Oneworld Alliance is a world leading airline alliance with cumulative yearly revenue of RM364billion. Malaysia Airline Services (MAS) had joined Oneworld Alliance on 1st February 2013. Whether the impact of this merger will benefits MAS or not are still a big questioned mark. Below is some argument on this issue :
1. Impact on MAS by becoming Oneworld Alliance.
GOOD IMPACT | BAD IMPACT|
I. Expend its global route network in a cost efficient manner II. Improve product and services and raise revenue. III. Reaching new and largest market. IV. Great marketing for MAS and Malaysia as well.| I. Fares for some routes will be increase and this will benefit Air Asia. II. Get involved with monopolist/oligopolies competition. III. Increase cost because had to change their system to be similar with Oneworld Alliance members. IV. Will not benefits customer in long term as maybe the system in Oneworld Alliance not suit Malaysian and the fare and service charge might be slightly increase.|
2. Capatalism Characteristic
Four capitalism characteristics are :
a) Companies : capitalism permit the creation of the companies or business organization the exist separately from people that associate with them. b) Private property : private ownership of the major means of production c) Profit motive : motivated by their owned monetary interest (profit oriented) d) Competition : free competition can make individual pursuit of self-interest socially beneficial.
In this issue, 2 out of 4 characteristic of capitalism were obviously visible :- * Profit motive
The main objective that caused the establishment of Oneworld Alliance is to maximize profit and to monopoly the airway. Looked back to the reason why MAS joining Oneworld also to raise their revenue and expand their business.
So, it can be concluded that main motive for both parties are profit. They were motivated by their owned...