This is complete case study of Air Asia in less than 34 slides, to help you make understand in brief.

1. Prepared by:
GROUP 10:
VARSHA BHARDWAJ
VISHWAJEET KISHAN GAIKWAD
W JASON SINGHA
YATI K BANSAL
RONIT DAS

2. As Asia’s leading airline was established with the
dream of making flying possible for everyone.
Since 2001, AirAsia has swiftly broken travel norms
around the globe and has risen to become the world’s
best.
With a route network that spans through more than 20
countries, AirAsia continues to pave the way for low-
cost aviation through their innovative solutions,
efficient processes and a passionate approach to
business.
Together with their associate companies, AirAsia X,
Thai AirAsia and Indonesia AirAsia, AirAsia is set to
take low-cost flying to an all new high with their
believe, ‘’Now Everyone Can Fly’’.

3. Dato' Sri Anthony Francis Fernandes – founder
CEO of AirAsia

4. The largest LCC in Asia
The fourth largest airline
in Asia
265 aircrafts, in 8 airlines
100 million passengers
flown annually >500 million total
passengers flown
152 destinations
across 22 Countries
Over 388 routes, including
114 unique routes
24 hubs
6
airlines
2
airlines

5. Ancillary revenue growth from data &
digital initiatives
2008
2018
9x
RM2.06bn
RM0.23bn
9% of
revenue
✔ Baggage
✔ Inflight F&B
21% of
revenue
✔ Baggage (dynamic
pricing) ✔ Inflight F&B
1Q1
9
23% of
revenue
(up 29%
YoY)
✔ Pick-a-
seat
✔ Pick-a-seat (+ hot
seats) ✔ Wifi
✔ Insurance
✔ Ourshop
✔ Fly-Thru
✔ Cargo
78
%
Airline
22%
Non-
airline

6. Growing Market Share
AirAsia’s Domestic Market Share & Rational Competition
(1Q2019 vs 1Q2018)4ppts
61%
4 ppts
1 ppt
flat
FLA
T
1
ppt
32% flat
2
ppts
1
ppt
2% 1ppt
1
8%
FLAT
1 ppt
1ppt
6
%
3 ppts
6 ppts
Source :
PaxIS

7. We have a lot of Data to drive
ecosystem expansion BIG Data and Real-time
Insights
Contact
Details
FOMA
X
Engine & Component
Trans
actionsOnline
Activity
Demographic
Maintenance
Feedback
Loyalty
Mobile
Activity
Aircraft
Transactions Guests Social
Data SpeedFeedback Lifestyle Data Cabin
Baggage Weight Passeng
ers
Wei
ght
Queu
e
Time
Passengers
Movement
Apron
Temperatur
eTerminal
Location
Available data
source Potential
new data source
Coun
ter
Transactio
ns
Aerobrid
ge
Moveme
nt

8. Data taking us to new
heights
Prioritie
s
to Focus
On
Verticals
to Work
On
Fuel
Cost
Cost Reduction
Oper
ations
Effic
iency
Ancilla
ry
Revenue
Gain
Pricing /
Bundling
Promo
s /
Reward
s
Goals
to
Achieve
Increas
e Fuel
Cost
Efficien
cy
Increase
Cost
Efficiency
&
Productivi
ty
Increa
se
Uptak
e
Drive
Custome
r
Retentio
n
Drive
More
Traffic
Skill
Sets
Requir
ed
Data
Science

9. Staying true to being
low-cost
Our top priority, ALWAYS.
Lowe
r
airpor
t
charg
es
Predictive
maintenance
to
increase
efficiency
Adoption of
‘Agile’
organisati
on
Driving fuel
usage reduction
through
data analytics
Media cost
on a downtrend
with
personalisation
New A321neo
aircraft that are
fuel efficient &
have lower cost
per
seat

10. AirAsia.com - All-in One Travel and
Lifestyle Marketplace
New enhanced homepage
UX/UI on web & mobile

11. BigPay Overview
Business Summary
● Launched in 2018, BigPay aim to democratize financial
services in
Asia by building a digital bank that offers consumers e-wallet service, remittance
and lending
● Value proposition includes easy user experience,
usability via Mastercard’s extensive network, issuance of Big Points upon top up or
use, zero foreign exchange rate charged during international travels, and zero
booking fees when booking on AirAsia.com
Key Features
● Native iOS and Android build
● Latest tech stack & proprietary software
● Seamless, mobile-only user experience
● Bank grade and biometric security
● Peer-to-peer payments & split bills
● Fully automated spending analytics
● In-app card / account management
● Issue Mastercard / Visa card
Proprietary Licences
Make financial services better
value, more
transparent and fairer for
everyone
AirAsia Big Points
earn with daily spend
Save Money
on AirAsia flights
Best Exchange
Rate when
spending abroad
Instant Money
Transfer
to your friends
for free
Christopher Davison
(CEO) Former Director of
Clearwater Partners
Former Investment Manager
at Talis
Capital Limited
Expense
Analytics
in real
time
e-
Money Remittance
Lending

