UKEC First Annual Students Leaders Summit 4th August 2007 - PowerPoint PPT Presentation

Loading...

PPT – UKEC First Annual Students Leaders Summit 4th August 2007 PowerPoint presentation | free to download - id: 180168-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

UKEC First Annual Students Leaders Summit 4th August 2007

Description:

low cost airlines will be something we read about rather than worry about. This might sound extremely complacent, but my view is based on a close ... – PowerPoint PPT presentation

Number of Views:1068
Avg rating:3.0/5.0
Slides: 70
Provided by: sitima8
Learn more at: http://www.ukeconline.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: UKEC First Annual Students Leaders Summit 4th August 2007


1
UKEC First Annual Students Leaders Summit4th
August 2007
2

Introduction on AirAsiaThe it LCC
3
Low Fare Airlines in Asia?
  • Heres one opinion-
  • (Excerpt from the Speech By Mr. Richard Stirland,
    Director General of Association of Asia Pacific
    Airlines at the ING Low Cost Airlines in Asia
    Conference 2003)
  • .. low cost airlines will be something we read
    about rather than worry about. This might sound
    extremely complacent, but my view is based on a
    close examination of the facts, and I regret to
    say that many of those who, in the fashion of St.
    John the Baptist, announce the imminent arrival
    of a saviour in the form of Richard Branson or
    even Tony Fernandes, appear either not to have
    considered the facts, all of them, or to have
    formed a judgment and worked backwards to use
    facts selectively to support their arbitrary
    conclusion

4
Why he thought it wont work
  • Tour packages still remains supreme internet
    booking remains an exotic curiosity
  • Travel agents loyalty to major airlines due to
    wide spread of services, destinations,
    preferential rates to selected agents etc.
  • Unsophisticated Traveler seeks sophistication of
    travel cheap tickets but still expect frills
  • Domestic market taking passengers from trains,
    ferries self drive whilst International market
    against established incumbents
  • Geography great distances fewer frequencies
  • No critical mass to negotiate for lower prices
  • Pay scale
  • Lack of aircrew forced to employ expensive
    expatriate
  • Impossible for low cost operators to compete
    using service, simplicity, fares summary
  • Traffic rights regulated environment
  • . And more

5
Weve come a long way.
  • Over 5 years of hard work, we have made LCC a way
    of life in Asia
  • Huge barriers overcome and most hard work is now
    behind us
  • Despite the obstacles, PEOPLE support AirAsia

6

Achieving a Genuine ASEAN Brand
  • AirAsia Berhad Headquarters - Kuala Lumpur
  • Hubs - Johor Bahru, Kuching and Kota Kinabalu
  • AirAsia Thailand - Bangkok (Feb 3, 2004)
  • - First JV of a foreign airline having a local
    AOC in history
  • - First foreign LCC to fly into China
  • AirAsia Indonesia - Jakarta (Dec 8, 2004)
  • - Carried more than 1 million guests to date

Creating an Asian Brand with participation from
each ASEAN country
7
Most Geographically Connected Route Network
System in Asia
13
Penang / Alor Star
24
  • 6 bases
  • 71 routes
  • 54 aircraft

Existing bases
11 Routes
7
Potential New base
8
Build 1 Route Network
Period Destinations Served
Jan 2002 6
Jun 2003 11
Jun 2004 26
Jun 2005 52
Jun 2006 65
NOW 75
Latest Routes
KL Shenzhen Bangkok Shenzhen
Upcoming Routes
KL Krabi JB Macau
9
The Airline Revolution
Feb 07
  • Aug 2006
  • Domestic
  • Rationalisation

Key Achievements
  • July 2006
  • Launched KK
  • Kuching hub
  • Dec 2004
  • Launched sister company Indonesia AirAsia
  • Dec 2005
  • First Airbus
  • A320 aircraft
  • Nov 2004
  • Successfully
  • Made IPO

