...MALAYSIA AIRLINE SYSTEM BHD (MAS). Company Profile Malaysia Airlines started when 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 Staraits Settlement government to run air service between Penang and Singapore. The result was 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. However, it was renamed as Malaysian Airlines. Soon after Borneo Airways was incorporated into MAL. 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 1973, the partners went separate ways. Malaysia introduced Malaysian Airline Limited, which was subsequently renamed Malaysian Airline System or in short, Malaysia Airlines. While MAS has grown to become Southeast Asia’s largest airlines, it also becomes one of the world’s premier international carriers. Malaysia Airlines is listed on the stock exchange of Bursa Malaysia under the name Malaysian Airline System Berhad. The Malaysia Airlines headquarters is located at Sultan Abdul Aziz Shah Airport Subang, Selangor, Malaysia. It is leading by the Chairman, Tan Sri Md Nor Yusof and Tengku Datuk Seri Azmil Zaharuddin as a Managing...
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...CASE STUDY 26: MALAYSIA AIRLINES Analysis of Advertising Copy for Perceived Brand Personality After reading the article of Malaysia Airlines, it was mentioned there that they said they were the leading or number airlines in Asia. I got curious why and I did some research. I found out that Malaysia Airlines (Malaysian Airline System Berhad) is the flag carrier ofMalaysia. Malaysia Airlines (MAS) operates flights from its home base, Kuala Lumpur International Airport and with a secondary hub at Kota Kinabalu andKuching. Malaysia Airlines operates flights in Southeast Asia, East Asia, South Asia,Middle East and on the Kangaroo Route between Europe and Australasia. It operates transpacific flights from Kuala Lumpur to Los Angeles, via Tokyo. Going back to the message of the article, it has been discussed that the Advertisement of Malaysia Airlines found customers and readers as arrogant, assertive, disinterested and pseudo-sophisticated. From the advertisement itself, the airline is so confident about what they want to convey and others start to look at it too much and uses such self-congratulatory tone. Even though they won several awards for its in-flight services for quite a while or merely 3 years as it was mentioned but the way they take it is very dismissive and arrogant type that they don’t consider what others may think that is why they were issued. The airline gives too much detail about how good they are and now they were being critics and now people find them...
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...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...
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...given rise to many airline companies to provide the best service and safety to an individual to make his journey a memorable one. Airline companies are constantly upgrading with technology and other services for competing in this ever-growing airline industry. Malaysian airlines is one of the prestigious passenger airline carrier owned and run by the government of Malaysia also known as MAS in short. Malaysian airlines operates in more than 60 destinations around the world. Product and Experience Analysis: Malaysia Airways is one of the mid cost airline company and operates from the homeland base Kuala Lumpur. Malaysian airlines has established itself in the South East Asia region and travelling around the world. Malaysian airlines is one of the few airlines to be awarded with the 5 star airline status by Skytrax. Malaysian airlines also operates 2 airline subsidiaries Firefly and MASwings which operate internally within Malaysia. Other services offered by MAS include things like architectural operation, resort management, catering, digital booking companies, transportation and warehousing companies. MAS is an international carrier operating in 117 domestic destinations and 115 international routes in six continents. MAS offers 3 different classes first, business and economy class to suit the customer needs and compared to other 5 star airlines the prices offered by Malaysian airlines are way cheaper and they are highly competing with the other low cost airlines and offer exceptional...
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...the performance of Malaysia Airlines and China Southern Airlines Summary The purpose of this report was discovering and analyzing the performance of Malaysia Airlines and China Southern Airlines; and the benefits and problems in the U.S. adopting of IFRS will be mentioned. First, it evaluates the performance of Malaysia Airlines and China Southern Airlines through five ratios analysis which is profitability, liquidity/solvency, working capital efficiency, long term financial structure and investors’ perspective. Next, on basic of part one analysis, discuss the limitations of financial reporting, meanwhile, companies from different countries which are using different accounting standards should be noticed. Follow on; depend on the situation of financial report, using the SWOT methods to analyze the primary challenges faced by Malaysia Airlines and China Southern Airlines. Finally, discuss the positive and negative of U.S. adopting IFRS. Contents 1. Introduction 1 2. Ratio analysis of the MAS and CZ 1 3. SWTO analysis of the MAS and the CZ 12 3.1. Strengths 12 3.2. Weaknesses 13 3.3. Opportunities 15 3.4. Threats 16 4. The benefits and problems if US adopt IFRS 18 5. Conclusion 26 6. Reference 27 7. Appendices 36 7.1. Appendices 1—Analysis Current Ratio 36 7.2. Appendices 2—Analysis Quick Ratio 36 7.3. Appendices 3—Analysis Gross Profit Margin 37 7.4. Appendices 4—Operation Profit Ratio 37 7.5. Appendices 5—Analysis Net Profit Margin...
