AirAsia's Information Technology Strategy

Keywords: airasia eyesight, airasia it

AirAsia was founded in 1993 and commenced its procedures on 18th November 1996. This flight was actually founded with a government held conglomerate DRB-Hicom. However, on 2nd Dec 2001, the intensely indebted airline was purchased by previous Time Warner exec Tony Fernandes's company Tune Air Sdn Bhd for the token total of 1 ringgit. Fernandes proceeded to engineer a impressive turnaround, turning a earnings in 2002 and releasing new routes from its hub in KLIA at breakneck rate which undercutting former monopoly operator Malaysia Airlines with promotional fares only one ringgit.

In 2003, AirAsia has opened a second hub at Senai International Airport in Johor Bahru which is near Singapore. And, it launched its first international journey to Bangkok. AirAsia has therefore started a Thai subsidiary, added Singapore to the vacation spot list, and it commenced plane tickets to Indonesia. Also, journey to Macau was started in June 2004 and flight to Mainland China and the Philippines were only available in April 2005. Furthermore, the flight to Vietnam and Cambodia is the year 2005 while to Brunei and Myanmar is in 2006.

With a solid yet simple slogan "Now Everyone Can Fly", AirAsia has effectively placed its brand in customer's brain when comes to selection of airline flight. In Malaysia, AirAsia is the next powerful national air travel. Also, it was the first successful low priced and ticket-less flight in the Southeast Asian region. It is main located in the reduced Cost Carrier Terminal (LCCT) at Kuala Lumpur AIRPORT TERMINAL (KLIA). And, AirAsia has a documented office in Petaling Jaya, Selangor and its own hq is due to KLIA in Sepang, Selangor. In addition, AirAsia is one of the successful businesses which may have adopted cost authority thoroughly through efficiency and efficiency of the operation management. AirAsia has shattered the travel norms surrounding the world speedily and is among the most world's top airline. Beside this, AirAsia also offers a course network that spans more than 20 countries; so that it is constantly on the pave just how for less expensive aviation through impressive solutions, more efficient processes and a separate approach to the business.

The eye-sight of AirAsia is usually to be the greatest cost air travel in Asia and for the purpose of providing the 3 billion folks who are currently underserved with poor connection as well as high fares. You can find 4 missions such concerning be the best company to work for where the employees are treated as part of the big family in AirAsia, to create a ASEAN brand which has been recognized globally, to attain the lowest cost to be sure everyone on the planet can travel with AirAsia, and also to maintain the finest quality product by embracing technology in order to lessen cost and enhance the service levels of AirAsia.

Apart from that, together with the associate companies such as AirAsia X, Thai AirAsia and Indonesia AirAsia, AirAsia is defined to take the low cost traveling. AirAsia X was proven in 2007 to be able to provide high regularity as well as indicate point networks to the long haul business. Its cost efficiencies are derived from maintaining a straightforward plane fleet and a course network based on low cost international airports. Hence, friends will continue steadily to benefit from the low fares through cost savings that AirAsia spread to the friends. Additionally, AirAsia X franchises the brand name of AirAsia, Asia's most significant low cost carrier which uses a common ticketing website, consistent, uniforms, and management style with AirAsia. AirAsia X is also associated with Virgin Group and Air Canada.

Reasons for Adopting Information Technology (IT)

There are some factors that added to the adoption from it for AirAsia. As we realize, airline companies involved in helping people move in one destination to another. And, there are billions of individuals in this world. Without IT, airline companies will not process smoothly and it might lead to serious confusing among the clients and the business. Also, people in this population are experiencing the same problems such as traffic jam, working pressure and time pressure. They are really busy using their works plus they concentrate more on efficiency and success. They don't want to spend more time on irrelevant things such as queue up to buy something or waiting for long hours. Therefore, most airlines including AirAsia do offer online reservation for the airfare as well as resort rooms to conserve their customers' time as well as enhance client satisfaction.

