Topic > Management Principles: Ethical Conflicts of Malaysia Airlines

IntroductionEthics is essential in airline business because it is the framework that guides individuals in business decision making. They usually cover three aspects, namely the application of one's professional skills, the incorporation of one's values, and finally, common sense. Codes of ethics are formal statements of the moral values ​​that guide companies. Ethics is an area of ​​corporate responsibility in which businesses are legally and socially obligated 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 that impact all organizations. Therefore, in the field of ethics, the Malaysian airline industry through its useful implementations and also through its formal declarations. However, there have been some conflicts in Malaysia Airlines regarding the dismissal of 6000 employees in 2015. This conflict comes after the two deadly disasters that shook the airlines in 2014. The two incidents are the loss of airline MH370 and the crash of the airline MH17. PROBLEM In 1947, Malaysia Airlines started as Malayan Airways Limited and flew its first commercial flight in 1947. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay The airline aid was split in 1972 to form Singapore's national carrier Singapore Airlines and the Malaysian Airline System after a few years of Singapore's independence. Despite numerous aviation industry awards and recognition from the World Travel Awards as a leading airline in and to Asia (2010-2011, 2013, 2015), Air has struggled to reduce costs to compete with new low-cost carriers in the region since the early 2000s. The airline began a recovery plan after large losses starting in 2011 and cut important, but unprofitable, routes to long-haul destinations, such as the Americas (Los Angeles and Buenos Aires) and South Africa in 2013. Malaysia Airlines has also begun an internal restructuring and is expected to sell units such as engineering and pilot training. In 2014, Malaysia Airlines lost two planes, MH370 and MH17, within five months of each other, killing 537 people, causing financial problems for the airlines and leading to the renationalisation of the airline. In 2015, the company's new CEO Christoph Mueller planned to offer at least 14,000 jobs to the airline's approximately 20,000 current employees. However, airlines announced that 6,000 jobs would be lost. Starting September 1, Mueller will begin his plans to rebrand the company 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 regarding the MH370 and MH17 issue, i.e. MH370 was gone with 239 passengers and crew on board and is still missing. A few months later, Flight MH17 was wiped out by a suspected surface-to-air missile over Ukraine. The tragedies had a significant impact on the company's image. The company was long expected to fail, but the two disasters were the nail in the coffin. Fortunately, a state investment fund took over and managed to avoid the company's bankruptcy. As analysts say, the tragedies were the straw that broke the camel's back for Malaysia Airlines, which for years was poorly maintained and slipped further into the red. Then, a state investment fund took over Malaysia Airlines fora rescue bid at the end of 2014 and also gave Christoph Mueller the helm. The announcement said that Malaysia Airlines planned to stop the bleeding in 2015, stabilize in 2016 and look to grow again by 2017. Nowadays, Malaysia Airlines immediately focused on the task of rationalizing its workforce and route systems. SOLUTION Malaysia Airline System (MAS) is the national airline of Malaysia. With a fleet of over 100 aircraft, the airline covers nearly 114 destinations worldwide. The company has a strong brand image worldwide. This group has controlled its strong brand image to win loyal customers and expand its partnership. However, intense competition in the aviation industry can negatively affect fringe groups, so much so that flight MH370 is having trouble disappearing from radar. The solution that can be found is to be friendly to all countries to ensure Malaysia's safety and customers. Secondly, Malaysia Airlines has improved the technology. Malaysia Airlines has been acquiring newer, more fuel-efficient planes such as the Airbus A380 and other Boeing planes to further compete with its rivals. Currently, Malaysia Airlines still uses Boeing 747-400, and by introducing better and more advanced aircraft and excellent flight services, customers can use Malaysia Airlines as the company's option to ensure the comfort of the apparatus to make the aircraft work well for the good 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 commitment to promoting Malaysia as medical tourism, Malaysia Airlines is currently developing medical packages for its customers. “They expect more than 200,000 passengers to come to Malaysia as medical tourists next year,” said MAS (network and revenue management) senior general manager Dr Amin Shan (MAS Medical Tourism). This is indeed an opportunity for Malaysia Airlines to introduce medical packages for potential healthcare customers around the world by collaborating with local hospitals. Currently, most medical tourists come from Indonesia, Cambodia, Vietnam and Bangladesh. This trend is expected to increase by 16% in the next three years as Malaysia reaches the level of a developed nation in Asia. Threat is an external organizational element that can negatively affect the company. Some risks will affect Malaysia Airlines, such as economists, competitors, fierce competition, violence and political unrest, and technology, rising jet oil prices and foreign currency fluctuations have led to lower profits. Therefore, Malaysia plans to attract tourists to attract the services of Malaysia Airlines while attracting tourists to travel to Malaysia. Today in Petaling Jaya, 19 June 2016, outgoing Malaysian Airlines Bhd (MAS) CEO Christoph Mueller said they had to cut 6,000 jobs because many of the 20,000 employees were doing nothing. According to an online news report from Malaysiakini and German broadcaster Deutsche Welle (DW), Christoph Mueller said that he was not impressed with the state of the MAS when he took office and that, despite government announcements, it was not a turning point has been initiated on his part. he became the CEO. Then he also said that many of the 20,000 employees who worked for the airline had nothing to do. In fact, when he walked around the hangars, people slept, which is why he radically cut 6,000 jobs..