Comparison Between Malaysia Airlines and Air Asia Organizational Behaviour

ORGANIZATIONAL BEHAVIOR

MALAYSIA AIRLINES

VS

AIR ASIA

TABLE OF CONTENT

OBJECTIVES

1. To fulfil the syllabus requirement.

2. To learn about the real Organizational Behavior practices at Air Asia and Malaysia Airlines.

3. To work together in a team in producing a high quality report on the topic given

MALAYSIA AIRLINES COMPANY BACKGROUND

Malaysia Airlines is the national carrier airline operating flights from Kuala Lumpur International Airport and from secondary hubs in Kota Kinabalu and Kuching to destinations throughout Asia, Oceania and Europe. The company's headquarters are located at Kuala Lumpur International Airport.

The airline began as Malayan Airways Limited and flew its first commercial flight in 1947..

As of April 2016, Malaysia Airlines has 76 active aircraft in its fleet with a further 20 in storage. Of these 76 aircraft, 54 are from Boeing and 22 from Airbus Industries.

In May 2015 Christoph Mueller was announced as Malaysia Airlines’ new CEO. As of 1st September 2015, Malaysia Airlines was re-branded as Malaysia Airlines Berhad. The workforce was heavily reduced and route network was also adjusted.

However, CEO Christoph Mueller resigned from his post after less than a year of leading the carrier’s reorganizing efforts, citing changing personal circumstances. It was subsequently announced that former chief operating officer Peter Bellew took over Mueller as the new chief with effect from July 1, 2016.

VISION

‘An airline uniquely renowned for its personal touch, warmth and efficiency’

MISSION

To provide air travel and transport service that rank among the best in terms of safety, comfort, and punctuality.

OWNERS/ SHAREHOLDERS

Malaysia Airlines is one of the companies under Malaysia Aviation Group Bhd which is  100 percent owned by Khazanah Nasional Berhad. Khazanah is a strategic investment fund of the Government of Malaysia and their portfolio cuts across various sectors and industries. They consist of some of the most significant companies in Malaysia such as Malaysian Aviation Group Berhad (which includes Malaysia Airlines as one of its companies), ASTRO Malaysia Holdings Berhad in the creative and media sector, and CIMB Group in the financial services sector.

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PRODUCTS AND SERVICES OFFERED

The products and services offered by Malaysia Airlines are corporate travel, Government Travel, Flight Simulator and Charter Services.

AIR ASIA COMPANY BACKGROUND

AirAsia was established in 1993 and began operations on 18 November 1996. The airline was founded by a government-owned conglomerate, DRB-Hicom. On 2 December 2001, the heavily-indebted airline was bought by former Time Warner executive Tony Fernandes' company Tune Air Sdn Bhd for the token sum of RM 1 with RM 40  worth of debts. The company produced a profit in 2002 and launched new routes from its hub in Kuala Lumpur. Air Asia started to stop the monopoly of the national carrier Malaysia Airlines by promoting fares as low as RM 1. AirAsia opened their second hub at Senai International Airport in Johor Bahru and launched its first international flight to Bangkok in 2003.

The 2012 World Airline Awards at the Farnborough Airshow ranked the airline as the world's best low-cost airline.]AirAsia has been named as the world's best low cost carrier for 8 years in a row including the latest award for the year 2016.

As of July 2016, Air Asia has 80 active aircrafts in its fleet. All 80 of them are from Airbus Industries.

VISION

To be the largest low cost airline in Asia and serving the 3 billion people who are currently underserved with poor connectivity and high fares.

MISSION

1. To be the best company to work for whereby employees are treated as part of a big family.
2. Create a globally recognized ASEAN brand
3. To attain the lowest cost so that everyone can fly with AirAsia
4. Maintain the highest quality product, embracing technology to reduce cost and enhance service levels

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PRODUCTS AND SERVICES OFFERED

AirAsia Car rental, AirAsia Cargo, AirAsia Go, AirAsia Credit Card, AirAsia BIG Loyalty Programme, BIG Duty Free, BIG Prepaid MasterCard, AirAsia RedTix, AirAsia Travel Protection, CIMB Savers, Travel 3Sixty, eGV (Electronic Gift Voucher) and roKKi Wi-Fi.

LEADERSHIP

Leaders are seen as a role model in every organization. Just like the President or the Prime Minister of any country, leaders are in charge of setting the mood in the organization. It can be either positive, negative or indifferent vibe among the employees in the company.