...Performance of Air Asia and Malaysian Airlines System for the year 2011 7 6. Conclusion 11 Bibliography/Reference 13 QUESTION: Select any two listed companies of Bursa Malaysia from the Trading/Services sector and evaluate the companies’ asset management and leverage ratios using their financial statements for the year 2011 ANSWER 1. INTRODUCTION Malaysian Airlines System (MAS) and Air Asia are currently the two main airlines operating in Malaysia. These two companies are competing in the airline industry which is fiercely competitive. This is a very large and continuously growing industry giving the industry players the opportunity for immense financial gains. The different categories in the airline industry usually comprise of: International Category which has airplanes with adequate seating capacity that makes it possible for passengers to travel to any destination in the world. The earnings in this category gross over a billion dollars. National Category which has a lesser seating capacity and the gross revenues are less than one billion dollars. Regional Category with planes that operate short-haul flights. Cargo Category which has planes transporting goods. The airline industry is characterized by its large capital requirements, high fares and operating costs, high tax and excise charges, and high landing, ground handling and air traffic control. Also fuel is a major component for the airlines industry. In 2011,...
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...distribution (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...
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...decided to pursue his dream to start an airline with the following vision: “To be an airline that flies long-hauls with low fares with a corporate culture that is flexible and functional”. AirAsia has achieved its title as “The World Lowest Cost Airline,” and was also one of the world’s most profitable airlines. This report provides an analysis and evaluation of internal and external of the company. Methods of analysis includes of internal and external assessment and financial analysis. SWOT analysis provided in this report will shows the strengths, weaknesses, opportunities and threats of AirAsia. At last of this report, we have provided the recommendations for AirAsia to increase their performance. 1.0 INTRODUCTION 2.1 Company Background Asia’s leading airline was established with the dream of making flying possible for everyone. Since 2001, Air Asia has swiftly broken travel norms around the globe and has risen to become the world’s best. Air Asia was named the World’s Best Low Cost Airlines in the annual World Airline Survey by Skytrax for five year consecutive years in 2009, 2010, 2011, 2012 and 2013 and has been ranked Top 5 among the most recognized and admired airlines in the Asia Pacific Top 1000 Brands 2008. With a route network that spans through to over 20 countries, Air Asia continues to pave the way for low-cost aviation through our innovative solutions, efficient processes and a passionate approach to business. Together with our associate companies...
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...Adonis Nix Candice Mitchell Renesha Randolph Singapore Airlines HISTORY Singapore Airlines’ history can be traced back to 1 May 1947, when a Malayan Airways Limited Airspeed Consul took off from Singapore Kallang Airport on the first of three scheduled flights a week to Kuala Lumpur, Ipoh and Penang. • Over the next five years, larger capacity DC-3 aircraft were introduced. This meant faster and more comfortable flights, and the extension of services to destinations in Indonesia, Vietnam, Burma (now Myanmar), North Borneo (Sabah) and Sarawak. • Inflight refreshments improved from the original thermos flask of iced water to sandwiches, biscuits and cold cuts plus a choice of hot and cold drinks, and alcoholic beverages served by a lone hostess. Known as “female pursers”, these hostesses are the forerunners of today’s Singapore Girl. On 16 September 1963, the Federation of Malaysia was born and the Airline became known as Malaysian Airways Limited. In May 1972, it became Malaysia-Singapore Airlines (MSA). Products and services Inflight refreshments improved from the original thermos flask of iced water to sandwiches, biscuits and cold cuts plus a choice of hot and cold drinks, and alcoholic beverages served by a lone hostess. In September 1998, Singapore Airlines set new standards in air travel by unveiling a new suite of products and services worth S$500 million across all three classes of travel, offering customers enhanced standards of service on the ground and...
