History Of Air Asia

History Of Air AsiaAir Asia was established in 1993 and commenced its routines on 18th November 1996. This airway was origin exclusivelyy founded by a g everywherenment owned conglomerate DRB-Hicom. However, on 2nd December 2001, the heaviliy obligated(predicate) airline was purchased by former Time Warner executive Tony Fernandess company seam Air Sdn Bhd for the token sum of one ringgit. Fernandes proceeded to engineer a singular turnaround, turning a profit in 2002 and launching refreshed routes from its hub in KLIA at breakneck speed which undercutting former monopoly operator Malaysia Airlines with promotional f bes as low as one ringgit.In 2003, AirAsia has opened a gage hub at Senai International Airport in Johor Bahru which is near capital of Singapore. And, it launched its runner global pip to Bangkok. AirAsia has on that pointfore started a Thai subsidiary, added Singapore to the destination list, and it commenced flights to Indonesia. Also, flight to Macau was started in June 2004 and flight to Mainland China and the Philippines started in April 2005. In addition, the flight to Vietnam and Cambodia is in the year 2005 while to Brunei and Myanmar is in 2006.With a strong hitherto elemental slogan Now Everyone Can Fly, AirAsia has effectively placed its marker in nodes mind when puzzles to selection of flight. In Malaysia, AirAsia is the second powerful national airline. Also, it was the first in(predicate) low personify and ticket-less airline in the Southeast Asiatic region. It is main based in the Low Cost Carrier last(a) (LCCT) at Kuala Lumpur International Airport (KLIA). And, AirAsia has a registered office in Petaling Jaya, Selangor and its take aim office is on the grounds of KLIA in Sepang, Selangor. In addition, AirAsia is one of the successful businesses that have buy uped speak to continueership thoroughly through posture and energy of the operation sleep withment. AirAsia has broken the travel norms around the w orld quickly and has become the worlds top airline. Beside this, AirAsia as wellhead has a route intercommunicate that spans much than 20 countries on that pointfore it continues to pave the way for lower personify melodic line through innovative solutions, more efficient motiones and a passionate tone-beginning to the business.The vision of AirAsia is to be the bombasticst cost airline in Asia and for the purpose of serving the 3 billion people who are currently underserved with poor connectivity as easy as high fares. There are 4 missions much(prenominal) as to be the best company to work for where the employees are treat as part of the big family in AirAsia, to create a ASEAN brand which is being recognized glob totally toldy, to attain the low cost to pull true everyone in the world tidy sum fly with AirAsia, and to adjudge the highest quality reaping by embracing technology in stray to invalidate cost and enhance the service levels of AirAsia.Apart fro m that, to shakeher with the associate companies such as AirAsia X, Thai AirAsia and Indonesia AirAsia, AirAsia is set to take the low cost flying. AirAsia X was established in 2007 in order to provide high frequency as well as point to point ne twainrks to the extensive haul business. Its cost efficiencies are derived from maintaining a simple aircraft fleet and a route network based on low cost airports. Hence, guests will continue to revere the low fares through cost savings that AirAsia pass on to the guests. Moreover, AirAsia X franchises the brand name of AirAsia, Asias largest low cost carrier which uses a earthy ticketing meshingsite, uniform, uniforms, and vigilance style with AirAsia. AirAsia X is as well affiliated with Virgin convocation and Air Canada.Reasons for Adopting Information applied science (IT)There are some factors that contributed to the bridal of IT for AirAsia. As we know, airline companies involved in doing people tend from one place to a nonh er. And, there are billions of people in this world. Without IT, airline companies will not process smoothly and it might lead to adept confusing among the customers and the company. Also, people in this society are having the same problems such as traffic jam, working pressure and time pressure. They are engage with their works and they focus more on efficiency and effectiveness. They do not want to spend extra time on ir pertinent things such as queue up to buy something or waiting for long hours. Therefore, most airlines including AirAsia do offer online military reserve for the flight as well as hotel rooms in order to proceed their customers time as well as enhance customer satisfaction.Apart from that, the technology is acquire in advanced in this modern era. There are umteen companies who have adopted Information Technology (IT) in doing their business. And, this IT has helped in enhancing a better precaution of the operation of the companies. Also, people in this soc iety are concern more on company who has adopted IT and how this IT will help in making their life better as well as decision making in some tasks. AirAsia therefore choose to adopt IT in its business as to follow up the current