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Definition of Innovation

Page 2 Source: Innovasian Catalyst Camp- Alpha Catalyst Consulting

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Leading Regional LCC

6.9 6.1 7.0

8.8 7.6 8.2 7.0 6.7 7.3 5.4 8.1

8.3

8.7

9.2

CASK (CY10) (US Cents) CASK

3.7

4.4

5.4 Disciplined Cost Structure5.2 5.0 5.0 4.7 4.7 4.2 2.6 2.9 2.8

5.6

5.6

6.1

4.4

4.9

CASK (Ex-Fuel)

2.1

8.8

Southwest

JetBlue

Easyjet

Air Berlin

Air China

Westjet

Garuda

Cebu Pacific

Air Arabia

GOL

Tiger Airways

MAS

AirAsia

7.6

6.9

7.0

7.0

6.7

7.3

6.1

4.4 3.7 2.1 2.6

4.7 2.9

5.0

5.0

5.4

4.7

5.2

4.2 2.8

4.4

4.9

5.4

5.6

5.6

6.1

Fuel)

Southwest

JetBlue

Easyjet

Air Berlin

Air China

Westjet

Garuda

Cebu Pacific

Air Arabia

GOL

Tiger Airways

MAS

AirAsia

Largest LCC in Asia

Passengers carried in millions (CY10)

Cathay

Thai

SIA

Cathay

Thai

SIA

8.2

8.1

8.3

8.7

9.2

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
MAA
Domestic International 53% 37%

TAA
Domestic International 43% 46%

IAA
Domestic International 6% 43%

Connecting ASEAN

Kuala Lumpur
Penang Kota Kinabalu Kuching

Bangkok Chiang Mai Phuket

Jakarta Bali Medan Bandung Surabaya

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)

# of hubs # of destination # of aircraft

3 31 2

11 60 76

4 50 33

12 61 92
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3-Step Strategy: Achieving Business Excellence through Continuous Improvement

Quality Management System (QMS)

Continual Improvement (CI)

Business Excellence (BE)

1st Step:
Establish companywide QMS & AirAsias Best Practices

2nd Step:
Establish 2 tier CI program:-1st tier Lean Six Sigma (Breakthrough CI Projects) - 2nd tier Quality Control Circle (QCC)

3rd Step:
Participate & win International & local awards/recognitions i.e. Prime Ministers Quality Award, Best Cabin Crew, Worlds Best Airline etc.

2nd Step - Continuous Improvement: Program Roadmap

2010

2011

2013

Phase 1: Lay foundation and lead change

Phase 2: Create momentum and regionalise

Phase 3: Sustain

Develop program framework and kick start continuous improvement program with pilot projects

Establish Continuous Improvement Program

Sustain and spread Continuous Improvement culture

Performance Improvement
1

HODs
1

Will facilitate each department in establishing their Quality KPIs

Will sit down with each HOD to identify one or two projects in their department before end of November 2010

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

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)

4 5

Enroll the projects into the system and update it - Monitor and review the projects periodically with the project team - Respond to project needs

- Annual project summary by 31/10 - List of candidates for rewards or recognition by 15/11 every year

CIP Results : the facts and figures

Projects completed Projects in progress Trained Black Belts

12 12 26

Trained Green Belts

Total savings

81
RM23.4 million

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Innovation : AA BRAIN Platform Key features

Post your idea

View the ideas

View popular ideas

Vote ideas you like

See your ideas in action

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

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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

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.

On Why People Should Fly Southwest:

Fly Southwest Airlines because you want to be treated like a person

Obstacles to Innovation
Top obstacles for innovation to happen in your company

Lack of funding to develop and commercialize ideas Lack of a clear direction to innovate

Lack of understanding of the customers needs Lack of great ideas

Lack 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 leaders
Page 20 Source: Leading Innovasian- Embedding innovation culture in Malaysian Organisations : Azim Pawanchik, Dr Suraya Sulaiman

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Inspired people in AirAsia

Kaew Ramp Boy IT Supervisor

Inspired people in AirAsia

Cabin Crew

Miss Thailand / Universe 2005

Cadet Pilot