Effectiveness of Airasia’s Performance Measurement System

We could see that this system used by AirAsia is successful as they have been doing really well and improving since year 2001 from first airline in the world to introduce mobile booking, to be a public listed company on the Malaysia Stocks Exchange (Bursa Malaysia), after having on 22 November 2004. In line with its growth and expansion plans, AirAsia has secured a 175 aircraft commitment with Airbus for its A320s. The 175 aircraft order will place AirAsia as the single largest customer for the aircraft in Asia-Pacific, and potentially one of the largest airline fleets in the region.

On 23 of March 2006, AirAsia successfully moved its operations to the new Low Cost Carrier Terminal (LCCT). This is a major milestone as it is the first dedicated terminal for low cost carrier operations in the world. Besides that, they have achieved many more heights even in the past 2 year. AirAsia are focus on its performance measurement system and made sure that whatever they do are in line with the system and try as hard to meet its benchmark.

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For example, to ensure the safety of guest and employees, the “List of Checks for Airbus A320” is created.

These safety procedures include strict aircraft maintenance, constant updating and training of technicians and flight crew. Once any problems occur during this checklist, immediate action will be taken, making sure it is safe and no problems will occur. Because if the safety are threaten, it will influence the investors, potential customers and rest of the stakeholders to loose confidence in AirAsia, making it hard for AirAsia to achieve their vision.

With all this achievements, awards and significant milestones in just 6 years, it is obvious to see that the performance measurement system that AirAsia is using is effective and efficient. This system set a very good benchmark to all the key elements in helping AirAsia achieve its vision and goals. By following the system, AirAsia gives priority on areas like cost efficiency, branding, product development, growth, human capital, safety of guest and employee. The performance measurement system applied manage identify prominent areas that will affect its business and lead it towards its goal and vision.