Malaysia Airlines: Rebuilding the Brand After Major Setbacks

Running Head: MALAYSIA AIRLINES 1
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Author’s name
Institutional affiliation

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Executive Summary
One of the symbols of national pride in Malaysia is the Malaysian Airline. The airline has
been operational for several years. Many will see its advertisement as MAS. The company has
undergone several experiences from good to the worst due to the downturn of the economy.
There has been the hiking of fuel prices that led to the instability being experienced. However,
despite all these the airline kept running. In its strive to rise from the fallen state, there was a
need to change its name to Malaysia Airlines Berhad, a change that was done in the year 2015.
The comfortable experiences in the company are mainly due to the experienced pilots and
the cabin crew members. There is too a robust fleet base having an average of 4.2 years’ active
fleets. The primary customers to the airline include the business travelers, on the other hand, the
cooperate leisure travelers constitute the secondary market.
There has been the need to rebuild the brand after there was the distortion of its
reputation. The distortion was primarily after the occurrence of the two significant events, the
downing of MH370 and MH17. The airline now prioritizes safety measures as the rebranding
strategy. Its main aim is to see an improved performance in Australia, a situation that will be
realized by increased connection with travel agents and the load factor. An increase in the load
factor was seen in the year 2015 and 2016; 2015 recording 73% while 2016 having a record of
71.79%.
Table of Contents

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Executive Summary.....................................................................................................................................2
MALAYSIA AIRLINES.....................................................................................................................................4
Introduction.............................................................................................................................................4
Challenging Situation...............................................................................................................................7
Methodology.........................................................................................................................................15
PEST Analysis.....................................................................................................................................16
Advantages and disadvantages associated with using the PEST analysis tool...................................19
SWOT Analysis...................................................................................................................................19
Advantages and disadvantages associated with using the SWOT analysis tool.................................23
Strategies for the airline moving forward..............................................................................................24
Segmentation, Targeting and Positioning (STP).................................................................................24
Target Market....................................................................................................................................24
Brand Positioning...............................................................................................................................25
Market strategy.................................................................................................................................25
Setting the goals right........................................................................................................................26
Cost Optimization..............................................................................................................................26
Product and service...........................................................................................................................27
Fleet status........................................................................................................................................27
Lifestyle and comfort.........................................................................................................................27
First Class only on (A380s).................................................................................................................27
Business Class....................................................................................................................................28
Economy Class...................................................................................................................................28
Technology and Convenience............................................................................................................28
MH mobile –for all mobile devices....................................................................................................29
Price...................................................................................................................................................30
Promotion /Communications............................................................................................................31
Implementation, Evaluation and Control...........................................................................................31
Evaluation and Control......................................................................................................................33
Conclusion.............................................................................................................................................33
References.............................................................................................................................................35

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MALAYSIA AIRLINES
Introduction
The 1st of September 2015 experienced major events that called for the attention of many.
Malaysian Airline is one of the best operating airlines globally and many are known to seeking
their services from the company. The company has been in operation for many years however
there was need to bring a revolution on the kind of services that it did offer to the individuals in
the society. Hence, in 2015, the flag carrier of the Airline facilitated the changing of its name to
being Malaysia Airline Berhad. After experiencing major setbacks, the airline had to find its way
in retrieving the lost glory. The change of name was one of the major steps in achieving the
rebranding process that was to realize better working in the next five years. There was too the
need to develop some form of restriction in terms of plans. Strategy will help in making the
vision be realized at the end of the day. Christoph Muller, known for being the first non-
Malaysian CEO, as part of his legacy in the company, he facilitated the transformation of the
airline to operating in a better way than before (Amiso M. George, 2017).
There are several south east airlines. Malaysia airlines has come out to be unique by
growing to the largest airline. Technology is identified as one of the tangible things realized in
the industry. Several activities can now be handled citing a transformation in terms of
technology. Malaysia has greatly improved its working by being one airline making use of the
very current technology in the society. The airline makes use of the technological advanced
jetliners primarily in the sky. The company has also spread its connection to the far places in the
various continents. The airline connects 110 cities across a total of 6 continents.
Every good thing does have its related origin that marked the beginning of a good idea.
The Malaysian Airline in the present day offers the best services to the members of the society

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and many may end up forgetting that there a time when the airline had to be patient and work
with the old technologies in making the operation best. Malaysian Airline saw its start back in
the year 1937. The vision and mission at the time of start was different from the current
guidelines directing the operation of the company. Hence, it did possess the name Malaysian
Airways Limited. The management was also different at that particular time. The working
involved a joined enterprise of Ocean Steamship Company located at Liverpool in the UK. Apart
from that, there was too the Straits Steamship Company drawing its location in Singapore and
finally the Imperial Airways. In 1947, the airline offered flight services in Jakarta, Medan,
Palembang in Indonesia and Saigon Vietnam. The territory of North Bome managed to
successfully launched MAL as a public limited entity but with the involvement of Qantas,
Malaya federation government, Singapore and British Overseas Airways (Malaysian Airlines
2012).
Singapore for a long period of time, has been operating under the hands of the colonizers.
It was not in a position to carry out its activities. However, after the fight and seeking to find
freedom from the colonizers in 1966, the government did embrace controlling major projects and
working to see that they get to maneuver through the various operations. One major project that
the government did involve itself was taking over the management of the Malaysian Airline and
working to see that it gets to perform better. The Malaysian Government worked together in
achieving such a purpose. They worked in unison and within 20 years, the airline that was known
as a single aircraft operator operating with a maximum of 25000 employees experienced major
development. The airline rose to making use of the latest technology jet aircraft, indicating better
performance of the management. However, the partnership was also not long-lasting and it was
dissolved in the year 1971. This became a success after the deal was authorized by a capital of

