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Malaysian Airlines: a Business Turnover

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Malaysian Airlines: A Business Turnover

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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 that time. The underlying success factor behind its swift recovery attributes to the strategic and competitive strategies implemented, and effective decisions made that have since sustained its competitive advantage over other airlines (Alamdari & Fagan, 2005). It is not for any organization, let alone an airline industry to undergo such a dramatic turn within two years and beat established...

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