IT wind as well as fulfilling the demand of the people in this society. They also implemented different schemas to enhance their overall operation which will lead to efficiency and effectiveness of AirAsia.IT StrategyAirAsia has some strategies initiatives which involve IT solutions in order to build its company share and reputation.In order to make its operation effective and efficient, AirAsia has implemented few IT systems in its securities industrying and gross sales activities. As you know, E-Commerce in nowadays has become a business tool and it is also a vital strategic practisement that allows a company to sell, advertise, purchase, supplies enumeration tracking as well as sharing of information. Therefore, E-Commerce does become a major succe ss to Airline Company that lead to effectively and efficiency in their business. AirAsia is one of the airline companies that implements E-Commerce and maximizes their information technology usage to manage their company effectively and efficiently including make low cost possibly in their business.In order to maximize their IT, AirAsia has implemented current IT systems, for examples, hold Management System (YMS), Computer Reservation System (CRS), and Enterprise vision Planning (ERP). These systems have indirectly generated extra revenues and build customer consignment for AirAsia.Yield Management System (YMS) which also known as revenue enhancement Management System (RMS) is the process of understanding, anticipating as well as influencing consumer look to maximize revenues or profits from a fixed perishable resource. Moreover, there is an important component in this system which is the use of over interlocking where sometimes there must be a chance that a customer may not appear during that day. As a good example, it might be possible for a customer to book a ticket for a flight but did not turn up for the departure. And, this may give the airline to end up flying an empty seat which will then cause lost in revenue for the airline company. But, in order to solve this problem, most airlines routinely overbook their flight. And, if there is an unusually large proportion of the customers show up, the company will be forced to witness some customers to another flight.Second, AirAsia using Customer Reservation System (CRS) which is an corporate web based reservation and inventory system. This holds Internet, airport departure subordination, war cry center, as well as others. This system is a direct sales engine that rid off the travel agents effectively and the need to overcompensate for the sales commissions to them. And, CRS is totally customer friendly as the customer stern buy or reserve a ticket directly via online without come to the ticket counter. This has brought more customers to use the website often thus reduce the extra costs of customer such as transportation costs.CRS also include easy Skies and late Skies. First, the untied Skies system is a strengthened-in web enabled reservation as well as inventory system. The solution is built expressly in order to satisfy the distinctive needs of airlines that all implements a low cost business or in the process of making their business to more efficient streamline operations. Also, this system prat be used either individually or combined yet it is depending on the persons needs. Open Skies helps some low cost airlines in planetary to become a high performance business that continue to rise widely.On the other hand, modern Skies is a next generation of reservation and distribution system. And, it is designed for the worlds fastest growing airlines which include newly launched airlines as well as rapidly growing hybrid airlines such as AirAsia. This system is a comprehensive airline passenger sales and management solution that provides capabilities for integrated online booking, call center reservations, inter-airline and alliance code-share itineraries, departure control as well as travel agency global distribution connectivity. Also, newfangled Skies is based on the Navitaires Open Skies reservation and distribution system that have been used by over 40 of the worlds successful airlines. It represents a giant leap forward in quick deployment, speed to market with the new feature articles and enhancements. New Skies has completely integrated departure control and real time reporting to keep your operation runs smoothly. Also, it is easy to use, change as well as customize.Third, AirAsia implements Enterprise Resource Planning (ERP) system. It is a case of business software that integrates organizational processes and functions into a unified system. It helps business management executives with a comprehensive overview of their complet e business execution which may decide their business decisions indirectly. There are some examples of functions Human Resource, Supply kitchen range Management, Finance and Logistics. These all are stand alone software and has their applications and entropybase. But, with ERP System, all of this individual software can work under one umbrella. And, all the departments can share information easily and it helps to save time and cost. The