1. 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)

3. Company Founders
Company Background
Core Business
Business Model
IT Application
Success Stories
Lesson Learned
CONTENT

5. 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".

6. 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.

7. Company Background
Air 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

8. Air Asia
Broken 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

9. 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

10. Business Model
Value 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.

11. 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 aircraft
turn 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

12. 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.

13. Competitive Environment
12 other Asian low budget carries
Singapore’s Airlines Tiger Airways
Singapore’s ValuAir
Qantas Airways’ Jetstar Asia

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. AirAsia also passionate user of technology
and marketing efforts
Social media is one of AirAsia is important branding campaign
mechanisms, which allows the airline to address the conventional
limitations of direct push marketing. With its own Facebook page,
there is a forum that invites participation from the public, creating an
extension for them to be passionate and connected to the AirAsia
brand. Twitter is another interesting tool that is utilized for
transmission of short marketing blurbs, updating guests with new
developments and promotions.

21. 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 2010
By AirCargo Week
Success Story

22. AWARDS IN YEAR
2009
Airline Of The Year
ByCentre for AsiaPacific Aviation (CAPA)
Tony received the 2009 Frost & Sullivan
Excellence in Leadership Award
by Frost & Sullivan
Best Asian Low-CostCarrier
By TTG Travel Awards 2009

23. 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

24. Lesson LearNED
Big 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.