khairuddin abu hanifah

MAS: No Plans To Buy Stake In Airline Companies In India By Saraswathi Muniappan NEW DELHI, Jan 17 (Bernama) -- Malaysia Airlines (MAS) has reiterated that it has no plans to take up stakes in airline companies in India. "We are not looking at investment (in airline companies) in India," its regional vice president for South Asia and Middle East, Azhar Hamid, said Thursday. He was replying to a question if MASwould invest in airline companies in India, as foreign airlines were now allowed to take up to 49 per cent stake. "We are still in the process of turning around," he said at the panel discussion on "Aviation in India -- The Way Forward," at the South Asia Tour and Travel Exchange Exhibition here today. MAS posted a net profit of RM37 million for its third quarter ended Sept 30, 2012 after six consecutive quarters of losses, a significant improvement compared with the RM478 million losses in the previous corresponding period. Azhar said MAS' current focus was its alliance with Oneworld starting Feb 1, 2013. OneWorld is one of three largest global airline alliances. The company aims to strengthen its competitive position considerably with an increased network that expands global coverage to 840 destinations in 156 countries. -- BERNAMA

KUALA LUMPUR, Jan 17 (Bernama) -- Khazanah Nasional Bhd has no plans to privatise Malaysia Airlines (MAS), its managing director Tan Sri Azman Mokhtar said. "There are no plans to take it private. MAS has improved, with better numbers and products but there's still a lot to do because aviation is a tough industry," he told the media at a press conference here Thursday. Responding to analysts' suggestion to privatise MAS, Azman said: "When you take something private you obviously have to pay above the market price. What it doesn't do is put money into the company, and the company needs money." Privatisation, he added, would not solve MAS' problem. "The plan didn't answer how to put in more money to the company. It probably cost more money and MAS may lose even more market discipline because now, even if it is bad news, it forces them to go and make the operation better because every quarter they have to pay the market. "Indeed, they have been gradually showing better results, which we think is good," Azman said. He said Khazanah is ready to help MAS and will back them in terms of recapitalisation. "MAS is important to the country. Definitely strategic. Whatever they do, they need to get the operations better," he said. Meanwhile on the divestment of Time Engineering, Azman said the process of selection is going on and has to be concluded this year. "If they get it right, the sooner the better. Let the company do the announcement," he said. -- BERNAMA

Some Posts and Commends About AA New Livery over the Nets BusinessBoy - 17/01/2013 18:48 GMT Wow... Not sure they could have made this any worse.... The tail is an horrific mess. Did they do any user feedback on this design? Maybe they only got feedback from folks in Dallas, hence the mess... tolotaxi - 17/01/2013 19:03 GMT Yes, that tail is horrible! The only decent aspect is the 'American' writing. The 'eagle' is a bizarre logo. CityRiskBoy - 17/01/2013 20:21 GMT This is starting to grow on me, especially the bold written on the main body and the logo up front....although I still cant help thinking looking at it it looks like a russian carrier!! scott66 - 17/01/2013 20:25 GMT Is it fair to assume that if AA have just done a pile of money on re-branding and a new livery the talked about tie up with US Airways isn't going to come to anything or are they going to have to go through the entire exercise of repainting the fleet again in 18 months? I'd got very comfortable with the tradition AA look, apparently this is the first change in over 40 years, the one thing they have kept is the Helvetica font. BeckyBoop - 17/01/2013 20:28 GMT Looks good shame the didn't use any stars on the fin sjldtlon1 - 17/01/2013 20:30 GMT Odd as it is, the new eagle is nice. The 'American' main body also looks good. I'm not sure how much I like the metallic paint (will have to wait and see what it looks like on the delivery aircraft). HOWEVER, the tail fin is awful. Far too much going on. When the video showed all the planes simulated lined up with the new livery, the tail fins looked even worse one next to the other. Well, they've announced it. Gonna have to wait 40 years for another revision *sigh* Tim2sms - 17/01/2013 20:38 GMT I love it. Sassy, contemporary. But there again I liked the BA ethnic tailfins too. Communipaw - 17/01/2013 20:52 GMT I like it....Looks nice compared to what it has been. They will probably keep the livery if they merge with US Air. Kind of like how United kept the Continental colors. BeckyBoop - 17/01/2013 20:55 GMT Cool vid to go along with it http://www.aa.com/newamerican cityprofessional - 17/01/2013 21:34 GMT What do you I know, I'm just a mere passenger, but I like it. The eagle is clever, neat, contemporary. Tailfin is a bit odd, but at least it's distinctive. More importantly, the old livery was So Eighties. OMG, how corporate and blocky and Reagan-era was the A-eagle-A. Ugh. Big improvement, IMHO! MartynSinclair - 17/01/2013 22:05 GMT I think the fuselage up to the tail fin is very professional looking and a superb new fresh logo. Binman62 - 17/01/2013 22:17 GMT I quite like it but I too also liked the BA ethnic tail fins which were decades ahead of their time. lloydah - 17/01/2013 22:28 GMT Love the eagle symbol. Not sure about the tail at first sight but it's got that "We're American" look which I admire. Not because I admire americans per se but I admire the way they are proud of it. I wish we were more proud of our own country sometimes. rferguson - 17/01/2013 22:42 GMT I've learned over time to reserve judgement on new airline liveries when they are first released. Sometimes when my first reaction is 'Yuk what the hell??!!' over time I actually come to really like it. A perfect example is TAP. When I first saw it I thought it was hideous. I must admit it has become one of my favourites now. I think because AA had such an iconic and classic livery that lasted for decades (unlike say UA who seemed to change theirs every six months!) people will have strong views on it. My first reaction was not positive. I quite like the stylised eagle symbol but I think the tail fin design is way way over the top. Saying that I did have a look at some video footage on youtube and it doesn't look AS BAD 'in the flesh' so to speak as it does in a static photographic image. paw11@aol.com - 17/01/2013 23:17 GMT Great design, thoroughly modern, and the tail fin is striking. It's somewhat odd how similar it is in feeling to BA, but maybe it was planned as the two sit together at oneworld. Change is good-and inevitable.

