Malaysia Airlines

Malaysia Airlines

Opportunities

1. Low Cost Opportunity

Due to the uncertainty and increasing cost of living, customers nowadays are searching for the best deals in term of travelling. With launching of low cost fare airlines such as Air Asia, it has definitely giving MAS a big hit to lose of customers. Therefore, MAS has been introduced its own low cost subsidiary called Firefly to cushion the impact on its domestic and South East Asia market. Firefly was able to penetrate the market by introducing its own brand marketing and low cost package to compete with Air Asia. This initiative has helped MAS to slowly regain its domestic and South East Asia customers. Firefly is expected to gain a potential customer base of 100 million in the Indonesia-Malaysia-Thailand Growth Triangle. Besides that, MAS also are promoting cheaper air fares that travel on certain date to various destinations. Customers now can log on to the MAS website and search for the potential low fares and purchase it directly online.

2. Emerging new markets and expansion of business especially airlines in foreign markets has given a huge opportunities to Airlines to exaggerate their businesses.

MAS has a strong presence in Asia and covers several regiona destinations and various destination in China, Japan, India and the Middle East where demand for travel is high. With the increased economic activity in emerging Asian countries such as China and India, the demand for air travel to Asia Pacific is rising. Furthermore, the share of Asia Pacific region in world passenger traffic is forecast to rise from 25% in 2003 to 31% in 2023. MAS has already derives more than 15% of its revenues from the Asian region.

3. Tourism Industry

Malaysia Government through its Tourism Ministry has been focusing on the development of tourism industry in Malaysia. According to Tourism Ministry, this industry has contributed a large amount to Malaysia and the government has always given full support in this industry.

On the other hand, the low exchange rate of Malaysia Ringgit also is one of the main reason contributing to the tourism industry. Especially tourists from rich country, they will prefer to come to Malaysia especially for shopping and travelling. Hence, the government has been actively promoting Malaysia as a tourist’s destination. The government makes KLIA as a regional air hub and launches the ERL system to connect Kuala Lumpur city with the KLIA in Sepang. Thus, this would benefit MAS a lot.

Furthermore, the Malaysia’s government has been promoting Malaysia as a medical tourism. Therefore, MAS is taking advantage in promoting medical packages for its customers. MAS is expecting to gain more passengers coming to Malaysia as a medical tourists. The effort of MAS to introduce medical packages for