Malaysianairlines
Malaysian Airlines: Vying for a stronger Global Presence
Overview Internal and External Challenges:
M AS an airline that is uniquely known for its personal touch, warmth and efficiency in service among its competitors has had several internal and external challenges confronting its management.
Increasing Fuel prices: Air industry has been hit by high fuel prices over the past few years affecting the overall operating costs. Fuel amounts with surcharges amount to majority of the airlines operating costs. Accelerating world’s oil prices have depressed the profitability of numerous airlines including MAS.
Competition: The competitive environment for the Asian Aerospace is very intense. There are many competitors in the Asian airline business environment that vie for business with MAS. With the emergence of several low cost airlines that offer tickets at bargain rates, the company has stiff competition to overcome and try to differentiate by providing a higher level of service to customers. A Malaysian airline near monopoly in the region has been threatened by the entry of numerous local and overseas competitors.
Financial Stability: Over the 70 years of service, it has not been plain sailing for Malaysian airlines. The company has been through some tough times and has slipped into massive financial losses at several points in its lifetime over rocketing fuel prices and tough competition. Other Factors: Quality of food, cabin crew, Global economic climate, rising operational costs, recession pressures, economic crisis. In addition to the above factors, restructuring of the company numerous times has caused employee movement, changes in union etc. creating additional challenges to the management. The company is also challenged by the internal and external problems including the ageing fleet of aircrafts, escalating costs structure, high leasing cost and a network of routes which is not far reaching enough.
Responding to Challenges:
In the current
Overview Internal and External Challenges:
M AS an airline that is uniquely known for its personal touch, warmth and efficiency in service among its competitors has had several internal and external challenges confronting its management.
Increasing Fuel prices: Air industry has been hit by high fuel prices over the past few years affecting the overall operating costs. Fuel amounts with surcharges amount to majority of the airlines operating costs. Accelerating world’s oil prices have depressed the profitability of numerous airlines including MAS.
Competition: The competitive environment for the Asian Aerospace is very intense. There are many competitors in the Asian airline business environment that vie for business with MAS. With the emergence of several low cost airlines that offer tickets at bargain rates, the company has stiff competition to overcome and try to differentiate by providing a higher level of service to customers. A Malaysian airline near monopoly in the region has been threatened by the entry of numerous local and overseas competitors.
Financial Stability: Over the 70 years of service, it has not been plain sailing for Malaysian airlines. The company has been through some tough times and has slipped into massive financial losses at several points in its lifetime over rocketing fuel prices and tough competition. Other Factors: Quality of food, cabin crew, Global economic climate, rising operational costs, recession pressures, economic crisis. In addition to the above factors, restructuring of the company numerous times has caused employee movement, changes in union etc. creating additional challenges to the management. The company is also challenged by the internal and external problems including the ageing fleet of aircrafts, escalating costs structure, high leasing cost and a network of routes which is not far reaching enough.
Responding to Challenges:
In the current