Malaysian Airlines

Malaysian Airlines

Introduction

The tourism and hospitality industry regards as one of the most commercial and profitable industry in every nation. This assignment is the combination of theory and practice for critical understanding of international tourism and hospitality business environment. This is the first unit that is the composition of five questions to cover following learning outcomes:

The evaluation of global macro factors that control the hospitality and tourism sector.

The critique on the economic influences that effect on the tourism and hospitality industry.

Appreciating the growth and impact of social factors on the tourism and hospitality industry.

The critical appreciation on the infrastructure of nations with the impact of hospitality and tourism.

The environmental impacts of hospitality and tourism.

Part One

The cash crisis and drawback of profit and loss (P&L) account of Malaysian Airlines encounter multiple kind of crisis in the 2006. This is the looming and threatening on the horizon. The Business Turnaround Plan I (BTP I) did not highlighted and published the external analysis and major challenges in the airline industry (Pper &Küpper, 2012). Malaysian Airlines (MAS) operates all its flights from home base of Kuala Lampur. Crisis situations may occur with challenges of realities for Malaysian Airlines that can become more severe if remain unnoticed in the coming future. There is an intense competition for Asia at the vanguard of the storm. This is a cold reality for Malaysian Airlines and for other companies in this industry. There is a chance for few players to emerge as consistent profitable earners to embrace the understanding of environment and industry. There were excellent returns for Asian airline with intensely competitive arenas. There is an indication of deepening competition with relative robust growth and light competition. This shows an unfavorable and worsens market conditions which are evident in Asia. The current industry and environment analysis for the Malaysian Airline industry notates that there is leading profit erosion as recent trends in the industry (Jennings et al., 2010). There is protection given for Asian carriers to date which is not for a longer period of time. The longest and deepest recession in this industry is the development through the number of converging trends. The structural dynamics of industry reflects about the ultimate crises of the airline.

The 2009 year has remained busy for airline industry in the context of Malaysian Airlines. There are few trends to analyze the external conditions of the environment that are contributing to the profit erosion in the industry. Overcapacity is the first trend for analysis which is enormous addition to the capacity of the year 2009. The optimism culture of the airlines fuelled due to the strong profits that are recently produced in the Asia (Tourism Malaysia, 2003). This drives the strong profits that are opposing with one another due to placement of large aircraft orders. The example of Boeing and Airbus drives the demand for novel aircrafts that are receiving record orders. The delivery of A380s with huge orders is the part of project of ...