a. Introduction 1.Backgroud Of Malaysia Airlines Malaysia Airlines System Berhad is also known as MAS in short.

MAS is founded in 1947 as Malayan Airways, but it has change its name as Malaysian Airline System in 1 October 1972 . MAS is theflag carrier which is own by government of Malaysia. MAS headquarters is situated at Sultan Abdul Aziz Shah Airport in Subang, Selangor. MAS operates flights at its first base in Kuala Lumpur International Airport, and secondary base in Kota Kinabalu. Malaysian Airlines System Berhad is the holding company for Malaysia¶s national airlines carrier, one of the fastest growing airlines in Asia. Malaysia Airlines has two airline subsidiaries, which is Firefly MASwings. Firefly operates scheduled flights from its two home bases Penang International Airport and Subang International Airport. The airlines focuses on tertiary cities although has recently launched services to Borneo from Kuala Lumpur International Airport. MASwings focuses or inter-Borneo flights. Malaysia Airlines has a freighter fleet operated by MASKargo, which managers freighter flights and aircraft cargo-hold capacity for all Malaysia Airlines¶ passenger flights. MAS are using this type of craft Airbus A330-200 and A330-300. Boeing 737-400, 800 and 400/400. Malaysia Airlines operates a fleet of aircraft with two cabin configurations. Malaysia Airlines B777-200ER fleet has a two configuration which is Golden Club Class and Economy Class. Its B747-400 fleet has a three-cabin configuration, also including First Class. Malaysia Airlines premium cabins and Economy Class have been giving numerous awards for excellence in product and service delivery. From a small air service, Malaysia airlines have grown to become award-winning airline with more than 1000 aircraft, servicing more than 110 destinations across six continents. Malaysia Airlines also practiced the online booking and buying to make their reservation or purchasing way easier for passenger. With this online purchasing, the passengers need to fulfil their details like the destination they want to go and the departure place they want. The payment will settling via the online banking. Internet user can book their air ticket, hotel , and train ticket and rent car via Malaysia Airlines Website.

2.Vision, Mission and Objective Vision An airline uniquely renowned for its personal touch, warmth and efficiency. To be the World¶s five star value carrier(FSVC). To be the airline of excellence Going beyond expectations Mission To provide air travel and transport service that rank among the best in terms of safety, comfort and punctuality. Make Malaysia Airlines one of the leading standard bearers for the airline industry in term of safety, efficiency and quality of service. To be a profitable airline List of Objectives Highest level of safety Satisfy legal requirements Operations are conducted in the most efficient manner Drive structural cost management Ability to map efficiency in each area of operations Position as benchmark in the aviation industry

Muzzaffar bin Othman Senior General Manager. Firefly . Shahari bin Sulaiman Managing Director.3. TengkuDato¶ AzmilZahruddin bin Raja Abdul Aziz Managing Director / Chief Executive Officer 2. External Relations 9. Captain Mohamed Azharuddin bin Osman Director of Operations 4. Mohd. Azha bin Abdul Jalil Chief Executive Officer 3.. Dato¶ Captain MohdNawawi bin Awang Senior General Manager. MASkargo 12. Human Resources 10. Dato¶ Eddy Leong Chin Tung Managing Director. MD¶s Office 11. Organisational Structure Figure 1.0: Malaysia Airline System Organizational Structure Senior Management of Malaysia Airlines 1. Effendi bin Abdul Rahman Senior General Manager.

Dr Amin Khan Senior General Manager. Dato¶ MohdSalleh bin Ahmad Tabrani Managing Director . Captain Dr OoiTeongSiew General Manager. Corporate Safety. Security.5. MohdRoslan bin Ismail Senior General Manager. Indira Nair Senior General Manager. MAS Aerospace Engineering 16. and it . ShahjanazbintiKamaruddin Senior General Manager. Esther Yap Siew Yen Chief Internal Auditor Type of Company MAS is a type brick and click company. Network & Revenue Management 7. Dato¶ Bernard Francis 13. Engineering & Maintenance Managing Director.MASwings General Manager ± Transition Management 14.This is MAS offer both offline and online ticket booking systems. Sales & Company Secretary Marketing 8. Health and Environment 15. MAS allows customers to order air ticket and other services online. Communications 6.

