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Mas Airlines Swot Analysis

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Mas Airlines Swot Analysis
Introduction
Malindo Air is an airline based in Malaysia. It is a joint venture between National Aerospace and Defence Industries (NADI) (51%) of Malaysia and Lion Air of Indonesia (49%). The name "Malindo" came from the names of respective countries: Malaysia and Indonesia. Malindo Air planned to start operation on 1 May 2013 from the new KLIA2 terminal initially. However, Malindo Air has brought forward the launch date to mid-March 2013 with domestic destinations. The airline only operates Economy and Business class.
Background
The entry of AirAsia from Malaysia in the home turf of Lion Air has encouraged the Indonesian airline to enter Malaysian market with a subsidiary airline. AirAsia's subsidiary Indonesia AirAsia, in partnership with its parent firm, attempted to buy Indonesian carrier Batavia Air to gain foothold in the Indonesian market, but the deal didn't go through due to regulatory complications and Batavia Air ended up going bankrupt. The attempted deal resulted in turf war between Lion Air, Indonesia's biggest low-cost carrier, and AirAsia, Asia's biggest low-cost carrier. Mr Chandran Ramamuthy, personal assistant executive to the president director of Lion Air, has been appointed as CEO of Malindo Air. The airline inaugural flights will be operational from 22 March. Malindo Air will provide a personal TV (in-flight entertainment system) in every seat, light snacks and free meal, seat pitches of 32" and 45" for economy class and business class respectively, and free baggage allowance of 15 kg & 30 kg. Furthermore, wifi service will be available from June onwards. Combination of these with low cost fares makes Malindo Air known as a hybrid airline. According to Malindo Air, a total of 50,000 passengers has flown with the airline as of 9 May 2013.

SWOT analysis for Malindo Airline Strengths | * Low-cost * Brand new plane * They have in-flight entertainment * | Weakness | * New in the market * | Opportunities | *

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    There is a high barrier entering airlines industry since it requires high capital to set up everything such as purchase or lease air craft, set up office, hire staffs, and etc. Thus, this has reduced the treat to Malindo Airline. Moreover, brand awareness is quite important in this industry. Hence, to enter this industry not only required high capital but also have to take some time to create brand awareness. Consumers always choose the product or service they really trust. Thus, instead of creating brand awareness, new entry has to create so called brand loyalty. Hence, this is reducing treat to Malindo too. However, the government legislation is one of the barriers for entering airlines industry. For example, MAS has been protected by Malaysia government on the route to Sydney and Seoul Incheon. Therefore Malindo find itself very difficult getting a new route from government. This not only affects the timeline set by Malindo but also influence their profit. Nevertheless, this has limited the new entrance due to the government policy. In overall, the treat of entry is low to Malindo.…

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