Harvard Business Case Study Airasia Flight

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Operating and Information System: Case Study on Airasia

1486 WordsApr 3rd, 20136 Pages

WEEK 7 :Operating and Information System: Case Study on AirAsia

AirAsia creates values through the following vision 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. Beside that, the AirAsia also creates the mission is to be the best company to work for whereby employees are treated as part of a big family, create a globally recognized ASEAN brand, to attain the lowest cost so that everyone can fly with AirAsia and the last is maintain the highest quality product, embracing technology to reduce cost and enhance service levels.

AirAsia makes the low fare model possible and create values through the implementation of the 6 key strategies. The…show more content…

Point to point network. LCC shuns the hub-and-spoke system and embraces the simple point-to-point network. Almost all AirAsia flights are short-haul (3 hour flight or less). No arrangements have been made with other airline companies on connecting flights, on possibilities of flight transfers, nor on having the luggage labeled and passed through from one flight to another. Distribution costs are something that FSC most often ignore. Very often, FSC relies on travel agents and from their posh sales office. Furthermore, FSC always blows the budget by complicating their distribution channels by integrating their systems with multiple Global Distribution Systems.

LCC will keep their distribution channel as simple as possible and will cover the whole spectrum of the clientele profile. For example, AirAsia can cater to the most sophisticated European traveler via internet and credit card sales. And at the same time, AirAsia has an established system to sell our tickets to the most remote and technology deprived locations, such as in Myanmar. When talking about LCC, some quarters will react with cynical and sometimes preposterous views. If a passenger must stand in a flight due to lack of seats or there will be chickens in the flight. Such misconceptions are not surprising, given the fact that scheduled, low-fare flights are a relatively new phenomenon in the

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