12. AirAsia.com Overview
Business Summary
● Incorporated in 2019, AirAsia.com is a regional
web and mobile app
platform for travel and lifestyle bookings in
Asia
● Offers consumers travel and lifestyle products
that are available for
purchase using various payment methods,
including loyalty points
● Expanding beyond AirAsia’s airline network,
AirAsia.com features global flights operated by other peer airlines and both
proprietary and non-proprietary travel and lifestyle inventories for consumers to
choose from
● Built travel and lifestyle ecosystem through strategic
partnerships with local and regional partners working as earn and burn channels of
loyalty points for consumers
CONTENT
Creative
visuals &
stories,
sharing of
experience
COMMER
CE Best
deals for
travel &
lifesty
le
COMMUNITY
Global community to
drive
engagement
Spencer Lee
(CEO)
Former Head of
Commercial at
AirAsia
Malaysia
Products & Services
Tr
avel
● Flight
● Hotel /
Vacation
Rental
● Flight + Hotel
● Transport
● Tours +
Activities ● Insurance
● Itinerary
Builder
Lifesty
le
● Shop
● Duty Free
● F&B
● Health,
Fitness ●
Events
● Ticketing
● Services
Conte
nt
● Media
● Content
(Print +
Digital) ●
Inflight
Entertainm
ent
●
Infrastructure
(Inflight
WiFi)
● Podcast
Beauty
● Content driven
beauty
marketplace ●
Cosmetics
● Wellness
● Skincare
● Fragrance
● Haircare
B2B
● Marketplace for
comprehensive
and proprietary
content and
inventory for
other
businesses to
plug-in and use

13. 2Q19 Operating Statistics
by AOCs
Malaysia Indonesia Philippines Thailand
India Japan
Pax +11% +58% +22% +5%
+25% +79%
Capac
ity
+13
%
+56
%
+18
%
+8
%
+21
%
+81
%
We continue to
grow across the
board
ASK +7% +58% +31% +12%
+29% +103%
Loa
d
fact
or
84% (-
2ppt)
82% (+1ppt) 91% (+4ppt)
83% (-2ppt)
90% (+3ppt) 78%
(-1ppt)
Impressive
performance by
ID, PH & IN as we
build
momentum with
our strong brand
RP
K
+6
%
+58
%
+33
%
+9
%
+32
%
+100
%
All AOCs >82%
load factor ex.
Japan

14. 1Q19 Group Financial Performance
HighlightsAirline
Revenue
+9%
Group
EBITDA
+13%
Adjusted
PBT
-
31%
one-offs
Gains on disposal of
GTR RM350mil &
Remeasurement
gain RM535mil
● Airline revenue is higher 9% YoY due to 3% higher RASK despite adding
11% more ASK.
Passenger seat sales increased 15% YoY
● PBT excluding one-offs is down 31% YoY mainly due to:
○ +64% higher maintenance & overhaul cost on the back of non-cash
maintenance provisions of ~RM100m given higher number of leased
aircraft post aircraft monetisation exercise in 2018; there is a differing
accounting treatment for major overhaul cost for leased aircraft and
owned aircraft (further details in Appendix);
RMmillion

15. Building Teleport to enable direct businesses
and consumers Opening our logistics
infrastructure to social sellers
Social Commerce (C2C) is
growing faster than ride-hailing in Asean

16. Growth in 2019 and beyond:
AirAsia 3.0 Logisti
cs
Digital
Bank &
Insuranc
e
Marketpl
ace
Lifestyle
&
Entertainm
ent
Travel and financial
platform of Asean
Data
AirAsia BIG Loyalty points - BIGLIFE
AirAsia ecosystem comprises the Group’s core airline network
operations, travel and lifestyle
commerce platform, financial and insurance services, logistics
services, as well as lifestyle &
entertainment affiliates