The Organisation and Internal Workings Website Walk-through .History of Malaysia Airlines b.

Figure 1.1: Malaysia Airlines Homepage The above picture showed the homepage of Malaysia airlines. The web page is easy to use and have simple interface. Although Malaysia airlines use only a few of colour . but it looks interesting and nice interface. The web page don¶t just have two types of colour that is blue and red. so it is user friendly and interactive. To register as a user for Malaysia Airlines .

Figure 1. If i am a user of Malaysia Airlines. you find and clink the sign up button at the top of the screen.1: Register as a user for Malaysia Airlines (Step 1) Step 1: To register as a user for Malaysia Airlines.2: Register as a user for Malaysia Airlines (Step 2) . then i should click login.Figure 1.

the web browser will direct me to a register page. If i want mycomputer to remember the username of your account.3: Register as a user for Malaysia Airlines (Step 3) Step 3: At the logon details section. personal details and address details. Figure 1.Step 2:After click the sign-up button. This information is required every time i log in to this web-page. Then I will have to fill in your logon details. i will have to fill in my username and password. I have to tick on ³Remember me on this computer .

it is to fill in address details of myself. I should tick ³sign up for get the deal´. city. . state. Next. country and postcode. it is to fill in personal details of myself. At the personal details section. Date of birth. Figure 1. and telephone number. gender. If I want to receive notification from MAS Airlines. I will have to tick ³I am happy to receive mailings from time to time´. first name.Figure 1.4: Register as a user for Malaysia Airlines (Step 4) Step 4: After i fill in the logon details. If I want to fly with best deal. title. Next.5: Register as a user for Malaysia Airlines (Step 5) Step 5: After i fill in the personal details. After fill in all the personal details. email. At the address details section. last name. I will have to tick ³I have read the terms and conditions and the privacy statement´. i will have to fill in my address. i will have to fill in my salutation (if have).

6: Register as a user for Malaysia Airlines (Step 6) Step 6: After i make sure fill in the all thelogon details. it will direct me to the next page.Figure 1. . I click register button at the bottom of the register page. the page will showed this before continue to the next page. Then.7: Register as a user for Malaysia Airlines (Step 7) Step 7: After I click the register button. Next. Figure 1. personal details and address details.


It will show the logon details. If got any changes. the above page will show. . can change the information my click the edit button in each section of the details.8: Register as a user for Malaysia Airlines (Step 8) Step 8: When successful register.Figure 1. personal details and address details I fill in earlier.

. The 4P¶s in the marketing mix strategy are refer to product.µ PPPP Description In order to achieve marketing objective. Marketing mix is the combination of tools that are used by Malaysia Airlines to satisfy customer need and achieve company objective and goal. price. Malaysia Airlines need to have strategy must have different elements in the marketing mix.

Product The term ³product´ refers to tangible. The goal is to decide the 4P on the customers in the target market in order to create perceived value and generate positive feedback. then you are ready to travel. Singapore and brunei. If you have booking reference. customer no need worry about ticket lost or being stolen when traveling. an e-ticket reference and detail will be sent to your e-mail when registration. customer need to have a valid credit card. Currently. e-ticket and photo identification. customer need a valid credit card. The call centre number is 1300-88-3000 and it handle calls from Malaysia. After booking has been confirmed. With an e-ticket. physical products as well as service. Price Price means the value or the worth of a product that a buyer are willing to pay for it or exchange the product value for money. Easy Payment To book ticket and purchase online. MAS online booking only accepts a valid Visa or MasterCard. To purchased ticket online. Call centre service is available from 8am to 10pm on weekdays and from 9 am to 6pm on weekends. For those who are living outside Malaysia. e-Ticket An e-Ticket is an electronic ticket. It also means defining the characteristic of product or service to meet the customer needs. With e-ticket. Everyday Low Fares . Mandarin and Tamil when they call Malaysia Airlines call centre. you can call 603 7843 3000. customer no longer need to collect paper tickets.place and promotion. Malay. Nationwide call centre Customer can use English.

