The hub and spoke model is almost all of the airline’s aircraft flies on spokes between destinations and the hub, with very few direct flights between other destinations. (“What is the Hub and Spoke Model?,” n.d., para. 1).
The MAS Way provides the framework for our Business Turnaround Plan: 1. Flying to win customers- MAS will reconfigure our network and our product portfolio to ensure that they have the tools and capabilities to be a top-tier player in each of the markets we serve. 2. Mastering operational excellence- MAS will build a unique operating capability unmatched by our peers. 3. Financing and aligning the business on profit and loss- MAS will relentlessly increase profits with the support of a world-class finance function that ensures true financial accountability, transparency and performance orientation in our business. 4. Unleashing talents and capabilities- MAS is committed to their people. They strongly believe that the MAS employees and managers have both the passion and talent to achieve whatever goals we set for ourselves. 5. Winning coalitions- MAS know that they cannot achieve their goals alone. MAS need the resolute support of the Government, its employees, managers, customers, suppliers, agents and investors. (Malaysia airlines, 2006)
While MAS has award-winning products and services, competitive cost base, and only slightly below average load factors, they yields are dramatically lower than their competitors. Therefore, they immediate problem is one of low cash and