Description
Malaysia airline strategic issues
1, uncertainty / changes
2, new entrants
3, Gap of performance
4, Threats
5, Deficiency
6, Critical incident
7, Constraint
Write an assignment, must be completed in accordance with the requirements this format .
and APA format，The assignment will be in a report format of not more than 1500 words
Explanation & Answer
Attached.
Running head: MALAYSIA AIRLINE STRATEGIC ISSUES
Malaysia Airline Strategic Issues
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MALAYSIA AIRLINE STRATEGIC ISSUES
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Malaysia Airline Strategic Issues
Malaysia Airlines is the national air carrier of Malaysia that is operating jet services on the
network of domestic as well as international destinations in four of the continents. It is based on
Passenger Transportation Industry. The slogan of Malaysia Airlines (MAS) is "Going Beyond
Expectations" (Centre for Aviation, 2019). Through various subsidiaries, the airline industry
manufactures aircraft parts, offering trucking, cargo transportation services, offers laundry and
dry-cleaning services for the airline industry. Malaysian airlines have several challenges arising
not only in operating and financial problems, but also, they have several issued in management.
Uncertainty / Changes
The Airline's woes appeared immense when the sole shareholder Khazanah reported its first annual
loss in over a decade. Malaysia has become a challenging market for airlines, set back by intense
competition and volatile demand. Six of Malaysia's seven carriers were unprofitable in 2018, and
the seventh, AirAsia, generated its smallest operating profit in four years. An uncertain future for
Malaysia Airlines is a destabilizing feature. Passenger growth at Malaysia's flagship airport, Kuala
Lumpur International, slowed from 11.2% in 2017 to 2.4% in 2018. The growth in the overall
Malaysian market slowed from 10% in 2017 to 3% in 2018 (Centre for Aviation, 2019). Growth
is likely to remain in the low to middle digits in 2019. Profits continue to be under pressure, and
overcapacity is once again a concern.
The uncertainty surrounding the future of Malaysia Airlines is unhealthy. Shutting it down is not
likely a feasible option politically, although the Malaysian market does not necessarily need three
airline groups. It is also hard to...
