BATIK AIR BUSINESS MODEL .xmind

INTRODUCTION: Over the last years, the rise of low-cost airlines has determined significant changes in the airline industry and has shaped the evolution of the existing business models. The increasing competition within the industry led to the emergence of a new hybrid airline, with attributes combined from both Low-Cost Carrier (LCC) and Full-Service Carrier (FSC) models.
PROBLEM STATEMENT: How does Batik Air become the most thriving airline company and strengthen their competitive advantage that differentiate their airlines from its competitors.
CONCLUSION
1. This research represents basis which allowed hybrid airlines to develop, by mixing attributes from both the low-cost and full-service carriers. However nowadays, the airline industry became complex system, lack of any standards related to the constantly changing strategy models adopted by Low-Cost Carrier and Full-Service Carrier where for the moment, hybrid airlines represent neither Low-Cost Carrier or Full-Service Carrier as they are no clear line determining the moment on an airline become "hybrid".
SWOT ANALYSIS
1. Maintaining the successful airline in hybrid airline industry.
  1. STRENGTH > Low prices: Offer flights overseas : 49 routes to 35 domestic and international destination for lower pricing compared to other big airlines.
    1. example: Route from KUL-SEOUL for Batik Air is RM 1599.00
    2. Route from KUL-SEOUL for Malaysia Airlines is RM 3961.00
  2. WEAKNESS > Cancelled flights and/or overbooking issues : Often have this problem since it is not a big airline company, therefore overbook and flight cancellation at last minute.
    1. Push away the loyalty of customers towards the company.
  3. OPPORTUNITIES > New routes : Since company operates new overseas flight - ground to cover for the possible new routes with new cities and countries.
    1. New routes from Batik Air such as Maldives
  4. THREATS > Large companies competition : Larger companies- Malaysia Airlines/ AirAsia bring or serve more quality services to their flights- Threats to Batik Air potential clients.
KEY PARTNERS
1. Batik Air would need to work with other external company in order to support their operations.
  1. Lion Air Groups
    1. Lion air is the largest LCC in Indonesia, partnering with them gives Batik Air an established market presence, instant name recognition and credibility.
      1. https://en.wikipedia.org/wiki/Batik_Air_Malaysia
    2. Shared distribution Channel, expertise and knowledge.
  2. Great Eastern General Insurance (Malaysia)
    1. provides insurance coverage for Batik Air passengers and their baggage that purchase travel personal accident insurance.
      1. https://www.malindoair.com/experiences/Travel-Insurance
  3. Airport Operation & ground handling
    1. manage and maintain the services at the airports where Batik Air operates
    2. provides necessary ground support services including baggage handling, catering services and aircraft clenaing.
COST STRUCTURE
1. Financial cost that Batik Airlines need to focus on in order to operate more efficiency and grow successfully.
  1. Aircraft & Maintenance (MRO)
    1. the cost associated with purchasing aircraft, leasing and purchasing equipment; avionics, engines and maintenance tools.
    2. Aircraft need regular maintenance to keep then in a good condition to fly. includes routines inspection to major repairs.
  2. Fuel cost
    1. The airlines must purchase fuel for every flight its operates, which can be significant cost.
  3. Marketing and advertising
    1. Batik Air incurs advertising and promotion expenses to market and sell its product to the customer.
KEY ACTIVITIES
1. Batik Air objectives are to satisfy the customer needs and wants to maintain their airline value.
  1. - Provide carrier services which is they offer to all the passenger who want to travel to domestic or international with reasonable price.
    1. https://business.expertjournals.com/23446781-515/
  2. - Networking. Batik Air is a subsidiary company from Indonesia. Networking will get greater access to better talent. Plus, company also can expension into new markets.
KEY RESOURCES
1. Batik Air use some key resources to make their business model succesful and sustainable
  1. 1. Fleet of aircraft
    1. Batik Air's fleet consists of Airbus A320 and A320neo aircraft. These aircraft are a key resource for the airline, as they enable Batik Air to transport passengers to its destination
  2. 2. IT Systems
    1. Batik Air uses a range of IT systems to manage its operations, including reservations, flight scheduling, and crew management. These systems are a key resource for the airline, as they enable Batik Air to manage its operations more efficiently and effectively
  3. 3. Brand reputation
    1. Batik Air's brand reputation is a key resource for the airline, as it helps to attract and retain customers. Batik Air has built a reputation for providing high-quality service and safety to its passengers, which has helped it to become on of the leading airlines in Indonesia
      1. https://guides.erau.edu/aviation-business
REVENUE STREAMS
1. By implementing a hybrid airline model, Batik Air can increase their revenue streams by offering customers a wider range of products. By offering passengers more options and flexibility in terms of pricing and services.
  1. Adoption of the hybrid airline model has proven to be successful for many airlines around the world including AirAsia X and Euro Wings.
  2. Batik Air also has adoption of the hybrid model that allowed the airline to expand its customer base and improve financial performance.
  3. Batik Air may boost their total income and profitability by acquiring money from different sources, including as ticket sales and ancillary fees.
CUSTOMER RELATIONSHIP
1. Batik Air makes an online services where customers can book flights through online without having to interact with anyone.
  1. Customer support came during and after the booking
  2. example: support through phone, e-mail or even through social medias like Instagram, Twitter.
    1. https://medium.com/seed-digital/how-to-business-model-canvas-explained-ad3676b6fe4a
VALUE PROPOSITION
1. Batik Air have unique value proposition that combines the benefits of both Low-Cost Carrier and Full-Service Carrier. It is expected to attract a wider customer base.
  1. Cost Efficiency
    1. Hybrid model of Batik Air allow cost optimization by offering a mixture of lower operating costs assosiated with low-cost carriers and the revenue potential of full-service carrier airlines.
  2. Market Expension
    1. The business model enables Batik Air to tap into different market parts simultaneously.
  3. Competitive Advantage
    1. The hybrid model of Batik Air can positions the airline as unique player in the market differentiating it from both low-cost carrier and full-service carrier.
CUSTOMER SEGMENTS
1. Batik Air have their own target customer that may lead the company runs smoothly to achieve target profit.
  1. Business class
    1. Their target for this segment is for passenger who want to have full inflight services with low price ticket.
      1. https://www.sabre.com/insights/customer-segmentation-for-airline-marketing/
  2. Economy Class
    1. For passenger who want to save cost and most of the passenger in this segment for domestic flights or flight less than 10 hours.
CHANNELS
1. Batik Air offers several channels for customers to book flights and manage their reservations.
  1. 1. Airline's official website
    1. Customers can visit the website and search for flights based on their preferred travel dates and destinations. The website also provides information on flight schedules, fares and special offers
  2. 2. Mobile app
    1. The mobile app is available for both Android and iOS devices and offers similar features to the website, including flight search, booking, and check-in.
  3. 3. Third-party travel agents and online travel agencies
    1. These channels may offer additional discounts and promotions, but it is important to check the terms and conditions and any fees associated with booking through these channels.
      1. https://www.strategyzer.com/business-model-canvas/channels