Darmadi: A Result Oriented Leader

Sumber: thetelegraph.co.id

After a success in Malaysian market, AirAsia spread its wing to neighboring Indonesia.

Entering Indonesia in 2007, AirAsia soon became one of the preferred airlines for the locals. AirAsia contributes 42 percent market share from international flight. “Asian is as same as Europe. It has 500 million people live there. So it is a potential market to win,” Darmadi says.

As a low-cost carrier, AirAsia enables people from lower middle class to the upper class to fly to any Asian country without emptying their pockets. Airline isn’t an exclusive transportation anymore and flying doesn’t only belong to the upper class society. The low-cost airline founder, Tony Fernandez realized he wasn’t the first in the business with Southwest Airlines already flying above American skies. But he was sure, with the right moves; affordable flight is the key to success.

Online Strategy

The fact that LCC isn’t a new product in air transportation business pushes AirAsia to create new strategies including online ticketing. When AirAsia entered Indonesia market in 2007, only 55 percent people booked ticket online. They were accustomed to booking through travel agent. It was a challenge for LCC which should have at least 95 percent of its ticket booked online.

That got Darmadi worried, especially when at the time AirAsia was dubbed “the travel agent killer”. Unlike Thailand and Malaysia, Indonesian market still had to be educated about online booking.

“After about five years here, 80 percent of people book ticket via Internet. eTicketing is more efficient in cost. And travel agents now are our ‘freelance agents’ that meet customers directly. Our online ticket booking on average is done by travel agents,” he explains with a smile.

Aside from being agents, Darmadi suggests that they create some packages for holiday and tours. They started months before the holiday season began, booked tickets, packaged it with hotels and sold it to customers.

Yet, as a newcomer, Darmadi knows he has more challenges than going online. AirAsia still has to win many customers’ hearts, pointing to the facts that 50 percent of its passengers are first-time customers. How did he do it?

“Average Indonesian people love to travel, especially to foreign countries. We make it easy for them to go abroad by providing affordable tickets,” he asserts.

 

A Low Profile CEO

As a local CEO, Darmadi is responsible for technical support. Despite having only 17 airplanes, trying to beat competitors’ with an average of 80 airplanes, Darmadi is optimistic about AirAsia’s existence in the market. One reason is customers’ loyalty. Another one is the SOP created by the head office.

“System is centralized from the head office. As long as we are in accordance with SOP, customers will be served anytime they meet problems. The system enables us to solve the problem effectively.”

The system enables his staff to do their work anywhere without having their presence in office. If Darmadi can make a decision to get a work done in a café, so can his staff. End result is what matters most for a result oriented leader like Darmadi.  

Darmadi is also a ‘down to earth’ CEO. He communicates with everyone in each level without a gap. For him, CEO is an extended connotation of branch manager. So he never feels more important when he’s meeting managers or supervisors from other companies.

“In my office, I directly meet my staff in lower level, help them and ask what problem they have. The culture brings me to treat other people as my friends.”

Focusing on Indonesia

 In developing business in Indonesia, Darmadi proposes regularly to central management based on demands and needs. At least we make a purchase order of five new planes each year. He also negotiates with the Indonesian government about new routes. In his calculation, new routes to regional countries mean efficiency in local destinations.

“One flight to Singapore means five flights to Surabaya. So, AirAsia and the government can get more income with efficient cost,” he asserts.

In his opinion, AirAsia Indonesia should support domestic economy, especially in the situation where unemployment rate is higher. That’s why Darmadi recruits local people for pilot, co-pilot and cabin crews.

“Our regional flights have a blend of local and foreign crews.”

  

When it comes to safety, Darmadi goes all the way to ensure that AirAsia passengers should have nothing to worry about. That includes having crews, especially pilots and co-pilots, live near the airport.

“We can imagine when a pilot’s home is far away, or they live in suburb area. We must pick them up, take them to airport and it takes hours. They will feel tired before flying. It is very dangerous for him and our passengers.”

Aside from the pilots, he also focuses on airplane maintenance for safety. Management buys new planes directly from manufactory to be used for the next 20 years. With technology that is available today, problems can be detected and repaired by computer.

“Maintenance is expensive. But it can minimize a lot of risks,” he concludes. 

Sumber: Soewarna Digest 19th Edition