Place Distribution is getting the products to the customer. This programmes has been strongly opposed by Air Asia which claim that directly business model with Malaysia Airlines and not allow budget carrier compete with national airlines. With the expansion of customer service. Internet booking Malaysia Airlines internet booking system is launched in august 2004.Malaysia Airlines have launched its Everyday Low Fares programme on 6 May 2008. administrative fee and airport tax. MAS web-site allow customer faster access to information to their traveling needs and use Malaysia Airlines products and other services. The Everyday Low Fares programme offers a maximum of 30% of the total seats on every flight which are unsold factor of 70% on each flight. Improve Customer service The Customer service operations use to cope with the higher passenger load and additional flights. Therefore. looking at a location where a service is delivered. Malaysia Airlines has sold more than 150. Malaysia Airlines is planning a major expansionon its booking facility by the end of 2005. To strengthen is online booking service. MAS is partnership with GRSNetwork to reduce its distribution cost and to simplify the ticketing process. it will increase the . Using the internet booking system. Malaysia Airlines the programmes to all ASEAN routes operated by Malaysia Airlines.000 seats. MAS is expected to cut distribution costs by more than 50% when it adopt an Internet-based distribution network. The use of internet allow customer access to MAS inventory worldwide. Everyday Low Fares offers 1. its allow MAS to reduce airlines distribution cost significantly. Malaysia Airlines is make earningsfrom fuel surcharge. Sales Offices These are available at airports counter and town centerskiosk for the convenience of walk-in customers. Since the launched of this programme till 14 may 2008.3 million RM 0 for all domestic routes operate by Malaysia Airlines and Firefly.

If register as member. Kunming. There are more advantages if become a member. The company plan to use this travel fair to raise the Malaysia brand awareness and stimulate demand. there are special promotion for member and non member. passenger sales expenses and other expenses.operational et e increase of operation cost is due to hi her staff costs. you . Besides. Macau and discounted golden holiday packages for domestic and international travel. Promotion Promotion means the various aspects of marketing communication. Malaysia Airlines Travel Fair (MATF) Malaysia Airlines Travel Fair is to offer attractive air fares and holiday packages. During 22-24 February 2011 at the fair. there will a 70% discount off from current market. passenger layover and delay costs. Deals In Malaysia Airlines web-site. The company will get to explore opportunities of businesses of organise travel fair in selected international markets. there are also deal offered is buy 1 get 1 free¶ promotion on business class for airlines to Asean cities such as Xiamen. The communication of the product with the goal willgenerating a positive customer response. hire and maintenance of equipment.

In Malaysia Airlines web-site. antitrust laws. balik kampong. c. The online coupon comes in the form code. minimum wage legislation.Balik kampong deal is for those who always feel homesick. MHdeals. just key in the coupon code when booking for flight ticket. MHcoupon. and MASholidays. Malaysia are consists of diversity composition ethnic of the population and have different cultural and tradition that will attract more tourists. and many . MHcouponis a new way allow customer to enjoy exclusive saving on Malaysia Airlines flight. with the use of the application. Besides. Fair-trade decisions. Malaysia become one of the popular and famous place with attractive travel destinations. MASholidays is a deal that provide holiday package that suit a variety of budget. MHdeals is a free application that use iphone GPS sensor to locate airport around you and display the best Malaysia Airlines deals. this deals include exciting destinations at a fantastic prices. Political factors Political factors are vital to ensure the growth of the airlines industry in Malaysia. it does not required printing or cutting necessary. Redeeming coupon is easy. Deals of the day allow customers enjoy big saving on your next. tax programs. It include holiday package within Malaysia and outside of Malaysia at an attractive price. This promotion offer amazing low prices and all balik kampong bargain.are able to purchase air ticket with discount price and enjoy exclusive member only fares. customer of MAS will get latest tourist information to explore the tradition and natural beauty of Malaysian holiday destination in borneo. Competitors and External Environment i. PEST analysis 1.there are special deals such as deals of the day. Besides. With the peaceful and harmony environment. pollution and pricing policies.

