Airasia Essay 7

Company Background AirAsia Berhad as know as AirAsia is a Malaysian unhopeful-cost airline. It operates scheduled domestic and international u charges and is Asias largest low fargon, no frills airline. AirAsia pioneered low cost travel in Asia. The airline was established in 1993 and started operations on 18 November 1996. A government-owned conglomerate DRB-Hicom to begin with founded it. On 2 December 2001, the heavily-indebted airline was purchased by varianter Time Warner executive Tony Fernandess company lineage Air Sdn Bhd.AirAsia is the low gear airline in the region to implement fully ticketless travel and unassigned seats. However, as of 5 February 2009, AirAsia has implemented every(prenominal)ocated seatings across all AirAsia flights, including in their sister airlines, Indonesia AirAsia and Thai AirAsia. In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru near Singapore and launched its first off international flight to Bangkok. Air Asia has since started a Thai subsidiary, added Singapore itself to the destination list, and commenced flights to Indonesia.Flights to Macau started in June 2004, while flights to Mainland China (Xiamen) and the Philippines (Manila) started in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai AirAsia. Its main base is the Low Cost Carrier celestial pole (LCCT) at Kuala Lumpur International Airport (KLIA). LCCT ordain initially handle 10 million passengers a year. Its classify airlines Thai AirAsia and Indonesia AirAsia have hubs at Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively.The airline is also considering founding Hong Kong AirAsia in the future. AirAsias registered office is in Petaling Jaya, Selangor while its head office is on the grounds of Kuala Lumpur International Airport in Sepang, Selangor. AirAsia operates with the worlds lowest unit cost of US$0 . 023/ASK and a passenger break-even load factor of 52%. It has hedged 100% of its fuel requirements for the next three years, achieves an aircraft turnaround time of 25 minutes, has a gang productivity level that is triple that of MalaysiaAirlines and achieves an amount aircraft utilisation rate of 13 hours a day. AirAsia is currently the largest virtuoso customer of the Airbus A320. AirAsia Rock India Campaign This new development is subsequent to AirAsias huge success of Tiruchirapplalli (Trichy) followed-by Kolkata, Kochi and Thiruvananthapuram (Trivandrum) recording an average of 80% load factor on all four existing routes. Thus, these new serve will not only complement AirAsias aggressive growth in India, but is also feeding to a greater extent traffic into the country.The reason why AirAsia is choosing India market is because India market is second only to China in growth, as the India market is booming AirAsia has decided extending its footprint with the launch of its dir ect flights to 6 new routes in the first quarter of 2010. This new services to key metro cities include Chennai, Bangalore, Hyderabad, Mumbai and New Delhi from Kuala Lumpur and from Penang to Chennai. It is also noteworthy to shine up that AirAsia is the only airline from Malaysia which will be flying to Bangalore and Hyderabad from Kuala Lumpur and from Penang to Chennai.The Chennai, Bangalore and Hyderabad sectors will be serviced by AirAsias A320 aircrafts, Mumbai and Delhi will be served by its long-haul affiliate, AirAsia X via its new Airbus A330 fleet. AirAsia is the only airline which connects to the most points in India from Malaysia with a total of 148 flights weekly. divider To promote India tourism sport and stimulate new travel demands and further tap markets AirAsia is focus on working adult, families and backpackers.Especially to young working adults and families, to travel to Malaysia and thereafter use Kuala Lumpur as a doorway to over 130 routes in Asia, that i ncludes regional ASEAN cities or long-haul sectors serviced by AirAsia X. And to achieve AirAsia objective Now everyone earth-closet fly AirAsia will deliver this by liberalizing the air travel with undisputed low-fares, opening-up the India market to the world and support businesses and more. Database merchandise Approximately 60% of overall bookings are made online through AirAsia website.The remaining 40% of bookings are done through Nationwide Call Centre, Preferred Travel Agents, AirAsias Airport Stations and Sales Offices. Consumers who hire online purchase ticket have to fill up name, gender, occupation and others information and for consumers who wish to get current news or promotion from AirAsia they can create an account and become a member of AirAsia. With all database that collect from online booking and sales office, AirAsia fitting to track their customer and segment them by Demographic segmentation. With these databases AirAsia able to retain consumer by sending E-gift voucher for them. The E-Gift Voucher is an innovative gift for all occasions as well as being a much-appreciated corporate gift for its high perceived value. ) Direct Marketing Offer Planning While everyone is focusing on China market, AirAsia develop and create a grand strategy and come out with special offering to their customer to successfully in their business by taken a first move advantage extends their business to India and have the advantage of being the first low cost airline in India with using Price Leadership Strategy to attract consumer form Malaysia or India.This allow it to establish itself before opposition increases in this low cost segment, apart from competition that already exists across segments (low cost vs full service carriers). This is a major strength, as AirAsia will be laying down the rules and frameworks for the industry in a manner that suits its business and operational model. This also experience cross selling to AirAsia. To add value, AirA sia, under GoHoliday at www. airasiago. com, also offers some great online hotel deals to stretch the sawhorse where guests can choose their holiday lodgings from over 50,000 hotels, tour packages and ground transfers.Guests are also further to purchase food, supersize their baggage, hot seats online to enjoy more discounts and savings through www. airasia. com. AirAsias low-cost model, with its ultra low fares and modern fleet of comfortable and spacious aircraft, is undoubtedly an attractive consumer proposition, strong enough to compete with allowance airlines. At any time after a booking has been made AirAsia may change their schedules or cancel, terminate, divert, postpone reschedule or delay any flight where they reasonably consider this to be reassert by circumstances beyond their control or for reasons of safety or commercial reasons.Unfortunately the damage and Conditions of AirAsia dont allow for a refund but to protect consumers in the event of such flight cancellatio n, AirAsia shall at their option, either carry consumers at the earliest opportunity on another of AirAsia scheduled services on which space is available without additional charge and, where necessary, extend the validity of consumers booking or choose to travel at another time, retain the value of consumers fare in a credit account for future travel provided that consumers must re-book within three month.