Malaysia Airlines Business Plan - 9468 Words

Business Plan Our Way Forward December 2011 Confidential 5 December 2011 Malaysia Airlines is in crisis. Our combined losses in the first three quarters of 2011 have already exceeded RM1.2 billion, and the final numbers for the year will not improve upon this. The core passenger airline business is chronically challenged. The new Board and Management team, in place for three months, has been hard at work on a plan, referred to as the Business Plan, for Malaysia Airlines. This Business Plan outlines our near-term recovery plan to move us to profitability by 2013, as well as a set of ‘game changers’ to sustain our performance and create a platform for continued growth for Malaysia Airlines’ future. Executing this plan is key to our†¦show more content†¦Irrational exuberance in aircraft orders by Asian airlines is engendering a situation of capacity over-supply and excessive price competition. We expect the current Southeast Asian regional fleet to triple in the next decade. Increasing liberalisation also makes it easier for airl ines to compete outside of their home markets. In the US and Europe, this combination of overcapacity and liberalisation has invariably yielded market consolidation, with only the strongest airlines surviving in their original form. Page 5 To make an already bad situation worse, there is the near-term possibility of a global recession emanating from Europe, and stubbornly high jet fuel prices conspiring to create the perfect storm of immediate turbulence. Without question, our current trajectory is unsustainable and nothing short of dramatic action will reverse our fortunes. Our weekly cash losses are in the millions of Ringgit. If we maintain our current business model, we will be out of cash by the middle of the second quarter of 2012. We will be bankrupt. Beyond the loss of 20,000 jobs, this would mean an indefinite end to connectivity with the many global hubs to which we are connected today. It is unthinkable and yet it is entirely possible. With new, expensive aircraft entering our fleet next year, our financing costs will increase markedly. While these new aircraft are larger and generally enable us to fly at a lower per-passenger cost, we must fill these aircraft to realise theShow MoreRelatedMalaysia Airlines966 Words   |  4 PagesStrategy in the Market Place: Malaysia Airlines (MAS) has announced their new business plan for year 2012, aiming to restore their profitability on the premium sector, as to become the preferred premium carrier. (Business Plan, Our Way Forward, December 2011, page7) By achieving the vision as to become the preferred premium carrier, they will be launching a new regional premium airline. In the first half of 2012, they will launch new short-haul brand, flying an entirely new Boeing 737-800 fleetRead MoreTurning Around Malaysia Airlines1428 Words   |  6 Pages 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 amp; Recommendation | 3 | 6.0 | References | 4 | 7.0 | Appendices | 5 | 1.0 Executive Summary Malaysia Airlines (abbreviated MAS), isRead MoreCase Study Questions On Malaysia Airlines797 Words   |  4 Pagesproblems that Malaysia Airlines brand faced and to provide solutions for the problem. Background Information Malaysia Airlines is the flag carrier of Malaysia and a major airline industry that was born on 12 October 1937 (Rise of an Airline, 2014). Their first commercial flight was ten years later on 2 April 1947 as the national airline from British Strait Settlements to Kuala Lumpur (â€Å"Telekom Malaysia and Malaysia Airlines Synergize Business Relationship†, 2007). In the past, Malaysia Airlines have changedRead MoreE-Commerce Strategies for Airasia1576 Words   |  7 PagesAIR ASIA E-COMMERCE STRATEGIES Low cost per average seat kilometer AirAsia focused on ensuring a competitive cost structure as its main business strategy. It has been able to achieve a cost per average seat kilometer (ASK) of 2.5 cents, half that of Malaysia Airlines and Ryanair and a third that of EasyJet. AirAsia can lease the B737-300s aircraft at a very competitive market rates due to the harsh global market conditions for the second-hand aircrafts because of the September 11th event in 2001Read MoreBenefits Of A Large Global Market Consists Of Malaysia Airlines1486 Words   |  6 PagesMalaysia Airlines is a world-renowned flag carrier that commenced operation in 1972. The airline serves as a symbol of national pride after the formation of Malaysia in 1963, and continues to operate to this day. Following the tumultuous events in recent times, the government carrier has tragically suffered two fatal blows to their brand reputation. Arbitrary missing flights as well as missile shootings forced the company to rethink its strategies. Strengths - Appealing to a large global marketRead MoreThe Missing Malaysia Airline Flight Mh3701672 Words   |  7 Pages Malaysia Airline MH370 Bhavika Ravindra Kitawat Syracuse University â€Æ' Abstract: The missing Malaysia Airline flight MH370 on March 8, 2014 is not only a technical mystery but determines current weaknesses in technical, regulatory and organizational infrastructure of international civil aviation. Safety culture of international civil aviation is the fundamental pillar of success but unfortunately aerial disasters occur. This article discusses about missing Malaysia Airline flight MH370 andRead MoreThe Actors Of Micro Environment1657 Words   |  7 PagesAirAsia Berhad Competitors: †¢ Malaysian Airlines (http://www.malaysiaairlines.com/my/en.html) †¢ Thai Airways (http://www.thaiairways.com) †¢ Singapore Airlines (http://www.singaporeair.com) †¢ Malindo Air (http://www.malindoair.com) †¢ Jetstar Airways (http://www.jetstar.com/au/en/home) †¢ Cathay Pacific (http://www.cathaypacific.com/cx/ms_MY.html) †¢ Emirates (http://www.emirates.com) †¢ Japan Airlines (https://www.jal.com) Suppliers: †¢ Brahim’s Food (Food) †¢ Malaysia Aiports Holdings Berhad (Airport facilities)Read MoreThe Actors Of Micro Environment1585 Words   |  7 PagesAirAsia Berhad Competitors: †¢ Malaysian Airlines (http://www.malaysiaairlines.com/my/en.html) †¢ Thai Airways (http://www.thaiairways.com) †¢ Singapore Airlines (http://www.singaporeair.com) †¢ Malindo Air (http://www.malindoair.com) †¢ Jetstar Airways (http://www.jetstar.com/au/en/home) †¢ Cathay Pacific (http://www.cathaypacific.com/cx/ms_MY.html) †¢ Emirates (http://www.emirates.com) †¢ Japan Airlines (https://www.jal.com) Suppliers: †¢ Brahim’s Food (Food) †¢ Malaysia Aiports Holdings Berhad (Airport facilities)Read MoreThe Success of Air Asia1718 Words   |  7 Pagesvery outstanding company in airline industry and among their competitors in the low-cost career (LCC). I have learned from one of my university course called Airline Business Management that the airline industry is intensively competitive. To survive in this industry the airline business must be strong and has well strategy to overcome every high challenge in the industry. AirAsia has becoming more and more successful. Therefore, I would like to learn more about this airline; learn about their perspectivesRead MoreLeadership Analysis of Antony Fernandes, CEO of AirAsia1698 Words   |  7 Pagesrated as one of the worst performing airlines in Asia. Several years back, it experienced tragic underperformance and reported high levels of losses every fiscal year. This was until another new company bought the organization. The latter company was referred to as Tune Air. The important element discussed in this content, is how the C.E.O of AirAsia, Antony Fernandes, revolutionized the company to a multi-billion dollar corporation, that is operating global airline services and has managed to set standards