Hi guys...
it's been awhile since my last posting (i'm really busy this semester)....
by the way, i'm in my fourth semester now (going into the fifth semester already) so i'm determine to at least tell you guys the essence of what are the things that i've learned so far :-)
By the looks of it, this time around, Malaysian Airlines System seems in a shade due to the Share Swaps happening between their company and Air Asia. The proportion of the share swaps seems give the weight towards Air Asia due to the permission on the managerial-control over MAS management levels.
Some of the Top level management personnel has been sack, and most of them has been rearrange or re-buckle from their seats. Judging by this action, we can see that Air Asia will have the upper hand over MAS (so as we speak) :-(
1)But where does this swapping leads too?
2)What will happen to MAS and its personnel/Staff/General Worker/Manager?
3)Who's responsible of this action?
4)What concrete basis that MAS has to say (as a public listed company) towards its shareholders
and also the Malaysian Citizen due to this type of strategy?
#on top of that, there is a rumor of a new airline will emerge from this "relationships" and it will involve a lot of worker to be transfer to that airlines (almost 80%)
Will MAS been close down?
This are the agenda that we are discussing this semester, and with the help of our lecturer (that have a vast experience in MAS during their times), we are able to see the overview of what suppose to happen? if this "event" didn't occur.
First and foremost, in our Airline marketing subject, we are trying to define what are the things that MAS need to define as the "flag carrier" of this country, and the nation's proud airlines to become after share swaps has happen?
It has been found that the true reasoning of MAS losses this 1st and 2nd quarter is due to the radical competition between MAS and other airlines (regardless of low cost or premium). The other reason is due to the government "red tape" which seems not favoring MAS this financial years. The third reason is Business model that MAS is implementing up until now seems obsolete and should be revised back due to the changes in the environment nowadays that seems boarder-less in terms of technological development, financial crisis fluctuation, and environmental or natural disaster happening.
With this 'assumption", i make a personal conclusion that there are some thing that can be define as "changeable factors" and "unchangeable factors" which could be manipulated from time to time. However, if there is no radical approach (such as this share swaps), MAS will have a lot of trouble especially when Malaysia Government decided to apply the "Open Sky Policy" this 2015.
Some of my colleague say to me that "MAS should have gone private instead of depending on the government"..... but the truth is, it is not as simple as it seems..!!!!!
Look what happen to Air New Zealand (going back and forth claiming that they will become a private entity which seems just a "dream") due to the instability of the organization itself. MAS also (i think) suffers from this "disease" due to its age (of operating) and also the huge competition inside its own territory (with Air Asia).
The Malaysian Government also seems less helping due to the "next big thing" is appearing and they also seems interested to have Air Asia as their new "trophy" with all of this "good-will gesture" such as landing rights, route flexibility, low taxation, not to mention Malaysian Airport Holdings Berhad (MAHB) has to comply with Air Asia demand on LCCT not to long ago.
Air Asia also seems to move ahead of MAS with the proposal of KLIA East@Labu, Nilai which add more pressure to MAHB as the airport operator during that time. Having a lot of restriction does have its thorns. As the airport operator (also as GLC), MAHB seems has to entertain this request (somehow) and Air Asia move to provoke the Malaysian Government also seems inadequate at a certain point where Air Asia threaten to move their HUB from LCCT-KLIA to Indonesia.
I was thinking "how can a small country such as Malaysia have two major airlines?"
Well, the market share for both of these two "lovers" are not that big (even though it is sufficient enough to generate income for each financial year) and also the land (coverage) that available (specifically domestic) is not that far. With the population of less than 30 million people, only less than 10% that uses air transportation (domestically) here in Malaysia and from that figure, we can directly estimated that with the implementation of Low Cost model and the not-so-high standards of living in this country, the public preferences of course would diverted towards Air Asia.
So, How can MAS survive?
Well, pumping more money would surely do the "trick" but will it "help"?
From our lecturing, the thing that MAS need to do now is having a huge revision on their "strong point" and their "weak point". MAS is a worldly renowned brand and Malaysian Hospitality (MH) seems truly represent what MAS is trying to achieve in their business. However, being prolong by the red tapes of the government make it hard to achieve the desired target, and as per the competition is concern, MAS is dealing with "market-segregation due" and they wont able to keep up for long if this thing is still stay unresolved.
The planning and aircraft utilization of MAS fleet also been regarded as one of the "worst". even though this airline has been rewarded with "the best cabin crew" for five consecutive years now, but in other general aspect of business strategy and not to mention "profit" is still a mist. The Aircraft turnaround time is not efficient (take too long to depart-maybe to the low frequency) and the aircraft scheduling does not resembles "maximum utilization" at all. So, how will this benefit MAS in terms of revenue making?
The modelling of the business also seems inefficient due to the "plausible pause" made by the decision makers. The development of one terminal take years to plan, and years more to get approval.....so, when the time comes to implement, the plan is already inadequate for further execution. This will cost money, labor, and not to mention 'trust" by those related parties.
There is more topics and problem that i want to share, but i guess for now, i have to close the book....but please look forwards to my next posting, kayy :-))
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