Malaysia Airlines Business Plan

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

The “ Battle Of The Air” has been used to describe current situation in the airline industry. The emergence of “ No Frills “ discount carriers such as Air Asia, Mahlindo, Firefly have threatened the survival of the traditional giants such as MAS, SIA, Thai Airways in the APAC regions and even the Big Boys across the continents such as United, Delta, Continental, Luftansa, Emirates and US Airway ( Myron J.Smith, 2012 ) face competition

Overall, the five forces model suggests that the overall intensity of competition in the airline industry is likely to be severe. Back in the early 1980 's competition was very intense. During the late 1980 's the monopolization of major routes by a few major carriers, the limited availability of free landing spots at major hubs and the emergence of limited brand loyalty and tacit price agreements have all helped reduce the intensity of competition. However, as already mentioned, slumping demand in the early 1990 's plunged the industry once more into a severe price war. Airline travel is a commodity-type product, with limited potential for differentiation.

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.

In 2010, views on whether low-fare airlines would continue to flourish in Asia varied. Three factors regulation, population demographics, and socioeconomic trends -drove this calculus. Although the target consumer base for AirAsia was enormous -more than 500 million

The risk of entry into the airline industry by potential competitors is low due to the “liberalization of market access, a result of globalization. According to the IATA (International Air Transport Association), about 1,300 new airlines were established in the last 40 years,” (Cederholm, 2016). The cost structure of businesses in an industry is a determinant of rivalry. In the Airlines Industry, fixed costs are high, because before the organization can make any sales, they must invest in air crafts, fuel and service employees. These items come attached with hefty price tags. Industries that require such enormous amounts of start-up capital as predicted by many analysts

Because of the deregulation of the government policy, there are a number of new airlines that entered the industry at first. However the most significant barrier to entry that new entrants face is significant post-entry competition from existing major airlines. The existing market is already saturate. In order to open market the new entrances have to lower the price of their limited routes. But they are facing the stronger competitor who can provide lower price on the same routes while create profit on the other non-competing routes.

• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success

The main problem that concerns this case is that JetBlue has the need for slower capacity growth but the exact size of the cuts from each of the airlines’ two aircrafts was far from obvious. The contents of this case analysis will show how they managed to get to this point through the use of business strategy tools. Also I will give some recommendations on how to resolve the issue at hand.

Singapore Airlines (SIA) is one of the leading companies in the airline industry. They are well-known for their customer service. The basis of the philosophy of SIA is the fact that the quality of service will decide the success or failure of an organization. The management believes in providing value for the money the passengers pay. They recognize the vital role of the employees in this endeavor (Wyckoff, 1989). A well-managed organization considers satisfied and motivated employees as the basic source of improvement and success (Tella, Ayeni, & Popoola, 2007). Like any other organization, the SIA has room for improvement, in their new crew policies, advertising, and practices in retraining. These improvements could enhance them in the eyes of their employees and customers. To bring about improvements, there need to be some changes. The change processes are always associated with dilemmas and challenges. The efficiency of the change efforts and a democratic leadership are important in the resolution of the dilemmas and meeting the associated challenges. The desirable traits of such change efforts include awareness and acceptance of the need for change, foresight, team building aiming at the growth of people (Frandsen, 2014). For example, if the management recognizes and acknowledges the need for periodical retraining of the new employees in the interaction with the passengers, and arrange provision for this, the crew will become efficient in this skill. They will be more

1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).

The implications of this analysis are that the focus on the Chinese market is justified. The Chinese air travel industry is booming, and indeed this is fueled by that country's rapid growth and the increased demand for

The purpose of this report is to analyze the strategic situation of Malaysian Airline (MAS). The company was in 1963 it is a government owned airline, the airline operates both transatlantic and transpacific flights. Mas has received more than 100 awards since it started operating such as the leading airline (2011) Asia’s leading business class airline (2010) as well as the five star airline (2012). This has helped the company to build up its image as the top airline in Malaysia. They are a number of strategies which MAS can use to make the company to be more profitable strategy implementation which is the process used to overcome the external factors (Hambrick, 2007). A company can get affected if the company management

Notwithstanding Cathay Pacific is one of the preeminent players in the aircraft business in Asia-Pacific, there are still capable contenders, for example, Singapore Airlines, Qatar, and Emirates Airlines. What's more, the charge of fuel is its most huge proportion of the altered costs for these. As indicated by information from the budgetary report of 2015, the fuel expense of Cathay and Dragonair was about HK$ 16,619 million, declined by 11.6%, in disagreement of the 2014's. Nonetheless, it was because of the sensational droop from 2014 (Cathay Pacific Annual Report, 2015).

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