How to make a crisis worse Malaysia Airlines MH How to make a crisis worse Crisis management experts say Malaysia Airlines is botching the handling of its missing MH flight, fuelling rampant speculation and ultimately making the situation worse for grieving family members. Mar 12, 8:
Failures in crisis management central to Malaysia Airlines delisting - Stephen Mulrenan Tuesday 7 October The beleaguered airline owes its recent delisting and state buyout to the way it handled two major crises this year. Can other Asian listed companies learn from its mistakes?
Malaysia Airlines was struggling financially even before it faced two of the most significant crises involving the aviation industry in recent memory. This included the speed and manner in which it dealt with bereaved families, as well as its bizarre decision, just three days later, to fly over war-torn Syria.
This would be a little more understandable had the airline not been through an equally tragic ordeal a little over four months earlier, when Flight MH went missing on 8 March while en route from Kuala Lumpur to Beijing.
The mysterious disappearance of MH, which prompted a massive search and rescue operation that continues to this day, costing millions of dollars, led to a high number of cancellations and considerable reputational damage.
This included a 60 per cent drop in sales from China. Among the accusations levied at MAS was that it released imprecise, incomplete and sometimes inaccurate information to bereaved families. Khazanah has since announced a significant restructuring plan, which will include delisting.
Getting delisted is right when the market for MAS is totally flat. It is healthy to delist for the short-term under these circumstances and pending any additional information from MAS.
But does a loss in market value alone justify the intervention of shareholders? There have, after all, been plenty of cases in the past where reputational damage has led to a nosedive in share price. What sets this case apart is the way in which Malaysia Airlines reacted to the crises it faced — in particular its failure to learn from the first crisis when dealing with the second.
It did nothing to dispel fears that, should it prove remarkably unlucky and face another crisis, it would handle that one any more effectively. Shareholders must have feared the decline in share price that this inability to deal with reputational damage would bring about: Berube says that the management of MAS should have worked more closely with crisis management firms, lawyers and PR specialists.
Such communications are regulated, as they impact market value and the investment decisions of third parties.
Insurance companies for MAS and the victims will certainly be very sensitive to all of the information being reported. Research commissioned by UK magic circle firm Linklaters shows that activists are launching more campaigns, setting their sights on larger companies and targeting more varied industries.
While listed companies in Asia may have rehearsed how to deal with a takeover offer, few are prepared for an activist approach. In fact in many cases their shareholders may know more about the process than they do. This is partly because courts have not been accustomed to recognising shareholder rights, and partly because the costs for legally enforcing shareholder rights are high.
Before this influx in Western investors, therefore, there has been little incentive for shareholders to engage with the companies they own.
Asian markets should therefore adopt a long-term approach, as markets have done in the West.
He can be contacted at stephen.MALAYSIA AIRLINES SWOT ANALYSIS/ETHICAL ISSUES History of Malaysia Airlines Company History: Malaysian Airlines System Berhad. is the holding company for Malaysia's national airline carrier, one of Asia's fastest growing airlines.
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Install. Following the appointment of a new CEO, Malaysia Airlines (MAS) has announced initiatives to track and boost performance of employees. In a quarterly progress update, the airline reported “sustained progress amidst a backdrop of external macro-economic fluctuations.” Group chief executive.
A major issue that Malaysia Airlines faces is over-staffing and low productivity from the excessive number of employees. With an overall total employment figure of over 24, staffs, in relation to the existing number of aircrafts and passenger volumes, it .
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NASEU intervention to the management of NAS Employees Union, Peninsular Malaysia ('the union') by the Malaysian Airlines System Berhad ('the company'). The union is unhappy with the decision oI the company to demote the workman Irom the Documents Similar To Malaysia Airlines System HRM Issues.
/5(7). Malaysia Airlines was struggling financially even before it faced two of the most significant crises involving the aviation industry in recent memory. The disappearance of Flight MH, followed by the shooting down of Flight MH17, have perhaps accelerated a decline in the company’s share value.