AirAsia and the Low Cost Carrier (LCC) Model
In many ways, Air Asia is analogous to Ryanair Low Cost Carrier business model including:
- A single class
Supposing is a “non glamour” single class but now it has a premium class with “no frills” services and you are prohibited from bringing in Food and Drinks because Food & Beverage is sold on board.
- No “frills”
Pay what you use service (in the future including lavatory usage would be charged for RM1 for 1 minute). Every minutes is money in Air Asia, that’s what monopoly system is all about.
- Short haul, point to point operations
High aircraft utilization and efficiency so aircrafts will need HMV, Heavy Maintenance Visits so to set record Air Asia “boleh” (CAN DO) flew longer hours before aircrafts are sent for MRO because for each day of each aircraft is being grounded for repair and maintenance, it will eat into its profit as every minutes is worth dollars in revenue. Every passenger will only travel with Air Asia ONCE in a lifetime. You will not be returning after you have been conned with new aircraft but complement with old and louder noise engine. That’s right, you paid for tickets to travel new aircraft but instead you were flown with an old engine aircraft.
- High seating density and load factors
So flights without full load will be cancelled and passengers will be conned to stand on the queue whilst Air Asia opens its check-in counter late and closes at 45 minutes before departure “SHARP AND ONTIME”. If you’re 45 minutes 2 seconds late, it means GOODBUY and please BUY another ticket at the other Air Asia counter if you wish to continue with your flight via CHEAPO AIRLINES.
- Low operating costs
Aircraft uniformity – monopoly system with single type of aircraft where Boeing will be definitely out of the business in the future with the rates Tony Fernandez is selling Airbus aircraft to all ASEAN countries. Boeing can standby to wind up business because AirBus is now officially the new partner for CHEAPO Airlines.
- Low airport fees
Whilst Air Asia has protested against the increase of airport tax (MAHB) they hypocritically continue to charge the “Convenience Fee” to their passengers so to fairly penalizing passengers for using manual check-in.
- Low maintenance fees
- Old staff – OUT
- New staff – IN
- After 10 years, Staff will be rewarded with expensive watch as goodbye gift and thank you for servicing AirAsia. Remember that this is a low cost airlines that only afford to hire younger staff and cheaper labour and sacking older staff.
- Low wages
- Work until you retired but still below the poverty line and without a house registered in your name – that’s a guarantee by Tony Fernandez to all who has been working under him. The moral of the story, you get to be a slave while he enjoys becoming your only admired boss. We know in Malaysia, being rich means being powerful and if we ever dream that Tony Fernandez will let us be as rich as him, then, we are in trouble because he will kill us before we can out-rich him.
- Crew flexibility
- Work below grading as all crew are multitasking that means the manager can work as assistant manager too or lower than the rank;
- Low manpower crisis – during short of manpower season, the Crew will have to work 24/7, 7 days a week but shhhssshh…don’t report it to authority or you will be sacked by Tony Fernandez.
- No lounges
It’s chargeable and even if there is lounge available, please do not step inside if you’re NOT having a meal or you will be charged for stepping your foot on the doorstep’s fees for look see look see only.
- Low administration costs
- Ticketless and no frequent flyer program
- Supposedly, it is aimed at ticketless and no frequent flyer program and so in the future passengers must bring a pen and paper to write down your Gate and seat number. Today, the carrier has remodeled towards issuing cheap ticket in line with low administration costs. Air Asia deems the frequent flyer program is expensive but it has great connection with regular flyers and hence, created the loyalty program to cater to its loyal customer for long term survival after they failed in their unsound business strategy.
- Hire and Fire employment strategy
- Non-union employees
- Staff attempts to form union will be terminated efficiently and; do not dream to speak about it because Tony Fernandez pays for such information on many occasions. Staff were rewarded between RM4k to RM8k when reporting such attempt on forming union by independent group to Tony Fernandez for his immediate attention. Instantaneously, Tony boy felt he should be in control of the union and without wasting much time, he masterminded a national union for cabin crew. We cannot deny there are bunches of moronic working for Tony Fernandez feeding him such information and we believe the public have heard about the forming of NUFAM under Tony Fernandez that is to cap salary scale to minimum and dictating the terms and conditions for cabin crew based in KUL.
- HIRE AND FIRE STRATEGY which also means ANYONE can get SACKED airlines. And with the assistance rendered by NUFAM later, it will aid legality to the dismissal of unproductive staff.
- No freedom of speech
- Staff must always speak good of Tony Fernandez and Kamarudin Meranun although they do not like him and;
- Staff will be terminated for speaking ill against Air Asia worst terms and conditions, Staff must praise the terms and conditions written by Tony Fernandez.
- Staff becomes ‘DOGS’ for Tony Fernandez to entertain his business partner arriving from overseas trip.
- Staff must purchase drugs called “E” or “5″ or “joy” for entertainment when rostered for entertaining Tony’s business partner and gang. That’s what Tony Fernandez meant that his staff are happy.
- Inconsistent payroll scheme is a norm practice in AirAsia by means of shortchanging the Worker’s of their dues
- Earn as you fly which means you can forego your days off to fly more or sometimes you could fly until you fall sick on the way to work and staff will be rewarded with “Peanut Pay”;
- Shortchanging staff for being unproductive on becoming ill after exhaustive work and fatigue is Air Asia Number 1 Practice for cost saving measures;
- Read our other posts on “Malpractice in MAS/AA
- Fatigue is not recognized in Air Asia and the Staff are prohibited to use the word “Fatigue”. SACK will be the antidote for Staff uttering FATIGUE. AirAsia’s Pilot have been seen collapsing on their way to work which subsequently have contributed to AirAsia’s flight being further delayed. We hope those Pilots who have collapsed would still have the job intact. Do they? How many times can they collapse?
- Promoting drug tolerance workplace
- We have been informed younger women are encourage to consume drug when entertaining Air Asia or Tony Fernandez’s business partners and customers. The idea of consuming drugs before entering the party is to get into “friendly” mode before the itchy gang started to be itchy, you know what we mean.
- We believe in Air Asia, there’s also a syndicating drugs such as KETAMINE and ESTACY/Viagra pills for its staff and business partners, and that is why AirAsia needs to own MAS CARGO possibly for a higher import due to greater demand AirAsia has created for the last one decade.
- Leanest staff benefits
- No transport facility for staff that worked at night shift and women’s safety is “OUTTA” Air Asia’s policy;
- No hospitalization benefits for Staff – all pay on your own when you are hospitalized. In paper you get provided such benefits but in real life when you are hospitalized, you pay as you hospitalize and don’t dream to even reimburse from Tony Fernandez or you’ll be on the sacking list.
Presently, you get free supply from AirAsia for your uniform, shoe and accessories but in the future, uniform, shoes and accessories are compulsory for staff to purchase from Air Asia to increase their ancillary revenue at the expense of the public and it’s staff.
Welcome to cost saving lowest cost cheapo airlines – AirAsia, that can sack staff at anytime.