customers.8 million profit. sms and interactive flight information on all classes. ecological. Social factors The social factors are element such as beliefs. educational and ethnic. opinions and lifestyles of a person will affect a firm external environment such as cultural. People are prefer to travel by air is because it is more convenience. . the online promotion is for customers to book holiday packages online. In the fourth quarter of 2009. Increase income and economic growth will lead more people to board on aircraft. MAS offers a maximum of 30% of the total seats on every flight which are unsold factor of 70% on each flight with zero cost (excluding fuel surcharge.MAS implemented passenger services system (PSS). the system have digitized ondemand audio and video media include new games. MAS returned to operating profitability with RM 3.With the increase of gross national income per capital.The changing of Malaysia lifestyle will help the growth of the airlines industry in Malaysia. Global economic recovery will increase growth in load factors. purchase train ticket. administrative fee and airport tax) to attract more customers in the region. attitudes. MAS upgrade its in-flight entertainment system with Matsushita System 3000i on Boeing 747 and Boeing 777. demographic. and travel insurance.other actions is exists to protect employees. car hire. Malaysia are become more affordable to travel by air. value. Economic factors Despite stiff competition in the airlines industry. 4. When the global facing a downturn. 3. more people will prefer to enjoy flight with low costs. religious. Malaysia Airlines launched its Everyday Low Fares promotion. in 2009 . Technology factors Malaysia Airlines provides online service for booking air ticket with hotel booking. quicker online purchase. miles redemption options online and new services.MAS have introduced MASholiday. PSS is to ensure faster service delivery. Government carried out campaign will help boost tourism and airlines industry. 2. the general public and the environment are constraints to political factors.

MAS have split its airlines in to three different classes that is executive. behavious. they would choose the airlines because it give passenger a general of the airlines services. the conceptual knowledge and the consumer¶s language to design the questionnaire about . Many airlines use business as the highest level of service Economy class also known as coach class and it is the cheapest compare with executive and business class airlines services.ii. Lifestyle purposesegmentation Lifestyle segmentation investigates the consumer attitudes. MAS can identify the segmentation variable from lifestyle statement.It is a best decision for MAS to advertise in magazine advertisement in travel magazine and business magazine. business and economy class. Demographysegmentation Element such as gender. example. It is because travel and business magazine reader are from businessman or traveller. If traveller and businessman who are attract to the advertisement in the magazine. emotions. advertisement board. Airlines services is focus to those who like to travel. and education level are common demographic variables. media segmentation is often being used by companies to promote its products or services using that media. 3. pictures and etc. values. Market segmentation 1. Media such as television advertisement. Executive class usually are most luxurious class in airlines services and it is the most expensive compare with business and economy class. perception and interests. Qualitative research provides the insight. business purpose and etc.MAS always used magazine advertisement as a medium to promote its services and help the growthMAS in the airlines industry. For business class airlines are medium class services and it is more expensive but cost less than executive class. Media segmentation Media is a mean possibility of medium that tend to reach the audiences. Major of Airlines Company has removed first class because it is highest service in airlines service. words. 2. income. Market analysis a. magazine advertisement and etc. Lifestyle segmentation is to segment a market. age.

