...CRISIS COMMUNICATION AND THE CASE STUDY OF MISSING MALAYSIA AIRLINES FLIGHT MH370 I. Literature review In a ‘vulnerable’ society that has been easily affected by many different types of crises such as natural and man-made disasters, in disregard of where you live and what you do, no community or organization is immune from crisis. In order to provide clear definitions and deeper understanding crises of all types, scholars have developed theories to handle these events. A wide range of crisis fields are studied including psychology (Morgan et al., 2002), sociology (Clarke & Chess, 2008) or political perspective (Birkland, 2006). In addition, other research involved communicating in crisis (Reynolds, 2002). All of these disciplines, even different, combine to build a theoretical background on various approaches to crisis communication and contribute to establish crisis response guidelines for organizations. Among the prominent theories on crisis communication, the Situational Crisis Communication Theory generates a link between Attribution Theory firstly built by Fritz Heider in the early part of the 20th century which addresses the processes by which individuals explain the causes of behavior and events and crisis response strategies which represent what an organization does and says after a crisis. To protect reputation, it is crucial for the organization to consist the responsibility acceptance of the crisis response with the stakeholder attributions. Coombs (2006)...
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...FACULTY OF ECONOMICS AND BUSINESS EBA 4043 INTERGRATED CASE STUDY MALAYSIA AIRLINES CASE STUDY NO NAME STUDENT ID 1 ANGELINE JONG HO CHIN 35474 2 FONG SHU YIING 36085 3 SURESH A/L MINAIAH 38941 4 LEE YOKE LAN 39541 5 WAI POH YAN 39641 Malaysia Airlines INCOME STATEMENT ANALYSIS Income Statement Analysis (Cont’) Year/ Aspect 2008 2009 2010 2011 2012 Revenue Increase 2.38% Decrease 24.78% Increase 14% Increase 5.77% Decrease 2.69% Expenditure Increase 5.44% Decrease 19.71% Increase 9.19% Increase 21.57% Decrease 12.84% Net profit for the year Net profit (RM 245,697,000 ) Net profit (RM 493,106,000 ) Net profit Net loss (RM (RM 2.5 237,346,000 billion) ) Net loss (RM 430,738,000 ) Increase 39.09% Increase 63.74% Increase 47.57% Finance Increase cost-interest 29.61% expense Increase 15.19% BALANCE SHEET ANALYSIS • Balance sheet and cash flow – interrelated • cash flow explains inflow and outflow of cash which any changes in balance will affect cash flow • Operating Activities – changes in current assets and current liabilities • Investing Activities – changes in non current assets and other income • Financing Activities – changes in equity and liabilities BALANCE SHEET ANALYSIS There was no long term borrowings in year 2003 until 2006 because of most probably government take over it...
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...Full Length Research Paper Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia Kee Mun, Wong* and Ghazali, Musa Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia. Accepted 23 March, 2011 Brand is crucial in differentiating the superiority of products or services over others. This is an exploratory study examining the differences in brand satisfaction between Malaysian Airlines (full service airlines) and Air Asia (low cost airlines) in Malaysia. 350 usable questionnaires were obtained from respondents in the two main airlines terminals in Kuala Lumpur. Exploratory factor analysis revealed seven brand satisfaction dimensions which are tangibles, price, core service, reputation, publicity, word-of-mouth, and employee. Generally, respondents were not satisfied with all brand dimensions of both airlines. The level of brand dissatisfaction is also higher for Malaysian Airlines compared with Air Asia. Air Asia was perceived better than Malaysian Airlines in price, publicity, and word-of-mouth. On the other hand, Malaysian Airlines was perceived better in tangibles, core service, reputation, and employee. The paper highlights some of its theoretical, managerial and marketing implications to the development of airline industry. Key words: Airlines, branding, satisfaction, Malaysia Airlines, Air Asia. INTRODUCTION The world airline industry has gone through a rollercoaster ride for the past...
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...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, this study managed to provide some insight and perspective of the qualities much needed by the current leadership scene. Keywords: airlines industry, leadership styles, transactional...