17. Teleport Overview
Business Summary
● Today, a consolidator of belly capacity for the
AirAsia group of airlines,
enabling cargo carriage for businesses across
110+ cities
● Global network reach through partner airlines
beyond Asia covering
US, Europe, Middle East and Australia/New
Zealand
● Our goal is to re-order the supply chain, with the airport
as the distribution center of the future, and make same-day cross-border fulfillment
a reality
● We intend to open our platform and
infrastructure to empower
consumers and small businesses across
Southeast Asia
Affordable Air Freight
AirAsia Group Belly Space
Consolidation/Partnerships
Now: AirAsia Network Jan
2019 Aug
2018
Next: 8 Major Asean
Cities
Feb
2019
Apr
2019
May 2018 Jul 2018 1Q
2020 1Q 2020
Aim: 4 Capital
Cities
Apr 2019
7-8
Airlines in
pipelin
e
Offering Door-to-Door Cross Border Logistics
Services
Pete Chareonwongsak
(CEO)
Former COO at AirAsia
Philippines
Former Group Head of
Business
Development
First Mile
Collection
Parcel collection in
origin country
(warehouse / pick
up / drop off
points)
Partner
Warehouse
Consolidation and
sorting by consignee
for final delivery
at destination
country
Customs
Clearance
Outbound and
inbound custom
clearance in origin
and destination
countries
Transportatio
n
Cargo terminal
and warehouse as
well as cross docking
for final delivery leg
Last Mile
Delivery Identify
various last mile
partners based on
items

18. BigLife Overview
Business Summary
● Formally known as Big Loyalty and rebranded in 2019,
BigLife is AirAsia’s frequent flyer program aiming to power AirAsia’s greater
ecosystem with its loyalty points as a high utility digital currency
● Offers consumers earning opportunities when
transacting with an ecosystem partner and also offers consumers the option to
purchase travel and lifestyle products using the user’s point balance
● Provides additional benefits for its members
such as exclusive
discounts and priority access to sale
inventories
● Tied to AirAsia’s single sign on to maximize value for
users and create a wholistic profile of users’ behavioral patterns
Major Customer Value Propositions
Products & Services
Points Earn & Burn
● Earn and use points at travel and
lifestyle partner channels
Co-Branded Cards
● Earn extra Big Points when
spending on the
co-branded credit cards
Points Exchange
● Convert your other (Citi, CIMB,
Maybank) points to
Big Points on Big Exchange points
marketplace
TBD
(CEO)
Exclusive BIG Member
discounts at up to 90%
Pay with BIG Points
and save more on flight
bookings
24-hour priority access
to AirAsia sales
Full flight redemption
for free flights
Redeem short haul flights
from as low as 500 BIG
Points
Shop online and earn BIG
Points for every cash spent
Earn and save BIG
with Fave deals
Rewards differentiated
by membership statuses

19. Airlines Industry – Low cost carrier (LCC)

20. SIMPLE PRODUCT
(No Frills)
LOW OPERATING
COSTS
POSITIONING
Low Cost Carriers (LCC)
Low Cost Carrier Business Model

23. Positioning Low-cost short haul, no frills
Aircraft Airbus A320 with 180 seats
Seat Type Single Seat ( Economy class only)
Seat Option Free seating with Xpress boarding option
In-Flight
Services
Wide range of light meals and snacks available for
purchase on board
MARKETING STRATEGY

26. LEVEL TWO :
At this level, Air Asia became Asia’s first airline to go ticketless.
LEVEL ONE :
Customer contact such as telephone contact, mailing and fax was handled
by travel agencies
LEVEL THREE :
Systems such as Electronic Data Interchange (EDI) information were
developed to increase the efficiency. EDI was developed to support B2C
activities.

27. LEVEL FOUR :
Air Asia introduced online booking through its website at ww.airasia.com
on 10th May 2002
LEVEL FIVE :
Air Asia was the first airline in the world to practice booking air tickets
through short messaging service (SMS).

28. Yield Management
System (YMS)
Computer
Reservation
System (CRS)
Enterprise
Resource
Planning
System (ERP)
CURRENT
STRATEGIC IT
IMPLEMENTATION

30. Awards and Recognition
Masterclass Global CEO of the Year awarded to
YBhg. Dato' Tony Fernandes
World's Best Low Cost Airline by Skytrax
AirAsia voted the Air Cargo Industry Newcomer
Award at the ACW World Air Cargo Awards 2010 by
Air Cargo Week

31. AirAsia wins 11th
consecutive World’s
Best Low-Cost Airline
award at Skytrax

32. Airline Of The Year By Centre for Asia Pacific Aviation
(CAPA)
Tony received the 2009 Frost & Sullivan Excellence in
Leadership Award by Frost & Sullivan
Best Asian Low-Cost Carrier By TTG Travel Awards
2009
World's Best Low Cost Airline by Skytrax

33. Analyze
Process and
Infrastructure
Evaluate
People &
Partners
Assess Organization
and Culture
Evaluate
Leadership and
Governance

34. THANK
YOU
Have a Pleasant Flight with