As reported in BBC reports 2012, Malaysia Airlines possess recorded a significant net decrease of RM2. 5 billion to get the year finishing 31 Dec 2011. Malaysia's national aircarrier claimed it turned out due to the 21% rise in the fuel price during the year. However , the Group Chief Executive Officer of MAS, Ahmad Jauhari Yahya, stated that labor production also added in the incident.
Malaysia Airlines allow us alternatives methods of actions just like launching fresh regional superior airline and collaborate with Air Asia for mutual benefits. Maybe most important, nevertheless, is the traditions of the business. MAS ought to implement personnel redeployment for greater effectiveness. Besides managing the human assets, MAS has to control its costs including fixed and operating costs. These cost include the purchases of airplane, labor wages and others necessary expense. Furthermore, MAS ought to make additional route reviews to cut throughout the unnecessary bills.
Despite the fact that, collaboration to airline corporations could increase the profit perimeter of MAS, it does not work nicely in long term. Human capital is the biggest obstacle looks by CONTUDO. Salaries with the 20, 500 employees happen to be higher than others and cost-free flight tickets are issued to their families. This may lead to a higher price cost. Besides that, a worker works much more than 15 years in normal and consequently, fresh staffs could hardly enter into the workforce.
Hence, personnel redeployment is among the best techniques to solve the crisis of MAS presently. Programs including " Voluntary Leave Program, VLPвЂќ must be implemented in order to reduce the costs and initiatives. MAS presents this program to its employees to take a rest of maximum two years of unpaid leave while staying assured to continue their work in POREM. Besides that, MAS could also implement task rotation in order to increase the production of the personnel. This would cause a higher output and make a better functioning culture.