Feb 2004 Launched sister company Thai AirAsia
  • Apr 2002
  • Ticketless system
  • Dec 2001
  • Tune Air officially takes over AirAsia and begins
    conversion to a LCC
  • Dec 2003
  • Launched Johor hub
  • May 2002
  • Online reservation

Dec 2004 Tsunami
  • July 2006
  • Jet Fuel
  • at historical
  • record 93
  • Aug 2004
  • MAS
  • SuperSaver
  • 3 program
  • Dec 2003
  • MAS
  • SuperSaver
  • 2 program
  • Feb 2003
  • SARS hits

Mar 2005 Bali Bombing
  • Aug 2002
  • MAS
  • SuperSaver
  • 1 program

July 2002 Forced move from Subang to KLIA
  • Dec 2001
  • Inherited RM40mn of liabilities
  • Birdstrike one plane
  • Mar 2003
  • Iraq war

Key Challenges
Track record of success in the face of
unprecedented shocks to the industry
10
Were Growing.. And Growing
11
AirAsia against other LCC
Pax per year (million)
12
AirAsia in 2013..Way Ahead than SIA
Pax per year (million)
13
Robust Growth and Capturing Market Share
Year Domestic Market Share Domestic Market Share
Year AirAsia MAS
2001 3 97
2002 12 88
2003 20 80
2004 25 75
2005 28 72
2006 41 59
2007 51 49
Source MAB
14
Lower Fare Every Year!
Year Average Fare (RM)
2002 183
2003 147
2004 131
2005 143
2006 137
15
Profitability
RM (million) 1H-2006 1H-2007 Change ()
REVENUE 443 694 57
EBITDAR 122 247 102
Pretax Profit 61 105 72

EBITDAR Margin 27 36
Pretax Profit Margin 14 15
  • Unprecedented profitability growth and a market
    capital
  • of RM 1 to RM 4.6 BILLION in just 5 years!

16

How Did We Do It
17
Key Ingredients of a Successful LCC
18

i. Amazing Cost
19
Cost Management
Cost / ASK (US cents)
Malaysian Operations
20
Consistent Profitability
? The only Asian LCC to be making money for the
past 5 years!
21
High Profitability and Returns
Company EBITDAR EBIT Net Income ROE (2) Adjusted ROIC (3)
Ryanair 35 25 20 15 7.9
EasyJet 17 7 6 10 3.9
VirginBlue 22 10 6 16 n/a
JetBlue 16 5 0 0 0
SouthWest 18 10 6 8 5.4
GOL 28 18 15 26 10.5
WestJet 25 15 7 14 4.2
AirAsia 31 16 19 19 5.7
LCC Average 23 13 8 13 5.2
SIA 21 10 9 10 8
Cathay n/a 8 7 10 7
Qantas n/a 5 4 8 5
MAS 16 -2 -1 -1 -0.1
  1. FY 2006 for JetBlue, SouthWest, GOL, WestJet,
    EasyJet and Ryanair. 9-months financial for
    VirginBlue. Latest 12 months for AirAsia under
    IFRS. Others Bloomberg
  2. Net Income / Total Equity
  3. Net Income / (Total Equity Total Debt
    (Aircraft Lease x 7))

22

ii. Amazing People
23
Our people are Our Greatest Assets
Aircraft dedicated to our Cabin Crew
Aircraft dedicated to our Staff
Aircraft hangar dedicated to our Engineers
24
Our people are Our Greatest Assets
25
Our people are Our Greatest Assets
24
26
Our people are Our Greatest Assets
25
27
Our people are Our Greatest Assets
From Cabin Crew to Cadet Pilot to Miss
Thailand/Universe 2005
AirAsia allowing people with great attitude and
multi talents to thrive.
28
The Skys The Limit
From cadet pilot to Miss Thailand/ Universe
29
Investing in the future AirAsia Cadet Pilot
Program
  • Creating opportunities in aviation industry
  • 1st batch of cadets include AirAsias staff from
    various departments - Check-in, Cabin Crew,
    Purchasing, Engineering