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...bad……………………………………….7 4.0 The major competitor of the favorite brand…………………………………..8 4.1 Malaysia Airlines (MAS) the major competitor of Air Asia………….....9 4.2 Competing brands in term of strategy marketing……………………….10 4.3 Difference between Air Asia and Malaysia Airlines (MAS)……………11 5.0 Conclusion………………………………………………………………………13 6.0 Reference………………………………………………………………………..14 1.0 Introduction The aim of this individual assignment of subjects BPMM3113 Brand Management is to make a bit of criticism in connection with the preferred brand and the brand also not favored. This task is also to evaluate the performance of a popular brand of airline Air Asia and also the favored brand of Air Rayani. For the main competition for Air Asia is Malaysia Airlines (MAS). The airline industry is a big industry, a large and rapidly growing nowadays. In those years ago, air travel has increased by 6% a year and scheduled airlines carry more than 1 billion passengers in 2008. In addition, in this study, both the company and the challenges will be discussed in more detail in this report. It will be discussed further in this study are the weaknesses, advantages and competitive strategy used in the aviation industry. MAS Airlines and Air Asia on profitability and liquidity ratios to assess business performance and also the strength of the two airlines were strong and powerful. The conclusions and recommendations which investors need to invest in construction...
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...Malaysia Airlines System launched its zero-fare campaign for local as well as for Southeast Asia destinations. It is analysis that AirAsia claimed that MAS is cross-subsidising the zero-fare campaign with profits from international routes. In addition, Malaysia Airlines System is accused of practicing predatory pricing. It is stated there is a simple test for cross subsidy and predatory pricing. We know that the simple test for cross subsidy is the cost approach. Then it can be analysis if the revenue from a subset of outputs is less than its incremental cost, the subset is the receiver of cross subsidy. In addition, the test for predatory pricing is that any price below variable cost is predatory if it can prove that the price constitutes a threat to an efficient firm. It is stated it must be shown that the predator tries to eliminate its competitors. It is stated and analysis that once the competitors exit the market, then it must also be shown that the predator firm raises the price to recoup the losses suffered in price wars. Meanwhile, in this price war, there is no evidence of cross subsidy. Similarly, the Malaysia Airlines System aggressive pricing is not predatory. It is stated that, Malaysia Airlines System denied the accusation by Air Asia that it was using international subsidies to finance its as “Everyday Low Fares” campaign that stated in the New Straits Times on 16 May 2008 as it launched its zero-fare campaign for local as well as for Southeast Asia destinations...
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...Summary Malaysian Airlines System Berhad is the holding company for Malaysia’s national airline carrier, one of the fastest growing airlines in Asia. Malaysia Airlines has three airline subsidiaries, which is Firefly, MAS wings and MAS cargo. Although MAS had provide an excellent services and won many award, they still facing financial problem since year 2002. Situation become worse in year 2014 due to the MH370 and MH17 tragedies occurred. MAS are facing three main problems. First will be financial turbulence. In recent years, MAS has struggled financially. In 2013, the company reported a loss of 1.17 billion ringgit, its third consecutive year in the red. The airline had already been suffering from years of poor performance. The company’s stock price has dropped since MH370 missing and MH17 crashed occurred. A double tragedy of this nature after such a short period is unheard of in the industry, which could deal a crippling reputational and financial blow to Malaysia Airlines Malaysian Airline System Bhd. The second problem is lost confidence of passengers toward the Malaysia Airlines. Due to the disasters of MH370 and MH17, the airlines passengers lost confidence to the Malaysia Airlines which bring the feeling of fear and afraid toward MAS. Those passengers may switch to other airlines such as Air Asia and Singapore Third problem is reputation of Malaysia Airlines be damaged. At the beginning, Malaysia Airlines have a very high reputation and images in airlines industry which...