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...1.0 Introduction Singapore Airlines (SIA) was founded in 1972 as a regional airline. Today, the airline company is one of the respected name amongst other worldwide travel brands. In the 1940s, SIA was known as Malayan Airways Limited (MAL) and it was on 1st May, 1947 that an Airspeed Consul took off from the Singapore Kallang Airport on its first voyage to one of the three destination scheduled namely Kuala Lumpur, Ipoh and Penang. Over the years, new and larger capacity aircraft were joining the existing fleet. In 1963, MAL was then known as Malaysian Airways Limited and later on, as Malaysia-Singapore Airlines (MSA) in 1966. The airline company scored a revenue of S$100 million back in 1968. In 1970s, two entities known as SIA and Malaysian Airline system emerged from the split of MSA, and ever since then, SIA experienced growth as the company focuses on its operations. According to World Airline Awards (2014), Singapore Airlines is ranked third in the global airline ranking. The airline has earned an outstanding reputation with its high quality service provided to their customers, thus further strengthen the airline’s premier position in the tight competitive market. 2.0 Review of the Organisation’s Reward Strategy and Performance Management System 2.1 Performance Appraisal System In the effort to evaluate the quality of employees’ performance relative to the standards of the company, Towards Optimal Productivity (TOP) is a scheme launched by SIA together...
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...Case Study Related to Business 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 • 1. 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. 2. 3. 1 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...
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...Bargaining Power of Customers 14 3.1.4 The Bargaining Power of Suppliers 14 3.1.5 The Intensity of Competitive Rivalry 15 3.2 Level of Threats 15 4.0 S.W.O.T Analysis 16 5.0 TOWS Matrix 18 6.0 Ratio Analysis 20 6.1 Profitability Ratios 21 6.2 Margin Analysis 21 6.3 Asset Turnover 22 6.4 Credit Ratios 23 6.5 Long-Term Solvency 24 6.6 Growth over Prior Year 24 6.7 Conclusion from Ratio Analysis 25 7.0 Strategic Directions 26 7.1 Market Development 26 8.0 Additional Information 29 9.0 References 31 1.0 Company Profile 2.1 Introduction of Company 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 a simple aircraft fleet and a route network based on low-cost airports, without complex code-sharing and other legacy overheads that weigh down traditional airlines without compromising on safety. Guests continue to enjoy low fares, through cost savings that we pass on to our guests. AirAsia X's efficient and reliable operations are fully licensed and monitored by Malaysian and international regulators, and adhere to full...
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...In the LLC airline industry AirAsia should implement cost advantage factors in the business. Company should have a strategy to be more capable and flexible in reducing cost, especially overhead cost, that results in higher revenue. Organization size in airline industry can be recognized by the number of passengers that travel using that airline. Likewise, it can be referred to the number of seats that an airline can provide using its fleet. Increasing the number of planes in the fleet can directly increase the supremacy of the company in a targeted market. When demand exists, increasing the number of planes can bring more revenue to the airline as it may decrease the overhead costs and increase the flexibility. The nature of many types of services involves people to work in teams, often across functions, in order to bring seamless customer service. Effective teams enable communication and knowledge sharing among team members, thus enabling the members to understand and learn from each other. In view of the importance of teamwork in the delivery of service...
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...and Wrong Values 13.0 “Right Culture with the Right Values will always produce the best organizational performance” 14.0 Conclusion References 1.0 Executive Summary In this business report, Singapore International Airlines (“SIA”) is the company has been chosen to be the topic for discussion. There will be a few factors that will be discussed. Examples like different culture changes an organization’s competitiveness in the market. We will also be evaluating various objective and methods on how an organization can improve, develop and influence to build a stronger management process. The objective of this report is to analyse and explain how SIA, a Singapore company changes its culture to suit a dynamic changing environment and became a successful company with its corporate values and cultures. 2.0 Introduction Singapore Airlines’ history can be traced back to 1st May 1947. That was when a Malayan Airways Limited Airspeed Consul flew from Singapore Kallang Airport on the first of three scheduled flights a week to Kuala Lumpur, Ipoh and Penang. More new aircraft were added to the fleet in the 1950s and 1960s. On the 16th September 1963, the Federation of Malaysia was born hence the Airline was known as Malaysian Airways Limited. In May 1966, it was renamed Malaysia-Singapore Airlines (MSA). In 1972, MSA spitted to become two new...