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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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...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, this study managed to provide some insight and perspective of the qualities much needed by the current leadership scene. Keywords: airlines industry, leadership styles, transactional...
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...and any digital or printed copy supplied to or made by you under the terms of this Licence are for use in connection with this Course of Study. You may retain such copies after the end of the course, but strictly for your own personal use. All copies (including electronic copies) shall include this Copyright Notice and shall be destroyed and/or deleted if and when required by the University of the West of England. Except as provided by copyright law, no further copying, storage or 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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...Management 110: Assessment 2 1. Case study I choose Malaysia Airline System (MAS) because the whole world is focusing on Malaysia recently and especially Malaysia Airline due to the miserable crash of MH370. According to international newspapers and articles, I have found that MAS has plenty of debts and it occurred because of wrong management. Some presses refer to MAS is able to be bankrupted by the tremendous compensation of MH370. Therefore, I choose MAS in order to revive and overcome from poor management. 2. Contemporary management issue in relation to this article Issue: Poor management leads Malaysia Airline to billions of debt, MAS needs government rescue. Background and context of the company: Malaysia Airline System (MAS) is the home base of Malaysia and it was established in 1947. Nowadays, Malaysia Airlines secures a variety of routes such as Europe, North America and Asia continent. These days, Malaysia Airline has recorded the minus of Operating Cash Flow (OCF) over the past three years. Free Cash Flow (FCF) which minuses capital expenditure from OCF was negative for six years. (Tengku Bahar,2014) The financial issue presses the airline and about 19,000 employees. Key issues for the company: Before being the crash of MH370, MAS already faced their financial pressures, which is approximately 4.2 billion ringgit loss. The disappearance of MAS MH370 boosts the financial loss and it can be a critical damage for MAS. Furthermore, the main issue for MAS is its...
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...THE RISE OF TONY FERNANDES AND AIRASIA IN MALAYSIA1 SHAHRIL EASHAK ISMAIL Monash Asia Institute, Monash University, Caulfield East Vic 3145, Australia Email: seism1@student.monash.edu 1 This paper was presented to the 18 Biennial Conference of the Asian Studies Association th of Australia in Adelaide, 5-8 July 2010. It has been peer reviewed via a double referee process and appears on the Conference Proceedings Website by the permission of the author who retains copyright. This paper may be downloaded for fair use under the Copyright Act (1954), its later amendments and other relevant legislation. 2 The Rise of Tony Fernandes and AirAsia in Malaysia This article discusses the emergence of Tony Fernandes and AirAsia. At first, when AirAsia was relaunched as a Low-Cost Carrier (LCC) under the leadership of Fernandes, no one thought the airliner would survive, let alone become a symbol of the liberalisation of the aviation industry in Southeast Asia. Second, Fernandes, a Malaysian Indian of Portuguese Malaccan descent – obviously not a Bumiputra2 - was able to thrive as an entrepreneur in an environment where the government gave top priority to Bumiputra entrepreneurs. These issues are discussed in this paper. Malaysia’s New Economic Policy (NEP) The Malaysian Government has played a significant role in Malaysia’s rapid economic growth. After the independence in August 1957, the economy shifted...
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...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...
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...THE RISE OF TONY FERNANDES AND AIRASIA IN MALAYSIA1 SHAHRIL EASHAK ISMAIL Monash Asia Institute, Monash University, Caulfield East Vic 3145, Australia Email: seism1@student.monash.edu 1 This paper was presented to the 18 Biennial Conference of the Asian Studies Association th of Australia in Adelaide, 5-8 July 2010. It has been peer reviewed via a double referee process and appears on the Conference Proceedings Website by the permission of the author who retains copyright. This paper may be downloaded for fair use under the Copyright Act (1954), its later amendments and other relevant legislation. 2 The Rise of Tony Fernandes and AirAsia in Malaysia This article discusses the emergence of Tony Fernandes and AirAsia. At first, when AirAsia was relaunched as a Low-Cost Carrier (LCC) under the leadership of Fernandes, no one thought the airliner would survive, let alone become a symbol of the liberalisation of the aviation industry in Southeast Asia. Second, Fernandes, a Malaysian Indian of Portuguese Malaccan descent – obviously not a Bumiputra2 - was able to thrive as an entrepreneur in an environment where the government gave top priority to Bumiputra entrepreneurs. These issues are discussed in this paper. Malaysia’s New Economic Policy (NEP) The Malaysian Government has played a significant role in Malaysia’s rapid economic growth. After the independence in August 1957, the economy shifted...
