12 Nur Ain Binti Muhammad Yusuf Turning Around Malaysia Airlines Turning Around Malaysia Airlines Table of Content NO | TITLE | PAGE | 1.0 | Executive Summary | 1 | 2.0 | Introduction to Case Study | 1 | 3.0 | BTP1 Assessment | 1 | 3.1 | Financial Analysis | 1 | 3.2 | SWOT Analysis (BTP1) | 2 | 3.3 | BTP1 Turnaround Analysis | 2 | 4.0 | BTP2 Assessment | 3 | 5.0 | Bottlenecks & Recommendation | 3 | 6.0 | References | 4 | 7.0 | Appendices | 5 | 1.0 Executive Summary Malaysia Airlines (abbreviated MAS), is the government-owned flag carrier of Malaysia. Due to fuel price hiking, inefficient management, global economic crisis, government intervention and low load factor, MAS suffers substantial loss which …show more content…
This BTP1 plan can become the turnaround aspect financially and non-financially. Threat Even AirAsia is seen as Mas biggest threat, however, seeing that how both of these airlines promotes entirely different packages and offerings, Mas deemed these few obstacles as their main threat, which is the volatility of fuel price due to Iraq invasion by US, staff resistance of given plan and government intervention in setting up boundaries for the CEO to act accordingly to what they thinks fit. 3.3 BTP1 Turnaround Analysis BTP1 Turnaround Analysis will be done based on the core strategies in which BTP1 proposed (in which two important aspects are further elaborated). First is by financing and aligning the business on the Income Statement. As per financial analysis above mentioned, MAS shows remarkable transformation during this phase. Based on Exhibit 1.1 the actual performance supersedes the projected plan projected a year ahead of time. This is a success due to fares increment, elimination of unprofitable routes and increase in efficiency. Other core strategy is flying to win customer and by observing and studying the non-financial aspect during the implementation of BTP1, they succeed in maintaining the customers’ value. This resulted in MAS receiving 11 non financial-awards during this phase including 5-Star Airline Award, 2006 and 2007 from Skytrax, Best Airline to Asia, 2006, Travel Weekly Globe Award and numerous cabin service awards from Skytrax, Readers Digest
In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B.
It has won major leisure, corporate and wholesale travel awards for its services. It also has been awarded Best Travel Agency Group, Best National Travel Management Company and Travel Agency Corporate (Flight Centre travel Group).
Provide full value of money for customers through reduce cost and enhance level of quality (Qantas Airways Limited, 2014).
Every business tends to face threats during its operations, however what is important is how the organization handles its threats. The main threats that the United Airline faces include. Future oil prices, intense competition and the world economy.
Particularly when new entrants are diversifying from other markets, they can leverage existing capabilities and cash flows to shake up competition like Apple did when it entered the music distribution business. The threat of new entry therefore, puts a cap on the profit potential of an industry. The threat to Air Asia is relatively less as the capital required to enter the industry is quite high. However, potential new entrants from full service carriers with a surplus capital could be threats in the future and long-term.
Increasing Customer service levels. Consumers are generally expecting more fro airlines and Song has already addressed this in original strategy which was very customer satisfaction based.
Over the years, company sustained low operation costs and tickets prices following well-developed strategy. Among other measures, it was able to keep prices low by flying only one airplane type, minimizing service and maintenance expenses, and convincing employees to cut gate turn-around times and make the airline more efficient (Fitzpatrick, 2005).
The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the
1. Jet Blue´s Business- level strategy; value and cost drivers Jet Blue uses to create and maintain ist competitive position
Table of ContentExecutive Summary1I. Introduction2II. Main Body1. History of British Airways22. Current strategic situation….42.1 Internal analysis42.2 External Analysis52.3 SWOT82.4. Current strategy93. Potential Strategic options124. Recommended strategic direction with rationale164.2 Strategy Evaluation175. Identification of critical success factors186. Performance measurement criteria197. Conclusion218. Bilbliography249. References24Executive SummaryThe main aim of this report is to undertake a review and analysis of British Airways. It is UK's leading airlines both at international and domestic level, with its operations spread over 300 destinations across the world. The report starts with a brief description of the company. Then the
The current strategies of British Airways are in line with the advancement that the mobile and computing technology is experiencing at current time. At the same time, the company is also focused on expanding its business operations to better serve increasing amounts of passengers due to the slight recuperation of the global economic conditions. Among the strategies that the airline currently undertake include
The strong competitive advantages which low – cost airline such as Air Asia is equally causing Mas to restructure their operations, there resource such as airplane and the quality of their cabin crew tends to be looked at deeply. Mas has the oldest airline in Malaysia they have to use the advantages to continue to stay at the frontline in the aviation industry by them using available resources effectively with the help of the government and come up with a strong strategy so as to compete and stabilize its product in the aviation industry.
As a part of Crossman Communications, this essay will go into depth about the client, Malaysian Airlines and their recent campaign. Malaysian Airlines founded in 1957, currently flies to 53 different destinations having over 12 000 employees (Malaysian Airlines, 2017). The airline company offers the best way to fly to and from Malaysia flying over 40 000 people everyday (Malaysian Airlines, 2017). The campaign was set to rebuild the trust of Australian and New Zealander flyers due to the multiple aircrafts that have gone missing which have affected families in both countries (Crossman Communications, 2015). Having said that, the goal was to improve bookings, and generate positive media coverage (Crossman Communications, 2015). This essay
Classic Airlines consists of 375 aircraft that travel to 240 cities more than 2300 times per day with a workforce of 32,000 personnel. Classic Airlines’ revenue was in excess of $8.7 billion last year bringing in a $10 million dollar profit and establishing the airline as the fifth largest air travel company in the world. Despite good sales and profits, Classic Airlines has been receiving harsh criticism from their customers resulting in a 10% decrease in profit shares, reduction in customer loyalty, 19% drop in rewards customers, 21% reduction in flights and the lowest morale seen in recent years. Classic Airlines remains optimistic about customer flight travel but must find