AirAsia Inspiring Innovation

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<p>Page 1</p> <p>Definition of Innovation</p> <p>Page 2 Source: Innovasian Catalyst Camp- Alpha Catalyst Consulting</p> <p>Page 3</p> <p>Page 4</p> <p>Leading Regional LCC6.9 6.1 7.0</p> <p>8.8 7.6 8.2 7.0 6.7 7.3 5.4 8.1</p> <p>8.3</p> <p>8.7</p> <p>9.2</p> <p>CASK (CY10) (US Cents) CASK3.7</p> <p>4.4</p> <p>5.4 Disciplined Cost Structure5.2 5.0 5.0 4.7 4.7 4.2 2.6 2.9 2.8</p> <p>5.6</p> <p>5.6</p> <p>6.1</p> <p>4.4</p> <p>4.9</p> <p>CASK (Ex-Fuel)</p> <p>2.1</p> <p>8.8</p> <p>Southwest</p> <p>JetBlue</p> <p>Easyjet</p> <p>Air Berlin</p> <p>Air China</p> <p>Westjet</p> <p>Garuda</p> <p>Cebu Pacific</p> <p>Air Arabia</p> <p>GOL</p> <p>Tiger Airways</p> <p>MAS</p> <p>AirAsia</p> <p>7.6</p> <p>6.9</p> <p>7.0</p> <p>7.0</p> <p>6.7</p> <p>7.3</p> <p>6.1</p> <p>4.4 3.7 2.1 2.6</p> <p>4.7 2.9</p> <p>5.0</p> <p>5.0</p> <p>5.4</p> <p>4.7</p> <p>5.2</p> <p>4.2 2.8</p> <p>4.4</p> <p>4.9</p> <p>5.4</p> <p>5.6</p> <p>5.6</p> <p>6.1</p> <p>Fuel)</p> <p>Southwest</p> <p>JetBlue</p> <p>Easyjet</p> <p>Air Berlin</p> <p>Air China</p> <p>Westjet</p> <p>Garuda</p> <p>Cebu Pacific</p> <p>Air Arabia</p> <p>GOL</p> <p>Tiger Airways</p> <p>MAS</p> <p>AirAsia</p> <p>Largest LCC in AsiaPassengers carried in millions (CY10)</p> <p>Cathay</p> <p>Thai</p> <p>SIA</p> <p>Cathay</p> <p>Thai</p> <p>SIA</p> <p>8.2</p> <p>8.1</p> <p>8.3</p> <p>8.7</p> <p>9.2</p> <p>Low cost leadership Pioneer of the associate model Leading ASEAN brand Near to 10th year of operation 100 million passengers flown within a period of 8.5 years #1 LCC in Asia by no of pax carried #4 LCC in the World by no of pax carried Market Share MAADomestic International 53% 37%</p> <p>TAADomestic International 43% 46%</p> <p>IAADomestic International 6% 43%</p> <p>5</p> <p>Connecting ASEAN</p> <p>Kuala LumpurPenang Kota Kinabalu Kuching</p> <p>Bangkok Chiang Mai Phuket</p> <p>Jakarta Bali Medan Bandung Surabaya</p> <p> Over 12 hubs across Malaysia, Thailand and Indonesia Over 130 routes (145 including AAX) Over 61 destinations (75 including AAX) Over 40 unique routes No. of one way flights weekly: 2,139 (including AAX)</p> <p># of hubs # of destination # of aircraft</p> <p>3 31 2</p> <p>11 60 76</p> <p>4 50 33</p> <p>12 61 926</p> <p>3-Step Strategy: Achieving Business Excellence through Continuous Improvement</p> <p>Quality Management System (QMS)</p> <p>Continual Improvement (CI)</p> <p>Business Excellence (BE)</p> <p>1st Step:Establish companywide QMS &amp; AirAsias Best Practices</p> <p>2nd Step:Establish 2 tier CI program:-1st tier Lean Six Sigma (Breakthrough CI Projects) - 2nd tier Quality Control Circle (QCC)</p> <p>3rd Step:Participate &amp; win International &amp; local awards/recognitions i.e. Prime Ministers Quality Award, Best Cabin Crew, Worlds Best Airline etc.