Air Cargo Management

The main objectives of the project were:

• Developing a strategic recommendation for the organizational integration of the cargo business unit into Malaysia Airlines' overall structure
• Developing an internal pricing methodology that creates incentives for both cargo and passenger units for market oriented production and adequate sales
• Studying the value of the freighter operations for the MAS Group

Project duration

• Nov 2005 - Jan 2006

Services provided by Lufthansa Consulting

• Assessment of MASkargo's current business practice, market environment, interrelationship with Malaysia Airlines, financial performance, total cost and cost structure, production and revenue data on air way bill and origin - destination level, as well as Malaysia Airlines' and MASkargo's financial route performance
• Multi-criteria analysis on strategic aspects to determine Lufthansa Consulting's recommendation on MASkargo's best position within the Malaysia Airlines Group
• Development of a stable transfer pricing system that provides incentives for an improved performance of MASkargo in the future
• Evaluation of the freighters' value to Malaysia Airlines based on a full network picture including both quantitative and qualitative aspects

Project description

Malaysia Airlines is recognized as one of the leading carriers of the Asia Pacific Region. In addition to its renowned passenger business, the airline also serves the international air cargo community through its MASkargo subsidiary.

Following the objectives of the assignment, Lufthansa Consulting determined the best organizational integration of MASkargo into Malaysia Airlines' overall structure, developed a strategic transfer pricing system and evaluated MASkargo's freighter performance.