FACULTY OF COMPUTER SCIENCE AND MATHEMATICS

INTRODUCTION TO E-BUSINESS (ITS450)

NUR HAKMA BT JUHARI (2009600066)

SHARIFAH SYAHIRAH BT SYED MUHD KAMAL

(2009249956)

NUR FARAHAIN BINTI SUFIAN (2009627474)

Company Founders

Company Background

Core Business

Business Model

IT Application

Success Stories

Lesson Learned

CONTENT

Company Founders AirAsia was established in 1993 and commenced

operations on 18 November 1996.

It was originally founded by a government-owned conglomerate DRB-Hicom.

Then, instead of starting from scratch, Mahathir advised Tony Fernandes, a Malaysian entrepreneur to buy an existing airline instead because of their heavily-indebted

He turning AirAsia, a failing government-linked �commercial airline, into a highly successful budget airline public- listed company.

He introduced the first budget no frills airline, AirAsia to �Malaysians with the tagline "Now everyone can fly".

Fernandes mortgaged his home and sank his savings to acquire the company, comprising two ageingBoeing737-300 jets and RM40million worth of debts and transformed it into an industry player. Coming just after the 11September 2001, �undoubtedly the worst day in the history of commercial aviation when nobody wanted to fly, everyone thought that Fernandes had gone "crazy", predicting that the company would fail miserably.

One year after his takeover, AirAsia had broken even and cleared all its debts. Fernandes has also been honored by the �Malaysian government with title Dato Seri and also by the government of France with the Legion d'Honneur title.

Company BackgroundAir Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly since 2001. With a fleet of72 aircrafts, Air Asia flies to over 61 domestic and international destinations with 108 routes, and operates over400 flights daily from hubs located in Malaysia, Thailand, and Indonesia

Air Asia believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. Through the corporate philosophy of “Now Everyone Can Fly”, Air Asia has sparked a revolution in air travel with more and more people around the region choosing air Asia.

The best philosophy of Air Asia “Now everyone can fly”means to giving an opportunity to all the people to flight with the lowest possible fare and making them can flight even they only have the less money

Air AsiaBroken travel

norms around the globe

and has risen to become the world best.

Route network through

more than 21 countries

with applied low cost as

core business.

Efficient and maintaining a simple aircraft fleet and a route network

based on low-cost airports.

CORE BUSINESS

Another Product Offer

Go Medic

Air Asia Credit Card

Air Asia Go Insure Snack Attack

Air Asia Merchandise

Go Holiday Theme Park

Go Holiday

Mobile.air.asia.com

Business ModelValue Proposition

Air Asia Key Strategies Descriptions

Safety First Partnering with the world’s most renowned maintenance provide and complying with the world airline operation

High Aircraft Utilization Implementing the regions fastest turnaround time at only 25 minutes, assuring lower cost and higher productivity.

Low Fare, No Frills Providing guests with the choice of customizing services without compromising on quality and services.

Streamline Operation Make sure that processes are as simple as possible

Lean Distribution System Offering a wide and innovative range of distribution channels to make booking and travelling easier.

Revenue Model

Air Asia operates with the world’s lowest unit cost and passenger break-even load

factor of 52%

100% of its fuel requirement for the next three years,

achieves an aircraftturn around time of 25

minutes

Crew productivity level that is triple that of Malaysia Airlines and achieves an

average aircraft utilization rate of 13 hours a day

Market Opportunity

Huge market potential with it differentiation in no frills products, Air Asia have opportunity to enter in a large market which is locally and around the world. At this present, Air Asia across to 11 countries around ASEAN.

