Malaysia Airlines Essay

3522 Words Mar 6th, 2012 15 Pages
Case Study Related to Business

Malaysia Airlines (MAS)Facing Challenges in the New Millennium
M. Sadiq Sohail, Ph. D• King Fahd University of Petroleum & Minerals College of Industrial Management Department of Management & Marketing P.O. Box 210, Dhahran-31261 Saudi Arabia E- mail: Tel: + 966 3 8601764 Fax: + 9663 8602544


Formerly at Monash University Malaysia. The author is thankful to Ms. Marianne Visvalingam and Ridhi Jain, both undergraduate students at Monash University Malaysia for their assistance in developing this case. The case has been developed for academic discussion, rather than to illustrate either effective or ineffective handling of any business or marketing
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The presence of BOAC also facilitated MAL's entry as a member of IATA. A year after the Independence of Malaya in 1957 and with the participation of BOAC, QANTAS, the government of the Federation of Malaya, Singapore and the Territory of North Borneo, MAL was launched as a public limited company. MAL then entered the jet age with the purchase of Vickers Viscount aircraft and by 1960 MAL propelled into other far-flung regions of Asia. The acquisition of an 82-seater Briston Britania in 1960 made mass transport by air a reality. This marked the first international non-stop service for MAL, which operated directly between Kuala Lumpur and Hong Kong.


After the formation of Malaysia in 1963, the airline was renamed as Malaysian Airlines Limited (MAL). The formation of a new nation saw the need for MAL to be a national carrier to integrate and connect the far corners of Malaysia.

Two years later, Borneo Airways merged with MAL resulting in fleet and network expansion. In 1966, the Governments of Malaysia and Singapore became the majority shareholders in the national carrier and Malaysia-Singapore Airlines (MSA) was formed.

In 1971, the partnership between Malaysia and Singapore was dissolved, and Malaysia Airlines Berhad was incorporated. With an authorized capital of RM100 million1 , the company made a final revision to its name in November 1971, and Malaysian Airline System

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