Malaysia Airlines Change Management - Strategic Goals, Analysis & Way Forward

MALAYSIA AIRLINES - CHANGE MANAGEMENT
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Table of Contents
1.0 Background of the Company...................................................................................3
1.1 Operational Overview..........................................................................................3
1.2 Strategic Goals.....................................................................................................5
1.2.1Performance and product improvements.......................................................5
1.2.2 Fleet optimisation..........................................................................................5
1.2.3 Cost savings& IT enabler..............................................................................6
2.0 Strategic Analysis....................................................................................................8
2.1 On-Time Performance..........................................................................................8
2.2 Fleet optimisation.................................................................................................9
2.3 Cost savings & IT enabler..................................................................................10
3.0 Way forward strategic............................................................................................12
3.1 Fuel Efficiency:..................................................................................................12
3.2 Smart Maintenance............................................................................................13
3.3 Customer sales...................................................................................................13
4.0 Conclusion.............................................................................................................14
References:...................................................................................................................15
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1.0 Background of the Company
1.1 Operational Overview
Malaysia Airlines is the national air carrier of Malaysia that started operations as the
flagship brand of the country 1st September 2015. The company officially known as
Malaysia Airline Berhad (MAB) came into existence when the previous airline group
called the Malaysian Airline System (MAS) was dissolved. The government of
Malaysia acquired the ownership from the remaining shareholders and transformed
the company assets to the public. Through this process, the government renationalized
the group. The company is a part of the Malaysia Aviation Group (MAG) which was
formed to maintain better transparency and operational management for the
subsidiaries owned by the group. This group has contributed to the setting and
operations of the different service segments of Malaysia Airlines namely Firefly and
MASwings that serves the national and international passengers. The MABKargo
manages the freight, passenger, express and special cargo requirements of the airline
company and also overseen by MAG (Malaysiaairlines.com, 2018). The MAB flights
are operated from Kuala Lumpur International Airport and connect destinations
including Europe, the Middle East, Australasia, and several cities in around Asia.
The airline company has significantly contributed towards the national development
by hiring talents from around the country as skilled employees, engineers, pilots,
cabin and ground crew. Not only did the organization enabled the connectivity of
Malaysia with the world, but it had also aided in the integration of the nation too by
offering the best services to fly in and around the country. MAB tend to embody the
astonishing diversity of Malaysian traditions and cuisines. The uniform of the flight
attendants is the traditional sarong with elements of local culture.
Measures of safety are an integral part of Malaysia Airlines' service delivery model.
The company enforces strict compliance under stringent regulations and obligations.
The airlines also substantially invest in training facilities which include company-
owned simulator centre, the academy for flight crew training, computer based training
for crew and engineers and training for dangerous goods handling as per the mandated
by IATA. To maintain the customer loyalty, the company provides privileges,
preferential treatment, and redeemable credit points to frequent fliers.
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However, despite all the efforts put in by Malaysian Airlines, the company has faced
hardships in maintaining the cost of operations as a result of competition due to the
growth of the low-cost carriers. To meet the end, the company has suspended flight
services to popular but unprofitable and long route destinations around America and
South Africa. The company also intends to sell some of the units like the training
facilities and has undergone internal restructuring. The present study attempts to
analyse the current operating strategies of the company and identify some potential
flaws. This study also attempts to provide some innovative approach to change
management for the company to reduce cost and increase profitability.
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