Case Study: Airasia – Now Everyone Can Fly

"In 2014, Air Canada achieved its best full year financial performance in the Corporation 's 77-year history," said Calin Rovinescu, President and Chief Executive Officer. (Air Canada Website CIO 2015) Adjusted net income was $531 million, representing an increase of 56.2 per cent year-over-year.” The purpose of this paper is to examine how Air Canada in 2011 successfully aligned their business strategy and Information Technology (IT) by managing information resources on several levels to accomplish a competitive advantage over other airline carriers and gain the attention of their customers through innovation. Finally, this paper will address suggestions to achieve better Business-IT alignment to meet Air Canada’s goals for the future and continued success.

Air Canada has been in the business of air transport for an extended period of time. Due to the experience and the exposure of the carrier in the field, it has made a commendable progress through many strategies as well as customer proximity. One of the approaches taken by the airline involves the identification as well as an implementation of cost reduction initiatives in a bid to increase revenue from its operations (Air Canada, 2016). It is also attempting to connect with the existing carriers across the world to connect the current customers to the international world. This approach has been adopted to increase its competitive advantage over other existing airlines.

Aircraft Solutions designs and fabricates component products and services for companies in the electronics, commercial, defense, and aerospace industry. The purpose of Aircraft Solutions is to provide customer success through machined products and related services. most of its equipment is automated to increase production while reducing costs. The company 's workforce has a large skill base: design engineers, programmers, machinists, and assembly personnel to work its highly-automated production systems with great skills.

This is the beginning of a cumulative case study about a fictitious firm we call Next-Day Air Service (NDAS).

Many of us shop for goods in grocery stores or department stores without considering the remarkable effort it takes to have all of those goods or services ready for consumption. There are many processes that must be observed for any business to run efficiently; such as: accounting, finance, marketing, production, human resources, and management. All of these processes require many trained individuals to make the grand machine that is business move in a direction that benefits clients and companies alike. In this paper I will examine the marketing business process of J C Penney’s as observed from experience while working there.

Firstly, Airborne Express chose its customer very selectively and pursued a emphasis on low price strategy. The main target customer for airborne was the high volume, frequent, service; consistent with flexible environment and price is the main competitive weapon. Airborne was essentially the custom solution logistics providing for larger companies and therefore, they did not target the masses. By focusing on large accounts, Airborne could use its ground capacity more effectively. Airborne delivery drivers dropped off and picked up far more packages per stop than do the drivers of companies that focus on serving smaller customer and individual customers. This helped boost productivity and lowers costs and make a profit at a price. Secondly, the strategy of concentrating on corporate account was strong point, since it leads to better capacity of operation and lowers the cost. The company’s incentive systems were designed to rewards employees for meeting the dual goals of high productivity and reliability. Airborne’s national and international tracking systems were the best in the industry. These assisted Airborne to tell customers at a moment’s notice where in the system there packages are. This helped improve reliability and build brand loyalty. The same information systems helped Airborne to efficiently manage its billing system, thereby lowering costs.

1. Which features of organizations do managers need to know about to build and use information systems successfully? What is the impact of information systems on organizations?

The Air Transportation System has been reformed by the introduction of the Next Generation Air Transportation System (NextGen). This system is supposed to be implemented in the country by 2025. The system revises air routes and updates it to satellite system management; the promotion of usage of GPS technology for navigation, route length shortening, time reduction, and fuel saving, etc.

Focusing on the low-cost, long-haul segment - AirAsia X was established in 2007 to provide high-frequency and point-to-point networks to the long-haul business. AirAsia X’s cost

business continuity to an extent depends on IT systems, Processes at the London Luton Airport and

The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.

British Airways (BA) is a company that encountered several difficulties back in the 1970’s and 1980’s. The poor performances of the organization, was leading the company to failure. BA was offering a service that even though it accomplished the mission of the company, was not providing customer satisfaction. The organization was not taking into consideration the needs of the costumer and was not providing an acceptable customer service experience. “Productivity at BA in the 1970s was strikingly bad, especially in contrast to other leading foreign airlines” (Jick, Peiperl, 2010, p.28). Due to numerous changes, the company increased their revenues and became a respectful and well know organization.

AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001.

AirAsia believes in the hassle free, no frills, low fare business concept and feels that keeping costs low needs high efficiency in every part of the business. Efficiency creates savings which are then passed to the customers so that they will able to purchase on the affordable price but still with a high quality of air travel. AirAsia targets people who want to travel around Asia for leisure or business purposes. The fares of Air Asia are relatively known as a lower fares than the other airlines. Selected strategy used by Air Asia targeting to passengers who are willing to travel without frills of meals, airport lounges or frequent flyer miles in exchange for fares which is

The project requires the student to carry out a research, analysis and discussion on how a Singapore listed company can access to the country’s financial system and how it benefits the company in achieving its business objective. The research will cover the various types of financial services offered by financial intermediaries whom the corporation can access to.