post your choice....

This objective of this poll is to find out the various factors that creep into the minds of the customers while choosing their flights. This poll highlights the reasons why customers go in pursuit of other airlines to fly to and from Malaysia and not Malaysian Airlines. In this poll we would like to know which airline you would choose to fly to Malaysia from your place or from Malaysia to your desired destination. Please drop in your opinion and put a valid reason for why you choose the particular airlines. What would be the basic factors that you would consider when making your choice of flight.
The results generated from this poll would throw light to the factors that the company should take note of and identify what the customers really look for when they wish to fly. These information’s could enable the company to overcome the key areas or factors that they are weak in and probably could provide better service in the area that they are strong and thus the could establish a stronghold . It is not just the facilities offered by the airlines that attract the customers to choose the airlines but other factors too. Let us see what are the other factors that you would look at for the reason “ why or why not you choose Malaysian Airlines”.....

An over view of Malaysian Airlines

Malaysian Airlines, the proud national carrier of Malaysia, is recognized as one of Asia's largest aero power, flying over, and more than 48,000 passengers to across 100 destinations across 6 continents everyday. The company has partnership deal with 25 other airlines and holds a lengthy record of service and best practices of excellence, having received more than 100 awards in the last 10 years. The most notable ones include being the first airline to with the "World's Best Cabin Crew" by Skytrax UK consecutively from 2001 until 2004, "5-star airline" in 2005 and 2006, as well as No.1 for "Economy Class Onboard Excellence 2006" also by Skytrax UK.
However, the industry is hailing under loss for more than seven years, according to the management they states that the company fell in loss because of increase in the input costs which resulted the hike in the operating escalation to more than 35% from 15 %. However, this single reason would not be the main factor behind the loss of the company for the past years and still on going. There could be other reason or sub reason for the company, that lead to the loss factor. Let us have a look into the inside of the company which is searching for the reasons behind the weak situation of the industry.

Formation of a new company

Malaysian Airlines System plans to split its international and cargo services from its domestic operations as a part of the firm’s fight to turn the table of loss to profit, and the are doing it by forming a new company with a working name of Newco to handle the international/cargo side. The split will allow investors to emphasize international passenger services, the company said. This decision was taken by the company just after announcing its loss of MYR 557 for the quarter year and said that its operation cost increased to 34% from 27% the previous year. Is this the right time for the company to take such a decision to create another company to handle the international cargo services alone? The formation of a new company may again incur cost and since the company is running in loss it needs to bring funds from outside which may again increase the liabilities of the company. And as every firm say assets are far much better than liabilities…

Is it necessary for the company to got ahead with their current plan of forming a new company rather than looking at different ways and bringing out the solutions to get back the company to the profit side. How would this decision at a crucial time like this, help the company in any means? Is there any other source that may improve the situation of the company? The same fund could be utilized in much better way say like investing it in some other areas of concern to uplift the company,,, what could be the possible areas..?
(http://findarticles.com/p/articles/mi_m0CWU/is_2006_Feb_24/ai_n16084864)
(http://findarticles.com/p/articles/mi_m0CWU/is_2005_June_1/ai_n13791812)

What could be the solutions??