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...subsidiaries where the subsidiaries primarily provides air freight services and aircraft ground handling services. As the only Intra-Asian overnight express cargo operator based in Malaysia, FCB provides air freight transportation involving aircraft charter and leasing. Due to landing rights in Asia Pacific region, FCB has the opportunity to provide express air services to international integrators, freight forwarders and major airlines within the Asian region. Thus, secure its major landing rights throughout countries in Asia. Moreover, FCB also has well-established customers and offers air freight forwarding services to its major shareholder, Cargo Malaysia Berhad and Bangor Berhad. Meanwhile, FCB was engaged with expansion plan to handle large shipments by expending freighter fleet size in order to cater customers demand. In 2005, FCB’s turnover is expected to be higher than year 2004 due to its expansion plan. However, FCB has higher gearing ratio and weak debt servicing ability. Besides, FCB has governance structure which adhered to the Malaysian Code of Corporate Governance in configuring its Board of Directors. Based on the case, Mr. Chuah Mun Soong is identified as a protagonist where he is one of FCB’s audit team from Kencana & Associates. The main problem here is the dilemma of Mr. Chuah Mun Soong where he thinks that there is a possibility of fraud in FCB. This is because they have identified the suspicious findings during the routine financial audit. As an auditor...
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...[pic] ACFI 3217 International Development in Accounting Comparing of 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...
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...ASSIGNMENT – BMMF5103 OUM BUSINESS SCHOOL SEPTEMBER 2014 BMMF5103 MANAGERIAL FINANCE MATRICULATION NO IDENTITY CARD NO. TELEPHONE NO. E-MAIL LEARNING CENTRE : : : : : CGS00965001 830825-14-5638 019-2289044 nuraishah.baharudin@gmail.com Kuala Lumpur Learning Centre ASSIGNMENT – BMMF5103 TABLE OF CONTENT Introduction to the companies’ background…………………………………………………….….2 Calculation of relevant financial ratios of both companies……..………………………………….4 Analysis of the relevant financial for both companies and Comparison and evaluation of the two companies financial performance based on the computed ratios…………………………………..13 Conclusion…………………………..……………………………………………………………...42 References…………………………..………………………………………………………….…..45 Appendix A Appendix B 1 ASSIGNMENT – BMMF5103 Introduction to the Companies’ Background Malaysia Airlines Berhad Malaysia Airlines’ journey in achieving its current reputable position has been a remarkable one. On 12th October 1937, Malayan Airways Limited (MAL) was born. In 1965, with the separation of Singapore from Malaysia, MAL became a bi-national airline and was renamed Malaysia-Singapore Airlines (MSA). Malaysia introduced Malaysian Airline Limited, which was subsequently renamed Malaysian Airline System, headquartered at the Sultan Abdul Aziz Shah Airport in Subang, Selangor, and took to the skies on 1st October 1972. The airline operates a fleet of 129 aircrafts, flying to nearly 111 destinations...
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...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...
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...Singapore Airlines Case Study (student paper) Singapore Airlines was created in 1972 following a separation from Malaysian Airlines. In the wake of reorganization, Singapore Airlines undertook aggressive growth, investing and trading to maximize profitability and expand market share. Through this change, a new company philosophy emerged, “Success or failure is largely dictated by the quality of service it provides” (Wyckoff, 1989). By reinventing the company infrastructure and introducing new initiatives focused on excellence in customer service, Singapore Airlines became a global leader in the service industry, elevating existing standards among competitors. Evaluation of Workforce Management Program The strategy widely utilized by Singapore Airlines to ensure differentiation in an increasingly competitive market was its attention to in-flight service. “Good flight service [was] important in its own right and is a reflection of attention to detail throughout the airline” (Wyckoff, 1989). This statement perpetuated the belief that excellence in service was directly tied to the careful selection and individual performance of in-flight crews charged with the responsibility of fulfilling the needs of individual passengers and exuding the levels of service demanded by the organization. Applicants destined to work as flight stewards were drawn from a very young population, typically spanning the ages of 18-25 years of age with high school equivalency against the English system...
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...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...
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