Airasia assignment free essay sample

Air Asia Berhad is the low-cost airline service provider in Malaysia. Air Asia is operating scheduled international flights and domestic. Besides, Air Asia is the largest low-fare, no-frills airline in the Asia region. Air Asia was the first airline in Asia region to implement fully ticketless travel. The main base of Air Asia is Low Cost Carrier Terminal (LCCT) at Kuala Lumpur. Therefore, its affiliate airlines Thai Air Asia have hubs at Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia, respectively. Airline industry in the current market become more competitive compared to last decade. This is because of the existing new competitors no matter in local or international airline service. With this competition among the airline service providers, each of the company needs to be very concern towards consumers’ needs and wants. This is important for the companies to create a great and effective brand image or identity no matter from internal and external sources. We will write a custom essay sample on Airasia assignment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Therefore, all the competitors are willing to do so because the brand image has the direct impact to generate consumer satisfaction value. If a company failed to provide the positive brand image, it may directly or indirectly affect the consumers’ decision making on choosing the airline service. Consumers may shift to the other competitors which offered better experience. Nowadays, Airline services are becoming more competitive comparing last decade ago. Now, the most familiar airline service providers include Malaysia Airline, Air Asia, Jetstar and so on. Those airline services are most probably providing the air transport services for passengers. Scope 3. 1 Scope Statement The purpose of collecting the information is to show the services provided by Air Asia in Malaysia. The areas will be evaluated are the response of the respondents in the customers’ satisfaction, customers services, security services, and facilities by Air Asia in Malaysia. 3. 1. 1 Customers’ Satisfaction In this area, it investigates the level of customer satisfaction among the customers who fly with Air Asia, a budget airline in Malaysia. The factors which investigated involved price offered, pre-flight services, customer relationship management, cabin environment and in-flight services. The independent variable is customer satisfaction. A quantitative approach’ findings show that there is no relationship between the price offered by Air Asia in Malaysia and the satisfaction level of the customers. The factors such as the pre-flight services, customer relationship management, small environment and in-flight services on Air Asia have shown positive significant relationship with customer satisfaction. It looks like that Air Asia customers are no longer view the price as an issue as they are already enjoying currently when they are travelling. The management of Air Asia Berhad should focus their resources towards delivering customer satisfaction. Customers satisfaction is very important to marketers of products and services because a satisfied customer engages in favorable behavior intention such as repeating purchase. 3. 1. 2 Customers Services Air Asia offers Air Asia Cargo, Air Asia Go, Air Asia Megastore, Air Asia RedTix, Air Asia Travel Protection, SkyRider Kids Club, and Travel 3Sixty. The airlines industry sale office located in different location which include Brunei, Cambodia, China, India, Indonesia, Macau, Malaysia, Nepal, Philippines, Saudi Arabia etc. It actually operates in over 400 locations worldwide covering 25 countries including Myanmar, Brunei, Bangladesh, Indonesia, Philippines, Thailand, Singapore, Malaysia, Vietnam, South Korea, Cambodia, Sri Lanka, Laos, India, Taiwan (the Republic of China), Australia, New Zealand, and the U. K. Moreover, it has service such as online booking service and baggage allowance. Air Asia Online Booking For individual booking, it is now easier and fast at their main website which is http://www. airasia. com/my/ while for group bookings, if you and your friends are traveling to a particular destination, the Asia’s no-frill transporter offers group bookings. To qualify, your group must be more than 9. We can also charter a flight from Malaysia to other countries. The popular Asian air company is also providing chartered flight services to serve business travelers through their Airbus 320 aircraft. Proper Air Asia Online is observed to reserve seats for domestic and international charters. Baggage Allowance When flying, checked baggage can be pre-booked online at cheaper rates or can be done at airport check-in counters at regular fees. Bags must be checked in at least 45 minutes before departure for all flights and at least 1 hour before departure for X flights. Checked-in luggage is 15 kg and proper baggage fee is levied for every kilogram excess weight. There will be free baggage fee for baby buggies, manual wheelchairs, walking frames and mobility equipments. For unchecked baggage, a passenger can carry a carry bag of less than 7 kilogram with 56 cm x 36 cm x 23 cm dimensions. 3. 1. 