Applying the rigid flexibility model in a service setting : A case - study of AirAsia

This article explores the possibility of applying the rigid flexibility model to a service setting. The rigid flexibility model was originally developed to explain factors that determine flexibility in a manufacturing environment. Collins and Schmenner (1993) introduced the model and recently, Giovani J.C. da Silveira (2005) reexamined it and provided some empirical validations. Adjusting to a different scenario of the service industry, this article makes an attempt to describe the concept of flexibility that departs from what is presently available in existing literature. The study presents a Malaysian case to describe the model. The operation of AirAsia, the market leader of low cost carriers (LCCs) in Asia, is suitably selected, firstly, because the company has shown a good record of bringing about innovative ideas into the industry. In addition, the industry itself, especially in the Asian region, is observing a growth rate of 4.2% above the global rate of 3.2% and IATA has forecasted that the passenger traffic will grow at 6.5% while cargo traffic will expand at 8.5%. These make the application of the model more relevant. This article will highlight best practices utilized by AirAsia, in terms of creating simplicity and discipline, the two dimensions of rigid flexibility proposed by Collins and Schemenner (1993).