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...1.0 INTRODUCTION Malaysia Airlines System Berhad is the national Malaysian full service airline carrier. It is based in Kuala Lumpur. It services over 100 direct destinations worldwide and gives its passengers access to 950 destinations through its airline alliance partners. Malaysia Airlines System Berhad has a rich history spanning as far back as 1937 growing out of the initial incorporation of Malayan Airways Limited. Malaysian Airline System Berhad is listed on the main board of the Malaysian stock market known a Bursa Malaysia and as of 18 October 2012 was trading at a share price of RM1.03 which is extremely low in comparison to its initial public offer. This is due to loss of profitability because of poor management over the years. 2.0 FINANCIAL RATIOS To evaluate the performance of Malaysia Airlines System Berhad the following profitability ratios were used: * Gross Profit Ratio * Net Profit Ratio * Return on Capital Employed Ratio 2.1 Gross Profit Ratio This ratio is used to measure a business’ efficiency in producing it products. It expresses the relationship between gross profit and sales and is presented as a percentage. It calculated using the following formula: Gross Profit Ratio = (Gross Profit / Sales) × 100 2.2 Net Profit Ratio This ratio is used to measure the overall profitability of a business. It expresses the relationship between the after tax net profit and the sales and is described as a percentage. It is calculated using...
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...Executive summary This assignment is to compare the capital structure, and cost of capital between two same companies in Bursa Malaysia and their effect to market valuation and firm’s performance. It is also to indicate how the companies gearing levels and cost of capital affect the firm’s value and profitability ratios. The ratios being used are for comparing and investigating the relationships between two companies’ financial information. Besides, it indicates if higher gearing level and higher cost of capital affect the firm’s value and performances. This assignment was focused on AirAsia and Malaysia Airline.A company's capital structure refers to the relative proportions of equity (raising money by selling shares) and debt (raising money by borrowing) which the company uses to finance its activities. The uses of capital structure are important to distinguish between market value and book values. In general, financial economic prefer to use market value went measuring debt ratio because it reflect current value whether than historical values. Financial economist does belief that current market value reflects true intrinsic value. In the other hand the uses of book value is very popular because of volatility of stock market it is frequently claimed that the inherent volatility of the stock market makes market-debt ratios move around too much. A company's capital structure can have an enormous impact on its earnings per share, taxes, and interest payments, even though...
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...Financial Analysis Report: Malaysia Airlines 2007-2011 ARTICLE in INTERNATIONAL JOURNAL OF SCIENCES: BASIC AND APPLIED RESEARCH (IJSBAR) · SEPTEMBER 2014 READS 913 1 AUTHOR: Gilbert O'Neil Mushure University of Zimbabwe 4 PUBLICATIONS 0 CITATIONS SEE PROFILE Available from: Gilbert O'Neil Mushure Retrieved on: 07 January 2016 International Journal of Sciences: Basic and Applied Research (IJSBAR) ISSN 2307-4531 (Print & Online) http://gssrr.org/index.php?journal=JournalOfBasicAndApplied -------------------------------------------------------------------------------------------------------------------------------------- Financial Analysis Report: Malaysia Airlines 2007 - 2011 Gilbert O’Neil Mushure* Department of Accountancy, University of Zimbabwe,P.O Box MP167 Mount Pleasant Harare Zimbabwe Email: accountancy@commerce.uz.ac.zw Abstract This work is an analysis of the annual reports of Malaysia Airlines Berhad from 2007 to 2011. Profitability analysis was done on the financial statements of the company from 2007 to 2011. Cash and working capital management analysis were done on the financial statements of 2010 and 2011. It was found that Malaysia Airlines Berhad was constantly suffering from high costs of operations which resulted in consecutive negative gross profit over the years.Net profit remained positive only as a result of other income, gains and profits from associate companies up to 2011. It was also found that Malaysia Airlines...
