Malaysia Airlines climbs toward profit

At a time when the world’s airlines like British  Airways and Air China have been soaring to record profits, Malaysia Airlines has made a loss in every year since 2011. What two customer-centred strategies has new CEO Christoph Mueller introduced that have banked its first operating profit in February?


One thought on “Malaysia Airlines climbs toward profit

  1. The airline has not only cut routes that customers weren’t too keen on, but has also ,made an alliance with Emirates that allows it to piggyback on at least 70 of the Gulf carrier’s global routes so it can focus on Asia. The only long-haul route it has kept is to London.

    By targeting those products that your customers most want, your company can also return to or increase profits.

    What Malaysian Airlines also did was to de-list from the Stock Exchange which, although it may seem counter-intuitive, has actually set the airline on the flightpath to increasing shareholder value.

    So rather than taking a shareholder-centric approach, Malaysian Airlines’ attention to customer demand has delivered what shareholders actually want, which is profit.

    Another airline that has also recently returned to profit – and for the first time since floating – is FlyBe. Profit before tax at the Exeter-based regional airline came in at £5.5m in 2015/16, up from a £25.4m loss over the previous 12 months, again by doing what their customers wanted, which in FlyBe’s case was adding routes and thus carrying more passengers. Revenues took off, climbing by 8.7 per cent to £623.8m as FlyBe airplanes carried 5.9 per cent more passengers.

    How else can you learn from these airlines on satisfying customer demand, growing revenue and returning more value to shareholders? Contact me with the form above, and I’ll send you the details direct to your mobile!


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