Question

Malaysia Airlines

Malaysia Airlines is owned by individual investors and the Malaysian government, which took over the company in 2014 after two mysterious jet crashes. The airline has lost money and struggled since that time, going through three CEOs. The current CEO, Peter Bellew, is experienced in tourism and travel and has been asked to cut costs and increase revenues. His strategy is to maximize the number of Malaysian Muslims (who make up more than 60 percent of the population) flying to Mecca for hajj, the annual holy pilgrimage and an obligation for all Muslims who are well enough to travel and can afford the trip. Bellew plans to provide charter flights to make the pilgrimage easier on travelers.²⁰

Critical Thinking

• What would you advise Bellew to identify as a priority—the demand from pilgrims for easy travel at a reduced price or the demand from the government for profitable operations? Explain your answer.

Answer 1

Bellew must prioritize the demand from the government for profitable operations, as the government is a stakeholder in Malaysian Airlines, and it is important for a business to prioritize the interests of the stakeholders and make them believe they are important and the first priority for the business.

Since the Malaysian government is a stakeholder in the Airline company, the stakeholder management must prioritize their demand and pay maximum heed to them.