Dynamic Capacity Management In Malaysia Airlines

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Capacity utilization disturbances The second major factor that we need to look in-depth is the effect of various disturbances factors on capacity utilization. As with many commercial airlines providing similar air travel services, Malaysia Airlines is struggling to stay afloat. The firm has been dealing with several financially disappointing years in a row, tripling its net loss from 2012 in 2013. It has essentially been bleeding money and lost more than $1.3 billion over these last few years. Unfortunately the fiscal year of 2014 has started in a similar fashion. The company has posted three month losses of roughly $100 million on 30th June, which is about double their loss in the same period of the previous year (Veysey). All these issues…show more content…
This system is used as a way to calculate the booking limits per flight. However, it does not take into account the effects of capacity changes on flights when the airline uses dynamic capacity management. EMSRd is a derivative of EMSRb and does take into account that the company’s airplane assignments are not fixed under dynamic capacity management. Numerical experiments have shown that the usage of EMSRd over EMSRb can potentially improve revenue by more than 1% (De…show more content…
Having struggled in recent years to stay competitive the company is now finding itself in a situation where it has to deal with losing a lot of current and potential customers who do not trust and do not want to depend on Malaysia Airlines to arrive safely at their destination. As a country, Malaysia is quite diverse in terms of ethnicity, religion and culture. Superstition is playing a major role in the decision making process of many Asian consumers due to cultural understandings. Many Vietnamese people, for example, even consider the number seven as an unlucky one as a result of the recent tragedies (Smith). Therefore, after two accidents occurring in one year, many consumers are simply afraid of using the travelling services offered by the firm as their beliefs suggest there is bad luck circulating around Malaysia
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