Malaysia Airlines-Strategic Management

Topics: Malaysia Airlines, Kuala Lumpur, Airline Pages: 48 (14540 words) Published: October 5, 2010
Malaysia Airlines

In Malaysia, there are actually 3 different Malaysia airlines companies which are providing airline services to its customers. These 3 airline companies are Malaysia Airline, Air-Asia and Berjaya-Air. In reality, these 3 different airline companies provide different kind of services for their customers with different needs. For now, let's take a closer look at these 3 companies individually.

First of all, Malaysia Airline System or better known as MAS, is Malaysia's premium airline service with a fleet of 111 aircrafts in its network covering more than 100 destinations across 6 continents. Malaysia Airline is actually very renowned around the world, this is due to the reason where Malaysia Airline has been voted and awarded for the Best Cabin Staff for 4 consecutive years from year 2001 until year 2004. Despite the fact where Malaysia Airline does provides domestic and international flight services, majority of the customers of Malaysia Airline are international flight customers. There are actually a few reasons why most people choose other airline services when flying domestic and one of the main reason is because the cost of the domestic flight for Malaysia Airline is relatively more expensive compared to Air-Asia or Berjaya-Air. Although flying with the other 2 airline company is cheaper but less comfortable, most of the people still opt to choose the 2 latter companies is because most of the domestic flight in Malaysia are short distanced flight (less time spent on airplane). However, when it comes to international flight, Malaysia Airline is always the first choice for most of the people simply because Malaysia Airline is one of the world’s best and most comfortable airline services.

When it comes to domestic flight, the first company most people in Malaysia would think of is Air-Asia and not Malaysia Airline System. Air-Asia is actually established on year 2001 when Tune Air Private Limited takes over Air-Asia from DRB-Hicom. As of year 2004, Air-Asia now has 18 aircraft flying across Malaysia and few other neighboring countries such as Indonesia, Thailand, China, Philippines and Singapore. Actually, many believe that the main customers of Air-Asia are people who are taking domestic flights. This is because compared to Malaysia Airline, Air-Asia offers very cheap ticket price for domestic and as well as international flights. Therefore, most of the people traveling with Air-Asia are budgeted travelers like students returning home or backpackers going backpacking in neighboring countries. Due to the reason where Air-Asia is considered as a young company, there are times where some problems may occur within Air-Asia such as delays in flights due to improper scheduling. However, despite of the above reason, people still choose to fly with Air-Asia because of the cheap air fare where no other airline companies can offer within Malaysia.

Lastly, the 3rd airline company in Malaysia is Berjaya-Air. Just as the name of the airline suggest, this airline company is fully owned by the Berjaya Group, a diversified conglomerate public limited company in Malaysia. Berjaya-Air operates the DeHavilland Dash 7 aircraft where this aircraft is designed specifically for destinations with short airstrips. Because of this reason, most of the flight destinations in Berjaya-Air are to different island in Malaysia, such as Pangkor Island and Tioman Island although occasionally, Berjaya-Air still flies to places like Singapore. Therefore, Berjaya-Air is the first option in most of the cases where the customer needs to fly to Tioman or Pangkor Island.

Actually, due to the reason where all these 3 companies have different targeted customers, these 3 airline companies in Malaysia can co-exist with each other without eating over each other’s profit margin. Fortunately, because of this reason, the people in traveling around within or outside Malaysia now have more choices to choose from compared...
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