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  • Essay / Management Principles: Ethical Conflicts of Malaysia Airlines

    IntroductionEthics is essential in the airline industry because it provides the framework that guides individuals in the business decision-making process. They generally cover three aspects, namely the application of professional skills, the integration of values ​​and finally good judgment. Codes of ethics are formal statements of the moral values ​​that guide businesses. Ethics is an area of ​​business responsibility in which companies are legally and socially required to conduct business ethically. Business ethics includes five key elements such as loyalty, integrity, trust, confidentiality and openness. In the business world, ethical choices are made every day and impact all organizations. Therefore, in the field of ethics, the Malaysian airline industry through its useful implementations and also through its formal statements. However, conflicts arose at Malaysia Airlines over the layoff of 6,000 employees in 2015. This conflict comes after the two deadly disasters that rocked this airline in 2014. The two accidents were the loss of the airline's MH370 and the MH17 airline crash. PROBLEM In 1947, Malaysia Airlines started as Malayan Airways Limited and made its first commercial flight in 1947. Say no to plagiarism. Get a tailor-made essay on "Why violent video games should not be banned"? Get the original essay The airlines were split in 1972 to form Singapore's national carrier Singapore Airlines and Malaysian Airline System after a few years of independence of Singapore. Despite numerous awards from the aviation industry and recognition from the World Travel Awards as a leading airline to and from Asia (2010-2011, 2013, 2015), the airline has struggled to reduce costs to compete with new low-cost carriers in the region. since the early 2000s. The airline launched a recovery plan after significant losses starting in 2011 and eliminated important, but unprofitable, long-haul routes such as the Americas (Los Angeles and Buenos Aires) and South Africa in 2013. Malaysia Airlines has also begun internal restructuring and is expected to sell units such as engineering and pilot training. In 2014, Malaysia Airlines lost two aircraft, MH370 and MH17, within five months of each other, resulting in a total of 537 deaths, causing the airline to run into financial difficulties and leading to a renationalization of the airline. In 2015, the company's new CEO, Christoph Mueller, planned to create at least 14,000 jobs out of the airline's current approximately 20,000 employees. However, airlines announced that 6,000 jobs would be lost. Starting September 1, Mueller will begin his plan to rename the company in order to repair the damaged image. One of the actions to rebrand the company is to paint a new livery. This is the company's response to the MH370 and MH17 issues: MH370 departed with 239 passengers and crew on board and is still missing. A few months later, Flight MH17 was knocked out of the sky by a suspected surface-to-air missile over Ukraine. The tragedies had a significant impact on the company's image. The company's bankruptcy was long expected, but the two disasters were the nail in the coffin. Fortunately, a public investment fund took over and managed to avoid thebankruptcy of the company. As analysts say, the tragedies were the final straw for Malaysia Airlines due to poor maintenance for years and sliding even deeper into the red. Then a state investment fund bought Malaysia Airlines in a rescue bid in late 2014 and also tapped Christoph Mueller to take the helm. In this announcement, it was indicated that Malaysia Airlines planned to stop the bleeding in 2015, stabilize in 2016 and seek to return to growth by 2017. Today, Malaysia Airlines immediately focused on tasks such as streamlining its workforce and route systems. SOLUTION Malaysia Airline System (MAS) is the national airline of Malaysia. With a fleet of more than 100 aircraft, the company covers nearly 114 destinations around the world. The company enjoys a strong brand image worldwide. This group has managed to master its strong brand image to retain its customers and expand its partnership. However, fierce competition in the aviation industry could harm fringe groups, making it difficult for flight MH370 to disappear from radar. The solution that can be found is to be friendly to all countries to guarantee Malaysia's customers and safety. Second, Malaysia Airlines has improved technology. Malaysia Airlines has acquired newer and more fuel efficient aircraft, such as the Airbus A380 and other Boeing aircraft, to further compete with its rivals. Currently, Malaysia Airlines still operates the Boeing 747-400, and by introducing better and more advanced aircraft and excellent flight services, customers can use Malaysia Airlines as an option of the airline to ensure the comfort of the aircraft for well operate the aircraft for the purpose of providing aircraft support to operate this aircraft properly. The convenience of passengers and aircraft operators feel safe because they have a better technological system. As part of the Malaysian government's efforts to promote Malaysia as medical tourism, Malaysia Airlines is currently developing medical packages for its customers. “They are expecting more than 200,000 passengers to come to Malaysia as medical tourists next year,” said MAS senior general manager (network and revenue management) Dr Amin Shan (MAS for medical tourism). This is indeed an opportunity for Malaysia Airlines to introduce medical packages. for potential healthcare customers around the world by establishing partnerships with local hospitals. Currently, most medical tourists come from Indonesia, Cambodia, Vietnam and Bangladesh. This trend is expected to increase by 16% over the next three years as Malaysia reaches the level of a developed country in Asia. Threat is an external organizational element that can have a negative impact on the company. Some risks will affect Malaysia Airlines, such as economists, competitors, fierce competition, violence and political unrest, as well as technology, rising jet prices and foreign currency fluctuations, which have led to a decline profits. Therefore, Malaysia plans to attract tourists to attract Malaysia Airlines services while attracting tourists to travel to Malaysia. In Petaling Jaya today, June 19, 2016, Outgoing Malaysian Airlines Bhd (MAS) CEO Christoph Mueller said he had to cut 6,000 jobs because many of the 20,000 employees were doing nothing . According to an online newspaper, Malaysiakini and the channel.