The company need to look in detail the different ways to recover from the loss side, the primary measure by them will be, by increasing its routes and services, and charging moderate fairs just to cover the cost at least for a few period of time, till they reach a position to establish a control over the loss. All these could be the possible solutions for a better future of the company. Malaysian Airlines and Italian airlines Alitalia have entered into a new code-share agreement for flights between Kuala Lumpur and Rome.
Besides this MAS has also done an employee retention program where more than 6000 employees were send away from the company. The retention was not based on any quality of the workers but was based purely on the experience; the company could have a better retention program based on the quality of the employees to cover its cost. But beside that in some areas the power and energy of youngsters do matter. So the company should also take a look into that matter also…
What could be the possible solutions that the industry should look at, recently the company have started its online booking system which seems to be a nice move which helps the customers to book there tickets easily and could enquire about the flights and services online. Another possible solution could be charging discounted rates for selected groups like students, frequent travellers, and so on this makes these customers stick to the same airline.
New systems like adding points for the frequent travellers and giving them allowances and discounts based on these points would be another solution that Malaysian Airline could possibly look. This kind of point system makes the the customers to take the same flight to collect more more points and collect the rewards. These kinds of possible solutions would not take much resources and thus adds another advantage to the airlines. The other areas that the company could look at would be creative marketing by conducting celebrations together with the selected customers all in a small scale, conducting a question air or survey on selected customers of MAS and could enquire about the experience and suggestions and so on. An extensive selection of employees within and from outside based on quality would rather improve the management and operations of the company. Would these could be some of the possible solutions that MAS could look at? what could be the other areas of possibilities..?
(http://findarticles.com/p/articles/mi_m0CWU/is_2006_April_5/ai_n16119086)
(http://findarticles.com/p/articles/mi_hb3078/is_200705/ai_n19272684)

A better future or high standards..

Malaysian Airlines has been classified as a five-star airline by the World Airline Star Ranking program, operated by Skytrax. The ranking has been done on the basis of the quality of service offered and the products. Even after recognizing the fact that the company is moving into losses, the company has been purchasing new air crafts and increasing the fair charges to keep up the standard, but for what reason? Is it this the right solution? A company like MAS could look at different ways to find out the formula to make up the loss, the company already have a problem and they should try not to create more .. instead they can work on it by the best possible means and reach the profit line.. Then they can think about the standard…
(http://findarticles.com/p/articles/mi_m0CWU/is_2005_June_14/ai_n13815559)

Malaysian Airlines..Is this the right solution??

Malaysian airline, the chief airlines of Malaysia is running in loss for more than seven years. Though the company has been making predictions and has taken several measures to make the company profitable, year after year the company is moving into losses. What is wrong? The operations, the management, the service, or what else.. Let us have a look into the matter in detail.

A stunning loss in 3 months as on 30 June 2005 of MYR280.7m has been reported by Malaysian Airline authorities. May be because of the rise in fuel costs .A loss in excess of MYR 1bn may have been recorded by Malaysia Airlines for 2005, it has been claimed.
An unnamed official quoted by Dow Jones Newswires has stated that the carrier reported a loss of up to MYR552m for the fourth quarter of 2005, making the airline's full year loss worse than the predicted, to a figure of MYR803.1m average loss.
All these reports states that the company is moving into losses year after year and it is certain that the company is making losses of far expected.

Even at the time of undergoing losses and even after recognizing the fact that the company is moving into a worse situation, the measures undertaken by the company is strange. According to the Business Times, Malaysian Airlines is considering replacing its Fokker aircraft with ten new turbo-prop aircraft, 13 new regional aircraft or a combination of the two in a deal that could be worth up to USD320m.
Malaysian Airlines System will reportedly purchase six doubler-decker A380-800 superjumbo jet aircraft from European manufacturer Airbus SAS.Under an agreement reached between the carrier's parent company, Penerbangan Malaysia Bhd, and Airbus, Malaysia Airlines will take delivery of three of the aircraft in 2007, with the rest scheduled for delivery in 2008.

Is this a right solution for the company to wake up from the loss making situation? And where will they find the source of money to buy them? Would an increase in the fair charges help the company to reduce its losses or to make profit? Malaysian Airline System Bhd has said that it will raise fuel charges on long-haul routes by 38% to USD50 for one-way tickets. The fairs have been increased to many routes with the reasoning of increase in fuel charge. Would this bring a change to the situation? If it does then its good … else the company needs to think about the worst case scenario … and they exactly know what it will be and under current situation that’s not far….
(http://findarticles.com/p/articles/mi_m0CWU/is_2004_Sept_13/ai_n6191472)
(http://findarticles.com/p/articles/mi_m0CWU/is_2003_May_20/ai_102044402)
(http://findarticles.com/p/articles/mi_m0CWU/is_2003_Jan_10/ai_96325109)