Mark Santana Raj (Purchasing Asst)
Mohammad Farin bin Ibrahim (sales agent)
Andy Teguh Imansyah Farid (Accounts Supervisor)
Muhammad Fauwaz bin Zamzam (Aircraft Mechanic)
Azmir bin Hashim (guest services asst)
Mohd Noor Ezanie (Cabin Crew)
30
Investing in the future AirAsia Cadet Pilot
Program
  • 22 April 2006 His Majesty SPB Yang Di-Pertuan
    Agong presented graduation certificates to the
    graduates during his LCT visit

31
Our New Home Low Cost Carrier Terminal _at_ Red
Fort
  • Malaysia unveils Low Cost Terminal
  • launched at 23 March 2006
  • design capacity 10 million, upgradeable to 15
    million
  • Low cost terminals to be built at Kota
    Kinabalu and Kuching
  • Other cities joining the LCC phenomenon
    (Singapore, Bangkok potentially)

32
Our New Home Low Cost Carrier Terminal _at_ Red
Fort
  • Guest Services
  • Call Centre
  • Flight Ops
  • Marketing
  • Finance
  • In Flight Services
  • Engineering
  • GO Holiday
  • Regional
  • Legal
  • Route Revenue

33
Our Culture Everyones Equal
Open concept promotes harmonious working
environment
CEOs Palace. First hand view of our aircraft
operations
Chairmans premise. Everyones equal,
no borders. Everybodys
accessible.
34

Investing in the FutureAirAsia Academy
35
AirAsia Academy
36
AirAsia Academy Growing Our People
  • Invested gt20 million for this state
  • of the art training facility
  • Currently building phase 2

Most modern and sophisticated facilities
that is available on the market
37
AirAsia Academy
  • a testament of AirAsias dedication to provide
    quality training and people development.
  • PHASE 1
  • 8 classrooms and 2 computer-based training rooms
  • 6 briefing rooms
  • 2 units A320 full flight simulators
  • 1 units B737 full flight simulator
  • 2 units Maintenance Flight Training Device
  • 1 Cabin mock-up
  • 1 Airbus door trainer

38
One stop Regional Training Centre
  • One Stop Regional Training Centre for AirAsia
    overall
  • - comprehensive training facility including
    computer-based training
  • - all in-house instructors

Classroom Training
39
Practical Training
Fire Drill
A320 Door Trainer
A320 Slide Drill
Cabin Mock up
40
AirAsia Academy
  • TRTO, Type Rating Training Organisation
  • - Approved in June 2006 by the Department of
    Civil Aviation, Malaysia
  • 1st of its type in Malaysia
  • It is approved to train pilots in the following
  • - Airbus A318/319/320/321 series
  • - Boeing 737 300/300/500 series
  • State of the art Full Flight Simulators
  • Currently 2 Airbus 320 and 1 Boeing 737
  • Will acquire another Airbus 320 Simulator
  • MFTD, Maintenance Flight Training Device
  • Currently 2 units
  • Will acquire another MFTD

41
MFTD, Maintenance Flight Training Device
MFTD
42
AirAsia Academy Phase 2
  • 15 Classrooms and 2 computer-based training rooms
  • E-library
  • Swimming Pool to conduct wet drill training
  • Check-in counter / Gate Management
  • EET, Emergency Evacuation Training
  • Multi Purpose Hall for various activities
  • Facilities for Employees
  • clinic
  • gymnasium

43

iii. Amazing Brand
44
Our Brand Mission
  • Build AirAsia to be a global and cutting edge
    brand focusing on low fares and our commitment to
    service excellence, reflecting our fun and bold
    AirAsia spirit.

