Mas and Airasia Collaboration

Topics: Airline, Low-cost carrier, Malaysia Airlines Pages: 10 (3089 words) Published: October 18, 2012
Why Collabration Take Place Between Mas and Airasia
Analyze the current situation facing MAS and AIRASIA using the internal and external strategic environmental analysis model. Discuss what aspects and why did their collaboration take place? INTRODUCTION

Various industries, specifically in airline business are attempting to improve their services to draw new passengers and travellers and to retain old passengers and travellers, and this objective is part of their business as well as their marketing model. In order to adjust with the stiff competition in the airlines business, airlines industries tend to come up with various businesses models and model to be competitive. Additionally, because of increasing competition among substitute industries, firms like AIRASIA, AIRASIA X and MAS. Airlines adopt strategic model to marketing and expend their market reach as well give better and satisfying service delivery to their target market. To sustain the market position as well as advantage business market model to management and marketing are being developed and utilized. MAS, AirAsia share swap not a win-win deal

From its inception, it has not been plain sailing for the planned share swap between two of the country's most bitter airline rivals — Malaysia Airlines (MAS) and AirAsia — given the many issues involved. "The collaboration between MAS, AirAsia and AirAsia X was flawed from day one because it cannot bring in a rival. From the start, the share swap had been marked by controversy, suspicion and infighting so much so that it distracts from the real issues in MAS. External and Internal MAS Analysis

1.0 External (using PEEST analysis)
Malaysia Airlines System is one of the Government Linked Companies in Malaysia. 1.01 Economic
MAS were hit by the high fuel price in the year 2008 which fuel price had increase to USD$182per barrel. MAS were slammed by economic crisis and downturn which pressured the yield and profit margin. The world’s economy today is also being treated by uncertainty and volatilities which can affect share price and trust from the shareholders. 1.02 Social

As a developing country, Malaysia has increase the number of professionals who earn more and travel much more frequently overseas. MAS has respond by offering business class ticket that offer the stars services. Wold recently has been shocked by INFLUENZA (H1N1) global pandemic and increasing rate of terrorist attack, People start reconsidering their travel plan and this affecting the airlines industry. 1.03 Political

Before Dato’Seri Idris Jala became the CEO of MAS. MAS was having worst financial crisis in 50 years history. He was appointed by the government to take over MAS even though he has no experience in airlines industry. On one condition he wants 50% freedom from government before undertaking the leadership. He was able to cut off unprofitable routes and this proved to be beneficial to MAS in regaining its position in the industry. Some government policy and initiatives also benefited MAS. In 2008 Ministry of Tourism has been focusing on development of hospitality and tourism industry in Malaysia its give 50% rebate on landing charges for airlines under STIMULUS PLAN. Another step was to make KLIA a regional air hub and launching of ERL system to connect Kuala Lumpur city with the airport (KLIA) in Sepang. The impact of government policy and initiatives had both indirectly and directly provide positive impact to MAS in some way or another. 1.04 Technological

Technology is helping MAS to reduce coast and the most importantly it also adds value to the customers. MAS were replacing KOMMAS Reservation System with the new SITA RES System. New system customers are assured that their booking and e-ticket information will always be available at check-in. 1.05 Ecological

MAS launching the Fuel Emission and...
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