Transforming Malaysia Airlines

This article describes the turnaround that is taking place at Malaysia Airlines, which had consecutive profitable quarters for the September and December 2006 periods, with earnings of more than $104.3 million. Its shares outperformed the Kuala Lumpur Exchange average by 44 percent in 2006. The improvement is attributed in large part to a new CEO, who took over in December 2005. Four critical problems were tackled: low yield, inefficient network, low productivity and lack of cost control. Management set up analyses to pare or eliminate un-profitable routes, readjust fares and fuel surcharges and improve seat inventory management. The hub-and-spoke tactic was expanded by creating partnerships with other airlines. Staff cuts came to 15 percent, or 3,000 jobs, and quarterly reports were replaced by monthly ones. A series of initiatives in a variety of business areas are described, along with plans for future purchases, current revenues and costs and other financial data.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00022543
• Authors:
  • Thomas, Geoffrey
• Publication Date: 2007-5

Language

• English

Media Info

• Media Type: Print
• Features: Photos; Tables;
• Pagination: pp 42-44, 46
• Serial:
  • ATW: Air Transport World
  • Volume: 44
  • Issue Number: 5
  • Publisher: Penton Media
  • ISSN: 0002-2543

Subject/Index Terms

• TRT Terms: Airlines; Cost control; Low cost carriers; Management; Network analysis (Planning)
• Identifier Terms: Malaysia Airlines
• Subject Areas: Administration and Management; Aviation;

Filing Info

• Accession Number: 01050364
• Record Type: Publication
• Source Agency: UC Berkeley Transportation Library
• Files: BTRIS, TRIS
• Created Date: May 31 2007 7:29AM