and
services
Only single
class seats
Mgt 4880
Naomi
Now Everyone
Can Fly
No
No
No
No
hot meals
baggage transfer between flights
aerobridges for un/boarding
assigned seats
Yahya
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2
Infrastruc
ture
HRM
Technolog
y
Developm
Procurem
ent
ent
M
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g
Computer Reservation System, Yield Management, Market in
Research
Ticket
Reservatio
n,
Aircraft
Operations
,
On-Board
Service
Inbound
Logistic
Operati
ons
Flight
Connection
,
Commissio
n
Payment,
Safety and
Security
Procedures
Outbou
nd
Logistic
Primary
s
Activities
Yahya
Promotion,
Campaign,
Online
Sales,
Flyer
Program
Marketi
ng
& Sales
Customer Relationship,
Complain Follow-up,
Hotel
Reservation
Route
Planning,
Fuel
Manageme
nt,
Flight
Scheduling
ar
g
in
Mgt 4880
Naomi
Business
Stakeholder
BusinessStrategy,
Strategy,Relationship
RelationshipBuilding,
Building,
Management
Stakeholder Management
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Service
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International Routes
Now Everyone
Can Fly
Berlin
Manchester
Stansted
Moscow
Prague
Shenyang Dalian
Tianjin
United Kingdom
Sapporo
Osaka
Hangzhou
Lahore
Fukuoka
Pusan
Cairo Sharjah Karachi
New Delhi
Xiamen
Jeddah Mumbai
Hyderabad
Goa
Bangalore
KUALA
LUMPUR
Brisbane
Targets July 2007
Perth
Adelaide
Melbourne
Mgt 4880
Naomi
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Closest Competitors
Mgt 4880
Naomi
Yahya
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Competitors Benchmark
Airlines Based in Average trip
length
AirAsia
Malaysia
Southwest U.S.
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Operating
cost per ASK
U.S. Cents
1,100 1,300
$0.034
1,000 - 1,300
$0.056
SpiceJet
India
900 - 1,100
$0.092
EasyJet
British
900 - 1,100
$0.078
Air Arabia
UAE
2,100 - 2,300
$0.038 * (Potential
threat)
Air Berlin
Germany
1,000 - 1,300
$0.066
Yahya
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S.W.O.T Analysis
Strengths
AirAsia strong
management team
Strategy execution
and formulation
Brand name
Excellent utilization of
IT
Mgt 4880
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Weakness
es
Limited services and
products due to cost
strategy
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Simple Product
No-Frill
Low Operating
Cost
Low-Cost Carrier
Positioning
Mgt 4880
Naomi
S.W.O.T Analysis
Opportuniti
es
Government funding
of infrastructure
Few substitutes
Increase population
of middle class in
Asia
Removal of subsidies
and tax expenditure
Mgt 4880
Naomi
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Threats
Departure charges ,
security charges, and
landing charges, which are
beyond AirAsias control
Threats of potential
entrants and rivalry within
the industry
Increasing fuel price
around the world
Bargaining power of
suppliers and customers
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Management Alternatives
Now Everyone
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Mgt 4880
Naomi
2
0
Virgin Group
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Entry
mode
Virgin Atlantic
Virgin Express
Virgin Blue
venture
Virgin USA
Mgt 4880
Naomi
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Co
ns
Required major
changes in operation
practices
Required major new
investments
Primary in bigger planes
Loss of operational
independence
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THANK YOU
Bibliography
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Mgt 4880
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