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  DIFFERENCES BETWEEN AIR ASIA AND MAS The strategic (key components) of the LCC business model are the following; a)   High aircraft utilisation AirAsia’s  high frequency flights have made it more convenient for guests to travel as the airline implements a quick turnaround of 25 minutes for short haul flights and 60 minutes for long haul flights, which is the fastest in the region. This has resulted in high aircraft utilisation, lower costs and greater airline and staff productivity. b)   No frills AirAsia’s fares are significantly lower than those of other operators. This service targets guests who will do without the frills of meals, frequent flyer miles or airport lounges in exchange for fares up to 80% lower than those currently offered with equivalent convenience. No complimentary drinks or meals are offered. Instead, AirAsia introduced “Hot Meals”, a range of delicious snacks and drinks available on board at very affordable prices and prepared exclusively for AirAsia’s guests. Guests now have the choice of purchasing food and drinks on board as well as pre-book over the internet which will save them up to 20% when purchasing their seats.No free food & beverages. Why give away something that you don't appreciate? Guests are most welcome to purchase food & drinks at an affordable price from the cabin crew. Self-selected or auto-selected seat. Guests may either select their preferable seats by paying RM30 extra for seat selecting or the online booking system will auto select seats for guests. Ticketless airlines. Less hassle for the customer, who doesn't have to worry about collecting tickets before travelling, and cost-effective for the airlines (paper, printing, distributing). No refund. Airlines waste a lot of money when guests do not show up for a flight due to refunds and rescheduling. Whether a guest shows up or not, the cost of flight to the airline is the same. LCC are unforgiving to no show guests and do not offer refunds for missed flights. BIG Loyalty Program. Members of the AirAsia BIG Loyalty Program will be able to collect points when flying with AirAsia to redeem FREE AirAsia Flights. c)   Streamline Operations Making the process as simple as possible is the key of a successful LCC. Single type of aircraft. Pilots, flight attendants, mechanics and operations personnel are specialised in a single type of aircraft, which means, among others, that there is no need for costly re-training of staff, for maintaining a stock with parts for different types of aircraft, for knowledge and skills in order to operate and maintain different types of aircraft with their own characteristics, or for new work requirements. Single class seating. There is only one class seating, i.e first class, and guests are free to sit where they choose. Should you want to have the privilege to choose your seats, you can by purchasing Xpress boarding.  Standard Operating Procedures. SOPs are important to ensure same level of competence among all the staff. This way we can ensure the homogeneity of service throughout the company. d)   Cost Optimization Operations AirAsia strives to maximize profits and offer low fares for high quality service. The airline has optimized costs by operating a faster turnaround time (25 minutes), improving aircraft utilization and crew efficiency, providing a “no frills” service, using one type of aircraft to save training costs, all of which result in savings which are passed back to consumers in the form of low fares. e)   Basic Amenities Secondary airports. Low cost carriers mostly fly to and from airports that are not necessarily the busiest, for example, London - Stanstead rather than London - Heathrow. These are often referred to as secondary airports. Operating from so called secondary airports is cheaper than from the bigger major airports and they are also a lot less congested and turnaround times for aircraft are a lot shorter. For instance, to minimise fees AirAsia fly into Clark Airbase which is 70km away from Manila as appose to flying into Manila Ninoy Aquino airport. Business Lounges. Forget about it. f)   Point to point network Point to point network. LCC shuns the hub-and-spoke system and embraces the simple point-to-point network. Almost all AirAsia flights are short-haul (3 hour flight or less). No arrangements have been made with other airline companies on connecting flights, on possibilities of flight transfers, nor on having the luggage lable and passed through from one flight to another. g)   Lean Distribution System Distribution costs are something that FSC most often ignore. Very often, FSC relies on travel agents and from their posh sales office. Furthermore, FSC always blows the budget by complicating their distribution channels by integrating their systems with multiple Global Distribution Systems. LCC will keep their distribution channel as simple as possible and will cover the whole spectrum of the clientele profile. For example, AirAsia can cater to the most sophisticated European traveler via internet and credit card sales. And at the same time, AirAsia has an established system to sell their tickets to the most remote and technology deprived locations, such as in Myanmar. Code of their Conduct: Ensuring we do our business fairly, impartially, ethically, and with the utmost regard to safety.  Malaysia Airlines Strategy The Need Malaysia Airlines evaluated the feasibility of a premium service in conjunction with another airline. Dr. Emre Serpen and the InterVISTAS team developed network design and revenue forecasting as part of a broader project team. Strategic Market Forecasting  –  executed market forecast taking into account long term/top down forecast driven by GDP growth and travel propensity of the client’s pro  jected markets, as well as bottom up analysis including MIDT and PaxIS flown data. Further to market forecast, comprehensive analysis of fast growth and high yield markets were analyzed, taking into account circuitry advantages of Kuala Lumpur International Airport. Route Design  –  developed a route structure and analyzed network scenarios using sophisticated network optimization tools, including LiftPlan® (solution based on Lufthansa System’s NetLine/Plan). Various network design scenarios were analyzed, focusing on maximizing long term contribution. Detailed schedules and fleet plan were produced. Commercial Workshops  –  executed commercial workshops to executive management. Joint Venture/Codeshare Benefits  –  evaluated differential passenger numbers and revenue gain under various codeshare and joint venture scenarios. NEWLY ISSUE ABOUT AIR ASIA AND MAS 1.Friday, April 04, 2014, 10:3 AM (BUSINESS TIMES) MAS-AirAsia share swap not practical. The MAS-AirAsia strategic tie-up in the form of share-swap was initiated in 2011, but the deal was called off just months later. 2. Monday, March 31, 06:15 PM MYT +0800 Malaysia Airlines MH370 Flight Incident - Press Briefing by Hishammuddin Hussein, Minister of Defence and Acting Minister of Transport. 3.AirAsia-MAS alliance could lead to more strategic changes across Asia.
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