</p> <p>2nd Step - Continuous Improvement: Program Roadmap</p> <p>2010</p> <p>2011</p> <p>2013</p> <p>Phase 1: Lay foundation and lead change</p> <p>Phase 2: Create momentum and regionalise</p> <p>Phase 3: Sustain</p> <p>Develop program framework and kick start continuous improvement program with pilot projects</p> <p>Establish Continuous Improvement Program</p> <p>Sustain and spread Continuous Improvement culture</p> <p>Performance Improvement1</p> <p>HODs1</p> <p>Will facilitate each department in establishing their Quality KPIsWill sit down with each HOD to identify one or two projects in their department before end of November 2010</p> <p>Complete documentation of their core processes (SOP/manuals)Commit to one or two projects - Identify critical improvement areas - Identify project leaders - Provide adequate support and resources to staff - Identify team member - Feed data/resource - Execute sub-projects in the department</p> <p>2</p> <p>2</p> <p>3</p> <p>Lead the cross-department projects flowing down from Top leadership Will distribute a comprehensive program guideline (templates, references, methodology, checklists, etc) Will provide training and certification to help departments gain capability to run projects Will establish program tracking system for monitoring/easier follow-up Will develop communication platform to share best practices (Quality portal) Will develop rewards and recognition for the Program (Annual CI Board Review, Award ceremony)</p> <p>3</p> <p>4 5</p> <p>6</p> <p>4</p> <p>Enroll the projects into the system and update it - Monitor and review the projects periodically with the project team - Respond to project needs</p> <p>7</p> <p>8</p> <p>5</p> <p>- Annual project summary by 31/10 - List of candidates for rewards or recognition by 15/11 every year</p> <p>CIP Results : the facts and figures</p> <p>Projects completed Projects in progress Trained Black Belts</p> <p>12 12 26</p> <p>Trained Green BeltsTotal savings</p> <p>81RM23.4 million</p> <p>Page 12</p> <p>Innovation : AA BRAIN Platform Key features</p> <p>Post your idea</p> <p>View the ideas</p> <p>View popular ideas</p> <p>Vote ideas you like</p> <p>See your ideas in action</p> <p>Weve been asked by a lot of people how weve grown so quickly, and the answer is actually really simple. Weve aligned the entire organisation around one mission: to provide the best customer service possible</p> <p>Page 17</p> <p>Page 18</p> <p>On Customer Service:Our Employees are trained to provide outstanding Customer Service. Our aim is to get you to your destination safely and comfortably with a laugh or two along the way</p> <p>On Travel Experience:Here at Southwest, we like to do things a bit differently than "the other guys". We pride ourselves on making it both simple and fun to fly wherever it is that life takes you, with low fares to 70+ destinations nationwide.</p> <p>On Why People Should Fly Southwest:Fly Southwest Airlines because you want to be treated like a person</p> <p>Obstacles to InnovationTop obstacles for innovation to happen in your company</p> <p>Lack of funding to develop and commercialize ideas Lack of a clear direction to innovate</p> <p>Lack of understanding of the customers needs Lack of great ideasLack of innovative talents Risk averse leaders/ managers Lack of readiness by customers to accept new ideas and solutions Inadequate reward / incentive to innovate Poor execution / project management Lack of trust and empowerment from leadersPage 20 Source: Leading Innovasian- Embedding innovation culture in Malaysian Organisations : Azim Pawanchik, Dr Suraya Sulaiman</p> <p>Page 21</p> <p>Inspired people in AirAsia</p> <p>Kaew Ramp Boy IT Supervisor</p> <p>Inspired people in AirAsia</p> <p>Cabin Crew</p> <p>Miss Thailand / Universe 2005</p> <p>Cadet Pilot</p>