Malaysia Airlines: Case Study: Malaysian Airlines

1435 Words3 Pages

Malaysia Airlines (MAS) is our country, Malaysia national airlines. MAS was established in 1 May, 1946 as Malayan Airways. The headquarters of MAS are located on the grounds of Sultan Abdul Aziz Shah Airport in Subang. It is undoubtedly that MAS was an award-winning airline. The airline has won World Travel Award (WTA) 2013 and Best Airline Signature Dish 2012. MAS has more than 1000 aircrafts including A380 airbus, Boeing 737- 800 and Boeing 747- 400P. These aircrafts fly to more than 110 destinations around the world. Some of the destinations are Tokyo, London and Paris. The missions for MAS are to provide air travel and transport service that rank among the best in terms of safety, comfort and punctuality as well as to be a profitable airline. …show more content…

It is undeniable that one of the crises being faced by MAS is financial problem. Moreover, our national airlines also faced a very severe branding problem. Malaysia Airlines has suffered from two aviation tragedies, which are MH 370 incidents and MH 17 incidents. In order to overcome these severe crises, MAS need to apply several effective solutions including restructure the business model as well as rebrand the national airlines. If MAS cannot overcome these two main crises, this airlines will bankrupt soon. As Malaysian who love and care for our national flag carrier, Malaysian should concern about the MAS crises, including the causes that lead to the crises, the effects from the crises as well as the solutions to solve these …show more content…

Firstly, the aircrafts fuel prices have been increased all over the years. The drastic increased of the fuel prices has caused MAS to pay more. Secondly, the maintenance and repair costs for the aircrafts have been escalated. Normally, the aircrafts for our national airlines are old and have been used for many years. Thus, these aircrafts need to be maintained and serviced regularly to ensure the safety of the aircrafts and passengers. The maintenance and repair costs are high. Thirdly, MAS is facing a high competition. MAS has to compete with strong and direct competitors from Malaysia as well as other countries. For example, MAS faces competitions from Singapore National Airways internationally and Air Asia dosmetically. Next, there are too many unprofitable routes for MAS. 40 percent of the current routes are unprofitable. Some of the unprofitable routes are Los Angeles, Buenos Aires and South Africa. MAS has lost a lot of money to run these unprofitable routes. This financial crisis has caused a very serious effect. The effect is the cash flow for MAS has been weaken. MAS is now running out of cash. Obviously, the incomes for MAS are not enough to support the airline basic expenses. The airline has not enough money to pay for fuels and salaries for their staffs. MAS cannot afford to pay other expenses as well. The airline has no money to continue for its operations. This will lead to bankruptcy eventually. Our

Open Document