Airline Industry in Malaysia

Industry Overview The airline industry is a large and growing industry. In the past years, air travel has been growing by 6% a year and scheduled airlines carried more than 1 billion passengers in 2008. The airline industry involves large capital requirements. For example, the requirements for aircraft, close monitor by the government regulations, competition from other tourist transport and the requirement to have high level of expertise to operate and manage. In the airline industry, aircraft manufacturer is conquered by two companies. They are The Boeing Company and the Airbus SAS. In Malaysia, airlines are separated into two; 1) Passenger airlines and 2) Cargo airlines. The passenger airlines in Malaysia are Air Asia, Malaysia Airline System Berhad (MAS), Firefly which is owned by MAS, Layang-Layang Aerospace which is based in Sabah to provide air services to Layang-Layang Island, Berjaya Air which is owned by Berjaya Group, Sabah Air and last but not least Hornbill Skyways which is a helicopter service that operates in the rural area of Sarawak. Other than passenger airlines, there are also three cargo airlines that operate in Malaysia. They are the Athena Air services, MAS cargo and Transmile Air Services. Despite the various kinds of air operators, the airline industry in Malaysia is being monopolized by two main operators. The first one is the Malaysia Airline System Berhad (MAS), which is Malaysia’s full service national carrier that first took the skies in 1947 under the name of Malayan Airways Limited. It was formed through a joint initiative of the Ocean Steamship Company of Liverpool, Straits Steamship of Singapore and also Imperial Airways. With a team of young and dynamic people, the domestic carrier turned into an international airline in less than a decade and the name MAS was only fully incorporated in 1973 after going through numerous mergers and separations. As of today, MAS flew nearly 50 000 passengers daily to 100 destinations worldwide. The

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