Case Study Abi Sanni , Aly Remtulla, Kelsey Gamble, Kendra Jocksch , Nancy Moke

1. Case Study AbiSanni, Aly Remtulla, Kelsey Gamble, Kendra Jocksch, Nancy Moke

2. Presentation Overview Company Overview Problem Company Analysis Recommendation Conclusion

3. Company Overview Company Vision “To be an airline that flies long-hauls with low fares with a corporate culture that is flexible and functional.”

4. Company Overview

5. Company Overview Key Success Factors Single Aircraft and Single Class Outsourcing Wireless Delivery System Human Resource Policies Deregulation Tourism

6. Problem Should AirAsia expand its long haul business and to what extent should AirAsia and AirAsiaX be integrated operationally?

7. Problem

8. Company Analysis • Structure of Airline Operating Costs

9. Company Analysis

10. Company Analysis

11. Company Analysis Capacity Utilization Product Design Economies of Scale and Learning Input Goods Production Technologies Residual Efficiency

12. Company Analysis Capacity Utilization Quick turnaround time Single class seating system Ticket fares on time value

13. Company Analysis Product Design Food and beverage sales Ticketless airline No refund policy

14. Company Analysis Economies of Scale and Learning Single type of aircraft Employee specialization

15. Company Analysis Input Costs Outsourcing Secondary airports Non-union labor

16. Company Analysis Production Techniques Distribution methods Point to point network

17. Company Analysis Residual Efficiency Team-oriented Employee bonuses Open management style

18. Recommendation • A Blending of Brands • Go Long-Haul Strategically • Remain the “Cost Leader”

19. Questions?

20. Additionals