Malaysian Airlines Report 2022

RUNNING HEAD: PROFESSIONAL COMMUNICATION
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Malaysian Airlines
Report
System 0032
[Pick the date]

Professional Communication
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Table of Contents
1. Introduction..............................................................................................................................2
2. Malaysia Airlines.....................................................................................................................2
2.1 Malaysia Airlines excels first aspect......................................................................................3
2.2 Malaysia Airlines excels second aspect.................................................................................3
2.3 Criticism faced by Malaysia Airlines.....................................................................................4
3. Recommendations and Conclusion..........................................................................................4
4. References................................................................................................................................6

Professional Communication
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1. Introduction
Airlines industry is selected to complete this report because it is currently the fastest growing
industry at the global level. “According to statistics from ICAO, the airline industry has seen
dramatic growth over the past 20 years, the number of passengers is rising as in 1998 number of
passengers was 1.467 billion and in 2017 number of passengers increased to3.979 billion”.
Furthermore, as per the report of the International Air Transport Association, the number of
passengers in the airline segment will be doubled by the end of 2036 and will reach to 8.2 billion
(ICAO, 2017).
This report is based on the airline industry and in that Malaysia airline is chosen. Further, the
report highlights the areas where company excels in the industry and the reasons of criticism if
any faced by the company in the airline industry are explained and then accordingly
recommendation is given to improve the performance of company in the industry.
2. Malaysia Airlines
Malaysian Airlines was founded in 1947 as Malayan Airways and headquartered at Kuala
Lumpur. The company operates flights in Africa, Australia, Europe, America and Asia regions.
The company has its two own subsidiaries that are MA Swings and Firefly. Malaysian airlines
loss was increased in the year 2018 by 85% that showed that airline is not able to compete in the
market as company reported a loss of RM812.11 million in 2017 and lost RM2.35 billion in two
years. The reasons for its failure and poor performance was cut throat competition in airline
industry, volatility in fuel prices and oversupply of capacity and fluctuation in foreign exchange
rates. The company laid off its employees because of inefficiency in the operations and the
losses the company incurred in the last 13 years. Malaysia Airlines shed overall 12,000
employees in two phases firstly 6000 employees in 2006 and under the Business Turnaround
Plan 2 shed another 6,000 in 2015 under the MRP (MalaysiaAirlines, 2019). In 2017, “it has a
13,000-strong workforce, which some still consider bloated given its smaller network”.
Malaysia airline is facing lots of problems that are described below and the areas where company
excels or have competitive advantage over their competitors are described below.