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Malaysia Airlines System Berhad Mas Commerce Essay

Paper Type: Free Essay Subject: Commerce
Wordcount: 1621 words Published: 1st Jan 2015

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Malaysia Airlines System Berhad is founded as Malayan Airways that the government-owner flag carrier of Malaysia. MAS operate flights in Southeast Asia, East Asia, South Asia, Middle East and in the Kangaroo Route between Australia and Europe. Others operation that MAS provide to their customer is MASkargo, MASCharter, and MASswing. Apart from the MAS airline the group also includes aircraft maintenance, repair and overhaul (MRO) and aircraft handling. MAS have two airlines subsidiaries is Firefly, MASKargo and MASwings. The management that make many change in their structure organization to improve the productivity on employees’ performance and customer satisfaction. Starting in 1997 MAS get unprofitability and the top management and government should take action to solve this problem. And, MAS make a decision to make managing change to increase the profitability and can increase productivity.

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Most CEO’s or manager’s in the organization consider to be make managing change to their management to improve the performance and productivity either to employees or organizations. Change perspectives describe the fundamentally different event sequences of change involvement, or what can be thought of as motors of change. Managing change is the systematic approach to dealing with the change from perspective of organization or individual. The goal of managing change is to make improvement in the performance of an organization as fast as possible and increased organization effectiveness. Moreover, when make a managing change has a purpose to achieve the goals. The purpose of change is to make organization more productive by finding ways of supporting or developing its competitive advantages.

Before make managing change in MAS, the management should have a purpose for the management and employees can achieve what they want to be success. The purpose of MAS is to make airline market has become more competitive with the rapid increase of the low cost carrier (LCC) segment, continued growth of the Middle Eastern full service carriers and revival in the fortunes of Asia full service carriers. The objectives, MAS plan to move they to profitability by 2013, as well as a set of “game changers” to sustain our performance and create a platform for continued growth for MAS’s in future.


Starting from 1997, Malaysia Airlines (MAS) sustain financial problem because of unprofitability on the services and at the same time financial government have a big crisis is recession unemployment. The problem that MAS faced lasts until 2011 and the management and government find many ways to changing the management structure to improve profitability. The factors managing change that MAS contribute is:-

1. Corporate Culture

On 1 December 2005, MAS a new CEO appointed Idris Jalal, to manage the management, the change that be contributed is to execute changes in operations and corporate culture. Corporate culture is the culture of each organization is unique, shaped by the values and beliefs of those who work there. As it evolves and takes shape, culture works to coordinate and control behavior, action and decision making within organizations. CEO Idris Jalal, launched its Business Turnaround Plan to improve poor yield management and an inefficient route network. With a new plan has implemented to the organization, it will then lead to a change in culture, beliefs or norms. Coincidentally, it will drive to an innovation in the operational structure to meet parallel with the organizational goals.

Otherwise, the new CEO was involve setting up of several new business units, and the re-naming of existing functions as well the introduction of new leaders to pursue other career opportunities. With re-naming or re-branding again the product and services in MAS its can get a new image and the impact of the changing is to give a positive affect toward the management and operational structure. Among business plan that be changing in MAS:-

a. Network, alliance, strategic planning is the implementation a new division will support the effective of group’s network to meet the lively needs and to influence a strategic alliances and partnerships with other airlines.

b. Programme Management Office is the organization was driven implementation, alignment and tracking of a key initiatives and activities to be supported the changing business plan and try to maximize the values of organization. The management office plan also can be improved the productivity of employees and increased the organization performance based on the strategy structure that be produce.

c. Communication will be renamed strategic planning. The new organization structure proceeds with the departure of several leaders of the MAS team, the good leader is know how to communication with the employees. The effectives communication in organization will be make employees easy to make a changing in organization.

2. Collaboration with AirAsia.

Malaysia Airlines (MAS) collaboration with AirAsia on 2011 to solve the problem that they faced and increase the profitability, productivity and performances. The meaning of term collaboration is working together to achieve a goal and objectives. The process where two or more organization work together to realize shared goals to reach an identical objectives. MAS and AirAsia, they will sharing knowledge, learning can be social within organization. CEO AirAsia says the collaboration between this two company airlines is to improve the productivity and performance of two company airlines and the main factors is to help MAS get profitability in business plan. Collaboration part of managing changing for the organization liked MAS that have a problem in the management structure get solve the problem in other ways under a new leader or CEO.

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CEO AirAsia says, MAS will need to more focus on rebranding exercise as on way for the national turnaround. In term rebranding products and services there are huge opportunities for MAS to invest in brands, especially to getting people to know more about the airlines. This collaboration also can help organization strategic structure with MAS management can implemented the AirAsia strategic structure into the organization. But, when to implement a new strategic structure into MAS, employees should absorb a new culture and values. The organization change in MAS will used a new vision, mission, and objectives to increase the productivity based on achievement they make it. Working together will benefits all of employees, improves individual cost structures and could lead to greater efficiencies.

3. Continuous Operational Improvement

Continuous operational improvement is the process which changing to be continuity to make sure the organization can achieve the goals and objectives. The preferred premium carrier in the region should be lined with the organization vision, it will be making substantial changes to MAS operations to excel on three key dimensions, there are, commercial effectiveness, flight operations and cost management. MAS goals is to achieve the highest customer satisfaction while improving their revenues and operating as efficiently as possible. The improvement that MAS make is flight operations, where they are getting brand new aircraft and ground equipment that will provide a strong in this area.


As conclusion, to sustain the improvement changing that be done in MAS, it must have a good strategic structure. Corporate culture is most important in doing changing in organization, because it can include how people in a company are likely to act in given situations both inside or outside the organization. The corporate culture has been implement in MAS is re-naming or re-branding the image of MAS; networkings, alliance, strategic planning; programme management office and communication will be renamed strategic planning. It is influence service quality and the way in which people are treated, whether customers or clients. In make the changes, MAS collaboration with AirAsia for strengthen the position in airlines areas. The collaboration with AirAsia, to expose MAS try moved forward to changing they position and the AirAsia try to help them to make changing in terms of sharing knowledge, learning a new structure, rebranding, absorb new structure and values. MAS try to continuous operational improvement and to do extremely well on three key dimensions, there are commercial effectiveness, flight operations and cost management. Managing change in MAS to help them to increase the productivity and performance for can achieve goals of organization.


Managing organizational change will be more successful if the organizations apply the continuous improvement. Many factor continuity and change the organization can apply in MAS. Apart from the factor can be recommended to Malaysia Airlines for continuous they can use an analytical framework. The purpose is to provide a base for conceptualized the relationships between the numerous constituents of change management. In an analytical framework, MAS will make much change in the organization, so they should maintaining change that they make it. Maintaining change is the last step in an analytical framework; MAS consider the necessary and sufficient requirements for ongoing change, exploring the process of measuring and evaluating change and examining issues of sustaining change.


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