Example. If consumer incomes range from low to high. who travel with. . Economy class airlines is focus for low income group. money spend on airlines tickets and etc. Price segmentation Price segmentation is common and widely practise by airlines industry.Business class airlines are usually for the medium income group such as traveller and business purpose for businessman. The different in household income allow MAS to generate segmentation for price dimension. medium-priced and expensive services. b. purpose of travel by airlines. In person interview and internet-based interview are frequently use by airlines industry.consumers lifestyle. MAS must conduct depth interviews to create questionnaire. The internet is valuable for segmentation studies. There are 5 Strategy which is: 5 Star MAS must improve its products and services to develop it become high quality products and services. then MAS should offer low-priced. To design a market segmentation questionnaire for airline. respondent can paying full attention and take time choose their own opinion. In person interview produce more accurate answers. occupation. how to purchase tickets. income. Executive class is airlines service for those are higher income passenger and for business purpose such as CEO or director of a company. 4. Market Strategy Malaysia Airlines strategy is to transform its airlines in to Five Star Value Carrier (FSVC). So it will able MAS to offer lower fares to being competitive in the airlines market. The questionnaire will include a behaviour section such as frequency of flying. Lower Costs MAS should reduce its structural and operational costs.

MAS invest in growing its network and building its capacity. Increase customers and revenue With high quality services and products at low fares. It will give MAS competitive advantages to compete in the airlines market and make profit. international airline have to sign MOU to allow landing on KLIA.Air Asia is trying hard to compete with MAS through promotion . iii. Other competitor analysis Porter Five Force of industry analysis model (Malaysia airlines) Threat of new entrant a. International entrant The international competitor are airline such as Singapore International Airways. International Entrants i. it will be able for MAS to offer low and competitive fares to consumer. MAS will open up more routes and purchase more planes to gain sustainable growth. Local entrant The exists of Air Asia which is low cost and budget airlines are competitor for Malaysia Airlines. Grow network and build capacity With more revenue. Thai International Airways. Government which sign agreement with international airlines will gives threat to Malaysia airlines such as Air Asia and MAS. By invest in growing its network. Cathay Pacific Airways and Garu da Indonesian Airways. ii. Exists of competition is due to outdated regulatory system. it will attract more consumers choose to fly with Malaysia Airlines. This will generate more revenue and help in MAS growth.Competitive Fares If MAS has lower costs structure. Governmenttend to increase usage of KLIA as the main hubin Malaysia.

In the local market. time-efficient. but Airbus put a lots of effort again and again to enter the supplier market. c. Boeing can increase its price in aircraft and parts. MAS mechanicare more familiar with boeing aircrafts. b. other mode of transportation are not convenience. customer prefer would to use on land transport such as car and bus. Bargaining power of Buyer Price. and comfortable if compare with travel by air. convenient and comfort are concern to customers. MAS is hard to change to another supplier. SIA and UAE are providing better quality services to compete with each other to attract more customers to travel with their airlines. quality of service. d. air travel almost can¶t replace with other alternative. For short distance travel. in long distance travel. With a lots of airlines company in the market. Bargaining power of Supplier The main supplier of MAS aircrafts and accessories is boeing. In the international market. Therefore. So MAS don¶t have to worry about threat or exist of other mode of transportation to air travel especially long-distance travel. With limited of MAS can choose from. customer are able to choose which airlines that suit their need. there are a lot of airlines company that . Sea and land journey can be replace with other mode of transportation. Boeing are major supplier of all aircrafts and services. Singapore Airlines is a big and strong competitor that is well known for its services that will give negative impact to Malaysia Airlines. Substitutes Where time is matter in long distance travel. MAS is one of the option that customer can choose from. Besides. In the international market. Competitive Rivalry In the regional market. Air Asia compete with MAS by providing low cost services to its customer. But for short distance journey.and advertisement to attract many local passengers to use Air Asia to travel within Malaysia. MAS have been using boeingaircraft and part since its established. e.

