IO Psychology: Case Study about AirAsia

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Trend Employee Health, Well-Being, Wellness and
Safety
Industrial and Organizational Psychology
AirAsia
Case Study
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PART 01
Introduction
CONTENTS
PART 02
Describe
Understand
PART 03
Predict
PART 04
Suggestion/Control
PART 05
Conclusion
PART 06
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01
Introduction
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Introduction

• Since the foundation of AirAsia, it has been
  providing everyone with affordable price of
  dreaming to fly around the world.
• AirAsia, a low-cost yet the largest airline in
  Malaysia, was established in 2007.
• Located in Sepang, Selangor, Malaysia, its main
  hub is KLIA2, at Kuala Lumpur International
  Airport (KLIA).

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Introduction

• The airline offers services with domestic and
  international flights throughout the Asia-Pacific
  and Middle East.
• It operates on routes to more than 165
  destinations covering 25 countries.
• Together with its affiliates in India, Indonesia,
  Japan, Thailand and the Philippines, AirAsia has
  become the largest low-cost carrier in Asia.

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Introduction

• AirAsia was chosen mostly in 2008 where the costs
  are kept low with online sales and stripped-down
  service.
• Consequently, AirAsia has earned RM241.72 million
  on RM1.05 billion revenue.
• AirAsia has been recognized as the best low-cost
  carrier of the world for 11 years in a row in the
  international travel and airline awards, together
  with the latest award for 2019.

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Introduction

• The airline started a joint venture with
  financial services firm Tune Money to open a
  frequent-flyer programme called BigPay,
  AirAsia Platinum Credit Card and AirAsia Gold
  Credit Card.
• This programme provides loyalty points to AirAsia
  customers and third-party merchants.
• Collected points can be used to redeem for the
  AirAsia customers flights.

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02
Describe
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Describe

• Before the Covid-19 crisis in 2020, AirAsia is
  expecting 360 more aircraft in 2026.
• Earlier, two hundred Airbus A320 NEOs were
  ordered at the Paris Air Show.
• The deal costed US18 billion with a considerable
  discount.
• In 2012, another 100 Airbus A320 jets were
  ordered.

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Describe

• At the Farnborough International Air Show 2016,
  one hundred A321 NEOs were ordered (US12.6
  Billion).
• These larger aircraft were planned to fly to
  airports with infrastructure constraints.
• A total of 935 aircraft for the Airbus A320
  family were ordered as the biggest airline
  customer in the aviation industry.

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Describe

• Unfortunately, AirAsia and other budget flights
  were blamed causing all airplanes were not
  allowed to fly.
• The air travel was marked as a primary cause for
  spreading the Covid-19 crisis in January 2020.
• Many infected people and deaths were reported in
  the news from March to May 2020.

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Describe

• Over 250 staff had been reduced, including cabin
  crew members, pilots and engineers.
• The remaining might have salary cut as bonuses
  and incentives were abolished.
• Being the future of Asias biggest budget
  airline, this is the greatest challenge for being
  in significant doubt in the airline industry.

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03
Understand
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Understand

• Due to the spread of Covid-19, everyone has been
  physically and emotionally affected.
• Burnout occur among staff in this industry due to
  fear of getting infected with this virus and
  stress of losing existing occupational position
  as well as insufficient wages due to paycut.
• Due to that, economic stimulus package is
  expected to be implemented to aid this industry.

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04
Predict
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Predict

• Due to the rapid spread of Covid-19, safety
  precautions has been prioritized to curb the
  spread of this disease.
• Lockdown has been implemented to restrict any
  form of social interaction which involves
  travelling.
• It would be difficult to generate income during
  the era of pandemic as the flight numbers and
  passengers dropped since the start of the
  lockdown.

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Predict

• People in this industry are affected mentally and
  physically.
• Employees here do not sufficient financial
  support due to travel restrictions.
• This deteriorates their mental wellness which
  would lead them to succumb unpleasant emotions
  such as anxiety, depression and stress.

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Predict

• The employees would fear of losing source of
  income and at the same time having concerns for
  their health.
• Could suffer from mental illness in a form of
  depression, anxiety and stress due to
  overwhelming pressure on them.
• Jeopardizes daily activities as they would not
  have the capability to apprehend those unpleasant
  emotions.

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05
Suggestion/Control
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Suggestion/Control

• Cognitive Theory is applied here to study the
  negative impact of Covid-19 before proceeding to
  take necessary steps that should be taken to
  recover traveling industrys or Air Asias
  economy crisis.
• Since Cognitive theory is the study of thoughts
  and processes within individuals, this should be
  utilize to evaluate people in this industrys
  emotions due to Covid-19.
• Tourism Crisis and Recovery Strategies (TCDM) to
  apprehend the damage caused by the pandemic.

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Suggestion/Control

• First effective TCDM is not to overuse funds and
  only use it when necessary.
• Second effective TCDM would be delegating tasks
  by addressing any tasks or issues which requires
  to be prioritize.
• Third effective TCDM is providing equal
  transparent information to public.

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Suggestion/Control

• AirAsia has taken initiative to venture in other
  industries which are currently high in demand
  which are food, shop, delivery and grocery
  industries.
• Malaysia Airlines, on the other hand, has
  implemented counselling sessions to employees in
  the effort of aiding them in overcoming the
  stress in work as well as the fear of Covid-19.

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Conclusion
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Conclusion

• This study is to evaluate the overall impact of
  Covid-19 towards the flight industry, especially
  on AirAsia.
• This study will provide a better comprehension on
  how affected the staffs are.
• This would aid AirAsia or any related agencies to
  implement any required precautions to protect the
  well-being on individuals moving forward.

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