Corporate strategies of Malaysia Airlines is to grow network as well as build capacity. Malaysia Airlines aim to expand new routes as well as raise frequency on the existing routes with enlargement of potential by the following action plans such as identification of high-value codeshare as well as special pro-rate agreement partners, increase in the agreement with the partners (Mansor et al. 2015).
Performing of disconnect analysis on order to optimize connectivity and identification of new codeshare as well as SPA agreements to pursue The Hub and Spoke strategy are used to increase feeder traffic onto the trunk routes of Malaysia Airlines. Additional resources should direct to widen capacity into the core network of Malaysia Airline in China and India that are probable to occurrence higher than average growth in the air traffic (Min and Joo, 2016). In order to acquire their network better, the airline industry should obtain long-range narrow body aircraft in order to function new routes. The airline industry plans to order new planes and its benefits from the fuel efficiency of new jets. The new plane is expected to replace the carrier by the year 2018.Second strategies is reduction in structural and operational cost. Malaysia Airlines should reduce its structural and operational cost. This will enable the airline industry to offer lower and more competitive fares when it is compared to other airlines.
The structural operating cost is to be influenced by a change in the location (King et al. 2015). Operational cost is influenced by a change in the strategy of the workplace.
Both the operational as well as recurring cost is reduced with focusing the incentive strategies that can improve the business performance as well as increases in its competitiveness among the other airline industry (Moore-Copple, Climek and Pritchard, 2015). The strategies to reduce both structural and operational cost are a review of suppliers and airline service. Therefore, cost reduction strategies increase the productivity of Malaysia Airlines allowing for strategic reallocation of the resources.Another strategies is to improve over passenger flight services.
Malaysia Airlines should plan to launch of new airlines that will set new standards for their product, cost efficiency, operational excellence as well as service quality. These factors should help to improve the passenger flight services, build customer, and brand loyalty (Gosling and Ayres, 2015). Malaysia Airlines should give important information on their websites to give immediate answers to the customer’s queries (Morecroft, 2015). The company should create resources such as blogs, guides, and maps to give information to the customers.
The information should be related to airport maps, information of passenger, real time flight status update, information on traffic as well as travel guides. Use of advanced technology also helps to increase the customer experience (Pearlson, Saunders and Galletta, 2016). The technologies such as CRM tools for managing the relationship, marketing tools to engage the customers, Online survey tools in order to measure the satisfaction level of a customer through airline services given by Malaysia Airlines. Besides, corporate strategies are to improve in environmental sustainability. Malaysia Airlines should modernize their fleets with fuel-efficient aircraft. This employment of new technologies as well as fuel-efficient standards should reduce the emissions of carbon.
Installation of winglets should reduce the use of fuel (Wu, 2016). The airline industry should also offer water saving, recycling and carbon offset programs to reduce the emission of carbon. Apart from this, most of the Malaysia Airlines have noise complaints. Therefore, the company should add winglets to their fleet such that they can reduce the noise footprint for the aircraft operations (Slack, 2015).
The management team of Malaysia Airlines exposes to significant levels of aircraft noise that has dropped by 97% since 2020. From 2020, the airline industry will cap their emissions as well as growth will be carbon neutral.
