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Transforming the business
“The MAS Way”
Executive Summary
• Radical changes in the global airline industry
• Fy2005 MAS reported a loss of over 1.3billion
RM.
• Current business assumption, MAS will likely run
out of cash by Apr 2006 & report a 1.7 billion RM
loss
• Early Dec 2005 the management team started to
develop a plan to reverse the loss and turn MAS to
profitability.
“Business Turnaround ”
“Impact of the MAS Business
Turnaround Plan”
“How we will do it”
Our Business Turnaround Plan
• Flying to Win Customers
Action for 0-9months--Cash & Revenue……….
Action for 9-24months--Cost & Building
Capability..
Action for 24-36months--New
Opportunities………..
“How we will do it”
Our Business Turnaround Plan
• Mastering Operational Excellence
Action for 0-9months--Supplier Contracts……...
Action for 9-24months--Redesign Crew-work…...
Action for 24-36months--Sourcing Opportunities….
“How we will do it”
Our Business Turnaround Plan
• Financing and aligning the business on the
P&L
Action for 0-9months--Improve cash flow……..
Action for 9-24months--Redesign revenue
accounting.
Action for 24-36months--Spin Off….
“How we will do it”
Our Business Turnaround Plan
• Unleashing talents and capabilities
Action for 0-9months--New leadership teams………
Action for 9-24months--Launch ESOS……...
Action for 24-36months--Formalise leadership
development program…………..
“How we will do it”
Our Business Turnaround Plan
• Winning Coalition
Action for 0-9months--Work to manage social
obligation……….
Action for 9-24months--Co brands
Action for 24-36months--Partnership with regional
airlines………..
The full execution of this plan will
take 3 years ----- and continue
beyond

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Malaysia Airlines - Road Map

  • 2. Executive Summary • Radical changes in the global airline industry • Fy2005 MAS reported a loss of over 1.3billion RM. • Current business assumption, MAS will likely run out of cash by Apr 2006 & report a 1.7 billion RM loss • Early Dec 2005 the management team started to develop a plan to reverse the loss and turn MAS to profitability.
  • 4. “Impact of the MAS Business Turnaround Plan”
  • 5. “How we will do it” Our Business Turnaround Plan • Flying to Win Customers Action for 0-9months--Cash & Revenue………. Action for 9-24months--Cost & Building Capability.. Action for 24-36months--New Opportunities………..
  • 6. “How we will do it” Our Business Turnaround Plan • Mastering Operational Excellence Action for 0-9months--Supplier Contracts……... Action for 9-24months--Redesign Crew-work…... Action for 24-36months--Sourcing Opportunities….
  • 7. “How we will do it” Our Business Turnaround Plan • Financing and aligning the business on the P&L Action for 0-9months--Improve cash flow…….. Action for 9-24months--Redesign revenue accounting. Action for 24-36months--Spin Off….
  • 8. “How we will do it” Our Business Turnaround Plan • Unleashing talents and capabilities Action for 0-9months--New leadership teams……… Action for 9-24months--Launch ESOS……... Action for 24-36months--Formalise leadership development program…………..
  • 9. “How we will do it” Our Business Turnaround Plan • Winning Coalition Action for 0-9months--Work to manage social obligation………. Action for 9-24months--Co brands Action for 24-36months--Partnership with regional airlines………..
  • 10. The full execution of this plan will take 3 years ----- and continue beyond

Editor's Notes

  1. This Business Turnaround Plan has been carefully sequenced over the next 3 years to deliver cash, profitability and growth - in that order if intensity and focus.