Factors Leading to Malaysia Airlines Underperformance

Running head: MANAGEMENT
A study of factors leading to Malaysia Airlines underperformance
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1.0 Introduction..........................................................................................................................2
1.1 Background of the company.............................................................................................2
1.2 Purpose and problem statement........................................................................................2
1.3 Significance of research...................................................................................................3
2.0 Literature review..................................................................................................................4
2.1 Factor 1: Motivation and training of the employees........................................................4
2.2 Factor 2: Work environment............................................................................................6
2.3 Factor 3: Customer service...............................................................................................7
2.4 Factor 4: Lack of innovation............................................................................................9
3.0 Conclusion..........................................................................................................................11
3.1 Implications of further research......................................................................................11
3.2 Research Questions........................................................................................................11
3.3 Research Objectives.......................................................................................................11
3.4 Research framework.......................................................................................................12
Bibliography.............................................................................................................................13

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1.0 Introduction
1.1 Background of the company
Malaysia Airline operates flights from Kuala Lumpur International Airport along with
secondary hubs in Kota Kinabalu and Kuching. The destinations travelled by the Airline
Company ranges between Asia, Europe and Oceania (Malaysiaairlines.com 2019). The
characteristic that defines Malaysia Airline is that it is considered as a flag carrier of
Malaysia and is a member of the one world airline alliance. The company was established in
1947 with the focus city being Penang International Airport (Malaysiaairlines.com 2019).
Malaysia Airlines owns two subsidiary airlines that include Firefly and MASwings.
The history of Malaysia Airlines can be traced back to Malaysian Airways Limited
that was founded in Singapore in 1930 (Malaysiaairlines.com 2019). Malaysia Airlines is
considered as one of the largest airline fleet in the world with a fleet size of 81 and travels to
over 64 destinations across the world (Malaysiaairlines.com 2019). The employees of the
Airline are about 14,000 comprising of a net income of MYR 60 million
(Malaysiaairlines.com 2019). However, despite its success in the airline industry, Malaysia
Airlines has been hit with criticism due to the low performance rate (Malaysiaairlines.com
2019). The focus of the research is to analyse the factors that lead to the low performance at
Malaysia Airlines.
1.2 Purpose and problem statement
The purpose of the research is to study the factors that lead to the underperformance
in Malaysia Airlines. The main reason for conducting the study is that Malaysia Airlines is
one considered as one of the best airline services in the world. However, as observed by
Bailey et al. (2018) recent issues have provided the airline company with a disadvantage in

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the market and consequently have led to the rise of issues within the business. Issues such as
customer service, employee turnover as well as restriction within the business are considered
as problems in the research.
Hence, after analysing the issues it can be said that the Malaysian Airlines need to
consider the factors that can help in its development and at the same time ensure that
customer satisfaction is maintained within the business. Along with this, research about the
manner in which the airlines company can contribute to the growth of the industry is also
undertaken. As stated by Hill and Brierley (2017) these factors are analysed based on its
effectiveness in the market so that Malaysia Airline can continue to grow in the industry
keeping in mind its level of customer satisfaction and the reputation it had held previously.
Thereby it can be said that for Malaysia Airline to ensure proper development of its resources
and factors, it is necessary that precautions be taken for maintaining the necessary policies.
The research also focuses on the severity of the problems so that link between the
factors can be made for gaining success in the business. In this regard, as stated by Lepper
and Greene (2015) for Malaysia Airlines, it is necessary that the company continue to
develop its reputation so that its status in the airline industry can be re-instated. Therefore, the
research tries to develop the reputation of the company by analysing the factors that have led
to its underperformance in the business.
1.3 Significance of research
The significance of the research is that it can help in analysing the factors that lead to
underperformance in Malaysia Airlines. The reason behind this being of significance is that
the factors identified are usually common in form of business. At the same time, Miner
(2015) is of the opinion that these factors are often related to one another and for this reason
it is necessary that each of the factors are addressed so that development of proper strategies