Malaysian Airlines Versus

AirAsia: Customer Satisfaction, Service

Quality and Service Branding
 Introduction
1) world’s airline industry major drivers for growth/capturing market-
 Rapid globalization,
 Increased fuel prices,
 Occurrence of natural disasters,
 Threat of accidents,
 Increased security insurance and deregulation policies
 
2) To gain competitive advantage

3) Examples: Malaysian Airlines and Air Asia

 South East Asia

 SEA countries got independence after WWII

 The first waves of deregulation and liberalization of the aviation

industry in SEA started towards late 1980s.

 Asian aims for developing a unified aviation market through

the relaxation of Restrictions and promotion of flexibility .
Malaysia & Airline Industry in Malaysia

 There are currently 61 foreign airlines serving Malaysia (includes Lion Air,

Indonesia AirAsia, Thai AirAsia, and Philippines AirAsia).


AirAsia is also the leader in the international market by a wide margin.

 We have identified seven trends that we believe will reshape the industry over the
next five years

Airline Malaysia Airlines

2013 pax 17.2m

2014 pax 17.0m

2015 pax 15.0m

2016 pax 13.9m

Malaysia Airline Systems (MAS)

 Full service

 Vision: “an airline of excellence” in terms of customers’ safety, comfort, service, and punctuality

 Mas focused on upgrading of the in-house maintenance and modernization of its fleet.

 Effective customer engagement strategies

 Air Asia

 Low-cost carrier- now everyone can fly

 Direct bookings (information of booking sent through SMS)
 Improvement in landings, runway braking and aircraft descent methods
 Positive publicity helped the airline grow
 LCC embraced innovative service differentiation aspects in order to maintain its
competitive advantage
Customer Satisfaction, Service Quality and Service Branding

 Unique service offerings that match the unmet needs of customers lead to
customer satisfaction and often customer delight.

 Air Asia focused on aggressive advertising strategies in order to penetrate deeper

into the customers minds and position itself as the best low cost carrier

 While MAS positioned its service offerings on quality, excellence and service
scape related attributes
 Questions:

1. What do you think are the critical services concepts that contributed to the
Success of Air Asia?
2. What do you think are the core services concepts that contributed to the success
Of MAS?
3. What do you think are the key differences between MAS and Air Asia in regards
To their service branding strategies and service quality dimensions?
4. Identify the customer satisfaction perceptions towards MAS and Air Asia ?
Presented by: group 6
Shalini
Aritra
Samiksha
Santhu
Ayush
Harsh