Mas and Airasia Collaboration free essay sample

Last August, MAS major shareholder Khazanah Nasional Bhd agreed to swap shares with AirAsias major shareholder, Tune Air Sdn Bhd, which saw Khazanah getting a 10% stake in AirAsia and Tune Air a 20. 5% stake in MAS. Khazanah also agreed to acquire a 10% stake in AirAsia X, AirAsias long-haul budget affiliate. A collaborative agreement was also signed that aims to realise savings and increase revenue in the areas of aircraft purchasing, engineering, ground support services, cargo services, catering and training among the three airlines. Today, some aviation experts and analysts believe that the deal was nothing more than an exercise that wowed. The plan has been, since the first days of the share swap, to sell off the crown jewels including its self-supporting engineering and air cargo units. It is the only way to save the organisation, but its questionable if there will be a freestanding MAS in the end. We will write a custom essay sample on Mas and Airasia Collaboration or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page And if they can only sell things that are solid moneymakers, what are they left with after its restructuring is complete? an analyst asked. A stripped-down MAS will also face pressures from many different sources. Whats the way forward? One way is to redo everything. Hire professionals from a neutral third party who have proven success in running an airline. And the person can be a foreigner. Why not? One good example is Carlos Ghosn, who became CEO of Japans Nissan Motor Co Ltd and successfully turned around the loss-making firm, said the airline executive. The 46-year-old Brazilian had also previously worked in turnaround situations at Renault in France and at Michelins US operations. Still, it may be too late to scrap the share swap. There is already too much integration between MAS and AirAsia. For example, there are former AirAsia personnel who now hold key positions in MAS, said the airline expert. Thus, merging the two airlines may be the only way forward or MAS will keep losing money. This means one full-service airline and one low-cost airline under one company, much like MAS and Firefly.