SWOT analysis is taken and investigated to detect the strengths, weaknesses, opportunities and threats and in this case study, it is on AirAsia, a Malaysian low-cost airline company.
As for the weaknesses of this airline, one of it is in the form of the Application of Information Technology (IT). As most of the services offered by AirAsia is relayed in the form of IT, a risk of system disruption can hardly be avoided due to the online selling of airline tickets. Therefore, any flight delays or having their customers to call the booking line just shows that AirAsia’s system is not sturdy enough to grip the bookings productively. An outcome of this is that the effectiveness of the airline will be affected as the satisfaction of the customers will decline. Moreover, the confidence of the customers in the service of AirAsia will also drop which can result in the loss of customers. Therefore, AirAsia needs to constantly invest in better high-tech apparatus and technologies as to keep up with the fast-growing technology evolution. AirAsia should also find other alternatives to stay in front of the competition.
Another weakness that can be detected is how AirAsia does not have it’s own MRO facility. MRO stands for maintenance, repair and overhaul which is an essential requirement in aviation to make sure that the aircraft are maintained in pre-determined conditions of airworthiness to safely transport passengers and cargo. It may have been a good approach when they first started as Malaysia as their only hub and only a few airplanes to be maintained. But as the society is growing, with few hubs and over 100 aircrafts currently owned and more in the future, AirAsia needs to ensure proper and continuous maintenance of planes which will also help to keep the overall costs low. AirAsia is at a disadvantage for not having it’s own MRO facility, which can bring the airline to many difficulties.
AirAsia also receives a lot of complaints from it’s own customers, especially on their service. Some of the examples of complaints that are usually received by the airline is about flight delays, the customers being over-charged for a lot of things and also not flexible enough to allow their customers to change their flights or ask for a refund in cases where they couldn’t make it on the flight. Good management and customer service is critical in times where competition in the airline industry is getting more intense.
Furthermore, AirAsia has a flat organizational structure. As it allows their staffs to perform multiple tasks, it can affect AirAsia’s productivity in the future as the airline expands. As an example, in order to keep up with the constant execution of internet bookings and distributors, AirAsia would require a notable number of specifically trained technical professionals. The efficiency and effectiveness of the employees may decrease as they perform multiple roles. Hence, the simple and flat organizational structure may result in bad decision-making which will affect the airline’s productivity. Therefore, AirAsia should start taking proper actions to polish and restructure itself up in order to stay relevant and above others in the competition.