CASE 10 TURNING AROUND MALAYSIA AIRLINES MARIATI NORHASHIMa* ALI SHAH HASHIMb MOHD HANIF MOHD HELMIc ABSTRACT Malaysian Airlines (MAS)‚ a government owned airline monopoly in Malaysia‚ was privatised in 1994 through the sale of Bank Negara Malaysia’s 32% controlling stake to Tajudin Ramli through Naluri Berhad. MAS posted profits in the first three years after privatisation‚ but in 1998‚ amidst the Asian financial crisis‚ the airline faced substantial losses. MAS incurred a debt of RM9
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technique. An association that has a decent picture and has the backing of its group gatherings‚ for example‚ the media‚ government and workers is more imperative than its opposition in the business sector. AirAsia had done tons of community project where it had helped in keeping the relationship stronger between customers‚ workers and managers. One of the projects was the awareness development #GREEN24‚ expected to uplift mindfulness and advance economical activities that will have an unmistakable
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Summary 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. The airlines was expected to cut up to 5‚000 jobs and spend a maximum of 850 million ringgit (US$236 million; euro198 million) in compensation packages as part its plan
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Attractive ticket price With the average fare being 40-60% lower than its full-service competitor‚ AirAsia has been able to achieve strong market stimulation in the domestic Malaysia air market (Thomas 2003). For instance‚ the fare for the trip from Kuala Lumpur to Penang on AirAsia starts from 39 ringgit. Comparing to trip by bus charge 40 ringgit and 80 ringgit by car. The effect of attractive low fare is more travelers switching from bus to air‚ similar case as Ryanair in Europe. Good Management Team
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INTRODUCTION MEGA ENVIRONMENT International Element/ Global Condition The main global competitors of AirAsia are Firefly‚ Tiger Airways and Jetstar Asia. All these international airlines have adapted the AirAsia’s low cost concept and can be a threat to AirAsia. “Knowing the increase of competition in the market‚ AirAsia applied the adaptation process (Hanan & Freeman‚ 1984) by expanding its operation to long haul services to various destinations. Moreover‚ AirAsia realised the price is
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The Competition Act 2010 is an act to promote economic development and protect consumers’ interest. It is implemented by the Malaysia Competition Commission (MyCC)‚ which was established under the Competition Commission Act 2010. This act was enacted by the Parliament of Malaysia in May 2010 and came into effect on 1 January 2012. The Competition Act 2010 is not meant to protect competitors. It is meant to ensure enterprises compete freely and fairly. Competition forces enterprises to be more efficient
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MALAYSIA AIRLINES ANNOUNCES MUTUAL SEPARATION SCHEME TO RIGHTSIZE WORKFORCE Malaysia Airlines today announced the details of its Mutual Separation Scheme (MSS). This fast tracks the organisation’s intention to right size(downsize) its workforce a year ahead of the schedule outlined in its publicly announced 3-year Business Turnaround Plan. Malaysia Airlines will receive compensation from Penerbangan Malaysia Berhad (PMB) for the termination of the Agreement for Domestic Business Unbundling
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Abstracts The purpose of this paper is to illustrate the importance of studying the internal and external market forces that could contribute to a company’s sales decline. This piece also delves into the ensuing strategies-revamp in the corporation’s marketing mix to counter declining sales. As a scenario‚ this study would be taking the point-of-view of a Marketing Manager idealising and justifying the team’s actions in a sales boost bid. For this paper‚ studies would be based on the national
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MALAYSIA Airlines (MAS) has admitted that it is tough fighting a low-cost carrier (LCC). It has decided to use its wholly owned unit‚ Firefly‚ to take on AirAsia. Firefly will turn into a true blue LCC and use jets in the attack. On Monday‚ Firefly said it would fly commercial jets for domestic routes and begin with crossover routes‚ e.g. Kota Kinabalu and Kuching‚ on Jan 15. Asean will be its next stop. Its B737-800s will take off from KL International Airport (KLIA). Firefly wants to have
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The third micro environment is Marketing Channel. AirAsia has cultivated a reliance on Internet innovation for its operational and vital administration‚ and gives an online ticket booking administrations to explorer on the web. Air Asia is utilizing Customer Relationship Management (CRM) as their execution estimation framework. This execution estimation framework is putting client at the heart of the business. It fulfils the client needs and needs. It is technique and procedure of obtaining‚ holding
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