Disadvantages Of Privatization In Malaysia

The Airline industry today offers services to nearly every place of the globe. The following economic factors that include consumer behaviour, currency rate, purchasing power of consumers, oil price plus the inflation plays key role in deriving the country’s economy. According to (Macmillan & Tampoe 2000), Airline industry itself is a leading economic force in terms of both its effects on associated industries for example aircraft manufacturing, operations and tourism. In this regard, this paper discusses the economic factors that affect the decision, the board of Air Asia needs to consider before acquiring 10 units of Air Bus model A350-1000 to increase its fleet of long haul airplanes.

AirAsia X’s main strength is the low price that it offers for customers. For most airlines in the industry, it is extremely difficult to keep the price low for long-haul flights as the full services offered in most airlines increase the operating costs. In addition, X also benefited from the expansive network, infrastructure and customers that AirAsia already has that enabled them to grow fast with good financial outcomes. On the other hand, X’s main weakness is the technology. The website always crashes and the company doesn’t have its own database of customers. X also doesn’t enjoy from a strong relationship with the Malaysian Transport Ministry. This can be detrimental to the company as it finds competing with Malaysia Airlines in some profitable routes to be difficult. However, X has some opportunities. For example, in order to keep the low price ticket, cooperating with fuel companies which will offer low fuel price and increasing demand in low cost airlines will bring profits. The major threat for AirAsia X is the protectionist measures taken by the Malaysian government that prevented X from flying planes to some destinations with high demand. This would have been a very

Asia being the largest continent of the world has always been home to diverse traditions, cultures, ethnicities and wonders. The country of Malaysia is in the southeastern part of Asia which is a major tourist attraction. There are numerous international airlines that take visitors and travelers to Malaysia from all major parts of the globe. There are also a number of domestic flight networks in Malaysia that takes passengers to their desired destination in the country. It offers regular flights among most of the Malaysian cities. With the introduction of budget airlines, flights to Malaysia have come within the range of most people.

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

Public services provided by the government can get very expensive. In order to help reduce/eliminate these high prices some governments choose the option of privatization. Privatization is mainly selling a public service to a private company, making the service no longer under the government’s control. Public services such as, electric utility companies, health care, highway repair and upkeep, and as well as water have been privatized around the world.

The aviation industry of any nation acts as a contributor to its economic growth, helps in globalisation and creating an international image. It is the best in terms of the fastest, safest and convenient mode of travel. Even though it is an expensive one, it is expanding its markets across the middle-class who are ready to spent money on leisure trips. Thus it is truly stated that aviation forms a vital core infrastructure area without which a country economy is handicapped.

Being a global company founded in the year 1972, Singapore Airlines has become one of the world’s largest and most successful airlines over the last forty years, focusing on providing a well rounded customer experience and ultimate luxury service, with their tagline “A Great Way To Fly”.

During the last three decades, privatization has become increasingly popular in our government. This noticeable growth of privatization of public services has generated lots of discussions and debates among many scholars and left many of asking the questions.

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

The strong competitive advantages which low – cost airline such as Air Asia is equally causing Mas to restructure their operations, there resource such as airplane and the quality of their cabin crew tends to be looked at deeply. Mas has the oldest airline in Malaysia they have to use the advantages to continue to stay at the frontline in the aviation industry by them using available resources effectively with the help of the government and come up with a strong strategy so as to compete and stabilize its product in the aviation industry.

Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees."

E-Commerce-Allowing Malaysia Airlines to reduce distribution costs by providing a convenient, easy to use Internet Booking Engine.

Malaysia Airlines (abbreviated MAS), is the government-owned flag carrier of Malaysia. Due to fuel price hiking, inefficient management, global economic crisis, government intervention and low load factor, MAS suffers substantial loss which

Continuous rapid economic growth has raised Malaysia from an agricultural and commodity-based low-income economy to a successful middle-income economy. As a mixed economy, Malaysia has elements of a free market economy nevertheless with intervention government. Malaysia's economic activity consist of a mixture of sectors whereas mixed of capitalism and socialism The strong economic performance has helped improve the quality of life for Malaysians and supported advances in education, health, infrastructure, housing and public amenities and others.

The current market, Malaysia Airlines does not have a top two position in any market beside domestic Malaysia. But unfortunately majority of the domestic routes has been covered by AirAsia due to low cost travelling. Furthermore, there is another low-cost airlines (Mandala Airlines) which operating daily flies directly to Jakarta from Kuala Lumpur, Medan to Singapore. There is an increase on the Mandala Airlines, due to historical links of families and friends in both countries. (Charles Fernandez, Metrobiz, 16 May 2012, page 20)