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IO Psychology: Case Study about AirAsia

IO Psychology: Case Study about AirAsia

Industrial-Organizational Psychology
Trend: Employee Health, Well-Being, Wellness and Safety
Case Study about AirAsia
- Introduction
- Describe
- Understand
- Predict
- Suggestion / Control
- Conclusion


Rachel Hong

August 31, 2021


  1. Trend: Employee Health, Well-Being, Wellness and Safety AirAsia Case Study

  2. PART 01 Introduction PART 02 Describe PART 03 Understand PART

    04 Predict PART 05 Suggestion/Control PART 06 Conclusion
  3. 01 Introduction

  4. 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).
  5. 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.
  6. 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.
  7. 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.
  8. 02 Describe

  9. 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 US$18 billion with a considerable discount. • In 2012, another 100 Airbus A320 jets were ordered.
  10. Describe • At the Farnborough International Air Show 2016, one

    hundred A321 NEOs were ordered (US$12.6 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.
  11. 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.
  12. 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 Asia’s biggest budget airline, this is the greatest challenge for being in significant doubt in the airline industry.
  13. 03 Understand

  14. 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.
  15. 04 Predict

  16. 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.
  17. 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.
  18. 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.
  19. 05 Suggestion/ Control

  20. 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 industry’s or Air Asia’s economy crisis. • Since Cognitive theory is the study of thoughts and processes within individuals, this should be utilize to evaluate people in this industry’s emotions due to Covid-19. • Tourism Crisis and Recovery Strategies (TCDM) to apprehend the damage caused by the pandemic.
  21. 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.
  22. 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.
  23. 06 Conclusion

  24. 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.
  25. Thank You!