...(including by e-mail) is permitted without the consent of the copyright holder. The author (which term includes artists and other visual creators) has moral rights in the work and neither staff nor students may cause, or permit, the distortion, mutilation or other modification of the work, or any other derogatory treatment of it, which would be prejudicial to the honour or reputation of the author. Designated person authorising scanning: Anne Petrie Module: Managing Human Resources Module no: UMPCYC-15-M ISBN/ISSN: 9780415893701 Extract Author: Rozhan Othman and Wardah Azimah Sumardi Extract title: Malaysia Airlines: Talent Management in aTurnaround situation Book or Journal Title: Global Human Resource Management Casebook, Hayton J.C Publisher: Routledge, Oxford, 2012 Page numbers 299 - 307 Library Digitisation Service Malaysia Malaysia Airlines: Talent Management in a Turnaround...
Words: 4030 - Pages: 17
...a good time to be in the airline business. The global financial crisis has put a squeeze on passenger numbers, while threats of terrorism and concerns over the environmental impact of air travel also dampen enthusiasm among consumers. Prices are falling; schedules are shrinking; and many airlines are accepting smaller and smaller – often negative – profit margins in order to maintain business through what they hope will be only a temporary shift in demand. But some entrepreneurs simply refuse to give in to the bad trading environment. Bucking the downward trend is the Kuala Lumpur-based airline Air Asia. Tony Fernandes, CEO, says the budget provider is actually expanding at this time. It is buying more aircraft, offering more services, to more destinations; and still finding the budgetary scope for regular sales and promotions. How does he do it? The enthusiastic manager says it is a combination of great people, managed by flexible HR strategies, and the inspiration of the Air Asia credo: “Believe the unbelievable; dream the impossible; never take no for an answer.” From troubled beginnings AirAsia started life in 1993 – but few would have heard of it outside of its native Malaysia. It was founded by a Government-owned conglomerate as an alternative to the then-monopoly service Malaysia Airlines. DRB-Hicom spent plenty of money on the venture, but failed to win much market share. By 2001, the heavily indebted business was all but bankrupt. Fernandes...
Words: 1118 - Pages: 5
...article before answering the questions. Submission date: 16 December 2015 1) AirAsia plan to be region’s biggest carrier Budget airline AirAsia Bhd has drawn up a six-year business plan that will see it carry 70 million passengers a year from 2014, which will make it Asia’s biggest carrier. The figure is 3.5 times higher than this year’s target of 20 million passengers. Group chief executive officer Datuk Tony Fernandes is optimistic of achieving the target, which will in turn make the low-cost carrier terminal at the KL International Airport the regional hub for budget travel, given the foundation laid out over the past six years. Factors going for the airline include its extensive regional network comprising 90 routes and its huge order of 175 Airbus A320s. “Six years going forward, I think things will look rosy and optimistic. This is mainly because we have worked to build the necessary foundation for the airline, namely in terms of network and the brand, and we have already acquired the aircraft to support our growth,” Fernandes told Business Times in an interview. “With the recent inclusion of Singapore in our network, we are basically connected to all points within the region; and what we are going to do now is to further develop each of these existing routes. We are indeed in a strong position now, stronger than we have ever been,” he said. From an unknown airline which started operations in 2001 with RM40 million debt inherited from its previous owner,...
Words: 2983 - Pages: 12
... The story of Malaysia Airlines started in the golden age of commercial air travel. A joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways led to a proposal to the Colonial Straits Settlement government to run an air service between Penang and Singapore. The result was the incorporation of Malayan Airways Limited (MAL) on 12 October 1937. On 2 April 1947, MAL took to the skies with its first commercial flight as the national airline. Fuelled by a young and dynamic team of visionaries, the domestic carrier turned into an international airline in less than a decade. With the formation of Malaysia in 1963, the airline changed its name to Malaysian Airlines Limited. Soon after, Borneo Airways was incorporated into MAL. Within 20 years, MAL grew from a single aircraft operator into a company with 2,400 employees and a fleet operator using the then latest Comet IV jet aircraft, six F27s, eight DCs and two Pioneers. In 1965, with the separation of Singapore from Malaysia, MAL became a bi-national airline and was renamed Malaysia-Singapore Airlines (MSA). A new logo was introduced and the airline grew exponentially with new services to Perth, Taipei, Rome and London. However, in 1972, the partners went separate ways. Malaysia introduced Malaysian Airline Limited, which was subsequently renamed Malaysian Airline System and took to the skies on 1 October 1972. It was later branded Malaysia Airlines and continues to...