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MYR 100 million. Change of ownership further led to need for significant changes in terms of
the management and the vision. As a result, there was need to come up with a new name, the
action led to the formation of the Malaysian Airline System.
The capability to carry out international operation was one of the major targets associated
with the Malaysian Airline that the management worked to be in a position to achieve. As a
result, there was need to set the right strategies that could help in making such an objective a
reality. One major strategy was becoming a member of an orient airline association. The
objective was achieved in the year 1972. Being the member of the association meant that the
airline will be in a position to increase its flight services as an international capability. Such a
target was realized two years down the line. By the year 1974, the airline had registered several
flying passengers, approximately 2 million around the world. Any growth will always experience
struggles (Hamlyn, 2010). As the company grew to being bigger, it did also experience
competition from other airlines that did pick and was operating in a similar manner. One
potential competitor was seeing in the year 1976. It was when the European region opened a
passenger traveler service that would operate in the Eastern part region which will include Paris,
Amsterdam and Frankfurt. However, that did not hinder the vison that the Malaysian Airline did
harbor. At the end year of 1990, Malaysian airline extended its service to more destinations
including, Guangzhou, China, Vietnam, Japan, Pontianak and Indonesia.
By the year 2001, several airlines were in operation each having varying kind of planes in
addition to routes that they did use for their operation. The twin engine commercial jet is one of
the planes that any company making use of it will be recognized for its better performance. The
Malaysian Airline was the first company to make use of such a jet. The jet mainly operated in the
parts of the newly opened routes facilitating the fast transport of goods and services. Such kind

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of operations brought satisfaction to most customers working with the airline. As a result, the
subscriptions of customers increased as time went by making it possible for the airline to extend
its service through the alliance with other airways. Such a growth was evident with the 2002
plan. The airline kicked off its flight services paying major attention to both the regional and
domestic routes mainly designated to the Middle East which ended in India but started in Japan
and China. The restructuring of the working is one of the reasons that lead to such a change in
operations being experienced through the working.
Challenging Situation
Through the operation of the company, several challenges were faced however none of
then brought the airline to major crisis compared to the crisis experienced in the year 2005. The
major cause of such a challenge was the Asian financial crisis that was being experienced then.
Apart from the crisis, the airline situation was made worse by it making a loss of approximately
R.M 2.3 billion. Overcoming the crisis called for better plans and strategies to be set that could
ensure everything was back to its normal activities. The then CEO, by the name Datuk Seri Jala,
greatly influenced the setting of the new strategies and working to see that there is a rise from the
crisis and that stability is regained. Therefore, after proper consultation and research, the CEO
announced the new plan that was to be embraced in the year 2006. The plan was very fruitful
through its working, a conclusion that was made after keen observation of the turnaround that
was experienced in the business. In the year 2007, the airline recorded a profit of RM 9.3 billion,
one of the highest profits made through the working. However, despite the better working
strategy released at the first place, there was again a drop-in performance. The result was a crisis
that was again experienced that led to poor financial performance in the year 2008.

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The incidents did not come to an end. The year 2014, also experienced major occurrences
not bringing an appealing environment to the company. The airline did lose two planes
responsible for carrying 537 individuals. Reasons for the loss of such planes could not be told.
Such a situation made the working of the company even much harder as it could not tell the ways
to prevent any similar occurrences from happening. Predictions were made regarding one of the
incidents where it was predicted that military forces did shoot it down. The analysis from
different groups did give varying opinions regarding the working of the company. Such kind of
opinions did at times serve as a discouragement to the airline organization. Many predicted that it
will be hard for the company to carry on with its operations citing the major losses experienced
and lack of stability that was seeing even before the occurrence of the event. There was also
pressure from the outside environment forcing for a change of leadership in the company. The
thoughts of many had been sheared towards thinking that the lingering leadership is responsible
for all the occurrences that did happen. Need for urgent, tangible and meaningful step was the
only solutions to ensuring that the lost glory had been retained back in the company. Apart from
finances, the reputation was also a major issue associated with the company. The company has
been operating excellently for a better period of time. Several industry groups had awarded the
airline severally some of them being the Skytrax UK in addition to the World Travel Awards
regrading the quality that is associated with its cabin crew, not forgetting the quality food served
and the excellence expressed generally (Management Association, 2018). It was referred to as
the best airline in Asia back in the year 2013. Hence the reputation had really grown to be big.
The lost planes posed major challenges to the company.
The year 2015 was also not exempted from the crisis. The years were going by and there
was need to come up with a lasting solution that will ensure better running of the company is