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Malaysia Airlines (MAS)Facing Challenges in the New Millennium
M. Sadiq Sohail, Ph. D• King Fahd University of Petroleum & Minerals College of Industrial Management Department of Management & Marketing P.O. Box 210, Dhahran-31261 Saudi Arabia E- mail: ssohail@kfupm.edu.sa sadiqsohail@hotmail.com Tel: + 966 3 8601764 Fax: + 9663 8602544



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Formerly at Monash University Malaysia. The author is thankful to Ms. Marianne Visvalingam and Ridhi Jain, both undergraduate students at Monash University Malaysia for their assistance in developing this case. The case has been developed for academic discussion, rather than to illustrate either effective or ineffective handling of any business or marketing situation. As the cases have been prepared strictly for an academic purpose, stakeholders and other interest groups should not use any information for drawing any conclusion or opinion about the company or any issue thereof. The author wishes to acknowledge KFUPM for its support in presentation of this paper.

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Malaysia Airlines (MAS)Facing Challenges in the New Millennium

Abstract

The case deals with the problems faced by the Malaysian Airlines, the national air carrier of Malaysia. While the company had many notable achievements, since the 1970s, it began to face major financial trouble since late 1990’s. The case examines the strategies pursued by MAS to overcome the challenges. The case follows up with a brief description of demands and challenges in the international airline industry.

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Malaysia Airlines (MAS)Facing Challenges in the New Millennium

ORGANISATIONAL VISION “To be the largest, most successful and most respected airline in the world.”

The Beginning

Malaysia Airways Ltd. (MAL) was founded in 1947 by British Overseas Airways Corporation (BOAC - now British Airways), Ocean

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