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SOHAIB SADEQ MOHAMMED 216188 NOR SYAIRAH BT MOHAMED 221403 NUR RUQSHANA BT HABIBUR REHMAN 222215 Group 7.

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Presentation on theme: "SOHAIB SADEQ MOHAMMED 216188 NOR SYAIRAH BT MOHAMED 221403 NUR RUQSHANA BT HABIBUR REHMAN 222215 Group 7."— Presentation transcript:

1 SOHAIB SADEQ MOHAMMED 216188 NOR SYAIRAH BT MOHAMED 221403 NUR RUQSHANA BT HABIBUR REHMAN 222215 Group 7

2 HOW BUSINESS FIRMS ADAPT BUSINESS STRATEGIES TO TARGET A FAIR SHARE OF THEIR POTINTIOAL CUSTOMER? TAKING MALAYSIA (MAS), HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY?

3 INTRODUCTION Malaysia Airlines (MAS) flies thousands of passengers daily with many opting for the airline to enjoy the typical "Malaysian hospitality".MAS The national flag carrier posted record losses of RM2.5 billion in 2011 The losses continued in 2012 and 2013 losses up to RM2 billion 2014. 2014 the loss of flight MH370 and the tragic MH17 flight that was shot down in Ukraine.

4 LINK

5 HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY?

6 WHO IS HE ??

7 HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY? 1. Creation of NewCo. Delist of MAS OldCo by the end of 2014 2. Funding of up to RM6.0 billion on a strict conditional basis Delist of MAS OldCo – RM1.4b Restructuring and retrenchment – RM1.6b Capital injected – RM3.0b 3. Reset the operating business model through a more regionally network, lower cost structure and greater emphasis on revenue yield management

8 HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY? 4. MAS relocation to KLIA from Subang. 5. Strengthening of the assurance, integrity and safety functions. To reassure the customer back due to the incident happen recently. 6. Review and, where appropriate, renegotiate supply contracts Renegotiate with catering supplier

9 STRENGTHEN LEADERSHIP  The transition period between OldCo and NewCo over the next 10 months to 1 July 2015 will see significant changes to leadership that will be executed in an orderly fashion.  The search process involves reviewing both local Malaysian leadership talent, as well as from global aviation industry executives. The final decision on the CEO of NewCo will be made in consultation with the Special Shareholder, the Minister of Finance, Incorporated. RIGHT-SIZE THE WORKFORCE TO AN ESTIMATED 14,000 EMPLOYEES AT NEWCO  It is estimated that NewCo will require a workforce of approximately 14,000;  This is a net reduction of 6,000 (or 30%) from the approximately 20,000 employees currently at OldCo.  Khazanah is nonetheless committed to ensuring that the process of transfer, migration, and separation is conducted with utmost care, fairness and due process. HOW IS MAS SEEN IN DOING THIS AND RETURN TO ITS FORMER GLORY?

10 Strengthen industrial relations and internal alignment  A critical component of the MAS Recovery Plan involves significantly improved industrial relations; and  New measures and practices, including an enhanced Employee Consultative Panel (“ECP”) to better align staff, unions, and management, are critical conditions of the MAS Recovery Plan. Reskilling, job creation, and redeployment  Khazanah will invest in a Corporate Reskilling Centre (“CRC”), to be located in the Subang area, to specifically address the reskilling of appropriate MAS staff who do not migrate to NewCo.  Khazanah envisages that this will involve a reskilling and redeployment programme and the active creation of new jobs.

11 APPROPRIATE GOVERNMENT SUPPORT ON KEY INITIATIVES  Subject to Parliamentary approval, the enactment of appropriate enabling legislation including a standalone Act specific to MAS, with a finite period, to facilitate the restructuring in a comprehensive and timely manner; and  The establishment of an Aviation Commission. CONTINUOUS COMMUNICATION AND STAKEHOLDER ENGAGEMENT  Regular communications and engagement with key external stakeholders; and  Periodic public accountability briefings.

12 The plane is targeted to return to profitability within 3 years of delisting, and to relist within 3 to 5 years, that is between the end of 2017 and the ends of 2019. “The turnaround plan will enable MAS to come up with compelling strategies and steps to take in improving its fortunes. The turn around plan provides determination for the national flag carrier in operating effectively and competitively with the destinations in Asia being its priority.” - Dr Syed Raisudin Syed AbdullahMAS CONCLUSION

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