Competitive Environment

12 other Asian low budget carries

Singapore’s Airlines Tiger Airways

Singapore’s ValuAir

Qantas Airways’ Jetstar Asia

Competitive advantages

Courteous but limited passenger

service

Productive and skilful employees and simple, aggressive and focused management structure

Standardized fleet of aircraft

Frequent, reliable schedules

Short haul-point to point routes often to secondary airports

High craft of utilization

Marketing Strategies

Advertising-Media

-newspaper

Merchandising-T-shirt

-Cap, pen

Joint venture

-Ministry

Sponsorship-M.United-Formula 1

Website-Facebook,

Air Asia.com, twitter, youtube

Promotion-Seasonal Promotion-Zero Fares

Organizational Development

Expert team in administration and production

Various experience ability and skills

Some of head department have experienced in Warner Music

Systematic management team and teamwork

Exposure in administration and also entertain people

CEO: DATO SERI TONY FERNANDES

Deputy CEO: DATO KAMARUDDIN

CEO Indonesia :DHARMAD

CEO Thai: TA S SPON

Secretary: BOLINGAM

Finance: ROZMAN OMAR

Bus Dev: CAPTAINCHIN NYOK

Quality and Safety: SAIDULKHADRI HAMZAH

Engineering: AZHARI

IT: LAU KINCHOY

Commercial: K ATHLEEN TAN

Communication :J OYCE LAI

Operation: CAPTAIN ADRIAN

Management Team

IT Application

System that AirAsia used in maximized IT to meet the lowest cost during their business activities is the implementation of:

Yield Management System(YMS)

AirAsia can understands the behavior of their customer and offering the effectives and efficiency strategy and also can allocate capacity to maximize the expected revenue. �By this system, AirAsia can make efficiency to know their customer using IT technology with lowest cost

Customer Reservation System (CRS)

CRS is an integrated web-based reservation and inventory system. It includes Internet; call center, airport departure control and more. �It is a direct sales engine that effectively eliminates the middleman (travel agents) and the sales commissions that need to be paid to them. �customer friendly because customer can buy or make a reservation of a ticket directly via online, and no need to come to the ticket counter

AirAsia also passionate user of technology and marketing efforts

Social media is one of AirAsia is important branding campaignmechanisms, which allows the airline to address the conventionallimitations of direct push marketing. With its own Facebook page, there is a forum that invites participation from the public, creating anextension for them to be passionate and connected to the AirAsiabrand. Twitter is another interesting tool that is utilized fortransmission of short marketing blurbs, updating guests with newdevelopments and promotions.

AirAsia has become one of the most successful airlines in the Southeast Asian region and the pioneer of low cost and no frills travel in Malaysia. �AirAsia have a lot of achievement and awards since year 2001 until present

AWARDS IN YEAR 2010

Masterclass GlobalCEO of the Year Awarded to Ybhg. Dato Tony Fernandes

World’s Best LowCost Airline By Skytrax

AirAsia voted the AirCargo Industry Newcomer Award at the ACW World AirCargo Awards 2010By AirCargo Week

Success Story

AWARDS IN YEAR 2009

Airline Of The Year ByCentre for AsiaPacific Aviation (CAPA)

Tony received the 2009 Frost & Sullivan Excellence in Leadership Awardby Frost & Sullivan

Best Asian Low-CostCarrier By TTG Travel Awards 2009

AWARDS IN YEAR 2008

The Laureate Award for BestCommercial Airport Transport from Aviation Week

Tony awarded the Malaysia Brand Icon Award from Deputy Prime Minister YAB Dato' Seri Najib Tun Razak at the Global Brand Forum Malaysia

AirAsia - Malaysia's 30 Most Valuable Brands 2008 By Malaysia’s Most Valuable Brands (MMVB)

PIKOM ICT Organisation Excellence Award 2008 By Association of the computer and multimedia industry (PIKOM)

Best Asian Low-Cost Carrier By TTG Travel Awards 2008

Lesson LearNEDBig company especially in airline industry should generated a strategic business plan to make sure they can compete and survive in the economies fluctuate.

Company should understand the customer need and problem by increasing customer insight, where it able to develop new product and solve the customer needs and problem.

Applied an effective IT program in company operations.

A good leader should able to make a good decision and take a risk for the risk.