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
This information and the facts just shows how the regulations today still are not strict enough to prevent another financial
Canada being a big country and the travel time taken by road is far greater compare to air flight, the consumer prefers to travel by air to reach their destination in timely manner “The threat of substitutes is moderate due to the above stated reason. Marketing Mix: Product/ Service: As discussed earlier, Air Canada offers various services to its target market. For these services it uses Boeing 777s and Boeing 787s as a visible product. To ensure unique services are delivered it introduced some international routes to Tel Aviv and Tokyo (Air Canada, 2018).
This act enables creditors to gain power and it gives large-scale entrepreneurs an advantage in competing for investment capital. One major weakness of the system is that it restricts beginning entrepreneurs entry into markets because the banks need reserves, which prevents long-term
Besides the issue mentioned above, the team from the airline were not able to build a relationship with outsourced suppliers. Finding a solution to the issues in pursuing multiple vendor sourcing strategies, the airline centralized IT department. This did not end there because the procedure of collecting information on IT needs and passing to IT for implementation was done in the same way for both local and spanned different branches IT requirements. This has caused the IT to work slowly in implementation and they were unable to respond according to the real business needs that were collected by the business
Lufthansa Lufthansa uses transnational strategy to gain global presence and recognition (Franz 2014). This strategy has been achieved by creating alliances and partnerships with other renowned carriers globally, especially in the European region. It is the most fundamental strategy Lufthansa leveraged on, in order to maintain core leadership in the airline industry not only in the European markets, but worldwide as well. As one of the founding members of Star Alliance, Lufthansa is able to offer customers across the globe a more convenient travel experience (Franz 2014).
The inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.
Hong Kong Dragon Air is Hong Kong-based international airline, belonging to of the Cathay Pacific Group. The airline was established in 1985, and operates a fleet of narrow-body A320s and A321s, which were both powered by V2500 engines manufactured by International Aero Engines AG (“IAE”) for both passenger and cargo service to destinations to destinations across the Asia-Pacific region, and China. Their vision is to be the World’s best regional airline serving China and beyond. Their missions; places emphasis on safety and operational excellence with customer focus. The airline seeks to embrace innovation by implementing ideas that improve their business.
Bankruptcy is a time of turmoil and uncertainty in any company, in addition to employees leaving and a loss of confidence from vendors and customers, management is restricted in their ability to make decisions and navigate the company. Because of the heightened uncertainty, many investors abandon the company, greatly reducing the value of the company, making the process even more difficult. However, savvy investors can generate large returns by entering the company at the right time as it begins to rebuild, so long as they can determine which companies will fail, and which will recover. H Partners is currently engaged in this process with Six Flags, having already gathered substantial returns on Six Flags’ senior debt, H Partners is determining
The company will require developing plans that will see them increase their presence in both the domestic and international market. However, the company must first prioritize on increasing their presence in the domestic market. That plans that will involve frequent flights to all the major cities in the U.S.A. Currently, the company has six major focus cities; New York JKF, Fort Lauderdale, Los Angeles, Orlando, and San Juan. While these cities continue to be profitable to the company (CAPA Center for Aviation, 2015), they should consider increasing their access to other cities as well. Frequent and extensive flights in the San Diego and the San Francisco Bay Area will enable the company to capitalize on the business and tourist travels.
• Threat of substitute goods: Threat of substitute good is high in this industry. If a private company or government introduces any fast road transportation services in the United States, then traveling through airline can reduce. Air travel is somehow costlier than road transport. If the same kind of leisure will be provided in public transport with greater speed, then the share of airline industry can decline. This threat can be reduced if their products offer more value than other substitute
United Airlines is the second largest air career in the world. It was established in 1927 from the merger of 4 companies. In this essay, Q1 will discuss marketing environment of UAL and how changes in the environment can impact it; Q2 will define segmentation, market segment, targeting and positioning and how UAL uses to segment its market in order to grow then in Q3 SWOT and its components will be defined and applied on UAL. Q (1.a): Marketing environment refers to “The actors and forces outside the marketing department that affect marketing management’s ability to build and maintain successful relationships with target customers” (Kotler, 2011). And it consists of Micro environment and Macro environment.
With a rise in fuel prices and environmental factors (such as terrorist threats) reducing air travel, airlines continue to struggle. In union environments, where staff (like pilots and flight attendance) is heavily unionized, the industry has not been able to cut their labor costs. New low-cost industry entrants are adding to the pressure the traditional
1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).
For instance, with the global financial crisis and later the Eurozone crisis, the number of travellers has significantly reduced due to economic hardships. This has affected the profit levels of the airline as well as slowed down its growth prospects. The airline also faces intense competition from other low cost airlines forcing it to extensively invest in product differentiation to counter the competition. This is an expensive
Aircraft Performance Through the chaos and mayhem of World War 2, the aviation industry made significant advancements in its technology. After the war ended, this technology stretched and expanded to the farthest reaches of the world. Frank Whittle of England and Hans von Ohain of Germany both created the world of aviation that we live in today. Both men did it without the knowledge of each other throughout the 1930s and 1940s.