Airline Industry In Malaysia

In the Malaysia economy sector, Malaysia’s airline industry played a vital role in developing it as well as stimulating the hospitality, tourism, and trade sectors. Malaysia’s airline industry is a great developing industry till today. Malaysia airline industry are categorized as the passenger and cargo airlines. Passenger Airline Company in Malaysia includes the Malaysia Airline System Berhad (MAS), AirAsia, Malindo Air, Firefly, and many more. Meanwhile, the cargo airline in Malaysia includes only firms that are the MAS cargo, Transmile Air Services and the Athena Air Services. Malaysia Airline Industry required great capital requirements such as the government’s rules and regulation, aircraft supplies, high level of experts, and competition

MAS did not start off with the current name back in 1947, they were called Malayan Airways Limited that is the first to take off to the skies since 12 October 1937. MAS or the so called Malayan Airways were built up together by a team of young energetic members and crew from combined enterprises which is the Straits Steamship of Singapore, Imperial Airways, and the Ocean Steamship Company of Liverpool. With all hard work and cooperation from all parties within 10 years, they manage to turn Malayan Airways from a domestic carrier to an international airline. After enduring a number of incorporate and division, it is only when MAS was fully chartered. In association of the Malaysia and Singapore governments, they undertook Malayan Airways in the 1966. MAS manage to develop to be the first main government agency to be privatized in the 1980s. MAS have achieved a great result since then and currently had expanded their operation to training, human resource development, property consultancy, food supplying and even technical ground support for aircrafts. Yet, all this expansion program that had been carried out in the mid-1990s had given adversative to the airline, which had gone worse when unfavorable market condition such as the Asia economic crisis affect

In terms of inflight passenger traffic on 2013, Malaysia was entitled the 16th biggest civil aviation market globally. We are all aware about the recent fatal air accidents of the MH370, MH17 and QZ8501 that despair of the airline industry as well as the whole country. Based on the financial year report of 2013 and 2014, 2014 appeared to be a rough year of the Malaysia airline industry especially when 2013 shows strong progress. Due to the slower headway in foreign traveler arrivals, a slowdown in passenger traffic for the commercial airline in 2014 occurred. Lastly, when the Malaysia Government implement a 6% Goods and Service Taxes (GST), flight service charges and cost pressure will definitely increase and brings negative effect in the close period. However, this will not stop the long-term progress in terms on increasing in amount of tourist visiting, migrating and popularity growth. Hence, growth at the total passenger traffic at Malaysia’s airport terminal were expected to show progress till the year