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
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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
In general, Boeing’s global economic expansion has been driven by the far-reach of technological developments throughout the world and the steady decline in fuel prices. In the past, emerging markets have driven economic growth, but the world economy is presently experiencing some regional divergence from such a trend. According to Boeing’ online publications, the company’s outlook has incorporated the effects of those market forces in the growth of the aviation industry. Company sources state that Boeing is currently targeting a market expansion through the production and delivery of single-aisle airplanes, which have been becoming its largest share of new deliveries. Another market expansion taking place for Boeing is in the air cargo markets as a result of the increase in international trade, and a multibillion-dollar sale contract with one of the top and largest Chinese airline company has been another part of Boeing international expansion in Asia. After-sales market, which includes the sales of spare parts as well as monitoring services, represents an equally important venue of market expansion for Boeing, and according some inside analysts, the company is joining the programs of the Commercial Airplanes departments and the Defense segment to be able to attain the margins of growth of such service programs. In addition, Boeing remains in close
AirAsia was originally launched to compete with Malaysian Airline by offering low-priced air travels. It was, however, unable to liberalize the market to beat its rival and win and maintain its own niche. In 2001, Fernades bought AirAsia and hired experts in low-cost airline business to restructure the business model in use at AirAsia airline. This was the turning point for AirAsia. AirAsia is currently the second largest Airline in Malaysia and offers low-cost airfares. This is in consistence with their mission of providing affordable airfares and their vision that claims that everyone can now fly.
network and this allows the company to dominate the short haul segment of the airline
Part 1 Overview and Fiscal Analysis - One of the prime examples of the new paradigm in the airline industry is Jet Blue, an American low-cost, no-frills airline. Its main base is JFK international airport in Queens, NY. The airline's main destinations are U.S. hubs, flights to the Caribbean and Bahamas, and some to Central and South America. It is a non-union airline with a fleet of just under 200 craft, with another 50 ordered. The primary strategy for Jet Blue is the customer value proposition. The airline is not fancy, does not try to offer a number of amenities, only has a few routes, and is primarily trying to base ridership on low-cost fares. Revenue for 2011 was $4.5 billion, with operating income of $322 million and net income of $86 million. The company has a total of over $7 billion in assets showing that 2011 was a good year for the airline, even though revenues were slightly lower than the previous year (Jet Blue Annouces 2011 Annual Profit, 2012).
The passenger airline industry is very mature and competition has forced many airline companies to reduce prices in order to utilise capacity. A remote analysis and industry analysis was carried out showing that the industry’s growth and profitability will be low.
Air Asia is serving three billion people who are currently poor understanding and connectivity, high fares. To work, whereby employees deal is part of a large family of best companies. In order to achieve the lowest cost, so that everyone can fly with Air Asia. Maintaining the highest quality of products. Embrace technology to reduce costs and improve service levels also aimed at implementing the 70 million passengers a year, from 2014 begin within six years. Moreover, set up the low-cost airline terminal at Kuala Lumpur International Airport into a regional hub for low-cost air travel. Last is planning to introduce more routes, increased frequency and development of existing one. A
This report is a strategic review of British Airways. It has used various tools to analyze internal and external environment of the British Airways, and provide valuable recommendations. In generally, today’s airline market becomes more and more competitive. BA also getting chances to increase the number of passengers and expand market size mainly due to British Airways has good brand image and reputation. The Company devotes to provide high quality service for passengers, and also undertake relevant responsibilities, especially on its social and environmental responsibilities, such as setting up aim
This report is the analysis of the youngest airlines companies of Low Cost Carriers (LCC) Tiger
increase the size of its fleet to as many as 299 Boeing 737-800 aircraft by FY2013. Additionally, the
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.
In Air Asia, the main function of the top management is to determine the objective of the company, which in this case is to ensure that the airline stays as a leading low cost carrier airline. When objective has been determined, it is the top management responsibilities to plan which strategy to be implemented to ensure objective can be achieved. Top management considers planning as the starting point of managing necessary tasks. This management will assigns the planning process to planning department to ensure clear understanding of goals, market and
E-Commerce-Allowing Malaysia Airlines to reduce distribution costs by providing a convenient, easy to use Internet Booking Engine.
As a part of Crossman Communications, this essay will go into depth about the client, Malaysian Airlines and their recent campaign. Malaysian Airlines founded in 1957, currently flies to 53 different destinations having over 12 000 employees (Malaysian Airlines, 2017). The airline company offers the best way to fly to and from Malaysia flying over 40 000 people everyday (Malaysian Airlines, 2017). The campaign was set to rebuild the trust of Australian and New Zealander flyers due to the multiple aircrafts that have gone missing which have affected families in both countries (Crossman Communications, 2015). Having said that, the goal was to improve bookings, and generate positive media coverage (Crossman Communications, 2015). This essay
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
Daft (1997) states that failure to do so may result in unsatisfied stakeholders withdrawing their support, leading to serious implications for the organization.