MAS to focus on value in new business model
KUALA LUMPUR – Malaysia Airlines (MAS) believes it can achieve its ambition of becoming a “five-star value carrier” under its new business transformation plan by making key changes to how it services its customers.
The Star newspaper reports that the national carrier will draw from the experiences of three international airlines, change the type of food it serves passengers and place more emphasis on Internet booking.
MAS also believes the low labour costs in Malaysia, its reputation as a five-star airline and its ability to venture into maintenance, repair and overhaul business would give it a better starting advantage in becoming a “five-star value carrier”.
“We will offer products and services that provide our customers with more value compared with those of our competitors,” MAS said.
“Our target customers are those who want service excellence and quality, and do not make decisions solely on price.”
MAS has forecast heavy losses in 2012 if it does not transform itself. It sees the operating conditions being hit by overcapacity and liberalisation if no changes are made to its business model.
MAS also said the concepts exposed in turning the airline into a five-star value carrier had been successfully implemented in other international airlines.
MAS said Ireland’s Aer Lingus had managed to dramatically cut costs by focusing on Internet sales, eliminating the business class and free food on short-haul flights and focusing on productivity to compete with low-cost carriers.
“Air Canada has been very vocal about how its model, focused on low costs and significant sources of protected revenue, delivers superior profit,” MAS said.
The third example used by MAS was Chile’s LAN, a regional airline that increased short-haul aircraft utilisation and the percentage of direct flights to nearly double its operating margin.
“MAS has the advantage of being in a better starting position than any of these carriers,” said a spokesman for the airline.
Ian Jarrett
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