In Malaysia, we can found that many company that which is under the government. One of the companies under the government is Malaysia Airlines System (MAS). Malaysia Airlines is a public limited airlines group of transport that provided the airlines services, cargo services and maintenance services. For MAS, it is flying over the 100 destinations and 6 continents across with more than 42,000 passenger everyday.
MAS also a listed company that list in KLSE in Kuala Lumpur. The headquartered of MAS is in Kuala Lumpur, Malaysia. There shareholder and the government group that are the company stakeholder that effected the company of the MAS. In addition, MASwings and firefly are associated with MAS. (N/A, Malaysia Airlines (Company History))
(N/A, Malaysia Airlines (Partners))
(N/A, Malaysia Airlines (IR Home))
2.0 Analyzing the Environment (SWOT analysis)
2.1 External Environment
a) Launching the firefly (Competitor Fares)
Firefly is Malaysia's first community airline, offering safe, affordable and comfortable flying experiences to exclusive travel routes. It has provided services in Penang International Airport, Kota Bharu, Langkawi, Kuantan, Kuala Terengganu, Phuket and Koh Samui.
Therefore, it has provided more routes that to attract the customer in a lower price compare to other competitors. For the firefly, there is a new market that the quickest routes in the air within Peninsula Malaysia, as well as to some very famous tourist destinations in Thailand, aligning itself with the Indonesia-Malaysia-Thailand Growth Triangle (IMTGT) agenda. (N/A, firefly (Company Profile))
(N/A, Annual Report 2007 p.67)
b) Increasing the routes and destinations in Asia Pacific
Based of the industry, there have about 400 plus new aircraft that hit skies of India, Middle East, and Asia Pacific in 2007. In conclusion, there will be increase the routes to the destination of China, Japan, India and other countries. (N/A, Annual Report 2007 p.43, p.57)
(N/A, BTP2 p.40)
c) Increasing the Cargo Traffic
Based of the mid-2007 of slowdown of global air cargo traffic, there have more challenge of the cargo that brings the profit revenue in the future. (N/A, BTP2 p.42)
a) Rising of fuel prices
For the economic nowadays, the rising of fuel that increase from USD38 per barrel to USD90 that jumps of 135%. During January 2008, the fuel prices going to be up to USD100 per barrel. The high cost of the fuel of prices that have add nearly USD88 billion of the industry cost structure that bring the industry fuel prices to USD149 billions.
(N/A, Annual Report 2007 p.44)
(N/A, BTP2 p.10)
b) The Competitor of the rise price and the other airlines.
In the market, we can see low-cost competitors that dumping large of very low priced seat in the market. As the research show that the growing of the lower-cost competitor that loss of market share for the traditional of fill service carrier. In addition, there have the about 400 plus new aircraft that hit skies of India, Middle East, and Asia Pacific in 2007 make the market more competitor. . (N/A, Annual Report 2007 p.44)
(N/A, BTP2 p.10)
c) Foreign Exchange currency unstable
For the global macroeconomic, it has growth slower. Therefore, the uncertainty of US economic growth due to a weakening housing sector that spill over. In result, it affected the exchange rates currency of US and the other countries in term of trade and the margin of the company. (N/A, Annual Report 2007 p.44)
(N/A, BTP2 p.10)
2.2 Internal Environment
a) High image of brand recognition
For the MAS Company, there is built with a good image of brand. There had awarded with 5-Star Airlines award by Skytrax UK that one of the 6 airlines with 5-star recognized. Beside, it also awarded with the World’s Best Cabin Staff, 2007 by Skytrax. In addition, MAS also 12th position of...