Malaysia Airlines Berhad SWOT and PESTLE Analysis

Strength

1. Established player in Asian region catering to large number of destinations: Malaysia Airlines is a part of the Malaysia Aviation Group (MAG), a global aviation organization. Malaysia Airlines Berhad’s locations are focused in Malaysia, South East Asia, North and South Asia, Australia, New Zealand, Europe and the Middle East. The airline delivers premium services and offers superiors connectivity to 1000 locations across 150+ countries. With its hub in Kualalampur, the airline’s fleet consists of 15 A333, 6 A359 and A332 and 44 B738. The airline is supported by Khazanah Group and the Malaysian Government as well. The aviation leader provides various commercial services specialized and tailored to traveler needs, such as MHbiz Travel, Government Travel, Flight Simulator, Charter Services, MHexplorer, AMAL and Enrich BizConnect, for government officials, corporate travel and tourism travelers. Malaysian Hospitality is world renowned, and Malaysia Airlines’ hospitality and services are world class, with its superior luxury and business class travel, Golden Lounge, In-flight offerings such as movies, TV, games, music, tasty in-flight meals and duty-free shopping. The airline has received various awards for its premium and high-quality services. In 2021, Malaysia Airlines received a 7-star rating by airlineratings.com 2020, received the Putra Brand Award (Putra Brand Icon for the Year 2020, Transportation, Travel and Tourism Category Platinum Award), HR Excellence Awards 2020 (Gold- HR Leader of the year, Gold- Excellence in Workplace Culture, Silver- Excellence in Digital Transformation). In 2020, the airline won various award in the Cellar in the Sky Awards, Graduan Award among many others.

2. Strong partnerships with other airlines, groups and companies: Malaysia Airlines has expanded and improved its operation through various partnerships in recent years. Malaysia Airlines (MH) has collaborated with Japan Airlines (JL) since July 25, 2020 to further optimize the convenience of travelling between Japan and Malaysia, allowing customers to benefit from more flight choices. The airline recently signed an agreement with Japan Airlines to allow usage of Japan Airline’s airport lounge at Narita and Kansai International Airport, marking another milestone for Malaysia Airline-Japan Airlines joint business partnership. Both the airlines are leveraging each other’s strengths to improve customers’ travel experiences. Malaysia Airline also became the first official partner of Team MAS, a flagship partnership programme for all sports assets under the Ministry of Youth and Sports Malaysia, National Sports Council of Malaysia and the National Sports Institute of Malaysia, equivalent to the Olympic Partner Programme of the International Olympic Committee. Malaysia Airlines has also partnered with ReveMax and other tech companies to bring about digital transformation in the airlines and is also a part of the oneworld Member Airlines, an alliance of various airlines flying to more than 50 destinations.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Airlines are reducing their carbon emissions in response to climate change risks: Malaysia Airlines has promoted efforts in reduction of carbon emissions through initiatives such as CORSIA, Carbon Offsetting and Reduction Scheme for International Aviation set by the ICAO in 2016. Malaysia Aviation Group (MAG) and Malaysia Airlines have introduced the MAG Sustainability Blueprint in 2020, which aims to achieve the target of becoming a net zero carbon emission airline by 2050, together with its oneworld alliance partner airlines. MAG’s sustainability program will contribute towards the SDGs for aviation carbon and GHG emission reduction, fuel conservation and climate change. The Group plans to reduce the overall CO2 emission by 25 million kilogram in 2021 and also aims to reach 50% usage of biodegradable materials for in-flight operations coupled with 50% of ground and in-flight waste recycled and up-cycled by 2025 onwards. The airline is aiming to further implement innovative fuel optimization initiatives in addition to offering the highly fuel-efficient Airbus A350 aircrafts on the London route. In the United Kingdom, due to Heathrow’s long runway, Malaysia Airlines pilots use idle reverse thrust power while stopping the aircraft allowing for 18KG of fuel to be saved per landing, which over the course of a month reduces approximately 3,420KG of carbon dioxide from being emitted. This is in addition to taxiing the aircraft with one engine instead of two after landing, which can further save as much as 50KG of fuel or 158KG of carbon dioxide per flight. Malaysia Airlines is also exploring carbon friendly technologies that are available at London Heathrow such as utilizing electrical ground power to electric pushback.

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