Our fares are cheap, Nothing else about us needs
to be cheap.
45
Brand Strategy
  • Creative use of PR, our people and planes to
    sell the sizzle and
  • build a buzz around AirAsia brand.
  • Exploit Airbus effect to heighten AirAsia
    brand to next level.
  • Strategic tie-ups with major global brands to
    elevate and enhance
  • AirAsia brand appeal.

46
Building a Global BrandManchester United
Sponsorship
  • Enhances AirAsia brand appeal and connects deep
    emotional value to 70million Manchester United
    fans worldwide

To be a global brand, associate with a global
brand
47
Building a Global Brand Manchester United
Sponsorship
  • Manchester United sponsorship
  • has elevated AirAsias brand
  • Aided into penetrating new market
  • (Cambodia, Vietnam, China)

48
Building a Global Brand Manchester United
Sponsorship
  • Sponsorship has increased awareness about
    AirAsia (especially amongst the 75 million
    football fans worldwide!!)
  • Extended sponsorship to 2006/07
  • Brought Tourism Malaysia as another partner in
    this exclusive sponsorship (2006/07)

49
Leveraging Our Brand Sponsorship
  • Official Airline Partner of the first The Amazing
    Race Asia generated immense regional media
    coverage.

Great brands think alike. We are exciting,
current and cutting edge, so are our brand
associations
50
Leveraging Our Brand Sponsorship
  • The Official Low Fare Airline for the prestigious
    Monsoon Cup 2006.
  • Brand exposure to connect Asias affluent and
    elite market.

51
Building a Global Brand ATT Williams
Sponsorship
  • Sponsorship 2 million
  • Bringing Malaysia AirAsia to the F1 world

50
52
Build Asias 1 Loyalty Programme
With a potential 2 million card base, AirAsia
Credit Card is poised to be the 1 co-brand card
in Asia.
51
53
Build a Global Brand The Official Partner of
Premier League Match Officials
  • Taking a major step in building AirAsia brand in
    the football world

52
54
1 Airline Brand in Asia
Asia Pacific Brand Excellence Award 2006/07 for
Best Airline Category
53
55
International media presence
Extensive coverage by regional and international
media
56
Taking on the Big Brands
55
57
iv. Amazing Assets
58
Our Website
  • Airasia.com is No. 1 Travel Website in Asia -
    Google
  • Biggest e-commerce website in Asia (AC Nielsen)
  • Records an impressive monthly 90million page
    impression.
  • Over 200 countries surf www.airasia.com
  • Generates an enviable 10 response rate to
    every online promotion
  • vs industry rate of 1

Top 10 Breakdown by Countries - 2006
  1. Malaysia
  2. Indonesia
  3. Thailand
  4. Singapore
  5. China
  • Australia
  • USA
  • Brunei
  • United Kingdom
  • Hong Kong

59
www.airasia.com Our Virtual Retail Outlet
  • Available in 5 languages
  • The first airline in Asia to implement online,
    ticketless booking system (The most searched
    website Study by Google)
  • Other travel services
  • Go Holiday (Create your own holiday!!)
  • GoInsure Travel Protection
  • AirAsia Credit Card
  • AirAsia GoCruise
  • AirAsia GoHostel
  • AirAsia GoMedic
  • AirAsia Go Car

The most comprehensive airline website in Asia
60
International Awards
  • 2003
  • Asia Pacific Airline of the Year 2003 by Centre
    for Asia Pacific Aviation (CAPA)
  • Developing Airline of the Year 2003 by Airfinance
    Journal
  • CIO Top 100 Honoree for excellence in strategic
    IT deployment
  • www.airasia.com voted as the most popular website
    for online shopping in the 11th Malaysia Internet
    User Survey conducted by AC Nielsen Consult
  • 2004
  • Asia Pacific Low Cost Airline of the Year 2004 by
    Centre for Asia Pacific Aviation (CAPA)
  • Asia Pacific Aviation Executive of the Year 2004
    awarded to Dato Tony Fernandes
  • Best Managed Company in the Airlines and Aviation
    Sector by Euromoney
  • Triple A Regional Award for Best Airline IPO for
    2004 by The Asset Magazine
  • Market Leadership Award by Air Transport World

