Malaysia Airlines Case Study

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Malaysia Airlines (MAS) falls under world scrutiny after two unfortunate events befall it this year. In less than 4 months, flight MH370 disappeared abruptly over the Indian Ocean followed by the shooting down of MAS aircraft at Eastern Ukraine. Along with the unfavorable global recognition, the two air catastrophes also swiftly draws the world attention to the airline’s ballooning debts, constant restructuring, and state ownership. After the major disasters, MAS also faces a major shake-up at the board of meeting as the country’s sovereign-wealth fund, Khazanah offered to buy the 30% of shares in private hands in order to restructure the airline (Thestar.com, 2014). Key shareholder of the airline, Khazanah said that they will weigh different …show more content…
It can be seen from the thriving airlines of Singapore (SIA), Ethiopia, and the Gulf carriers, Emirates, Etihad and Qatar Airways. All these airlines benefited from government money but have been allowed to operate as commercial enterprises with minimal interference. This entrepreneurial thrust is rare in other states. Ignorance cronies often dominate management and state employees frequently travel for free. Many carriers are obliged to maintain loss-making domestic routes to please politicians. For instances, Olympic Airlines was forced to deliver newspapers onboard for a pittance to keep the country’s press barons happy and the Greek national carrier went to the wall in …show more content…
The biggest and most powerful which is the Malaysia Airlines System Employees Union has successfully lobbied against a previous reconstruction, which involved a share swap with low cost rival AirAsia.
According to Thesundaily (2013), the National Union of Flight Attendants Malaysia, represents about 1,500 cabin crews, found itself in a court arguing with management over recognition, even the government-backed secret ballot found abundant support for the union. NUFAM president, Ismail Nasaruddin, was fired from his position as chief steward the end of last year.
The tragedies of MH17 and MH370 had affected morale among that flight attendant whom still flying. Many MAS staff has turned out to pay their respects as the remains of their colleagues and friends which insiders often talk of MAS as a "family" has arrived back in Malaysia. MAS have admitted that in the first seven months of the year near to 200 cabin crew left the company. Thus, two recent recruitment exercises have been cancelled at the last minute (Themalaysianinsider.com,
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