Malaysia Airline

Table of Contents

1. Background Information (Jaclyn’s portion) 3

1.1 History and Operations of Malaysia Airline 3

1.2 Periods of Unprofitability and Recovery 4

1.3 Leadership 5

1.4 Reasons for this report 6

2. Financial Analysis (Hong Hui’s portion) 6

2.1 Profitability Ratio Analysis 6

2.2 Liquidity Ratio Analysis 7

2.3 Insolvency Ratio Analysis 7

3. MAS’s Financial Position & Balance Sheet Structure 10

3.1 Malaysia Airlines and Air Asia Share Swap 11

3.2 Timing of the Swap (2008 Vs 2011) 13

4. Analysis 14

4.1 MAS – The next Toyota? 14

4.2 Performance Portfolio Framework 15

4.4 Flying to Win Customers 17

4.5 Structure of Airline Operating Expenses 18

4.6 Revenue up, but costs neutralise gains 19

5. Recommendations (Nicholas’s and Sandy’s portion) 19

5.1 Market Re-positioning 19

5.2 A Sustainable Culture 21

5.6 Cost Control 21

5.3.1 Close down MASwings operation 21

5.3.2 Firefly 22

5.4 Route Planning 23

5.4.1 Domestic Route 23

5.4.2 International Route 24

5.5 Others cost control method 25

5.5.1 Travel Agent 25

5.5.2 Vendor/Supplier 25

6. Conclusion 25

7. References 26

8. Appendices 27

8.1 Toyota Production System 27

8.2 The Toyota Way 28

Continuous Improvement 28

Respect for People 28

Long-term philosophy 28

The right process will produce the right results 28

Add value to the organization by developing your people and partners 28

Continuously solving root problems drives organizational learning 29

8.3 BTP – Cost control segments 29

1. Background Information

1 History and Operations of Malaysia Airline

Malaysia Airlines (MAS) is the government-owned flag carrier of Malaysia. The airline began in 1947 as Malayan Airways, and renamed Malaysia Airways after Malaysia gained independence. Malaysia Airlines operates flights from its home base, Kuala Lumpur International Airport, and its eastern hub in Kota Kinabalu. It has its...