Analysis Of Malaysia Airlines
Conclusion
One of the most important factors to consider is the nature of the airline industry. It is very unpredictable and with that prone to high uncertainty levels. The demand is volatile and the capacity is largely fixed which leads to a number of issues in need of being assessed. One of those is the jet fuel price volatility which impacts the airline industry dramatically. The constant shifting around of fuel costs, largely based on political developments which are uncontrollable, cause great uncertainty for most of the airlines, including Malaysia Airlines. Even with seemingly stable prices in the past couple of months, the jet fuel price index shows that the jet fuel price has more than tripled in the last 14 years.
Another factor is …show more content…
It is of vital importance to keep the current customers that use the services provided by the firm in order to protect it from experiencing drastic changes in capacity utilization. This issue will be quite hard to deal with as many consumers have already switched to using competitors’ services and many flights are left almost empty with a few passengers onboard (Best). As mentioned before, this could be attributed to the recent disasters that happened to Malaysia Airlines resulting in consumers developing a negative attitude towards the brand. In order to attract some of them back, the company can implement a strategy of decreasing the flights prices even further backed by strong marketing efforts in loyalty campaigns. It is less likely to see direct results within the first few months, but with time, such strategy is likely to influence consumers which will lead to more people on board of the company’s flights and better usage of available …show more content…
Ideas of changes in composition of Malaysia Airlines are not new and in fact have been long discussed and analyzed. Our research team believes that one of the alternatives that could be implemented successfully is to make Malaysia Airlines fully government owned, removing it from the stock exchange market and fully re-structure and change its processes. If the company gets full government support, the result will be a greater chance of survival and possible changes of consumers’ perceptions. Another possible option that could be implemented is to change the carrier’s name, re-brand it and serve local consumers, on selected routes which might bring extra profitability (CBC News).
And last but not least, if we have to think of a doom scenario, when all other options are exhausted, the only honorable exit for Malaysia Airlines will be to sell all assets and pay off its debt. However, this alternative is quite extreme and should be considered as a final option if nothing else works.
All in all, our research team believes that the situation should not come this far. If all short term and long term suggestions are implemented, there should be almost no factors stopping the company from showing improvement and getting back on
One of the most important factors to consider is the nature of the airline industry. It is very unpredictable and with that prone to high uncertainty levels. The demand is volatile and the capacity is largely fixed which leads to a number of issues in need of being assessed. One of those is the jet fuel price volatility which impacts the airline industry dramatically. The constant shifting around of fuel costs, largely based on political developments which are uncontrollable, cause great uncertainty for most of the airlines, including Malaysia Airlines. Even with seemingly stable prices in the past couple of months, the jet fuel price index shows that the jet fuel price has more than tripled in the last 14 years.
Another factor is …show more content…
It is of vital importance to keep the current customers that use the services provided by the firm in order to protect it from experiencing drastic changes in capacity utilization. This issue will be quite hard to deal with as many consumers have already switched to using competitors’ services and many flights are left almost empty with a few passengers onboard (Best). As mentioned before, this could be attributed to the recent disasters that happened to Malaysia Airlines resulting in consumers developing a negative attitude towards the brand. In order to attract some of them back, the company can implement a strategy of decreasing the flights prices even further backed by strong marketing efforts in loyalty campaigns. It is less likely to see direct results within the first few months, but with time, such strategy is likely to influence consumers which will lead to more people on board of the company’s flights and better usage of available …show more content…
Ideas of changes in composition of Malaysia Airlines are not new and in fact have been long discussed and analyzed. Our research team believes that one of the alternatives that could be implemented successfully is to make Malaysia Airlines fully government owned, removing it from the stock exchange market and fully re-structure and change its processes. If the company gets full government support, the result will be a greater chance of survival and possible changes of consumers’ perceptions. Another possible option that could be implemented is to change the carrier’s name, re-brand it and serve local consumers, on selected routes which might bring extra profitability (CBC News).
And last but not least, if we have to think of a doom scenario, when all other options are exhausted, the only honorable exit for Malaysia Airlines will be to sell all assets and pay off its debt. However, this alternative is quite extreme and should be considered as a final option if nothing else works.
All in all, our research team believes that the situation should not come this far. If all short term and long term suggestions are implemented, there should be almost no factors stopping the company from showing improvement and getting back on