Conclusion

It can be seen that Air Asia appears to do everything right. Prices are a lot cheaper
than their rivals, which is the greatest thing. The trademark “everyone can fly” is well-suited
that way. The charges on Air Asia permit people to fly that normally couldn’t afford it. Over
longer distances, people can fly business class on Air Asia for a near price similar to a regular
ticket on numerous airlines. How is Air Asia able to be that successful? Various factors have
been highlighted and from there, the company gained a competitive advantage. The most
obvious factor is the low fares where Air Asia has maintained its low-cost fares until now.
This acts as a competitive advantage as competitors are charging much higher, changing
passenger behaviour on choosing which airline to fly with. Studies stated that Air Asia
maintains its low-cost fares due to the demand and supply (AirAsia, 2021). The interesting
part is that Air Asia can give a less high price but then remain more profitable. How does the
company accomplish it?

Looking at the operational efficiency, Air Asia’s flight operations focus on point-to-
point connection and no hubs are utilized. Unlike other airlines, Air Asia doesn’t operate
from specific airports and works on point-to-point flights. Indirectly, it saves non-commercial
flights (Wu et al., 2020). Another benefit that Air Asia gets from operating flights in such
circumstances is the ground resources, which saves costs and improves labour efficiency.
This is because fewer ground crew and gate service officials need to be hired as flights come
in all the time, but there are less flights at one time. Not to forget Air Asia’s implementation
of a management science strategy in dealing with operational processes on the ground. Any
inventory stock processes, work distribution, employee incentives and benefits, recruitment
and others are aligned with the management science approach, where collecting and
analyzing data has become common today, with the data readily available through
sophisticated data systems (Information System, 2021). Every conventional act has been
integrated into a system that acts as one and can be accessed by every employee.

Starting from the low-cost fares and data system implementation on the ground
resource, Air Asia’s maintenance operation is also coping with the latest operation
technology, where every technical activity is being accessed accordingly with the help of
technology and high-skilled aircraft maintenance people (Ahmad Mohammad, 2021). As a
whole, Air Asia has developed a strong team with good communication skills and is
competitive in that they always work hard to make Air Asia way ahead of other airlines.

1
 Hence, many investors and even government are pleased to collaborate with Air Asia due to
its outstanding performance in management and operation.

References

Ahmad Mohammad, Dr. K. (2021). Air Asia: From Regional to Global. International Journal of
Business and Management Research, 9(1), 1–5. https://doi.org/10.37391/IJBMR.090101

(PDF) Air Asia Business Analytics Information System. (2021). Retrieved July 16, 2022, from
https://www.researchgate.net/publication/346791479_Air_Asia_Business_Analytics_Informa
tion_System

(PDF) Business Process Management Case Study in AirAsia. (2021). Retrieved July 16, 2022,
from
https://www.researchgate.net/publication/355699630_Business_Process_Management_Case_
Study_in_AirAsia

Wu, C.-Y., Heiets, I., & Shvindina, H. (2020). Business Model Management of Low-Cost
Carriers: in a Search for Impact-Factors of Performance (Case of AirAsia Group Airlines).
Marketing and Management of Innovations, 2, 354–367.
https://doi.org/10.21272/MMI.2020.2-26