The Community Airline (Final)

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The Community Airline

Farrah Aiza Abd Aziz

Nor Faraliza MiskanNor Azizah KamaruzzamanMuhd Muzzammil Sabri

eMBA UiTM Shah Alam

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Brief History

2006

Cut Lossesby 63%

2007

ProfitRM50Mil

2008

ProfitRM500Mil

BTP

MAS FacesFinancial Gloom

2007Achieved

Profit

RM610Mil

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Introduction

FireFly

was inspired to further improve

MAS financial performance

Launched on April 3, 2007

Wholly owned subsidiary of MAS

Northern Hub: Penang

Central Hub:

Subang Target

market : Communal travelers

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Aircraft

Fuel efficiencyVibration levels & noise

emissionEco-friendly & economical

with jet like comfort

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Aircraft

FireFly appointed an Italiandesigner whose work is

seen in Lamborghini andMaserati

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Issues

ProblemStatement

Relatively New Player inthe Local Market

Face existing

competition fromexisting LCC

Open Skies Policyimplementation in 2015

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Problem Statement

How to strengthenFireflys Market Share

to withstandCompetition due to theOpen Skies Policy

effective 2015

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Specific TargetMarket/Niche

New Routes Medical Tourism Stopover Passengers

Open Air Policy Price Wars Fluctuating Fuel Prices Substitutes Services

Subang Airport Conflicting Business

Structure Lack of Experience

Low start up cost Reduce learning curve Hub Airports Routes Aircrafts Excellent Service

S W

OTSWOT ANALYSIS

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AnalysisSWOT ACTIONS / RECOMMENDATIONS

CapitalizeStrength

Hub Airports Routes Aircrafts Excellent Service

Maintain & Promote

OvercomeWeakness

Subang Airport

Conflicting BusinessStructure

Lack of Experience

Improve accessibility to Subang Airport

Shift from Low Cost Business Structure tosuit the Target Market

Outsource or Follow Existing Best Practices

Focus onOpportunities

Specific Target Market/Niche

New Routes

Medical Tourism Stopover Passengers

Provide Corporate Deals / Packages for LocalCompanies especially GLCs

Propose to support MAS domestic routes

Collaborate with Hospitals nearby Subang

Airport

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Rivalry among existing

competitors-> High due to otherlow cost carriers

Threat of entry

-> High due to AsianOpen Air Policy

-> Low due to largecapital requirement

Power of buyers

-> Low due to withoutsingle large customers &multiple segments

Threat of substitutes

-> Medium withalternative travelservices & webconferencing

Power of suppliers

-> High due to solesupplier of aircraft (ATR)

-> High due to everincreasing fuel prices

PORTERSFIVE FORCES

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Competition (Rivalryamong existing

competitors) & threatof entry

Intensive promotion Expand ie, new routes

Power of supplier

Establish good relationship Negotiate a long term supply

contract Source for new supplier

Analysis

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In order to withstandor rise above

competition Fireflyhave to secure their

market shareby gaining customertrust and loyalty

Conclusion

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Awareness

Campaigns &Advertising

Packages forCorporate

Flyers

Special Dealsfor Frequent

Flyers

SupportMedical

TourismInitiatives

Eco FriendlyAirline

On TimeTake-offs /

Arrivals

Recommendations

PROMOTIONSTRUST LOYALTY

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We have arrived at our destin

Hope you had a pleasant journ

Thats all folks