Management Information Technology Essay ukessays.com /essays/information-technology/malaysian-airlines-and-computer-systemmanagement- information-technology-essay.php Malaysian Airlines (MAS) has won many awards for its quality customer service since it began on 1937.
Since then MAS has increased its fleet size by providing both cargo and passenger travel. The company had gone through the tough times (2005) and some of its best times (2008, 2009) in the last
10 years. Even though the fuel prices are increasing MAS have reduced some of the costs of maintaining the fleet to be successful in the industry. By providing some of the best services in terms of technology and maintained the quality of the applications and hardware by outsourcing these areas to some of the most well-known companies in the industry. The company is currently implementing the hub-and-spoke network which considers Kuala Lumpur as the hub in the network. The increase in
Low-cost carriers (LCC) has led to MAS changing some of its strategies, and in Business Turnaround
Plan (BTP) 2 it was clear that the company is targeting to become a Five Star Value Carrier (FSVC).
Current Business Model and recent Strategies
The main hub of MAS is in Kuala Lumpur while it has recently announced its selection of Kota Kinabalu as its eastern hub. The reason for this is that it is targeting China, Taiwan, North Asia, Indonesia and
Australia markets (Karantzavelou, 2010). MAS recovered from the loss in 2005 by cancelling some of the unprofitable routes and furthermore changing its operations from point-to-point services to a huband- spoke service. Using hub-and-spoke model it would reduce the number of routes and some of the more complicated tasks could be carried out at the hub rather than each node. Some issues that may need to be addressed may include that delays in the hub may affect the whole network by causing delays. Figure - Hub-and-spoke network