OM Cast Study 1 Latest One

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Dimension 1 - Tangibles;

The tangible Service Quality Dimension refers to the appearance of the physical surroundings
and facilities that we can able to touch and feel, equipment, personnel and the way of
communication between human. In other words, the tangible dimension is about creating first
hand impressions1. In company Airasia, Tony Fernandes able to make all of his customers to
get a unique positive and never forgetting first impression about the service and low charge
during taking Airasia to other places. Tony Fernandes introduce the first low cost airline with
good quality service to the customer to show that everyone is affordable to take airline to
other places. This low cost airline concept would make customers more likely to return in the
future. The ruthless focus on costs made AirAsia one of the most cost efficient LCCs in the
world. AirAsia has been extremely successful in reducing operating costs. In 2001, the
airlines operating costs in US cents per ASK (Available Seat Kilometres comparable with
unit costs) was 4.6 but by 2005, this had fallen to just 2.19 (Air Asia Annual Report 2005, p.
3). AirAsia claims that this makes them the lowest cost listed airline in the world (AirAsia
Annual Report 2005, p. 23).

Dimension 2 - Reliability;
The reliability Service Quality Dimension refers to how the company are performing and
completing their promised service, quality and accuracy within the given set requirements
between the company and the customer. Almost every customer in Airasia are trust the
service and quality with the flight. People usually get a wrong mind-set which is the lower
the cost in a product/service, the lower the quality. Tony Fernandes redefine his customer
mind-set which is although the cost is low but the service provided by Airasia is still good
enough. Customer never worry about the possibility to miss their flight if they are punctual.
In terms of reliability, AirAsias published record is impressive. However, according to
Interviewee A the published data are rather superficial and open to manipulation such as
rescheduling delayed flights so that published statistics do not reveal delays. As with other
LCCs, AirAsia does not have a significant problem with lost baggage because of their pointto-point operations. Baggage allowances are less than FSAs but AirAsia has yet to go to the
extremes of Ryanair in charging for each item of checked baggage (Ryanair 2006).
Dimension 3 - Responsiveness;
The responsiveness Service Quality Dimension refers to the willingness of the company to
help its customers in providing them with a good, quality and fast service. Tony Fernandes
are looking very importantly about this dimension. This is because he believes that every
customer will feels more valued if they get the best possible quality in the Airasia service. For
1 Downwindz (2010) The 5 Service Quality Dimensions from
http://business.wikinut.com/The-5-Service-Quality-Dimensions/.d-m.4b./

example, during the 9/11 terrorist attack and Severe Acute Respiratory Syndrome (SARS),
most of the airline company facing the bankruptcy, but Airasia still take this responsible to
service the customer to make sure all the operation still in normal condition.

Dimension 4 - Assurance;
The assurance Service Quality Dimension refers to the company's employees. The employees
in Airasia are skilled workers which mean they are able to gain the trust and confidence to the
customers. The stewardesses in Airasia are always polite and friendly, this make the
customers are comfortable with the stewardess. As the result, there is large chance that the
customers will return back to Airasia when they want to take flight again. In terms of
advertising, AirAsia uses pictures of attractive female flight attendants occasionally with
suggestive captions. One such advertisement was used by AirAsia in its efforts to promote the
airline in Singapore which featured two smiling AirAsia flight attendants with the caption
Theres a new girl in town and shes twice the fun and half the price (see Spiess and Waring
2005). The advertisement was clearly aimed at leveraging off the Singapore Girl icon
historically used by Singapore Airlines in its marketing. Interviewee A described the culture
of AirAsia in fairly bleak terms where there is little trust between management and the
workforce and where employees work well beyond the maximum number of hours per week
permitted under Malaysian labour law. Remuneration for pilots is comparable with that at
Malaysia Airlines although Interviewee A remarked that the company pays less money into
employees provident or pension funds. Moreover, there is no meal allowance for pilots.
AirAsia, however, was successful in recruiting formerly retired pilots of MAS as a result of
lobbying the Malaysian government to lift the retirement age for pilots. Wages have not
changed significantly in the last 5 years.

Dimension 5 - Empathy;
The empathy Service Quality Dimension refers to how the Airasia company cares and gives
individualized attention to their customers, to make the customers feeling extra valued and
special. Empathy is the combination of tangibles, reliability, responsiveness, and assurance to
a higher level, even though the really cannot be compared as individuals. Airasia still need to
improve in this dimension as the service in Airasia is more popular and not as the customize
airline such as Singapore Airline or Malaysia Airline. Like many other LCCs, AirAsia does
not provide allocated seating or any kind of premier class. Indeed, Interviewee A described
this as a well-herded cattle service involving a free seating scramble. Similar to other LCCs,
AirAsia does not provide any additional services on-board that are included in the price.
Instead, food, drink and AirAsia branded merchandise may be purchased on board. Their
approach is typically described by the company itself as Low Fare, No Frills, High
Frequency (AirAsia Annual Report 2005, p. 8).
References

AirAsia (2005), AirAsia Annual Report 2005, retrieved on September 14, 2006, from:
www.airasia.com.
AirAsia (2006), Cabin Crew, retrieved on September 6, 2006, from: www.airasia.com.

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