Airasia-vs-Malaysian Airlines: Background Analysis by - Iloka Benneth Chiemelie, Kueh Yi Kia, Njoku Stanley

INTRODUCTION 

Air-Asia

Air Asia has expanded rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. With a fleet of 72 aircrafts, Air Asia flies to over 61 domestic and international destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia, Thailand and Indonesia. To date, Air Asia has flown over 55 million guests across the region and continues to spread its wings to create more extensive route network through its associate companies, Air Asia operates a no-frills, hassle-free, low fare business concept and feels that keeping costs low requires high efficiency in every part of the business. (www.Airasia.com).

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Malaysian Airlines

Malaysian Airline was founded in 1947 by Malayan Airways. Then, it was transformed to Malaysian Airways due to Malaysia gaining its independence. After that, it was changed to Malaysia-Singapore Airlines and thereafter ceased its operation. It was then divided into Malaysia Airlines and Singapore Airlines.

The airline traced its roots to the formation of Malayan Airways Limited in 1946. It started its first flight on 1 May1947. MAL grew from a single aircraft operator into a company with 2,400 employees and a fleet operator using the then latest Comet IV jet aircraft, 6 F27s, 8 DCs and 2 Pioneers. (www.malaysianairlines.com )

MISSION AND OBJECTIVES

Air-Asia

Air Asia’s mission statement is to be the “Asia's leading low fare no frills airline and first to introduce "ticket less" traveling, AirAsia will be unveiling more incentives in the future to encourage more air travel among Malaysians.” (AirAsia, N.D).

“Now Everyone Can Fly” clearly describes Air Asia’s value. Cost advantages created by AirAsia through operational effectiveness and efficiency go directly to the customers. The customers now enjoy much more surplus than before as the fare falls dramatically and AirAsia captures some of the ‘dead weight losses’ by capturing segments of customers that previously cannot afford the airlines’ fare

Malaysian Airlines

It is the mission of Malaysia Airlines System Berhad, as a corporation, to provide a transport service that ranks among the best in terms of safety, comfort and punctuality, distinguished and loved for its personal touch and warmth.

"It is our objective at Malaysia Airlines to support the Malaysian government's vision to create an aerospace hub in Malaysia," said Tan Sri Dato Tajudin Ramli, chairman of Malaysian Airlines and the Malaysian Aerospace Council.

ORGANIZATION

PRODUCTS AND SERVICES

Air-Asia

Products

• Air Asia Credit Card: this is one of the products offered by Air Asia. Customers can open an Air Asia credit card and save money for their transports. This cards offers promotion for each services they are used for.
• Snack Attach and Red Mega Store: customer can shop and dine onboard with the new and improved Air Asia snack attack.

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Services

• Go Holiday: Air Asia offers holiday packages for their customers with the go holiday package. This includes discounts and insurance policies. The Go Holiday package includes car rental, hotel services and medicals.
• Charter Flight: Air Asia offers charter airline services catered to a group of business travelers for the purpose of meeting, incentives, convention and exhibition or even for leisure with your fleet of Boeing 737-300 and Airbus 320 with superlative maintenance and outstanding crews.
• Travel Agent: Air Asia provides travel agents for their customers. This makes travel arrangement and planning easy.    (www.airasia.com )

Malaysian Airlines

Products

“MHS is Malaysian Hospitality”. With the objective of promoting Malaysian culture, Malaysian airways offer unique products that have their roots to the Malaysian people and way of life. This includes made in Malaysia textiles, carvings and other products that portrays Malaysian unique identity.

Services

• Transfer and Shuttle Service: this a point to point transport service from the airport to your required destination for traveler. It includes both a private and shared transportation.
• Travel Insurance: the Malaysian airlines travel insurance provides protection to their customers during travel. This includes 100% luggage loss coverage.
• Firefly: this an updating service system, that updates the customers of current and future promotion as well as providing them with affordable flight and holiday packages. (www.malaysianairlines.com )

SLOGAN

Air Asia

• "Now everyone can fly"

Malaysian Airlines

• “Going beyond expectations”
• LOGO OF BOTH COMPANIES.

 

 

CURRENT BUSINESS DEVELOPMENT

Air Asia

• Executive: Air Asia's founder and chief executive is Tony Fernandez.
• Location:  the headquarter and main terminal of Air Asia is located at  LCCT in Sepang, which is about 20km away from KLIA Main Terminal.
• Route: Air Asia has 16 routes currently, covering 6 continents of the world.
• Employees: Air Asia currently employs well educated and good to service cabin crews, as well as staffs who understands the needs of the customers.

Malaysian Airline

• Executive: Tengku Dato’ Azmil Zahruddin is currently the C.E.O of Malaysian airlines.
• Location: the main terminal of Malaysian airlines is currently located ate the Kuala Lumpur international airport (KLIA). Just few meters from Air Asia’s LLCT.
• Coverage and Route: Malaysia Airlines cover 87 destinations, spanning cross six continents, while operating from its primary hub at Kuala Lumpur. 

ACHIEVEMENTS

Air Asia

The AirAsia Group which comprises AirAsia Berhad, Thai AirAsia and Indonesia AirAsia, has carried over 30 million guests to date. (www.airasia.com )

Malaysian Airlines

The airline has been cleared by IOSA (IATA Operational Safety Audit) for the safety practices observed during operations. It has also been awarded a 5- star status by SkyTrax, an honor which rests with only three other airlines in the world. Malaysia Airlines also appears in the list of Skytrax's Quality Approved Airlines. It was ranked second in Aviation Week’s Top Performing Companies, which measures the financial viability of an airline, among 88 contenders. (www.malaysianairlines.com )

CONCLUSION

Thou, both airlines have the main objectives of providing quality services and products to their customers, it has been clearly seen from the above project that they are various differences between both companies, in the terms of pricing strategy, quality services and in flight services.

Air Asia mainly targets low earning customers with their “Now Everyone can Fly” marketing strategy, while Malaysian airlines, basically but quality as their main objective with their “Beyond Expectation” marketing strategy.

Their various hard work has earned them various recognition. As the global market goes more competitive, the main objective of the company is to maintain their current market share. Malaysian airlines have understood the need to make changes and this changes they have done in the form price cutting strategy by reducing the prices of their packages.

This assignment has not just only given us the chance to study both companies critically, it has also given us the chance to read more into the Malaysian aviation system and how they are advancing in terms of customer relationships and services towards providing a well enhanced transportation system with full customer protection and satisfaction.

REFERENCE

Air Asia Official website, online, retrieved 8 September 2009, from http://www.airasia.com

Stephens, DR, Diggins, C, Turkanis, J & Cogswell, J 2006,aviation and technology , Mc-grail, New York

Malaysian airlines Official website, online, retrieved 8 September 2009, fromhttp://www.malaysianairlines.com