Business Strategy

MAS have developed a Business Transformation Plan 2 (BTP 2). The plan builds 5 key thrusts

* Commercial thrusts that is to flying to win customers.

* Operations thrusts that is to mastering operational excellence.

* Finance thrusts that is financing and aligning the business on P&L.

* People thrusts that is unleashing talents and capabilities.

* Stakeholders that is winning coalitions.

The philosophy of BTP 2 is "aiming and planning for the best, assuming the worst". Those MAS will go for the seemingly impossible target and aim for the best and stretch their limits, to achieve an annual profit of RM1.5 billion by 2012.

MAS become a Five Star Value Carrier with products, fleet and network that are in the association of the world's premium airlines, with a cost structure and operational discipline. It requires leadership, teamwork and relentless passion to pursue their vision supported by the mission to be a consistently profitable airline. There are 5 steps of FSVC which virtuous Cycle of Profitable Growth:

* Step 1: 5-Star

Maintain the high quality products and services offered and constantly matched to the specific needs of customers.

* Step 2: Lower Costs

Reduce structural and operational costs without compromising on safety and security.

* Step 3: Competitive Fares

Able to offer low and competitive fares to customers and still can make a profit.

* Step 4: Get more customers, more revenue

High quality products and services at low/competitive fares will make passenger be loyal with MAS. In fact, it is also will increase revenue and get new customer.

* Step 5: Grow network, build capacity

Open up more routes and acquire more planes, and this leads them to sustainable, profitable growth.

MAS are full service carriers (FSCs) with first class products, fast-expanding routes, new and modern aircraft. Its core business is Passengers, Cargo, and Maintenance. 5 characteristics of MAS business model are:

* Hub & spoke network. Full coverage of as many demand categories as possible through the optimization of connectivity in the hub.

* Global player. Domestic, international and intercontinental markets are covered with short, medium and long haul flights from the hubs to almost every continent.

* Alliances development. No individual airline has developed a global network covering all