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Malaysia Airlines

Satisfactory Essays

Strategy in the Market Place:
Malaysia Airlines (MAS) has announced their new business plan for year 2012, aiming to restore their profitability on the premium sector, as to become the preferred premium carrier. (Business Plan, Our Way Forward, December 2011, page7)
By achieving the vision as to become the preferred premium carrier, they will be launching a new regional premium airline. In the first half of 2012, they will launch new short-haul brand, flying an entirely new Boeing 737-800 fleet, as to focus the unique customer needs of regional premium travellers. With the new aircraft, there will be a quick realise on the savings for fuel bills and maintenance expenses. Furthermore, by introducing these new aircraft will give them …show more content…

All these were resulted them to have millions of Riggit losses weekly. (Business Plan, Our Way Forward, December 2011, page6)

Opportunities

Tourism Industry
The Government through its Tourism Ministry has been focusing on the development of tourism industry in Malaysia for year 2012. For instance, Malaysia International Tourism Exchange 2012 (MITE 2012) and 1Malaysia International Tourism Night Floral Parade 2012, believed to attract lots tourist to Malaysia. (www.tourism.gov.my)

Threats

Low Cost Carrier
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)

Conclusion & Recommendations:

Having analyzed thoroughly with Malaysia Airlines current situation, we would like to make several recommendations. We would recommend to HOLD for at least 24 months period for observation. * Potential restructuring exercise under the

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