61
International Awards
  • 2005
  • CAPA Aviation Executive of the Year 2005 awarded
    to Dato Tony Fernandes
  • Regional/Low Cost Leadership Award in Airline
    Business Strategy Awards by Airline Business
  • Transport Company of Excellence Award in
    conjunction with Transport Industry Awards by
    Ports World Chartered Institute of Logistics
    and Transport Malaysia
  • Asias Top 200 Best Under A Billion by Forbes
  • Regional/Low-Cost Leadership Award in Airline
    Business Strategy Awards 2005 by Airline Business
  • 2006
  • Merit Award for CAPA Airline of the Year 2006 by
    Centre for Asia Pacific Aviation (CAPA)
  • Asias Best Budget Airline by SmartTravelAsia.com
    under the Best In Travel 2006 list
  • Winner in four categories including Best Managed
    Company, Best Corporate Governance, Best Investor
    Relations, and Most Committed to Strong Dividend
    Policy under The Annual Investor Poll of
    FinanceAsia.com
  • Malaysia Entrepreneur of The Year 2006 and
    Master Entrepreneur of the Year 2006 by Ernst and
    Young

62
And in 20071 Low Cost Airline in Asia
61
63
v. Amazing Assets
64
Airbus Campaign
  • Single largest order of Airbus A320 UPGRADES our
    brand positioning.

65
Our Stylish Aircraft
66
Airbus A320 We Want More!
  • 200 aircraft on tap 150 firm orders 50 options
  • Secures aircraft pipeline until 2013
  • Received 17 aircraft to date, exceptionally
    popular by our guests

67
Airbus A320 Delivery Schedule
68
Going Forward More Amazing Stories
69
The Future Asia Map will be Written in RED!
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Existing Destinations
x
x
x
x
x
Potential Destinations
x
70
SIA-Were at Your Tail
Pax per year (million)
69
71
The Latest BuzzNow Everyone Can Fly Xtra Long
72
Strategic Link-up with FAX
  • Brand name agreement
  • FAX will use AirAsia X brand name (royalty
    payments)
  • AirAsia signs MOU to look into taking a stake in
    FAX
  • 20 exposure into FAX at par value via direct
    equity or debt
  • instrument in the interim
  • options for an additional 10 for a period of
    5 years
  • FAX and AirAsia will never compete on each
    others route

71
73
Why Long-Haul Budget Travel?
  • Budget travel is perfect for Malaysia
  • budget market is underserved (most
    airlines focused on premium travel)
  • Malaysia is surrounded by premium hubs
    (Singapore Bangkok)
  • gateway for the region (lowest cost,
    geographical, political stability)
  • Malaysia has liberal relationship with
    most counties in the World
  • (no strict visa requirements,
    transparent application process)
  • How is FAX link up beneficial to AirAsia?
  • expand client base to long-haul
    connectivity
  • enhance route network
  • leverage brand name with other airlines
    in the world
  • (Virgin, EasyJet, Air China, Air Arabia)

72
74
AirAsia X Proposed Route Map
Berlin
Machester
Moscow
Prague
Stansted
Sapporo
Shenyang
Dalian
Seoul
Cheongju
Tianjin
Osaka
Hangzhou
Lahore
Pusan
Fukuoka
United Kingdom
Karachi
Cairo
Sharjah
New Delhi
Xiamen
Jeddah
Mumbai
Hyderabad
Goa
Bangalore
KUALA LUMPUR
Brisbane
Perth
Adelaide
Melbourne
Avalon
75
Thank You
We will keep Doing The Impossible!
74
76
Now everyone can fly
Believe the UnbelievableDream the
ImpossibleDont Take No for An Answer
77
The End
About PowerShow.com