MALAYSIA AIRLINE SYSTEM BHD (MAS). Company Profile Malaysia Airlines started when a joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways led to a proposal to the Colonial Staraits Settlement government to run air service between Penang and Singapore. The result was incorporation of Malayan Airways Limited (MAL) on 12 October 1937. On 2 April 1947, MAL took to the skies with its first commercial flight as the national airline. However, it was renamed as Malaysian Airlines. Soon after Borneo Airways was incorporated into MAL.
In 1965, with the separation of Singapore from Malaysia, MAL became a bi-national airline and was renamed Malaysia-Singapore Airlines (MSA). A new logo was introduced and the airline grew exponentially with new services to Perth, Taipei, Rome and London. However, in 1973, the partners went separate ways. Malaysia introduced Malaysian Airline Limited, which was subsequently renamed Malaysian Airline System or in short, Malaysia Airlines. While MAS has grown to become Southeast Asia’s largest airlines, it also becomes one of the world’s premier international carriers.
Malaysia Airlines is listed on the stock exchange of Bursa Malaysia under the name Malaysian Airline System Berhad. The Malaysia Airlines headquarters is located at Sultan Abdul Aziz Shah Airport Subang, Selangor, Malaysia. It is leading by the Chairman, Tan Sri Md Nor Yusof and Tengku Datuk Seri Azmil Zaharuddin as a Managing Director & CEO. There are three subsidiaries under Malaysia Airlines; those are Firefly, MASkargo and MASwings. Corporate Vision (existing) An airline uniquely renowned for its personal touch, warmth and efficiency. Corporate Mission (existing)
To provide air travel and transport service that rank among the best in terms of safety, comfort and punctuality. Corporate Objective To produce a strategic, timely creative campaign targeting TIME’s readership of international travelers for Malaysian Airlines. Strategies 1. Operating against a challenging global economic climate, increasing competition and rising operational costs, Malaysia Airlines was forced to broadly restructure its operations. On 27 February 2006, newly appointed Managing Director/CEO Dato’ Sri Idris Jala, along with a new management team announced a Business Turnaround Plan (BTP).
The BTP was developed using the Malaysian Government Linked Company (GLC) Transformation Manual as a guide. Regardless of a financial restructuring exercised in 2006, Malaysia Airlines maintain strong presence in Southeast Asia, East Asia, South Asia, Middle East and also between Europe and Australasia. It’s also operates transatlantic flight from Kuala Lumpur to Los Angeles via Taipei. 2. On 30 January 2008, then Managing Director/CEO Dato’ Sri Idris Jala and the management team announced the Business Transformation Plan (BTP 2), a continuation of the Business Turnaround Plan (BTP 1).
The philosophy behind the BTP 2 is “aiming and planning for the best, assuming the worst”. The BTP 2 is a five-year plan focusing on profitable growth. Big challenges loom ahead in the airline industry, including overcapacity, intense competition with yields and profit margins eroding, liberalisation of ASEAN skies and rising fuel costs. The vision is to become the World’s Five-Star Value Carrier (FSVC); the mission, to be consistently profitable, with the strategy of business transformation. 3. There are two other airlines subsidiaries, Firefly and MASwings.
Firefly is operates from its two home bases Penang International Airport and Subang International Airport. While MASwings is focuses on inter-Borneo flights. 4. Malaysia Airlines non-aeronautical revenue sources also included maintenance, repair and overhaul (MRO) and aircraft handling. 5. Introduced frequent-flyer programs, Grads for Students by Malaysia Airlines (Grads) and Enrich by Malaysia Airlines (Enrich) which are benefits designed for students and frequent traveler that comprises a variety airlines, bank, credit-card issuers, hotels and lifestyle retailer around the world. 6.
Form a partnership with AirAsia on August 2011, as one of its new strategy. Corporate Vision (improve) To be the most affordable, comfortable and efficient air transportation in the world. Corporate Mission (improve) We are aspiring to provide the highest quality air travel to every citizen of the world to the widest selection of destinations possible at an affordable price. We also committed for our passenger comfortable and satisfaction and will continue to modernize our fleet as the most efficient air carrier in the world, with a goal of becoming the most profitable airline for our stockholders.
We also treat each of our employees with equal care and respect, and invest in the future and live of our employees as recognition to the employees are the key of the successfulness. By investing in the latest technologies and by following the strict environmental regulations, we demonstrate our commitment to the world environment. Through this mission, we at Malaysia Airlines ensure to work prosper. External Opportunities 1. Growth of the generation Growth of the generation in a population for all countries also ultimately will increase the demand of the air transportation. . Changes in the customer’s preferences. Customers have different needs and desires in term of purchasing. It is because of the factors like demographic, psychographic, and geographic factor. In a way to obtain a certain objective, Malaysian Airlines should be able to introduce a new concept of flying with Malaysia Airlines. It is because customers are human beings that can easily having a change in their life. They can be influenced by many aspect of their life including the way of their lifestyle.
Due to that, Malaysia Airlines is continuously innovating all aspects of their services and products in their transformation journey to be a Five-Star Value Carrier. 3. New technology New technology opens the door for new products or services. 4. Government support Through the support that given by the government, will help Malaysia Airlines to survive in this industry. 5. Growth in Information Technology (online services, internet advertising and etc) Growth in the information technology in this country enables MAS to lower down the cost and time consume for their operations. . Partnership with AirAsia. Through a collaborative with AirAsia, enable Malaysia Airlines to share the ideas in order to develop a new strategy that benefited both parties. External Threats 1. Fluctuation of gas and oil’s prices. As the hiking in the fuel’s price over the years affected the MAS Airlines profits and had to face losses over the years which are also affected their earning per shares. 2. Increased in air travel inconvenience. For the example, the location that located far from town maybe inconveniences the customers to use air transportation. . Travel’s business declining. Economic down turn effected to the travel’s business to be declined and directly affected the air transportation’s demand to be declined as well. 4. Availability of pricing information. 5. Intense competition especially with private and international airlines. 6. Political and economic difficulties that facing by other country effected the leisure travel. 7. Government regulations that make operations costlier. 8. Catastrophe or nature disaster.
