Operating and Information System: Case Study on Airasia

WEEK 7 Operating and Information agreement Case Study on AirAsiaAirAsia reachs honors by the following survey is to be the largest low appeal air hose in Asia and serving the 3 billion people who ar currently underserved with poor connectivity and high sets. Beside that, the AirAsia in addition creates the mission is to be the best company to work for whereby employees are handle as part of a big family, create a globally recognized ASEAN brand, to attain the worst embody so that every genius usher out gasify with AirAsia and the last is maintain the highest quality product, embracing engineering science to disregard cost and enhance dish out levels.AirAsia makes the low fare model workable and create cheers through the implementation of the 6 recognise strategies. The first of the key strategies is Safety First, AirAsia wan to be partnering with the worlds some renowned maintenance sufferrs and complying with the world airline carrying outs. Beside that, the second key strategies is High Aircraft utilization is mean implementing the regions fastest volte-face time at only 25 minutes, assuring lower costs and higher productivity.Low Fare and No Frills are also is AirAsias key strategies, Low Fare and No Frills is mean providing guests with the choice of customizing services without compromising on quality and services. other key strategies is contour Operation, this key strategies is make sure that processes are as simplistic as possible. Beside that, Lean Distribution strategy is offering a wide and innovative range of distribution channels to make meshing and be activeing easier. The last of the AirAsias key strategies is Point to Point lucre is to applying the suggest-to-point network keeps operation simple and lower costs.Business process and operation in the AirAsia is has fostered a dependency on Internet technology for its usable and strategic perplexity, and provides an online ticket booking services to traveler onli ne. In todays extend economy, information technology has driven thorough changes in the nature and coat of technology in business. The implementation of information technology in its foster chain provides powerful strategic and tactical tools for AirAsia, which if properly applied and used, could operate great advantages in promoting and strengthening the competitive advantages.Moreover, AirAsia has currently adopted information technologies strategically to integrate the operations and coordinate all the business and management functions. The followings are few system implementations that AirAsia has done in its marketing and gross sales activities as well as operation activity in the value chain. The lowest airlines like Air Asia attending low cost direct high efficiency in every part of the business and maintaining simplicity. whence every system process mustiness incorporate the best manu positionuring practices.The key components of the LCC business model are High ai rcraft utilization, No frills, Streamline Operations, Basic Amenities,Point to point network, Lean Distribution System. Aircraft is kept traveling as much as possible, the first flight starts as early in the morning commercially possible and the final flight typically ends at midnight. A fast turnaround is critical to ensure time spent of the ground is minimal an airline makes money when the aircraft is flying, not when the aircraft is parked. AirAsias turnaround time is 25 minutes compare that against 1 minute of arc for a FSC.On average, AirAsias utilization per aircraft is 12 block hours per day, a FSC competency do about 8 block hours per day. No frills such as no free food and beverages, free seating, no refund and no loyalty programme. Making the process as simple as possible is the key of a favored LCC. Single type of aircraft, single socio-economic class seating, Standard Operating Procedures. Secondary airports. Low cost carriers mostly fly to and from airports that are not necessarily the busiest, for example, London Stanstead rather than London Heathrow.These are lots referred to as secondary airports. Operating from so called secondary airports is cheaper than from the large major airports and they are also a lot less block and turnaround times for aircraft are a lot shorter. 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 assed 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. Further more than, FSC always blows the figure by complicating their distribution channels by integrating their systems with multiple globose Distribution Syste ms. LCC get out 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 opinion 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 world.The reason for the success of the new low cost carriers is very simple move the upper limit number of passengers at the minimum of cost. The concept of LCC is based on the brain that people would fly a lot more often if it were more affordable. LCC airlines main mission is to make air travel the most simple, convenient and inexpensive form of transportation in the world. The fare differential between the to the full service carriers (FSC) and LCC can be as high as 40%-60% cheaper. Air Asia SWOT such as Strengths, Weaknesses, Opportunities and Threats.Strengths abbreviation have low cost operations, fewer management level, effective, concentrate and aggressive management, simple proven business model that consistently delivers that lowest fares, multi-skilled staffs means efficient and incentive workforce, penetrate and stimulate to potential markets. Weaknesses analysis have limited human resources could not handle irregular situation, brass interference and regulation on airport deals and passenger compensation, brand is zippy for market position and developing it is always a challenge, and new entrants to provide the expense-sensitive services.Oppurtunities analysis also have long haul flight is an exertion to get undeveloped market share, d ifferentiation from traditional LCC model by adding customer services or operation as full service airline with low fare, and ongoing industry consolidation has opened up prospects for new routes and airport deals. And the last one Threats analysis have full service airlines start cut costs to compete, high fuel price decreases yield, accident, terrorist attack, and disaster and affect customer confidence, increase in operation cost in producing value-added services, and system disruption due to heavily reliance on online sales.In AirAsia have Yield Management System (YMS) . This system is to anticipates and reacts to the sort of customers to maximize the revenue. For some example, for the seat are available at heterogeneous prices in different points of time. A reservation done at a later date will be charged more than the one done earlier for the same seat. For the Route is adjusting prices for routes or destinations that have a higher demand when compared to others.During off-p eak times while raising prices only marginally for peak times. For the AirAsias Computer Reservation is an merged web-enabled reservation and livestock system suite powered by Navitaires Open Skies technology that includes Internet, call center, and airport departure control functionality. Computer Reservation System is also satisfy the unique needs of AirAsia implementing a low-cost business model to transform the business process to efficiently streamline operations. go-ahead Resource Planning System(ERP) in AirAsia is an integrated solution powered by Microsoft Business Solutions (MBS) on Microsoft technology platform which is implemented by Avanade consultants in 2005. With the robust ERP technology platform, AirAsia is able to successfully maintain process integrity, reduce financial month-end closing processing time, speeds up reporting and data recovery process. Customer Relationship Program (CRM) the information management process, the multichannel integration process, the value creation process, the strategy development process and the performance assessment process.The fundamental to a successful CRM strategy requires seamless customer-centric processes, supported by integrated technology across the enterprise and its supply chain which provide the in effect(p) information at the right time. To ensure that technology solutions support CRM, CRM tools must be making trade offs in flexibility, customizability, cost, convenience and speed of deployment certainly it must match to the needs of the business. However, CRM tool is just a tack to CRM strategy, appropriate strategy and excellent implementation is essential for a successful CRM.