3 Facilities In Kuching, regional low-cost carrier Air Asia Bhd (AirAsia) is improving its service offerings with the inclusion of its new ‘Web and Self Check-In’ facilities, which are currently located at the low-cost carrier terminal (LCCT) in Sepang as well as at selected regional airports. The new service purposely is to provide guests with a faster and easier way of checking-in. For added comfort and convenience, guests could also utilize its web-based check-in service. By adopting a cost effective service and comfortable traveling experience for its guests, this service will also avoid airport congestions, long queues and reduce waiting time at no extra cost. For check-in from Air Asia’s kiosks, guests should check-in below six hours prior and one hour before the scheduled departure time. The check-in kiosks are located in airports at Sepang LCCT, Johor Bahru, Kota Kinabalu and Kuching, as well as at airports of Jakarta, Bali, Bangkok, Phuket, Chiang Mai and Hat Yai. 3. 1. 4 Development of Air Asia On 18 November 1996, Air Asia started operated while it is established in 1994. Originally, it was founded by a government-owned conglomerate, DRB-Hicom. On 2 December 2001, a former Time Warner executive Tony Fernandes company Tune Air Sdn Bhd bought the heavily-indebted airline. or the token sum of one ringgit (about USD 0.26 at the time) with USD 11 million (MYR 40 million) worth of debts. Fernandes turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as MYR 1 (US$0. 27). In 2003, AirAsia opened a second hub at Senai International Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. Air Asia has since started a Thai subsidiary, followed by added Singapore itself to the destination list, and started flights to Indonesia. Flights to Macau began in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the latter by Thai Air Asia. Air Asia took over Malaysia Airliness Rural Air Service routes in Sabah and Sarawak, operating under the FlyAsianXpress brand in August 2006,. The routes were subsequently returned to MASwings a year later, citing commercial reasons. Fernandes unveiled a five-year plan to further enhance Air Asias presence in Asia at the end of 2006. Under the plan, Air Asia projected strengthening and increasing its route network by connecting all of its the existing destinations throughout the region and expanding further into Southern China (Kunming, Xiamen, Shenzhen) and India, Vietnam and Indonesia. Through its sister companies, Thai Air Asia and Indonesia Air Asia, the plan called for a focus on developing its hub in Bangkok and Jakarta. Air Asia increased passenger volume to 13. 9 million in its 2007 fiscal year with increased frequency and the addition of new routes. The company announced 106 new routes to be added to its then-current list of 60 on 27 September 2008. The number of old routes discontinued has not been publicly disclosed. After that, at August 2011, Air Asia agreed to form an alliance with Malaysia Airlines by means of a share swap. ] The alliance was struck down by the Malaysian government, in effect voiding the agreement of both airlines. By early 2013, Air Asia saw a steep increase in its profitability. The year-over-year comparison had shown a 168% increase in profits versus the same period in 2012. For the part ending 31 December 2012, the airlines net profit stood at 350. 65 million ringgit which is equal to US$114. 08 million. In spite of a 1% rise in the average fuel price, the airline recorded profits of 1. 88 billion ringgit for its full 2012 fiscal year. In February 2013, Air Asia submitted an application to the Indian Foreign Investment Promotion Board, through its investment arm, Air Asia Investment Limited, to seek approval for commencing its operations in India. Air Asia asked to take a 49% stake in the Indian sister airline, which was the maximum allowed by the Indian government at that time. At first, Air Asia committed to invest up to US$50 million in the new airline. 3. 2 Criteria used for selection areas Customers’ Satisfaction Air Asia Sdn Bhd has the services and some factors such as the pre-flight services, customer relationship management, small environment and in-flight services on Air Asia . The customers are now focusing their attention on the quality of pre-flight services, customer relationship management, small environment and in-flight services offered by Air Asia, which seems to be affecting their customer satisfaction levels. Customers Services Air Asia in Malaysia has good customer’s services such as booking online and baggage allowance. It has brought a lot of convenient to people who wants to travel. Facilities As we know, Air Asia had launched new check-in kiosk facilities. Using the web check-in service is very easy, by which guest only need to connect to the internet and print the travel itinerary to allow check-in 48 hours prior and up to four hours before the scheduled departure time. With the boarding pass, they can proceed straight to the document-check counter for stamping and then on to the boarding gate. For baggage check-in, guests can drop them at the self check-in counter at least an hour before boarding time. Development of Air Asia The development of Air Asia in Malaysia is quite fast from 18 November 1996 until now. According to our research, Air Asia’s operations would begin in Chennai, expanding its network throughout South India, where Air Asia already operates flights from Malaysia and Thailand.