Malaysia Airline (MAS)

FILA table, Learning Issues &

Suggestion

Prepared By:

FILA Table

Learning Issues &

Suggestion To Overcome

Malaysia Airlines (MAS)

Problem

Learning Issue 1:

Why customer lost trust?

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.

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.

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.

Learning Issue 2:

What factors that impact of

employee quit?

Working Pressure.

Lower salary compare with others airline

company.

The location of the workplace is far and does

not operate systematically.

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.

Learning Issue 3:

Why MAS cannot offer the

same customer experiences like

its competitors?

Positive viewSTAFF

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.

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.

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.

Learning Issue 4:

How to make sure the prices

tickets match with the services

their offered ?

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

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.

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

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.

Learning Issue 5:

How to enhance talent

management?

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.

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.

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.

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.

Appendices

Interview of

Indonesia

Respondent

Airline Prefer:

AirAsia,

cheaper price.

Interview of England

Respondent

Airline Prefer: MAS,

good services and

larger sit.

Interview of England

Respondent

Airline Prefer: MAS,

Overall services are

excellent.

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.

THANK YOU!