Malaysia Airlines must rethink business model, says transport expert
Published on: Wednesday, September 04, 2024
By:
FMT, Sean Augustin
A transport consultant has called for a review of aviation regulations and greater protection for national airlines.
PETALING JAYA: Malaysia Airlines must rethink its entire business model following the reported loss of more than 60 maintenance personnel to a rival company owned by Singapore Airlines, a transport consultant said.
Wan Agyl Wan Hassan said there appeared to be “major weaknesses” in the airliner’s operational, legal, and strategic systems which required a quick and forceful response.
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“Malaysia Airlines has to be proactive in order to rebuild confidence among its staff, increase operational resilience, and protect its strategic posture instead of reactiveness.
“The government has to also examine more robust protection for national carriers and reassess its aviation regulations,”he told FMT, adding that the airline’s leadership needs to answer for the mistakes causing the talent drain.
Wan Agyl said Malaysia Airlines must carefully assess why its employees find SIA Engineering Company, based at Subang airport, more appealing, and fix any related issues.
The airline needs a full workforce strategy, including establishing a talent pipeline, raising employee engagement, and offering long-term career growth prospects, he said.
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He called for a more extensive legal plan that would include bilateral agreements or industry-wide rules to prevent systematic poaching.
Wan Agyl also said Malaysia Airlines must rethink its competitive posture, which might involve advocating stricter restrictions on foreign investment in key industries.
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On Sunday, Malaysia Airlines’ parent company, Malaysia Aviation Group, acknowledged that it had experienced “attrition of a skilled workforce as new MRO (maintenance, repair and overhaul) players, both local and international, have entered the Malaysian market”.
Wan Agyl questioned the effectiveness of the Subang airport rejuvenation plan in light of the loss of Malaysia Airlines personnel.
He said the Singapore company’s presence in Subang, as part of this plan, had exposed weaknesses by potentially undermining national aviation interests.
This situation highlights concerns about foreign investment leading to loss of strategic control, economic leakage, and conflict with Malaysia’s goal of revitalising Subang as a key aviation hub, he said.
“Malaysia Airlines has to adopt a more forceful and forward-looking approach, both legally and practically if it is to solve this problem.
“This is more than just weathering the current storm; it’s about making sure the national carrier comes out stronger, more resilient, and better ready to compete in a global aviation sector growingly competitive,”he said.
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