Malaysia Airlines System Essay

MALAYSIA AIRLINE SYSTEM (MAS) Corporate Information Historical evolution Malaysia Airlines had its humble beginning in the golden age of travel. A joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways led to a proposal to the government of the Colonial Straits Settlement to run an air service between Penang and Singapore. The result was the incorporation of Malayan Airways Limited (MAL) on 12 October 1937. On 2 April 1947, MAL took to the skies with its first commercial flight as the national airline.

Fuelled by a young and dynamic team of visionaries, the domestic carrier turned into an international airline in less than a decade. With the formation of Malaysia in 1963, the airline changed its name to Malaysian Airlines Limited and soon after, Borneo Airways was incorporated into MAL. Within 20 years, MAL grew from a single aircraft operator into a company with 2,400 employees and a fleet operator using the then latest Comet IV jet aircraft, 6 F27s, 8 DCs and 2 Pioneers.

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In 1965, with the separation of Singapore from Malaysia, MAL became a bi-national airline and was renamed Malaysia-Singapore Airlines (MSA). A new logo was introduced and the airline grew exponentially with new services to Perth, Taipei, Rome and London. However, in 1973, the partners went separate ways; Malaysia introduced Malaysian Airline Limited, which was subsequently renamed Malaysian Airline System, or simply known as Malaysia Airlines. Today, Malaysia Airlines flies nearly 50,000 passengers daily to some 100 destinations worldwide.

The airline holds a lengthy record of service and best practices excellence, having received more than 100 awards in the last 10 years. The most notable ones include being the first airline with the “World’s Best Cabin Crew” by Skytrax UK consecutively from 2001 until 2004, “5-star Airline” in 2005 and 2006, as well as No. 1 for “Economy Class Onboard Excellence 2006” – also by Skytrax UK. On 27 February 2006, Dato’ Sri Idris and the new management team announced a Business Turnaround Plan (BTP).

The BTP was developed using the Malaysian Government Linked Company (GLC) Transformation Manual as a guide. With a clear mission to become a profitable airline, the national carrier pursued a business turnaround strategy which promised to cut losses from RM1. 7 billion (full year) to RM620 million in 2006, achieved a profit of RM50 million in 2007 and a record profit of RM500 million in 2008. The BTP outlined The MAS Way, focusing on five central thrusts as the framework. 1. Flying to win customers 2. Mastering operational excellence . Financing and aligning our business on P & L 4. Unleashing talents and capabilities 5. Winning coalitions % Ownership Companies 100% Malaysia Airlines Cargo Sdn Bhd MAS Aerotechnologies Sdn Bhd Syarikat Pengangkutan Senai Sdn Bhd MAS Golden Boutiques Sdn Bhd MAS Golden Holidays Sdn Bhd MASkargo Logistics Sdn Bhd MAS Academy Sdn Bhd FlyFirefly Sdn Bhd (formerly known as Kelas Services Sdn Bhd) Malaysia Airlines Capital (L) Limited Macnet CCN (M) Sdn Bhd Malaysian Aerospace Engineering Sdn Bhd MASWings Sdn Bhd

FlyFirefly Holiday Sdn Bhd (subsidiary of FlyFirefly Sdn Bhd) 80. 0% Abacus Distribution Systems (Malaysia) Sdn Bhd 51. 0% Aerokleen Services Sdn Bhd 49. 0 % Aerofine Meat Sdn Bhd 60. 0% MAS Catering (Sarawak) Sdn Bhd Investment in Associates % Ownership Companies 30. 0% Honeywell Aerospace Services (M) Sdn Bhd GE Engine Services Malaysia Sdn Bhd LSG Sky Chefs – Brahim’s Sdn Bhd (Formerly known as MAS Catering Sdn Bhd) 49% Hamilton Sundstrand Customer Support Centre (M) Sdn Bhd 23. 53% Pan Asia Pacific Aviation Services Limited 20% Taj Madras Flight Kitchen Limited


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