Turning Around Malaysia Airlines

1428 Words Dec 7th, 2012 6 Pages
12

Nur Ain Binti Muhammad Yusuf

Turning Around Malaysia Airlines
Turning Around Malaysia Airlines

Table of Content NO | TITLE | PAGE | 1.0 | Executive Summary | 1 | 2.0 | Introduction to Case Study | 1 | 3.0 | BTP1 Assessment | 1 | 3.1 | Financial Analysis | 1 | 3.2 | SWOT Analysis (BTP1) | 2 | 3.3 | BTP1 Turnaround Analysis | 2 | 4.0 | BTP2 Assessment | 3 | 5.0 | Bottlenecks & Recommendation | 3 | 6.0 | References | 4 | 7.0 | Appendices | 5 |

1.0 Executive Summary

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
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This BTP1 plan can become the turnaround aspect financially and non-financially.
Threat
Even AirAsia is seen as Mas biggest threat, however, seeing that how both of these airlines promotes entirely different packages and offerings, Mas deemed these few obstacles as their main threat, which is the volatility of fuel price due to Iraq invasion by US, staff resistance of given plan and government intervention in setting up boundaries for the CEO to act accordingly to what they thinks fit.

3.3 BTP1 Turnaround Analysis
BTP1 Turnaround Analysis will be done based on the core strategies in which BTP1 proposed (in which two important aspects are further elaborated).
First is by financing and aligning the business on the Income Statement. As per financial analysis above mentioned, MAS shows remarkable transformation during this phase. Based on Exhibit 1.1 the actual performance supersedes the projected plan projected a year ahead of time. This is a success due to fares increment, elimination of unprofitable routes and increase in efficiency.

Other core strategy is flying to win customer and by observing and studying the non-financial aspect during the implementation of BTP1, they succeed in maintaining the customers’ value. This resulted in MAS receiving 11 non financial-awards during this phase including 5-Star Airline Award, 2006 and 2007 from Skytrax, Best Airline to Asia, 2006, Travel Weekly Globe Award and numerous cabin service awards from Skytrax, Readers Digest

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