Words: 5962 - Pages: 24
...International Journal of Business and Management; Vol. 8, No. 24; 2013 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education Transactional and Transformational Leadership: A Comparative Study of the Difference between Tony Fernandes (Airasia) and Idris Jala (Malaysia Airlines) Leadership Styles from 2005-2009 Arif Kamisan, P1 & Brian E. M. King1 1 School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, China Correspondence: Arif Kamisan, P, School of Hotel and Tourism Management, The Hong Kong Polytechnic University, 17, Science Museum Road, East Tsim Sha Tsui, Kowloon, Hong Kong. Tel: 852-3400-2645. E-mail: 11555000G@connect.polyu.hk Received: May 27, 2013 doi:10.5539/ijbm.v8n24p107 Abstract Leadership plays an essential role in the success of managing organisation. The purpose of this paper is to examine the leadership styles of two leaders in managing the two biggest airline companies in Malaysia namely, Malaysia Airlines and AirAsia. The results showed that the strong leadership style and approach by the two have contributed to the success of the mentioned airlines. The transactional and transformational approaches have significantly given impact in managing the organisation in the current competitive business environment. Other leadership constructs such as entrepreneurial, ethical, innovative and creative have emerged from the two key leaders in this study and require further discussion in the future. Furthermore...
Words: 7350 - Pages: 30
...International Journal of Business and Management; Vol. 8, No. 24; 2013 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education Transactional and Transformational Leadership: A Comparative Study of the Difference between Tony Fernandes (Airasia) and Idris Jala (Malaysia Airlines) Leadership Styles from 2005-2009 Arif Kamisan, P1 & Brian E. M. King1 1 School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, China Correspondence: Arif Kamisan, P, School of Hotel and Tourism Management, The Hong Kong Polytechnic University, 17, Science Museum Road, East Tsim Sha Tsui, Kowloon, Hong Kong. Tel: 852-3400-2645. E-mail: 11555000G@connect.polyu.hk Received: May 27, 2013 doi:10.5539/ijbm.v8n24p107 Abstract Leadership plays an essential role in the success of managing organisation. The purpose of this paper is to examine the leadership styles of two leaders in managing the two biggest airline companies in Malaysia namely, Malaysia Airlines and AirAsia. The results showed that the strong leadership style and approach by the two have contributed to the success of the mentioned airlines. The transactional and transformational approaches have significantly given impact in managing the organisation in the current competitive business environment. Other leadership constructs such as entrepreneurial, ethical, innovative and creative have emerged from the two key leaders in this study and require further discussion in the future...
Words: 7350 - Pages: 30
...Malaysian Airlines: A Business Turnover Name: Course: Instructor: Date: Malaysian Airlines: A Business Turnover Summary Malaysia Airlines ranks among the top government-run agencies in Malaysia. The organization is the national carrier for the country flying to over 100 destinations in six continents across the world. It is based at the Kuala Lampur International Airport where its core operations are run, and recent statistics indicate that it has the strongest influence in East and south Asia regions. However, it is also important to note that its influence is also growing in Europe and Australia, which technocrats believe to be the growing influence in the kangaroo routes leading to Australia and the pacific (Alamdari & Fagan, 2005). The organization has undergone tremendous changes to position itself strategically in the rapidly changing world of air transport. With the increased competition ranging from the swiftly growing carriers including the Emirates, Qatar airways and Etihad airways, and the low cost competitors such as Air Asia and Jetstar to the well-established carriers such as Cathy Pacific and Singapore airlines, the organizations have enacted strategic changes to position itself on the global air transport market. The wakeup call came in 2005 when the airline experienced its worst experience. The Malaysia Airline System achieved success in two years and braced the impact of the financial meltdown that rocked the world at around...
Words: 2378 - Pages: 10
...Five Star Value Carrier: Business Transformation Plan (BTP 2) Disclaimer This Business Transformation Plan (BTP 2) document is issued to staff and external stakeholders with the following disclaimer in line with Bursa Malaysia guidelines: 1. These headline Key Performance Indicators (KPIs) in the BTP 2 are targets/aspirations set by Malaysia Airlines to reflect transparent performance management practices. To all intents and purposes, financial figures referred to as ‘forecasts’ and ‘estimates’ in the BTP 2 are KPIs. 2. These KPIs should not be construed as forecasts, projections, estimates or representations of the company’s future performance, occurrence or matter as the KPls are merely a set of targets/aspirations of future performance and aligned to the company’s strategy. It is our view that because the airline industry faces a tough business environment which MAS is not spared from, it is only appropriate that we disclose information to the public, in a manner that is as balanced and objective as possible. It should be pointed out that in this BTP 2 document, while MAS is announcing its 5-year (2008 - 2012) P&L aspirations, this does not necessarily mean that MAS will make the said profits during the period. The BTP 2 and its targets have been approved by the MAS Board of Directors, but are not to be considered as forecasts reviewed by external auditors. CONTENTS A Joint Message from the Chairman, CEO and CFO 1-2 Executive Summary 3-4 A: Achievements...
