PBL Case Study: Malaysia Airlines (MAS)

1. Malaysia Airline (MAS)
FILA table, Learning Issues &
Suggestion

2. Prepared By:

3. FILA Table

5. Learning Issues &
Suggestion To Overcome
Malaysia Airlines (MAS)
Problem

6. Learning Issue 1:
Why customer lost trust?

7.  Major cause : Disappearance of MH370 and
crash of MH17.
 Customer do not satisfied with the answer given
by the company.
 Safety record had been suspect by customer.
 Cancel fly and refund ticket.
 Recent bad reputation.

8. Suggestion To Overcome
Suggestion From Expert
O Make sure operational are done incredibly.
O Avoid being embroiled in the ‘blame game’ expert
Hamish McLean said.
O Airline must looking after its staff a priority and not
neglect the family and friends of victims (Doctor
McLean).
O Do the right thing, caring and as safety conscious as
possible and time allows for no incidents.
O McClellan (AMCMedia) comment that the airline
should communicating more openly and efficiently.

9. Suggestion To Overcome
Several Tactical For MAS To Rebuild Trust
1. Enhance services and experience on existing
customers.
2. Utilization of data.
3. Leverage the power of social media.
4. Building relationship with customers.
5. Brand rebuilding.

10. Learning Issue 2:
What factors that impact of
employee quit?

11.  Working Pressure.
 Lower salary compare with others airline
company.
 The location of the workplace is far and does
not operate systematically.

12. Suggestion To Overcome
O Provide training program.
O Provide incentives.
O The headquarters and office will be transferre to
the new location (KLIA) to enhance workplace
and management efficiency.

13. Learning Issue 3:
Why MAS cannot offer the
same customer experiences like
its competitors?

14. Positive view
STAFF
O According to our respondent from England, MAS staffs
not discrimination.
CHEAP
O Most of respondent said (MAS) price is reasonable and
cheaper compare with others airlines
COMFORTABLE
O According to our respondent from England, the seat was
convenient, no bias, can check in early and flights on time
compare with Air Asia airline.

15. Negative view
Price , Tax and Flight Schedule
O According to Indonesia respondent, the Air Asia airline
more cheaper and flight schedule on early morning.
Respondent from French more prefer Air Asia airline
because the tax excluded.
Safety
O “I will not fly with MAS” that is statement from
Canada respondent because the MAS safety record
recently is not good as well.

16. Suggestion To Overcome
The suggestion from our respondent:
i. Come out the answer of why the MH370 will disappear
to the public in order to regain customer services and
customer trust.
ii. Improving the flight schedule with more efficiently and
effectively.
iii. Need to enhance the safety record of Malaysia Airline.

17. Learning Issue 4:
How to make sure the prices
tickets match with the services
their offered ?

18. Malaysia Airline (MAS) use different price strategies
that reflect their positioning strategy to compete in
the market
Malaysia Airline (MAS) use prestige pricing strategy
at first, but then change to mixed pricing strategy
included meeting competitors pricing

19. Emerging Air Asia into airlines market in Malaysia,
make MAS moves into serving the low income group.
So all different level group treated due to affordable
prices.
MAS come out RM 1 for ticket to compete with free
seat of Air Asia and sometime the fare of MAS is even
lower than Air Asia.

20. Suggestion To Overcome
Ocheaper ticket price after the accident to attract
more customers on it
ODrastic promotions for cheaper flights
Osend out e-mail to notify customers about the on-
going promotions of cheaper flights

21. Suggestion To Overcome
ODoes more advertisements about their ticket price
through traditional promotion mix and social
media.
OMAS should continuously keep the low cost
journey as low as possible and enable more people
to fly with them.

22. Learning Issue 5:
How to enhance talent
management?

23.  Chief executive in September 2011, as an outsider who has
little experience running an airline. He has previously
worked in energy and media industries.
 Lack of expertise in some areas. The airline is
currently facing shortage of qualified pilots,
engineers, and ground staff.

24.  It is overstaffed and any restructuring efforts should
include a move to significantly downsize its workforce.
The airline's management strategy is to offer tickets at
steep discounts to fill up its planes in the hope of later
getting some pricing power.

25. Suggestion To Overcome
O Hired a person from the airline industry so that they are
knowledgeable about that specific area.
O Hired someone who has been involved in the maintenance,
repair and overhaul business to guide them on the spares
for the aircraft, the requirements for hangars and how to
renegotiate the existing contracts.
O Revive the airline in consultation with the carrier's
management.

26. Suggestion To Overcome
O Department that was overstaffed can be redeployed
elsewhere.
O Rebuilt the management strategy with the goal and
objectives that will focuses more about the strong
relationship between the airlines and the customer and user
not only increase profit.

27. Appendices
Interview of
Indonesia
Respondent
Airline Prefer:
AirAsia,
cheaper price.

28. Interview of England
Respondent
Airline Prefer: MAS,
good services and
larger sit.
Interview of England
Respondent
Airline Prefer: MAS,
Overall services are
excellent.

29. Interview of French
Respondent
Airline Prefer: AirAsia,
cheaper and tax
excluded.
Interview of Canada
Respondent
Airline Prefer: MAS, but
will shift to others airline
since the cases happen.

30. THANK YOU!