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... 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 structure and its market entry conditions. Airlines’ product is homogeneous or undifferentiated...
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...SGA 848A – STRATEGIC MANAGEMENT Assessment 1: MALAYSIA AIRLINES 4/4/2011 Facilitator: Raymond Wiranatakusuma Student: Thanh Le – MCP 170 I. Introduction Originally Malaysia Airline is a joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways and goes for separation in 1965. Malaysia Airline today is well known as a 5 star airlines with holding a lengthy record of service and best practices excellence, flies around 50,000 passengers daily to 100 destinations worldwide and having more than 100 awards in the last 10 years (Malaysia Airline, 2011). Vision: To be the World’s Five Star Value Carrier (FSVC). Mission: To be a consistently profitable airline. Customer Value Proposition: To deliver Malaysian Hospitality, hassle free all the way, and in doing so reflect our nation’s highest ambitions. Purpose of the report: As a strategic management consultant, this report is aimed at conducting a thorough strategic analysis in order to recommend the future strategic direction for the Malaysia Airlines and compete in the airline industry on the Southeast Asian market effectively. Table of Contents I. Introduction 2 II. SWOT ANALYSIS 4 Internal Analysis 4 External Analysis 6 III. Competitors Analysis 8 Thai Airways 8 Garuda Indonesia: 9 Financial Data Comparison 10 IV. Conclusion 11 V. Recommendation 12 Strategic Objectives in the next 3-5 years: 12 Key strategies in the next 3 – 5...
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...position of Singapore Airlines Module No : EG3080 Module Title : Business Application in Engineering Submitted by : Chia Kok Kwang Alvin (K1068496) Table of Contents Page 1. Abstract 3 2. Introduction 4 3. Background 5 4. Singapore Airline’s Macro Environment (PESTEL Analysis) 6 5.1 Political Factors 6 5.2 Economic Factors 7 5.3 Socio-cultural Factors 7 5.4 Technological Factors 8 5.5 Environmental Factors 8 5.6 Legal Factors 9 5. Competitive forces and firm strategy (Porter’s 5 Forces Analysis) 10 6.7 Threat of new entrants 10 6.8 Threat of substitutes 10 6.9 Power of buyer 11 6.10 Power of supplier 11 6.11 Competitive rivalry 12 6. Strategic Capabilities (SWOT Analysis) 13 7. Strategic Choices (Porter’s Strategies) 14 8.12.1 Cost leadership 14 8.12.2 Focus 14 8.12.3 Differentiation 14 8.12 Strategic choice of Singapore Airlines 15 8. Challenges ahead of Singapore Airlines 16 9. Conclusion 17 10. References 18 & 19 1. Abstract Singapore Airlines leaves a deeply positive impression in many people’s heart as a leading airline that is dedicated to bring the highest level of products and services. We will look into how Singapore Airlines achieve its excellent...
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...Introduction Overview of Malaysian Airline System Berhad (MAS) Malaysia Airlines (MAS), the countries’ national carrier was incorporated on 12th October 1937. First known as Malayan Airways Limited (MAL), it was a joint initiative of Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways which proposed to Colonial Straits Settlement government to run an air service between Singapore and Penang. MAL’s first commercial flight was on 2nd April 1947. By the time of Malaysia formation in 1963, Malayan Airways Limited (MAL) changed its name to Malaysia Airlines Limited. Borneo Airways was incorporated soon after. Singapore’s separation from Malaysia saw the company renamed to Malaysia-Singapore Airlines (MSA) in 1965. In 1972, MSA went separate ways to become Singapore Airlines (SIA) and Malaysia Airline Limited (subsequently renamed to Malaysia Airline System (MAS)) independently. As of 31st December 2013, MAS operates a fleet of total 147 aircrafts (108 MAS + 39 Subsidiary). Other MAS subsidiary providing air services included MASkargo, Firefly and MASwings. MAS has been suffering from losses continuously since year 2011 even though revenue and passenger increased in the year 2013. Coupled with the MH370 and MH17 tragic incidents in year 2014, Malaysia government called for a recovery plan to be executed to turn MAS back to profitability. The recovery plan was put together by Khazanah Nasional (Federal government Investment Arm, which happens...
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