Many think cheap means inferior. They think the only way you can cut costs is by cutting corners.
Nothing could be more wrong. It’s possible to deliver great value at low prices by being efficient, by understanding your market. In other words, by cutting out the fat.
Too many companies fail to do this. Processes are all over the place and needlessly complicated, staff only listen to each other and not the customer.
This is what delivers inferior products and services. That’s why I’m always pushing my staff to work both harder and smarter, why we're always fighting for leaner operations.
Within AirAsia, everyone has their eye on the prize. Outside of AirAsia, it’s a different story altogether.
KLIA2 was meant to be the low-cost carrier hub for Asia, an amazing opportunity for Malaysia as budget travel continues to grow rapidly in the region.
The new terminal will replace the current LCCT, and was meant to be done by March 2012. It's now 2014. They’ve delayed the launch five times now and they’re still fixing cracks in the apron.
Construction costs have also doubled to RM4 billion thanks to unnecessary extras. Two storeys became nine, they put aerobridges at every bay. It’s the opposite of no-frills.
Malaysia Airports will have to recoup these overruns somehow. And the easiest way is to increase airport charges, such as the Passenger Service Charge (PSC).
Often our customers mistake the RM32 airport charge for an AirAsia charge. It’s not – the airport gets all the money.
We struggle to keep a KL-Singapore ticket, for example, at RM45. We manage volatile fuel prices, expensive aircraft maintenance and costly landing charges to keep our fares low.
But we have to pass on the airport charge to the customer, which in this case costs almost as much as the ticket itself.
I’ve always said that my vision for AirAsia is to create a Wal-mart in the sky. Wal-mart has a clear business model, gives fantastic value for money and people can get everything they need there.
Now, imagine if you force Wal-mart to move into Harrods. That would kill the business.
However, I’m still optimistic. No one in Asia used the internet or mobile for flying before we came. Now it’s the standard.
AirAsia will continue to push the boundaries of business innovation. I recently met some very smart, successful guys in California who will help make AirAsia the technology airline of the decade.
This is how we’ll continue to maintain the lowest fares while making sure we have the same high-quality service our guests expect.
Nothing could be more wrong. It’s possible to deliver great value at low prices by being efficient, by understanding your market. In other words, by cutting out the fat.
Too many companies fail to do this. Processes are all over the place and needlessly complicated, staff only listen to each other and not the customer.
This is what delivers inferior products and services. That’s why I’m always pushing my staff to work both harder and smarter, why we're always fighting for leaner operations.
Within AirAsia, everyone has their eye on the prize. Outside of AirAsia, it’s a different story altogether.
KLIA2 was meant to be the low-cost carrier hub for Asia, an amazing opportunity for Malaysia as budget travel continues to grow rapidly in the region.
The new terminal will replace the current LCCT, and was meant to be done by March 2012. It's now 2014. They’ve delayed the launch five times now and they’re still fixing cracks in the apron.
Construction costs have also doubled to RM4 billion thanks to unnecessary extras. Two storeys became nine, they put aerobridges at every bay. It’s the opposite of no-frills.
Malaysia Airports will have to recoup these overruns somehow. And the easiest way is to increase airport charges, such as the Passenger Service Charge (PSC).
Often our customers mistake the RM32 airport charge for an AirAsia charge. It’s not – the airport gets all the money.
We struggle to keep a KL-Singapore ticket, for example, at RM45. We manage volatile fuel prices, expensive aircraft maintenance and costly landing charges to keep our fares low.
But we have to pass on the airport charge to the customer, which in this case costs almost as much as the ticket itself.
I’ve always said that my vision for AirAsia is to create a Wal-mart in the sky. Wal-mart has a clear business model, gives fantastic value for money and people can get everything they need there.
Now, imagine if you force Wal-mart to move into Harrods. That would kill the business.
However, I’m still optimistic. No one in Asia used the internet or mobile for flying before we came. Now it’s the standard.
AirAsia will continue to push the boundaries of business innovation. I recently met some very smart, successful guys in California who will help make AirAsia the technology airline of the decade.
This is how we’ll continue to maintain the lowest fares while making sure we have the same high-quality service our guests expect.
Image: Malaysia Airports
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