Malaysia Airlines have their own branding strategy involve its stewardess to promote its airline. Malaysia Airlines are able to maximise yields on peak flights and expand market share on non-peak flights. Increase in yield Increase in yield mean revenue per passenger kilometre.Malaysia Airlines put a lot of effort on their branding and advertising and major around flight crew. d. Using branding strategy will help MAS to establish strong brand image internationally and locally. Highly recognizable brand name Malaysia airlines is one of the service companies that established for more than 70 years being the oldest airlines company in Malaysia and its brand image has been highly recognized. Additional capacity of aircraft will influence yield and yield recovery maybe slower than expected.compete in the market lead to competitive price and quality of services. US and European airlines merged to form a large airlines group in order to compete in the large competitive market. price and services. SWOT Analysis STRENGTH Malaysia Airlines has its own abilities of strength of their fundamental business use to compare itself with other service company based on value. Malaysia Airlines decided to use the ³going beyond expectation´as their slogan to market itself internationally and promote its excellence of quality service. For example. there are points can show the strength in Malaysia Airlines.Implement a highly competitive and dynamic pricing. Diversified revenue stream . I have studied and analysed the strength of MAS. MAS airlines has built a strong name in the airlines service industry. The increasing in yields is due to strong load factor to leverage on.

Reduce of labour will allow MAS to save on labour cost and increase effectiveness. overhaul and aircraft handling. Besides. MAS won the 5 star Airline award for the fifth consecutive year as well as regained the position of world¶s best cabin staff. repair. training is arm together with flight safety department introduced to evaluate training footprints for the entire fleet consistent with the latest in the industry. Accredited by Awards and Recognition MAS has won various awards from international body and is recognized by the IOSA for safety practices. Its staff size reduces by 3. Besides. not only to satisfy passengers. Low labour costs When MAS carried out staff reduction or downsizing. A blanket recruitment and training was established to save operating cost. These awards showed that MAS continue to deliver better products and services. MAS has the labour cost compare with other airlines.000 or 15%. Well-trained employees To improve service level of customer service agents. aircraft leasing. To enhance flight safety.Malaysia airlines generates revenue from various services such as flight operation and Aircraft cargo. In the year 2009. MAS also recognised as Asia¶s Leading Airlines the World travel Awards and Best Airlines in southeast Asia by the Global Traveller magazine. training was conducted to calculate good habits and service quality the front line ground staff. aviation engineering. . MAS has diversified into related industries such as aircraft ground handling. air catering and tour operations. Low labour cost structures and high productivity have more competitive advantages over company with labour costs. MAS have revenues coming from non-aeronautical areas such as maintenance. but also MAS business customers. this is due to MAS was overstaffed.

Darwin. Unprofitable routes In 2000. MAS still have some weaknesses as other airlines company have. WEAKNESSES Weaknesses is the things that MAS does not do well or other airlines company are doing better. MAS branding strategy is to provide hospitable and friendly service to represent good image to the public. its operating margins are below the industry average. Some routes have been discontinue due to insufficient passenger demand. This is due to the airlines growth plans and MAS competitive disadvantages. MAS claimed that it was losing passengers to other carriers on this route because of insufficient capacity. . The amount loss can be recognise in income statement. Low margin Although MAS has a strong revenue growth. The amount of loss is measured is difference between the asset carrying amount and the present value o estimated future cash flows. Munich and Vancouver. MAS airlines use their flight attendants to promote the airline. Honolulu. the airline suffered further losses lead to mas airlines suspend its flight to unprofitable routes such as Brussels. Weak cash flow means that spending is more than earning.36 million loss which was caused by the increasing fuel prices. Weak cash flow The airlines reporting negative inflow cash from its operations. From assessment. Madrid. Several weaknesses were due to the RM 1.Its flight attendants undergo extensive training. MAS found it is difficult to achieve operating profit margin at sufficient level finance such as capital expenditure. and other financing. Weak cash flow is due to impairment losses.

