1. Strategic Plan in Malaysian Airlines

2. Need for new business & finance strategy to restore profitability
Financial Management
Demand shocks caused by the earthquake/tsunami in Japan and floods in Thailand
Europe’s sovereign debt crisis
Continued high cost of jet fuel
Need for new business & finance strategy to restore profitability

3. Strategic Revenue Management
Lost focus on ‘full service’ portion of the market
Diverted resources to low cost segment of the market
Operating one of the oldest fleets in the region
Airline had lost 40% of passengers flying a ‘full service’ competitor airline

4. Increase in group revenue of 2% from the previous year
Revenue levels still 15-25% below regional peers
Revenue & Cost Levels

6. Increase in Revenue, Yields & RASK insufficient to offset high fuel costs
Lower load factors had helped to increase yields
Yield and RASK had increased by 4% and 2% respectively

7. Revenue & Profitability Recovery
Airline is expected to go bankrupt by the end of 2012
40% of its routes are unprofitable
Cut back on loss making routes - Argentina & South America accounts for over 5% of total international capacity per ASKs.
Revenues of airline similar to those of LCCs while maintaining full service cost structure
Must focus efforts to premium class of travel

8. Profitable Network Discontinuation of routes to
South Africa and Argentina, its
only destination in Latin
America.
40% of its current routes are
unprofitable.

9. International Capacity
Australia and New Zealand now account for 22% of MAS’ international ASK’s
Europe accounts for 29%.
Asia accounts for 39% of total international ASKs.
On an ASK basis the domestic flights only account for 12% of total capacity.

10. Current Fleet Size Aircraft Number of Aircraft Airbus A330-200
3 (To be phased out)
Airbus A 16
Airbus A380
1 (Effective 1 July 2012)
Boeing 33
Boeing 25
Boeing P 10
Boeing 17
Current Fleet Size
Aircraft
Number of Aircraft
Airbus A F 4
Boeing F 2
Aircraft
Number of Aircraft
ATR A 10

11. A380 will help MAS improve yields on key London route
MAS, in its new business plan, confirmed its first A380s will be deployed on the Kuala Lumpur-London route.
MAS’ London route, which is now served with double daily B s, suffered over the last several months from low load factors and yields.
MAS points out that swapping the B for A380s will improve fuel costs per ASK on the London route by 20%.

12. Launch of a New Regional Premium Airline
In the first half of 2012, MAS will launch their new regional premium airline, a short-haul airline.
The new carrier will exclusively fly Boeing aircraft.

13. Communication & Marketing
Innovation
The first airline in the world to offer booking and checking in application on the iPad.
Introduction of MHdeals, displays information about tourist attractions and deals that are currently on offer by Malaysia Airlines on iPhone.
Stimulating Demand
Upgraded Passenger Service System – MHmobile
In 2010 MAS partnered with Australia Tourism called “Only in OZ Holidays”.

14. Promotion
In MAS website special promotional deals are offered - MHcoupon, MH deals and MASholidays.
In 2011, Queens Park Rangers announced a multi million pound shirt sponsorship deal with MAS for the next 2 years.
On 14th Jan 2012 passengers arriving at Kuala Lumpur International Airport were greeted with a flash mob as MAS special event to welcome the New Year.
On 24 April 2012 Malaysia airlines were big winners at the Putra brand awards Malaysia airlines was rewarded Gold for its transportation and travel and tourism category.

15. Customer Loyalty Programs
MAS introduced its enhanced Enrich FFP on 12 June 2006, now known as Enrich.
Four levels of Enrich memberships- Blue, Silver, Gold and Platinum.
Privileges - priority check-in, extra baggage allowance, amongst others, etc.
The miles earned allow for redemption for free travel, free upgrade and other complimentary services.
Enrich Airline Partners - Air France, All Nippon Airways, Delta Airlines, Etihad, Jet Airways, KLM, SriLankan Airlines, Virgin Atlantic and many more.
GRADS - discounted airfares, great packages and other special deals.

16. CRM MAS’s customers are their top priority.
Consumer platforms include call centers, sales offices, agents, airports counters and town center kiosk for the convenience of walk-in customers.
MAS internet booking system was launched in august 2004, reduced airlines distribution cost significantly over the years.
Allows customer faster access to information and to look through its products and services offered.
Introduction of MHbuddy to MAS Facebook page in March 2011, interesting approach to leverage Facebook to book a flight.
MAS have a key presence on both Twitter and Facebook

17. Customer Strategy MAS Recovery Plan – Branded customer Experience
MAS’s current marketing efforts have been predominantly focused on tactical sales promotion rather than brand building.
Generate low yields insufficient to cover an increasingly uncompetitive cost structure.
MAS should improve customer satisfaction at every touch point which is pre flight, in-flight and post flight.
Branding revamp
Enrich Loyalty Program
Competitive product roll-out
Develop customer facing skills
Enhance customer experience

18. Human Resources & Knowledge efficiencies

19. Background of MAS Human Resource
20,000 employees of various ethnic groups
consisting of Malay nationals, Indian
nationals & those from the ASEAN region.
Attempt to downsize employee strength.
Employs highly skilled personnel who tend to
reflect the company’s brand image as a multi-
national firm.

20. 5 key elements of MAS human resource development strategies
Stringent selection process.
Developing staff holistically recruitment.
Investment in training and retraining.
Communication and motivation(motivating staff through rewards and recognition).
Quality of management(building high -performance service delivery teams).

21. Organisational Structure

22. Service Differentiation
“MH is not Just a code: it stands for Malaysian Hospitality”. Accolades received from Skytrax: - “Worlds Best Cabin Staff” (2001–2004, 2007, 2009) - “5-star ranking” (2005–2007, 2009) Staff Service Excellence for Asia Award (2010).

23. Product Differentiation
Unique distinctive features of their product differentiate them from other competitors in the region.
MAS Services:
On the ground
Golden Lounge available for use.
Kids corner.
Platinum suites.
In the air
Experience First,
Business & Economy
class.
“Select” IFE.

24. Operational Process Enhancements
Collaboration with Air Asia/Air Asia X providing seamless connections throughout and resulting in lower fleet procurement costs, ground handling & maintenance costs.
Improvements in on-
time performance.
Improvements in asset
utilization.
3 key Dimensions
Commercial Effectiveness
Flight operations
Cost Management

25. Strengths Weaknesses Opportunities Threats
Highly recognizable brand
name.
Government Support.
Diversified Revenue
system.
Accredited by awards and
accolades.
Network Growth.
Weaknesses
Low Margin
Weak Cash Flow
High Costs
Opportunities
Expanding passenger traffic.
Increase in cargo traffic.
Expansion of fleet with
introduction of the Airbus
A380.
Threats
Increasing fuel prices.
High Competition.
Downturn of the economy
will affect the company.
Terrorism & Health Scare.

26. Strategic Plans Maintain 5-star airline image
Lower Costs and Competitive Fares
Increase customers and revenue
Grow network and build capacity

27. Alliances and partnerships
Launch of a new regional premium airline
Winning coalitions
Business model improvements
Win back customers