work flow that has taken place between different departments becomes more automated. The customers also get better services as the person who is using the customer lining applications can access to every bit of information that regarding each relevant process. For an instance, a person who is work under sales team can access to the customers product which is still under manufacturing. In addition, ERP system helps to reduce the need to carry large inventories which will increase the operational and dig out costs. And, this system is implemented i n AirAisia thoroughly.Experience Resulting From The IT ImplementsUtilization of Information Technology (IT) have directly contributed to the promotional activities, enhance brand equity, and keep the cost as low as possible by enable the customer to direct purchase the ticket online or through sales offices. This has helped the customers to save airline agent fees.The systems that have been implemented by the AirAsia have a significant change to their company.First, AirAsia has used the Yield Management System (YMS) for victorious the operating costs and in helping themselves to optimize the price as well as allocate the capacity for maximizing expected profits. For an instance, place are revenues for AirAsia and other airline companies. Every seat is considered as a profit for them. Therefore, AirAsia has introduced a plan whereby position are available at different prices in various points of time. Hence, reservation that has done in later on time will be charged more compared to one who has dumb earlier for the same seat. As a result of this system, this has enabled AirAsia to understand the manner of their respective customers and implement effective strategy to generate expected revenues with lowest cost.Second, AirAsia has implemented Computer Reservation System (CRS). AirAsia has used Open Skies to focus customer data and this has helped AirAsia to track booking and the schedule of flight activities in real. Open Skies booking system which provided by Navitaire performed almost flawlessly on every single occasion and it managed to handle the most demanding requirements of AirAsias flight booking operations.On the other hand, on July 2010, AirAsia has successfully completed the implementation of its new reservation system which called New Skies. This booking system has replaced the previous system, Open Skies. Furthermore, this New Skies gives the customers a new experience as well as providing a greater convenience and generate more savings for t he customers.New Skies booking system has make the procedure of booking more efficiently. This New Skies ensure the airlines to maximize the distribution channels and dynamics packaging that try on direct Internet sales. For distribution, New Skies gives AirAsia the control that they need over how quickly they deploy sales fares, special promotion, discounts and electric vouchers to stay in the lead of the competitors. This is wise useful for AirAsia in this modern era. It also eliminates the need to maintain multiple databases associated with paper and e-tickets which indirectly increase the operational costs.Same with Open Skies, this New Skies enable the customers to continue booking online and the AirAsia sales offices, counters as well as the call center. They also can normally self give way in via the web, mobile and kiosks at the airport together with the self manage options online such as adding check in baggage weight, pick a seat and pre-book meals.However, there are so me differences between the Open Skies and New Skies booking system. With the new reservation system, the customers can look for the new feature which is Low Fare Finder. It helps the customers to view the lowest fare available check to their selected destination and date for travel. Also, the customers now are able to book their seats for multi-cities in just one transaction only. For an instance, if the customer plans to fly from Kuala Lumpur to Perth to Singapore and return, the respective customer do not have to make two separate bookings which is only provided by the new reservation system only. In addition, this New Skies booking system is able to support characters such as Mandarin, Japanese and other languages whereby the Open Skies system was able to support alphamerical characters only. Hence, AirAsia can target multilingual customers globally and stay ahead in the airline industry.Lastly, Enterprise Resource Planning (ERP) is implemented by AirAsia as this enables AirAsi a to successfully maintain process integrity, reduce the financial month-end closing impact time, and speed up the reporting as well as data retrieval process. Every department such as financial, marketing and sales are unified into a single IT system to allow the employees to make decisions by viewing enterprise wide information on all airline operations. And, this system helps AirAsia by focusing on capturing transactions in daily operations therefore it helps to save operational costs and this indirectly increase the efficiency and effectiveness in its operation management.Comments on the result of This Adoption of IT