Words: 31381 - Pages: 126
...MALAYSIA AIRLINES SYSTEM AND AIRASIA AIRLINES COLLABORATION TAKES PLACE. TABLE OF CONTENTS QUESTIONS 1:- 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...
Words: 3087 - Pages: 13
...International Business & Economics Research Journal – December 2005 Volume 4, Number 12 AirAsia In The Malaysian Domestic Airline Market: Empirical Analysis Of Strategy Mok Kim Man, (Email: mkimman@ums.edu.my),Universiti Malaysia - Sabah, Malaysia Jainurin Bin Justine, (Email: Jainurin@ums.edu.my), Universiti Malaysia - Sabah, Malaysia ABSTRACT This paper will examine the results of the strategic actions of AirAsia in the Malaysian domestic airline market. Firstly, the paper will provide a general background of the airline industry, in particular the Malaysian domestic airline market and a summary of an analysis of the industry using Michael Porter’s Five Forces Analysis. Secondly, the paper will provide a brief background of AirAsia and Malaysia Airlines. Thirdly, the paper will analyse the results of AirAsia’s strategy vis-àvis operating and financial performance. Finally, the paper will conclude a summary of AirAsia’s achievement of the past and present and prospect for the future. INDUSTRY BACKGROUND Airline Industry The airline industry is very competitive with existing airlines having to compete with each other as well as with new entrants from time to time. For every success such as Singapore Airlines and Southwest Airlines, there are plenty of failures such as Pan Am, TWA, Swissair, Sabena, Ansett, People Express, Go, Buzz and so on. Major Characteristics There are three major characteristics of the airline industry namely its product nature, its expenditure...
Words: 5929 - Pages: 24
...background…………………………….………………….....7 2.2 Business process and operation…………………..………………….9 2.3 Low cost carrier (lcc) business model……………….………………11 2.4.1 Business model……………………………………………...11 2.4 Competitive Advantages …………………………..…………………..12 2.5 Historical Performance………………………………..……………….13 2.0 ANALYTICAL SWOT ANALYSIS……………………………….……………..18 3.0 PRODUCT ANALYSIS…………………………………………….……………21 4.6 The product Life Cycle (PLC)………………………………....………21 4.0 STRATEGIS AND TACTICS………………………………………..………….24 5.0 SEGMENTATION, TARGETING AND POSITIONING ANALYSIS 6.7 Market Segmentation………………………………………..………….26 6.8 Target Market Profile……………………………………………………30 6.9 Positioning………………………………………………………….…….32 6.0 MARKETING STRATEGIES AND EVALUATION OF MARKET PROGRAM ELEMENTS………………………………………………………………………..33 Refferences…………………………………………………………………………………………………………….36 1.0 INTRODUCTION AND HISTORY a. Introduction of the product Name of the company: Air Asia Berhad ABOUT THE PRODUCT Air Asia is a low cost airline based in Kuala Lumpur, Malaysia. It operates scheduled domestic and international flights and is Asia’s largest low fare, no frills airlines. Air Asia pioneered low cost travelling in Asia. It is also the first airline in the region to implement fully ticketless travel and unassigned seats. Its main base is the Low Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). Its affiliate airlines Thai Air Asia and Indonesia Air Asia...
Words: 6417 - Pages: 26
...more advanced technology has motivated every single business to adjust to the best business strategy. The heavy competition is also taking place in airlines industry. There are increasing number of new carriers with new business model which has changed the competition pattern in the airlines industry. O’Connel and Williams (2005) said that direct competition between full service airlines and no-frills carriers is intensifying across the world. The old business model of most airlines business focused on the full service, while the new business model focuses on using digital technology to make the business becomes more and more efficient, and thus, leading to cost advantage. Facing the digitalization era, by 2007, AirAsia had become one of the most successful budget airlines in the world. Having dominated Southeast Asia and entered China and India, AirAsia was poised to solidify its place as a top budget airline and one of the most consistently profitable globally. AIRASIA X Airasia X subsidiary of Airasia was founded in 2 November 2007 it’s a long-haul, budget airline based in Malaysia. The airline Airasia, is the international operation of the brand Airasia which is Asia's largest low-cost carrier. (LCC) The Airasia X is also affiliated to Virgin group and Air Canada. Focusing on the low-cost, long-haul segment - AirAsia X was established in 2007 to provide high-frequency and point-to-point networks to the long-haul business. AirAsia X's cost efficiencies are derived from maintaining...
