Malaysia Airlines (MAS) is our country, Malaysia national airlines. MAS was established in 1 May, 1946 as Malayan Airways. The headquarters of MAS are located on the grounds of Sultan Abdul Aziz Shah Airport in Subang. It is undoubtedly that MAS was an award-winning airline. The airline has won World Travel Award (WTA) 2013 and Best Airline Signature Dish 2012. MAS has more than 1000 aircrafts including A380 airbus, Boeing 737- 800 and Boeing 747- 400P. These aircrafts fly to more than 110 destinations around the world. Some of the destinations are Tokyo, London and Paris. The missions for MAS are to provide air travel and transport service that rank among the best in terms of safety, comfort and punctuality as well as to be a profitable airline. …show more content…
It is undeniable that one of the crises being faced by MAS is financial problem. Moreover, our national airlines also faced a very severe branding problem. Malaysia Airlines has suffered from two aviation tragedies, which are MH 370 incidents and MH 17 incidents. In order to overcome these severe crises, MAS need to apply several effective solutions including restructure the business model as well as rebrand the national airlines. If MAS cannot overcome these two main crises, this airlines will bankrupt soon. As Malaysian who love and care for our national flag carrier, Malaysian should concern about the MAS crises, including the causes that lead to the crises, the effects from the crises as well as the solutions to solve these …show more content…
Firstly, the aircrafts fuel prices have been increased all over the years. The drastic increased of the fuel prices has caused MAS to pay more. Secondly, the maintenance and repair costs for the aircrafts have been escalated. Normally, the aircrafts for our national airlines are old and have been used for many years. Thus, these aircrafts need to be maintained and serviced regularly to ensure the safety of the aircrafts and passengers. The maintenance and repair costs are high. Thirdly, MAS is facing a high competition. MAS has to compete with strong and direct competitors from Malaysia as well as other countries. For example, MAS faces competitions from Singapore National Airways internationally and Air Asia dosmetically. Next, there are too many unprofitable routes for MAS. 40 percent of the current routes are unprofitable. Some of the unprofitable routes are Los Angeles, Buenos Aires and South Africa. MAS has lost a lot of money to run these unprofitable routes. This financial crisis has caused a very serious effect. The effect is the cash flow for MAS has been weaken. MAS is now running out of cash. Obviously, the incomes for MAS are not enough to support the airline basic expenses. The airline has not enough money to pay for fuels and salaries for their staffs. MAS cannot afford to pay other expenses as well. The airline has no money to continue for its operations. This will lead to bankruptcy eventually. Our
The purpose of this report is to show how Qantas was affected by global financial crisis. Qantas is the second oldest airlines in the world. It is one of the tough competitors for other airlines. But Qantas was affected badly during the crisis, the tickets prices went up because the fuel prices went up. I have suggested few recommendations for Qantas to bounce back , what can be done without laying of the employees and have also spoke about cost cutting.
Companies are interacting with people through the use of social media due to its low cost and the number of people they can send their message to, especially if it is an advertisement on a product they want to sell. Because of the rising tide of social media and the necessity it is for companies to use it as a major tool today, it can be catastrophic if misused. This is why companies need ringmasters to manage the social media activity. One company in particular that has suffered from a catastrophe on social media is Qantas Airlines. A major airline company that had their promising plans backfire because of a concept called, Hashtag Hijacking. Ringmasters and Hashtag Hijacking correlate with each other because hashtag hijacking can be avoided
The Airline Industry is a fascinating market. It has been one of the few industries to reach astounding milestones. For example, over 200 airlines have gone out of business since deregulation occurred in 1978. Currently, more than 50% of the airlines in the industry are operating under Chapter 11 regulations. Since 9/11, four of the six large carriers have filed for and are currently under bankruptcy court protection. Since 9/11 the industry has lost over $30 billion dollars, and this loss continues to increase. Despite the fact that the airline industry is in a state of despair, JetBlue has become the golden example, a glimpse of what the industry could be.
Is change going to keep Qantas in the air, or force them to the ground?
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” William Pollard’s, a 20th century physicist, words show us the power of being proactive, and igniting change to strengthen a company’s productive climate (Sellers, Boone, Harper, 2011). Acme Airlines flight attendants lacked incentive to improve the quality of their work, as a result of distrustful management and overall frustration within the company. Acme took successful steps to rebuild their FA program into a more relationship oriented work environment. Through an understanding of effective leadership, we will use the
The Southwest Airlines company and its culture is one that is often cited in today 's business classes. The airline is widely known to be “different” compared to many of its competitors, a result of its founding values and strong corporate culture. This culture developed early in Southwest’s history and was deeply entrenched due to the competitiveness of the airline industry, as well as due to some of the pressures experienced as a result regulatory issues and stiff competition.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
The airline industry is very susceptible to changes in the political environment as it has a great bearing on the travel habits of its customers. An unstable political environment causes uncertainty in the minds of the air travellers, regarding travelling to a particular country.
The Malaysia Airline System (MAS) reported a loss of over RM1.3 billion for the Financial Year 2005. It was unacceptable to many parties such as the stakeholders and the government especially the announcement was made at the same time as some of MAS regional competitors reported strong profits in the same year.
Jet Airways is a Mumbai based airline which was incorporated as a limited liability company in April’92. In May’94, all the shares were transferred to Tailwinds International co-held by Naresh Goyal (60%), Gulf Air (20%), and Kuwait Airways (20%). In Oct’97, as result of change in civil aviation policy, forbidding foreign investment in passenger airlines, Goyal took control of the entire company.
These job losses are part of major restructuring of the airline, including the appointment of a new chief executive. The state announced plans to take full ownership of its 77-year-old flag carrier after trading in the airline's shares was suspended, when it was valued at less than 15 percent of its 2012 peak. Currently Malaysia's sovereign wealth fund, Khazanah Nasional, is the 69 percent majority owner, and plans to buy out other shareholders at a premium. Therefore, the rate of unemployment in Malaysia has increased after cutting
One of the characteristics of service offered by AirAsia is intangibility. Services intangibility is inevitable and sometimes could be a challenge for every service provider. According to Pride & Ferrell (2011) intangibility of services can be defined as the characteristic that the service is not physical and cannot be perceived by the senses. For instance like AirAsia which provides flight services, it is impossible for the customers to touch the flight as it is a journey to specific destinations. They might be able to touch the plane, but in the context of services, the customers do not own the physical tools or equipment used to deliver the service but are only entitled to get the service which is the flight service.
Can anyone imagine what will happen to Malaysia after a few more decades? Debt crisis in Malaysia is getting more severe due to lack of management among individuals. Serious debt crisis might lead to bankruptcy to our country. Nation leaders should lead others away from debt. If this scenario continues, Malaysia might follow the footstep of Greece, Spain, Italy, and Portugal. Debt crisis can be avoided by providing trainings and courses to the employees, improve individual personal finance management and filtering candidates in hiring process.
This issue has great impact on Tiger Airways, many steps or tactics been taken by them to improve their reputation as well as gaining more profits and reducing losses. The consumer behaviour towards services provided by Tiger Airways was affected by some problems that seem to be risking the lives of their passengers. This explains the loss of immense profit that led them into losses. In gaining back the confidence of their customers, they made many promotions by offering much lower prices and deals which includes hotels as well. For example, their customers could rent certain hotels at cheaper price and save up their travelling expenses. In short, Tiger Airways is struggling to get out of the pothole after suffering three consecutive losses so that they do not have to end their business.
The Singapore Airlines needs to keep its superiority and stay on top of the competition in the international market, despite the bad times associated with a global economy or strategies implemented by main competitors.