UNIVERSITI KUALA LUMPURMALAYSIAN INSTITUTE OF

AVIATION TECHNOLOGY

Subject :INTRODUCTION TO AIR TRANSPORT

( ABB 10102/1)

Lecturer :PROF. HAJI AHMAD ZAHIR BIN MOKHTAR

Presenters :NUR ASILAH BT. ZAMRI 53276109106MOHD. AMIRUL HAKIMIN B. MOHAMAMAD 53276109174MUHAMAD MUNZIR B. KHAIRUDDIN 53276109141MOHAMMAD ZEFFREY B. ZAKARIA 53276109195

Ensuring Airlines are Profitable STUDY CASE :

MALAYSIAN AIRLINES (MAS)

PROJECT TITLE :

WHAT IS AIRLINES WHAT IS AIRLINES DEFINITIONDEFINITION ??

PROVIDES :Air transport for services (movement of people)

Freight (movement of goods)

Recognized operating certificate or license

WHAT ARE AIRLINES SERVICE WHAT ARE AIRLINES SERVICE TYPES ?TYPES ?

WHAT IS AIR TRANSPORT WHAT IS AIR TRANSPORT SERVICES ?SERVICES ?

1. AIR TRAVELAir AsiaFire FlyMas Wing

2. AIR CARGOMAS CARGOUPSDHL Federal Express (FedEx)

3. AIRPORTS SERVICES 3. AIRPORTS SERVICES (CONTINUE(CONTINUE) )

TRANSPORTATIONSTAXIBUS VAN

HOTELCOMMUNICATION

INTERNETTELEFON

TOURIST GUIDE FLIGHT RESERVATION

TICKETS PROMOTION

IS IT AIRLINES SERVICE OTHER IS IT AIRLINES SERVICE OTHER AIRLINES ?AIRLINES ?

1.EngineeringEngine overhaulAvionic overhaul

2.CateringMeals, snacks, beverages

IS IT AIRLINES HAVE OTHER IS IT AIRLINES HAVE OTHER BUSINESS ?BUSINESS ?

HOTELTOURISMCONFERENCEHAJJ/ PILGRIMAGE

INTRODUCTION OF MALAYSIA INTRODUCTION OF MALAYSIA AIRLINES SYSTEMAIRLINES SYSTEM

(MAS)(MAS)

WHAT IS MALAYSIA AIRLINES?WHAT IS MALAYSIA AIRLINES?

Started operation on 1937In 1963, the airline was renamed Malaysian Airways LimitedIn 1967, the company changed its name to Malaysia-Singapore Airlines Limited (MSA)In 1971, Malaysian Airlines System (MAS)

CORPORATE LOGOCORPORATE LOGOMalaysia Airlines logos since inception

in 1947

CORPORATECORPORATE IMAGEIMAGEIntroduced Sarong Kebaya as a uniform

Designed by the School of Fashion at Mara Institute of Technology

Color Code of female flight attendantsSarong Kebaya with yellow flowers with red background are for the Inflight Supervisors.Sarong Kebaya with blue flowers are for the Chief Stewardesses, Leading Stewardesses and Flight Stewardesses.Sarong Kebaya with magenta flowers are for the ground frontliners.

Color Code of male flight attendants Dark shade Ottanio color jackets are for Inflight Supervisors, Chief Stewards, Leading Stewards and Flight Stewards.Light shade Ottanio color jackets are for male ground frontliners.

WHERE ARE THEIR WHERE ARE THEIR DESTINATIONS ?DESTINATIONS ?

Malaysia Airlines now flies to 88 destinations across six continents from its primary hub in Kuala Lumpur.Particularly strong presence in the Southeast Asia region, with its subsidiary MAS Wings and Firefly most destinations in BorneoTransatlantic flights from Kuala Lumpur to Newark Liberty International Airport, via Stockholm ArlandaAirportHajj operation

MALAYSIA AIRLINE DOMESTIC MALAYSIA AIRLINE DOMESTIC DESTINATIONSDESTINATIONS

MALAYSIA AIRLINES MALAYSIA AIRLINES INTERNATIONAL DESTINATIONSINTERNATIONAL DESTINATIONS

PROFIT & LOSS PROFIT & LOSS FOR MALAYSIA AIRLINESFOR MALAYSIA AIRLINES

FINANCIAL STATEMENT FOR YEAR 2007

Group Airlines07

RM ‘OOO06

RM ‘OOO07

RM ‘OOO06

RM ‘OOO

Revenue 1,384,705 1,146,840 830,137 138,880Operation profit 403,370 266,372 816,095 135,304Profit before tax 403,645 263,254 812,829 128,810

Profit for the year 289,292 170,867 592,994 89,790

Click here

HOW MAS MAINTAIN HOW MAS MAINTAIN BUSINESS PERFORMANCE BUSINESS PERFORMANCE

??MARKET NICHESAIRCRAFT TYPE KNOWLEDGE WORKERSNETWORK

WHAT IS MAS MARKET NICHE WHAT IS MAS MARKET NICHE ??

First class (Exclusive)

Business Class/ Golden Club Class

Economy class

Malaysia Airlines Boeing 747-400 (744)

other In-flight Amenities :In flight amenities :

PASSENGER MOVEMENT

Reference : MALAYSIA AIRPORT ANNUAL REPORT 2007

MALAYSIAN TOURISM REPORT 2006/2007

MAS AIRCRAFT TYPES MAS AIRCRAFT TYPES INCLUDE INCLUDE

Reference : Wikipedia, the free encyclopedia.htm

KNOWLEDGE WORKERKNOWLEDGE WORKERHuman Resource Potential

Innovative/ creativeGood customer services

Work Culture (MalaysianHospitality)MH is Malaysian Hospitalityas representative of Malaysianhospitality and friendliness through the world

Training (Malaysian Airlines Academy)runs a training program for cabin and

flight crewhighly selective during its recruitment process.