Words: 569 - Pages: 3
...30-31 | INTRODUCTION A REVOLUTIONARY NAME IN AIR TRAVEL REACHES GREATER HEIGHTS (airasia) AirASia is indeed on its way on becoming the dominant player in the airline industry, It is a low cost airline based in Kuala Lumpur, Malaysia who operates scheduled domestic and international flights. The company is Asia’s largest low fare, no frills airlines, a pioneered low cost travelling in Asia. Also the first airline in the region to implement fully ticketless travel and unassigned seats. Their main base is in the Low cost Carrier Terminal(LCCT) at Kuala Lumpur International Airport (KLIA). They also have associates with the airlines Thai Air Asia and Indonesia Air Asia fly from Suvarnabhumi Airport, Thailand and Soekarno-Hatta International Airport, Indonesia. The airlines established in 1993 and started operations on 18 November 1996. It was originally founded by a government-owned conglomerate DRB – Hicom. On December 2, 2001 the heavily – indebted airlines was purchased by the former Time Warner executive Tony Fernandes’s company Tune Air Sdn Bhd for the token sum of one ringgit. Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US $ 0.29). However, the road it has to travel is fill with obstacles and barriers that will essentially test the company’s...
Words: 8670 - Pages: 35
...edu/1508051/AirAsia_The_Worlds_Lowest_Cost_Airline Presentation ref Pacific Southwest Airlines 1949 – first low cost airline Pioneered by Southwest airlines in 1970s followed by Ryanair and easyjet in europe Monopoly Operator Malaysian Airlines Promotional fare as low as MYR 1 Started 1993 Boought by tony Fernandez in 2001 AirAsia, the heavily-indebted subsidiary of the Malaysian government-owned conglomerate, DRB-Hicom, was quickly losing money. Fernandes mortgaged his home and used his personal savings to acquire the company, comprising two ageing Boeing 737-300 jets (9M-AAA and 9M-AAB) and US$11 million (RM40 million) worth of debts, for one ringgit (about 26 US cents), and transformed it into an industry player. One year after his takeover, AirAsia had broken even and cleared all its debts DRB-HICOM assembles cars in Malaysia for Honda, Isuzu, Suzuki, Mercedes-Benz[1] and Volkswagen,[2][3] with plans for expansion. REFERENCE http://www.airasia.com/ask/template.do?id=429 PARIS, 19 JUNE 2013 – AirAsia is named the World’s Best and Asia’s Best Low Cost Airline for the fifth consecutive year at the 2013 World Airline Awards. AirAsia X, the low cost, long haul affiliate carrier of the AirAsia Group also received the World’s Best Low Cost Airline – Premium Class and World’s Best Low Cost Airline – Premium Class Seat title. The Skytrax World Airline Awards is the global benchmark of airline excellence and one of the most prestigious accolades for the airline industry. This annual global survey is conducted...
Words: 7302 - Pages: 30
...Question 1 Analyze the current situation facing MAS and AirAsia using the internal and external strategic environment analysis model. Discuss what aspects and why did their collaboration take place. Answer Background to AirAsia A ‘no-frills’ airline is defined as one “That uses charter and/or scheduled flights to offer bargain-basement fares. Budget airlines usually land at and take-off from secondary airports, do not provide in-flight meals or refreshments, and may not even offer numbered seat allocation. Their ticket prices are fixed and non-refundable in case of a cancellation or no-show”. AirAsia is one of the fastest growing airline companies in the world, with a reputation as a low-cost, ‘no frills’ airline. It was originally a government owned business; yet, due to heavy debt, it was bought by former Time Warner executive Tony Fernandes in 2001, and this is where the real story begins. Their vision, under the slogan "Now Everyone Can Fly", is “To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares”,(ii) and their mission is, under the banner of 'Affordable Airfares', “To attain the lowest cost so that everyone can fly with AirAsia,” without any compromise to Flight Safety Standards, as well as, creating a worldwide recognizable brand with a ‘family’ atmosphere within working conditions for employees. (iii) These statements clearly show AirAsia’s value. Cost advantages...
Words: 2819 - Pages: 12
