Case 4 Slide Final
Case 4 Slide Final
Case 4 Slide Final
Before Idris tenure, MAS experienced the possibly the worst and most difficult time in MAS history since establishment.
HOW ?
5-Star Airline Award 2006, Skytrax Best Cabin Staff Award 2006, Skytrax
LIQUIDITY RATIOS
RATIO 2005 2006 2007 2008
Current Ratio
0.81
0.74
1.26
1.38
Quick Ratio
0.70
0.66
1.19
1.31
LEVERAGE RATIOS
RATIO 2005 2006 2007 2008
0.68
0.73
0.61
0.49
2.12
2.74
1.55
1.17
PROFITABILITY RATIO
RATIO 2005 2006 2007 2008
0.03
0.02
0.02
0.03
Return on Asset
(0.14)
(0.01)
0.06
0.02
2.
3.
4.
5.
MAS should lay-off some of its employees in order to cut some expenses. Besides, the company should seek the automation for non-value activities such as check-in. By using the automation, MAS will incur only the installation cost as well as Lay-off employees maintenance cost. to reduce salary
expenses.
It differs to manpower cost, despite of giving them salaries, the company should also give the bonuses and other employees incentivesthem .
This method will generate money quickly by selling unutilized asset. The company does not have to pay maintenance cost for such unutilized assets. It will minimize the operational cost and also boost up cash inflow
MAS should also increase the domestic price in order to cover its over expenses MAS can implement the administration fee per person, which they are not done it before It will generate cash inflow to overcome the shortage of cash problem
MAS have many unprofitable routes which they cannot change such routes The routes cutting would help Malaysia Airlines to lower its maintenance and operating costs. . For example, the route of Kuala Lumpur Manchester which had been claimed to be so dysfunctional that it had to be 140% capacity full to break-even . The company should give attention to the routes that give the company a lot of profit. MAS should also reschedule all of its flight timing and changed its operation model from point to point services to hub.
The turnaround time is crucial to Airlines company, if they take more time for that then, they have to bear more expenses. To reduce its operational cost they should reduce MAS turnaround time.
Then, in order to sustain MAS and make them be be able to pay its expense, the turnaround time should be managed wisely. By reducing turnaround time, the company can save the price for fuel consumption, manpower, in flight services and maintenance cost.