The Malaysia Airlines Business Analysis

The Malaysia Airlines (MAS) as Malaysia’s state-run airlines, it has certain influence in in Asia, the Middle East, Europe and Oceania, but there are many problems appeared in its development history. As early as 1972, when Singapore Airlines (SIA) and Malaysia Airlines have separated, Singapore airlines toward international aviation market and become one of the world’s best airlines, but Malaysia Airlines was focused on the domestic operation, due to the limited domestic market, it is difficult to improve income quality and with its failed management, the development of the Malaysia Airlines have been relatively slow, even substantial debt. Although the company also imitate SIA to make global network aviation later, but not prosper. MAS has surrendered 96 domestic services to Airasia in 2009, in fact, this action is a back on development, destroyed the MAS's original operational network system, make its international service more weak, and the rivalry press is further to enlarge. After reporting its first-quarter earnings results, the Malaysia Airlines net loss of MYR 1.7 billion in 2012 and net loss of MYR 2.4 billion over the same period in the past fiscal year of 2011.

Under the halo of the SIA, the development of the MAS is faced a strong pressure of competition. At the same time, the Airasia rely on the advantage of the low cost, passenger flow volume increase rapidly (see figure 1), it not only equal to MAS, but also have set up "Asian X aviation", plans to build a low cost airport, and ready to input more aircraft so that the number of passengers increased to 60 million people in 2013. Under this strong pressure, the MAS find this hard to parry.