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...PRICE, SERVICE QUALITY AND CUSTOMER LOYALTY: A CASE OF AIR ASIA Nadia Hanum Amiruddin Faculty of Business & Entrepreneurship, University Malaysia Kelantan, Kelantan Email : nhanum@umk.edu.my , Tel : 0163350165 ABSTRACT Nowadays, the market is getting competitive in all aspects of survival of the company. Companies especially in the service industry realize that in order to win the market, they need to explore new ways of approaching customers. Therefore, it is important for the company to foster customer loyalty. In this study, SERVQUAL or Gap Analysis Study has become an adapted model for the researcher in measuring the service quality in Air Asia. SERVQUAL measured tangibles, reliability, responsiveness, assurance and empathy. This research aimed to study the relationship between service quality and price towards customer loyalty in the Air Asia services. For this study, the survey method was used as instrument for collecting data. A mall intercept was the method of data collection used by researchers where passengers at the arrival and departure halls of LCCT were given the questionnaire. Based on this research, the result indicates that there are significant relationship between service quality towards customer loyalty and price towards customer loyalty. Based on the correlation analysis, it shows that between service quality and price, price is the most influencing factor that will affect customer loyalty. It can be concluded that, if Air Asia remains as the...
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...South Asian Journal of Business and Management Cases http://bmc.sagepub.com/ Business Turnaround Plan: The Experience of Malaysia Airlines Herwina Rosnan and Razmah Mahmod South Asian Journal of Business and Management Cases 2012 1: 211 DOI: 10.1177/2277977912459444 The online version of this article can be found at: http://bmc.sagepub.com/content/1/2/211 Published by: http://www.sagepublications.com On behalf of: Birla Institute of Management Technology Additional services and information for South Asian Journal of Business and Management Cases can be found at: Email Alerts: http://bmc.sagepub.com/cgi/alerts Subscriptions: http://bmc.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations: http://bmc.sagepub.com/content/1/2/211.refs.html Downloaded from bmc.sagepub.com at Fachhochschule Kufstein on December 3, 2013 >> Version of Record - Jan 8, 2013 What is This? Downloaded from bmc.sagepub.com at Fachhochschule Kufstein on December 3, 2013 Case Business Turnaround Plan: The Experience of Malaysia Airlines Herwina Rosnan Razmah Mahmod South Asian Journal of Business and Management Cases 1(2) 211–221 © 2012 Birla Institute of Management Technology SAGE Publications Los Angeles, London, New Delhi, Singapore, Washington DC DOI: 10.1177/2277977912459444 http://bmc.sagepub.com Abstract Malaysia Airlines (MAS) is the Malaysian national air carrier. It...
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...The Low Cost Airline: AirAsia A study of opportunities, challenges and critical success factors LGT 3007 Air Transport Logistics [pic] Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States, where it was pioneered in the 1970s by Southwest Airlines, the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel, online ticket sales, no international offices, no frequent flyer points, no free food and beverages, no inflight magazines, no club lounges, use of secondary city airports. Not all low cost airlines have these features, and not all airlines that have some of these features are low cost airlines. For example, Virgin Express is a low cost airline, but it still offers complimentary coffee and inflight magazine, and they are based at Brussels primary airport. Case Study—AirAsia Story of AirAsia Air Asia, as the second Malaysian National Airline, provides a totally different type of service in line with the nation's aspirations to benefit all citizens and worldwide travellers. Such service takes the form of a no frills - low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia. Their vision is "Now Everyone Can Fly" and their mission is to provide 'Affordable Airfares' without...
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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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