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Crises That Change Airline Industry in Malaysia

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Submitted By seemslegit
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As an oligopolist industry, airline industry is far from free of crisis that will affect the airline industry’s way in approaching the business in order to sustain their potential ability in the industry. Any slump in economics, political and etcetera will massively contribute to the downturn of certain airliners and in more serious cases, rendering the business and eventually might lead to bankruptcy. Malaysian Airlines have had a rough time in some years regarding their financial stability, and such crisis forces the airliner to change their ways in approaching the business in a way that will rescue them into staying in the industry. Generally, Malaysia Airline will be taken as the main reference on each and every case appeared on this paper

One of the crises that came along to strike the airline industry is regarding the increment of the global fuel price. Early in 2008, Malaysian Airlines got struck and highly affected by the global phenomenon, thus marking the year as the toughest year for the airliner. The fluctuations of fuel price which ended up in mass increment stunned the airliner and it took them up to 9 months long before resolving the uncertainties of the company’s capability in enduring such crisis. The jet fuel increment was reportedly climbed up to USD$182 per barrel. This economic crisis had highly influenced the way Malaysian Airlines approach in managing their financial sources in a more positive way.

Malaysian Airlines had came back strong after the economic slump that affects their business entity, but soon after that, another crisis came haunting every airline industries throughout the globe and specifically, Malaysia Airlines itself. The contagious virus of Influenza A that struck the world had massively interfered airline industry as the also known as H1N1 virus created so much fear among the citizen around the world, and

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