Apart from that, the technology is getting in advanced in this modern period. There are various companies who've adopted Information Technology (IT) in doing their business. And, this It includes helped in improving a much better management of the procedure of the companies. Also, people in this modern culture are concern more on company who has adopted IT and exactly how this IT will help in making their life better as well as decision making in a few jobs. AirAsia therefore choose to adopt IT in its business as to follow up the current IT craze as well as gratifying the demand of the individuals in this population. They also integrated different systems to enhance their overall procedure that may lead to efficiency and effectiveness of AirAsia.

IT Strategy

AirAsia has some strategies initiatives which require IT solutions in order to make its company talk about and reputation.

In order to make its operation effective and efficient, AirAsia has executed few IT systems in its marketing and sales activities. As you know, E-Commerce in nowadays has turned into a business tool and it is also a vital strategic management that allows a company to sell, advertise, purchase, materials inventory tracking as well as posting of information. Therefore, E-Commerce does become a major success to Airline Company that lead to effectively and efficiency in their business. AirAsia is one of the flight companies that implements E-Commerce and maximizes their it usage to control their company effectively and effectively including make low cost possibly in their business.

In order to maximize their IT, AirAsia has implemented current IT systems, for illustrations, Produce Management System (YMS), Computer Reservation System (CRS), and Enterprise Resource Planning (ERP). These systems have indirectly produced extra profits and build customer commitment for AirAsia.

Yield Management System (YMS) which also called Revenue Management System (RMS) is the procedure of understanding, anticipating as well as influencing consumer behavior to maximize earnings or earnings from a fixed perishable resource. Moreover, there can be an important component in this technique which is the use of overbooking where sometimes there must be a chance that a customer may well not appear throughout that day. As an example, it could be possible for a customer to book a solution for a flight but didn't arrive for the departure. And, this may cause the airline to finish up flying a clear seat that will then cause lost in earnings for the flight company. But, in order to solve this issue, most airlines regularly overbook their flight. And, if there is an unusually large proportion of the clients show up, the business will be forced to "bump" some customers to some other flight.

Second, AirAsia using Customer Booking System (CRS) which is an integrated web based reservation and inventory system. This includes Internet, airport terminal departure control, call middle, as well as others. This system is a direct sales engine that clear off the travel companies effectively and the need to pay for the sales commissions to them. And, CRS is completely customer friendly as the customer can buy or reserve a solution immediately via online without come to the solution counter. This has helped bring more customers to utilize the website often thus reduce the extra costs of customer such as transport costs.

CRS also include Open up Skies and New Skies. First, the Open Skies system is an integral web enabled booking as well as inventory system. The perfect solution is is made expressly in order to fulfill the distinctive needs of airlines that either implements an inexpensive business or in the process of making their business to better streamline businesses. Also, this system can be used either independently or mixed yet it is depending on person's needs. Open up Skies helps some low priced airlines in worldwide to become a high performance business that continue steadily to grow greatly.

On the other palm, New Skies is a next technology of booking and circulation system. And, it is suitable for the world's most effective growing airlines which include recently launched airlines as well as swiftly growing hybrid airlines such as AirAsia. This technique is a comprehensive airline traveler sales and management solution that delivers capabilities for built-in online scheduling, call centre reservations, inter-airline and alliance code-share itineraries, departure control as well as travel firm global distribution connection. Also, New Skies is based on the Navitaire's Start Skies reservation and distribution system which have been utilized by over 40 of the world's successful airlines. It symbolizes a giant revolution in quick deployment, acceleration to market with the new features and enhancements. New Skies has completely included departure control and real time reporting to keep your operation runs well. Also, it is straightforward to work with, change as well as customize.

