LEADERSHIP

GROUP MEMBER:TRAN THI NGOC QUY - 1258061TRUONG THI THU THAO - 12658072NGUYEN THAI KHANH NGOC - 1258041TRIEU TRUNG TIN - 1258079

Professor: Gary Giss

MALAYSIAN AIRLINES

MH370: THE MISSING PLANE MH17: PLANE CRASH

MH370• MALAYSIA AIRLINES FLIGHT MH370, WITH 239

PASSENGERS ON BOARD, WAS SCHEDULED TO FLY FROM THE MALAYSIAN CAPITAL, KUALA LUMPUR, TO BEIJING IN CHINA ON SATURDAY MARCH 8, 2014.• IT DISAPPEARED FROM CIVILIAN RADAR SCREENS ABOUT

AN HOUR INTO THE SCHEDULED SIX-HOUR FLIGHT.• TWO OUTSTANDING THEORIES EXPLAINING THE

DISAPPEARANCE OF MH3701. WAS THIS A TERRORIST ATTACK?2. DID THE PILOT COMMIT SUICIDE?

Officials from Malaysia's Department of Civil Aviation meet with members of the Chinese government after the disappearance of Malaysia Airlines flight MH370 on March 12, 2014

THE LEADERSHIP AREAS IN FLIGHT MH370

A.NEGATIVE ASPECTS:• FAILING TO MANAGE FLIGHT MH370 CRISIS • PROVIDED AMBIGUOUS INFORMATION •MALAYSIAN PRIME MINISTER MAHATHIR MOHAMMAD BLAMED FOR BOEING.

THE LEADERSHIP AREAS IN FLIGHT MH370

B. POSITIVE ASPECTS:- PROVIDED HOTEL ACCOMMODATION FOR RELATIVES’ PASSENGERS- EQUALLY COMPENSATED FOR VICTIMS’ FAMILIES- MALAYSIA'S DEFENCE MINISTER STATED THAT THE SEARCH FOR MH370 WOULD CONTINUE DESPITE THE LOSS OF MH17 OVER UKRAINE-> “MORAL REASONING IS THE PROCESS LEADERS USE TO MAKE DECISIONS ABOUT ETHICAL AND UNETHICAL BEHAVIORS; THE MANNER BY WHICH THEY SOLVE MORAL PROBLEMS.”

-> “MORAL PERSON IS SEEN AS PRINCIPLED DECISION MAKER WHO CARES ABOUT PEOPLE AND THE BROADER SOCIETY.”

WHAT WE LEARN FROM THIS EVENT ?

CAUSES OF MH17 CRASH

• THE CAUSE OF THE CRASH HAS NOT YET BEEN DETERMINED BY THE OFFICIAL INVESTIGATION, WHICH IS BEING CARRIED OUT BY THE DUTCH SAFETY BOARD. BOTH US AND UKRAINIAN OFFICIALS DECLARED THAT A SURFACE-TO-AIR MISSILE STRIKE IS THE MOST LIKELY CAUSE.

An unnamed US intelligence official stated that Malaysia Airlines Flight MH17 may have been shot down in error by pro-Russian separatists, citing evidence that separatists launched a SA-11 surface-to-air missile that blew up the Malaysian airliner.

THE RESULT

•PRESIDENTS OBAMA AND PUTIN DISCUSSED THE CRISIS:

THE US PRESIDENT TOLD HIS RUSSIAN COUNTERPART THAT WHILE HE WAS "DEEPLY CONCERNED" OVER HIS CONTINUING SUPPORT FOR PRO-RUSSIAN SEPARATISTS IN UKRAINE, HE HOPED A DIPLOMATIC SOLUTION WAS STILL POSSIBLE.

THE RESULT FOR THE COMPANY, AS A BUSINESS:

• THE RESULT FOR THE COMPANY, AS A BUSINESS:• MALAYSIA AIRLINES STOCK HAS SEEN A DRAMATIC 13 PER CENT FALL IN THE FIRST

FEW MINUTES OF TRADING ON THE MALAYSIAN STOCK MARKET.• AFTER THE MH370 DISASTER, PASSENGERS CANCELLED FLIGHTS, AND WHILE THE

AIRLINE IS INSURED, IT FACES UNCERTAINTY OVER PAYOUTS TO THE VICTIMS’ FAMILIES.

• THE CRASHES CAUSED CONSIDERABLE "REPUTATIONAL DAMAGE" TO THE AIRLINE, THE BBC NOTES, INCLUDING A 60 PER CENT DROP IN SALES FROM CHINA.

• EVEN BEFORE THE TWO DISASTERS, THE MALAYSIAN FLAGSHIP CARRIER'S FINANCIAL PERFORMANCE "WAS AMONG THE WORST IN THE INDUSTRY", THE GUARDIAN REPORTS.

• TO BE NATIONALISED AFTER MH370 AND MH17.

THE FUTURE DIRECTION:• EXPECTED TO CUT JOBS, APPOINT A NEW MANAGEMENT TEAM AND SELL OFF THE CARRIER'S

PROFITABLE ASSETS, SUCH AS ITS AIRPORT SERVICES AND BUDGET AIRLINE SUBSIDIARIES.• MALAYSIA AIRLINES WILL BE DELISTED FROM THE STOCK MARKET AND PLACED UNDER GOVERNMENT

CONTROL AMID SUGGESTIONS, AND IT WILL BE RENAMED TO DETOXIFY THE COMPANY AFTER THE MH17 AND MH370 DISASTERS.

• THE MAJORITY SHAREHOLDER, THE MALAYSIAN GOVERNMENT, HAS ALREADY STARTED A PROCESS OF ASSESSING THE FUTURE SHAPE OF OUR BUSINESS AND THAT PROCESS WILL NOW BE SPEEDED UP AS A RESULT OF MH17.

• CUT 6,000 JOBS IN WAKE OF MH370 AND MH17 DISASTERS. PLANNED JOB LOSSES ARE PART OF MAJOR RESTRUCTURING OF AIRLINE FOLLOWING THE DISAPPEARANCE AND SHOOTING DOWN OF AIRCRAFTS.

• THERE WILL ALSO BE A RESTRUCTURING OF ROUTES, ALTHOUGH THE TWICE-DAILY SERVICE BETWEEN HEATHROW AIRPORT IN WEST LONDON AND KUALA LUMPUR, ON WHICH THE WORLD'S LARGEST PASSENGER PLANE, THE AIRBUS A380 SUPERJUMBO OPERATES, IS SET TO CONTINUE.

• CUT 6,000 JOBS, AROUND A THIRD OF THE WORKFORCE, AS IT STRUGGLES TO OVERCOME THE TWIN DISASTERS.