more than 15% of MAS revenue comes from the Asian region. . handling and landing fees. In February 2010. international passenger demand up by 9. It is expected to gain a potential customer base of 100 million in the Indonesia-malaysia-thailand area. Sometimes. china. In asia pacific.High costs Costs include staff costs. Besides. Firefly first flight was on 3 april 2007 at penang. Low Productivity Marketing skills are inefficient and are only focused on expanding to fast. Low productivity is because MAS was overstaffed. higher costs is because of security and environment policies. india and the middle east.5%. It¶s headquarter are at Sultan Abdul Shah Airport in Subang. passenger traffic grew by 13. Low productivity were due to poor management and poor technology. Asia country demand for travel is high. The rising cost of fuel will lead to high cost of operation. Sarawak. Firefly is Malaysia¶s first communities airline. aircraft maintenance and overhaul charges. Launch of firefly and MASwings Firefly and MASwings are subsidiaries of Malaysia Airlines. It¶s headquarter are at Jalan Airport in Miri. Its Firefly and MASwings have recently completed their fleet renewal exercise.5% year-on-year. Expanding passenger traffic MAS airlines covers several destination in Asia such as japan. both operating 7 and 10 ATR72-500 aircraft accordingly. Ineffective utilization of resources and partnerships. OPPORTUNITIES Opportunities are the chances in the industry which could utilized by the company to make it more positive respond in the market.MAS airlines set up firefly for test-bed to manage low cost operation.MASwings first flight was on 1 October 2007.

Based on the survey and research have been done by MAS. cargo traffic improved by 26. it is because human beings can easily having a change in their life. The changes of customer preferences are because of factors like demographic. Changes in customer preferences Customers have different needs and desires in term of purchasing.5%. MAS should introducing hot meal boxes in response to customer preferences. cargo traffic posted a significant growth of 34. In February 2010. In asia pacific. Hence. and geographic factor. Increasing fuel prices .MAS has more menu options available for customer to choose from. MAS airlines benefits from the increase in demand for air cargo services.Increasing cargo traffic There has been an incease in cargo traffic in south east Asian countries. There are Asian and Western meal to suit all customer needs and desires. Malaysian Airlines should introduce new concept. A total of 37 menus are available over 8 week cycle rotation to ensure frequent travellers will be able to enjoy different kinds of meals. psychographic. THREATS Threat are factor from external environment of the MAS company which could negative influence the company. This is due to growth of export related industries.5%.

Terrorism and Health scare Terrorism is leading factor of decrease tourism and airlines business. With increase of fuel price. Its airlines faced major competition internationally from established airlines and new start-up operations. some airlines gone bankrupt because airlines financially weak airlines are expected to follow suit. The increase in fuel price will lead to increase operation costs. Besides. MAS needed more US dollars to balance its foreign exchange requirement. . If terrorism happen in area of southeast Asia. this will lead to losses or lower profit. the poor performance of economic and market will lead to increase of fuel prices. Foreign currency fluctuation MAS revenue is from different foreign currencies which result in the fluctuations of foreign exchange rate. Terrorism might happen in many ways in certain country or it might happen inside the place such as plane being hijack. The airlines uses foreign currency as strategy to manage risk the risk of foreign fluctuation. Cathay Pacific Airways and Garuda Indonesian Airways if compete intenationally. Undertaking this risk will lead to decline in growth.The dramatic increase of fuel prices affect most airlines. It is one that influence operating expenditure for MAS airlines. MAS has to deal with local airlines in the same field is AirAsia. MAS treasury unit in the finance division handle cash and fund management such as credit management and foreign exchange. The weakening of foreign exchange willpossibililtyincrease fuel prices. AirAsia is airlines that provide low cost to customers. Thai International Airways. MAS will have to stop all their operation and flight to the southeast Asia for a period of time. This will lead to decrease of confidence in the airlines.MAS airline serves more than one hundred destinations worldwide. MAS have direct competitor that are Singapore International Airways. MAS inefficient foreign exchange management could make the company more than $10 million a month. High competition MAS faces strong competition from other airlines.

it will affect all the business worldwide. There are passenger with H1N1 boarding with Malaysia Airlines will lead to decrease of customer to fly with MAS. The outbreak of disease will affect the airlines industry significantly. it will lead to slow growth in demand for air travel. It¶s will give a big impact to the company if the big changes in the economy level. In global economic downturn. As one of the airlines company. . When the European economy is lagging. Economy Changes in economy will directly influence business positively or negatively in many aspects.The H1N1 pandemic and swine flu will lead to weaker demand of airline flight. Malaysia airlines have lot of collaboration with other company throughout the world.

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