Third, AirAsia implements Organization Reference Planning (ERP) system. It is a packed of business software that integrates organizational processes and functions into a unified system. It can help business management executives with a thorough overview of their complete business execution which might impact their business decisions indirectly. There are a few types of functions: Human Source of information, Supply Chain Management, Finance and Logistics. All of these are standalone software and has their applications and databases. But, with ERP System, all of this individual software could work under one umbrella. And, all the departments can reveal information easily and it helps to save time and cost. The workflow that has taken place between different departments becomes more automated. The clients also progress services as the person who's using the customer facing applications can access to just of information that regarding each relevant process. For an instance, a person who is work under sales force can access to the customer's product which continues to be under manufacturing. In addition, ERP system helps to reduce the need to carry large inventories which will increase the functional and labor costs. And, this system is executed in AirAisia carefully.

Experience CAUSED BY The IT Implements

Utilization of IT (IT) have directly contributed to the promotional activities, enhance brand collateral, and keep carefully the cost only possible by allow the client to direct purchase the solution online or through sales office buildings. It has helped the clients to save flight agent fees.

The systems that have been carried out by the AirAsia have a substantial change to their company.

First, AirAsia has used the Produce Management System (YMS) for taking the operating costs and in assisting themselves to boost the price as well as allocate the capability for increasing expected earnings. For an instance, seats are profits for AirAsia and other airline companies. Every seating is considered as a profit for them. Therefore, AirAsia has presented a plan whereby seats are available at different prices in a variety of tips of time. Hence, booking that has done in later time will be costed more in comparison to person who has reserved earlier for the same couch. Because of this system, it has enabled AirAsia to understand the behavior of their individual customers and implement effective strategy to generate expected revenues with lowest cost.

Second, AirAsia has implemented Computer Booking System (CRS). AirAsia has used Open Skies to centralize customer data which has helped AirAsia to monitor reservation and the plan of airline flight activities in real. Open up Skies scheduling system which provided by Navitaire performed almost flawlessly on each and every occasion and it managed to deal with the most challenging requirements of AirAsia's trip booking functions.

On the other hand, on July 2010, AirAsia has effectively completed the implementation of its new booking system which called New Skies. This arranging system has replaced the prior system, Open Skies. Furthermore, this New Skies provides customers a new experience as well as providing a greater convenience and generate more cost savings for the clients.

New Skies scheduling system has make the procedure of booking more efficiently. This New Skies ensure the airlines to maximize the distribution stations and dynamics product packaging that emphasize on direct Internet sales. For syndication, New Skies offers AirAsia the control that they want over how quickly they deploy sales fares, special campaign, savings and electric vouchers to stay prior to the competitors. This is wise great for AirAsia in this modern period. It also minimizes the necessity to maintain multiple databases associated with newspaper and e-tickets which indirectly raise the functional costs.

Same with Start Skies, this New Skies permit the customers to continue scheduling online and the AirAsia sales office buildings, counters as well as the call center. In addition they can normally self check in via the web, mobile and kiosks at the airport alongside the self applied manage options online such as adding check in baggage weight, pick a couch and pre-book dishes.

However, there are some differences between the Open Skies and New Skies booking system. Using the new reservation system, the clients can look for the new feature which is Low Fare Finder. It can help the customers to see the cheapest fare available matching to their chosen destination and day for travel. Also, the clients now are able to book their car seats for multi-cities in only one business deal only. For an instance, if the customer plans to fly from Kuala Lumpur to Perth to Singapore and go back, the individual customer don't need to make two separate bookings which is merely provided by the new booking system only. In addition, this New Skies scheduling system can support heroes such as Mandarin, Japanese and other dialects whereby the Start Skies system was able to support alphanumeric individuals only. Hence, AirAsia can aim for multilingual customers globally and stay forward in the air travel industry.

Lastly, Enterprise Tool Planning (ERP) is put in place by AirAsia as this permits AirAsia to efficiently maintain process integrity, decrease the financial month-end final handling time, and increase the reporting as well as data retrieval process. Every team such as financial, marketing and sales are unified into a single IT system to permit the employees to make decisions by observing enterprise wide home elevators all airline businesses. And, this system helps AirAsia by concentrating on capturing trades in daily businesses therefore it really helps to save operational costs and this indirectly boost the efficiency and efficiency in its procedure management.

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