MAS NETWORKMAS NETWORKPartnerships and Code Share Agreements (still no outcome from discussion)

- partnerships with 25 airlines, - 4 from SkyTeam, (Alitalia in Italy and China Southern Airlines in China in 2007 )- 2 from OneWorld- 7 from Star Alliance.- In quarter 2008, Jet Airways and Turkish Airlines, from India and Turkey respectively

Project MAS Overall Strategic Alliance Integration Concept (MOSAIC)

- to reap the maximum value from Malaysia Airlines' present hub-and-spoke network.

- identifying high-value code-share partners and Special Pro-Rate Agreement (SPA) partners,

- increasing agreements with partner airlines,- discontinuing non-beneficial code-share partners

MALAYSIA AIRLINES SYSTEM (MAS) TRACK RECORDS ?

WHAT ARE TRACK RECORDS OF WHAT ARE TRACK RECORDS OF MALAYSIA AIRLINES SYSTEM ?MALAYSIA AIRLINES SYSTEM ?

Platinum Award"Best South-East Asian Airline" in the 16th Annual Travel Awards 2005 survey conducted amongst readers of TTG Asia, TTG China, BTN Asia Pacific, BTN China and TTGmice published by TTG Asia Media Pte Ltd on October 14 at Pattaya/Thailand

"Best First Class Service" and "Top Five For Business Class In Long Haul" in 2007

Sixth Times Best Cabin Crew

WHAT ARE TRACK RECORDS OF WHAT ARE TRACK RECORDS OF MALAYSIA AIRLINES SYSTEM MALAYSIA AIRLINES SYSTEM ??

Voted World’s Best Airport 2007:Best Brands Transportation Airport 2006-2007 by Grammy Award. (KLIA)The Most Outstanding Establishment in the Tourist, Hotel, Restaurant and Catering Field 2007 by the Trade Leaders’Club, Madrid. (KLIA)Best Corporate IP Network in the Cisco NetworkersInnovation Award 2007. (Malaysian Airport Technologies)3rd Best Airport Worldwide in the SmartTravelAsia.Com Best In The Travel Poll 2007. (KLIA)Company Of The Year Award from the Chartered Institute of Logistic and Transport, Malaysia (CILT) ( Malaysian Airport)

MAS WIN MAS WIN ‘‘WORLDWORLD’’S BEST S BEST CABIN STAFFCABIN STAFF’’ AWARD FOR SIXTH AWARD FOR SIXTH

TIMETIME(2001(2001--2009)2009)

The award is given based on findings of the annual World Airline Survey

The survey judged quality of onboard customer experience, “soft service” provided, cabin staff friendliness, enthusiasm and attentiveness, sincerity, consistency in service delivery and general service efficiency.Malaysian hospitality at its best◦ treating our customers as valued guests in our own homeMAS move forward to achieve the vision ‘World’s Five Star Value Carrier’◦ offering customers the highest quality products and services at

the most affordable price

WHY MALAYSIA AIRLINES CALLED WHY MALAYSIA AIRLINES CALLED ‘‘WELL MANAGE COMPANY INWELL MANAGE COMPANY IN

MALAYSIAMALAYSIA’’ ??

Record profit of RM851 Million (USD265 Million)

in 2007, ending a series of losses since 2005.

Canceled virtually all unprofitable international routesRescheduled all flight timings and changed the operations.Started Project Omega and Project Alpha:◦ pricing, revenue management, network scheduling, opening

storefronts, low season strategy and distribution managementUsing Business Turnaround Planning (BTP)

CONCLUSIONCONCLUSIONMany other airlines file for bankruptcy but Malaysia Airlines still survive.

Economy Downturn Fuel CrisisBad Decision MakingLess Passengers and Clients◦ Delta Airlines◦ Northwest Airlines◦ Ansett Airways

Malaysia Airline still survive:◦ Business Turnaround Plan (BTP) ◦ Government Support◦ Low Competition

METHODOLOGYMETHODOLOGYBook Reference

1. Malaysia airport Annual Report 20072. Berita edisi khas (Business Turnaround

Plan)

Interview lecturers and Industry speacialist

1. Prof. Ahmad Zahir b. Mokhtar (LECTURER)2. Madam Suzilatun NurLinda bt. Said (MAA)3. Mr. Ibrahim b. Mohd. Salleh (MAS KARGO)4. Mr. Mazalan b. Daud (LECTURER)

METHODOLOGYMETHODOLOGYInternet

1. http://en.wikipedia.org/wiki/Malaysia_Airlines

2. www.mas.com3. www.maskargo.com4. www.treasuredepartment.gov5. www.malaysiainsider.com6. http://yahoo.answer.com7. www.cnnmoney.com

Group disscussion1. Brains storming2. Questions construct

SPECIAL THANK YOUSPECIAL THANK YOUPARENTSLECTURERSINDUSTRY SPEACIALISTSFRIENDS AND RELATIVESOTHERS, WHO INVOLVE IN THIS RESEARCH PROJECT

THANK YOU, FOR YOUR ATTENTION