I just received a confirmation from the Ipoh Airport Manager today, the runaway already been extended to 2,000M with 45M wide. So, it's good for B737 or A320 for landing or take off at full load.

AA livery probably will change again once it merges with US airways after the Chapter 11 exit.

It’s really a blow for Boeing Co.!

But the tail graphic is ugly! Probably adapting from the American flag. Should add some stars not just stripes.

Looks like Boeing Stock is in trouble. Read more stories below: FAA grounds Boeing 787s to address risk of battery fires Published January 17, 2013 WASHINGTON – The federal government grounded Boeing's newest and most technologically advanced jetliner Wednesday, declaring that U.S. airlines cannot fly the 787 again until the risk of battery fires is addressed. The Federal Aviation Administration's emergency order affects only United Airlines, the lone U.S. carrier to operate 787s. United said it would put passengers on other aircraft and work closely with the FAA and Boeing to review its fleet of six Dreamliners. The FAA action came on the same day that Japan's two biggest airlines -- which fly almost half of the world's 50 787s -- voluntarily grounded them pending full safety checks. The European Aviation Safety Agency ordered Boeing 787 Dreamliner planes grounded Thursday, hours after Air India grounded its fleet of six 787s. Boeing said it was working around the clock with investigators. "We are confident the 787 is safe, and we stand behind its overall integrity," Jim McNerney, company chairman, president and CEO said late Wednesday in a statement. The FAA decision was another setback for a plane that was supposed to establish a new standard for jet travel but has instead been beset by one mishap after another. The latest trouble arose when pilots for Japan's All Nippon Airways smelled something burning and received a cockpit warning of battery problems on a flight from Yamaguchi Ube airport in western Japan to Tokyo. They made an emergency landing Wednesday at Takamatsu airport in western Japan, and passengers evacuated using inflatable slides. An inspection found that a flammable liquid had leaked from the main lithium-ion battery below and slightly behind the cockpit. Investigators found burn marks around the damage. Japan's Kyodo News agency quoted a transport ministry investigator as saying that the liquid leaked through the electrical room floor to the outside of the aircraft. The transport ministry said the leak could have led to an accident. That followed a Jan. 7 battery fire on a parked Japan Airlines plane at Boston Logan that took firefighters 40 minutes to extinguish. Both incidents involved the same type of battery, raising worries that they may be connected and that the jet's electrical problems are more dangerous than previously thought. "Anytime you have a fire on board -- whether it's the battery that has caused it or a passenger that caused it or another electrical component -- that's a very a serious situation on an aircraft and something not to be taken lightly," said Kevin Hiatt, president of the Flight Safety Foundation. So far, no one has suggested that the plane's fundamental design can't be fixed. But it's unclear how much will need to be changed. The remedy could range from relatively quick-and-easy improvements to more extensive changes that could delay deliveries just as Boeing is trying to speed production up from five planes per month to 10. The 787 is the first plane to make extensive use of lithium-ion batteries, which have been the focus of concerns in the past for their potential to catch fire. The FAA issued a special rule for their use in the 787. The plane has two batteries -- the main one near the front and a second one in the rear. Boeing and the airlines will need to move quickly to determine whether the problem is a flaw in the batteries themselves, in the plane's wiring or in some other area that's fundamental to the plane's electrical system. Boeing has booked orders for more than 800 of the planes from airlines around the world attracted by its increased fuel efficiency. The jet's lightweight design makes it more of a fuel-sipper, and it's so lightweight in part because it uses electricity to do things that other airplanes do with hot air vented through internal ducts. So a 787 with electrical problems is like a minivan that won't haul kids. It goes to the heart of what the thing was built to do. Before it carried paying passengers, the 787 was closely reviewed by inspectors from Boeing and the FAA. Mike Sinnett, chief engineer on the 787, said last week that the plane's batteries have operated through a combined 1.3 million hours and never had an internal fault. He said they were built with multiple protections to ensure that "failures of the battery don't put the airplane at risk." The lithium-ion design was chosen because it's the only type of battery that can take a large charge in a short amount of time. Neither GS Yuasa Corp., the Japanese company that supplies the batteries for the 787, nor Thales, which makes the battery charging system, would comment on the recent troubles. Japan Airlines and All Nippon Airways are two of the 787's biggest customers. ANA was especially proud of its 787 fleet. Its executives' business cards and the top of its website read "787" and "We fly 1st." ANA got the first one Boeing delivered in late 2011, more than three years late. Other 787s have had problems with certain electrical panels and fuel leaks. Back on Jan. 9, ANA canceled a domestic flight to Tokyo after a computer wrongly indicated there was a problem with the 787's brakes. Two days later, the carrier reported two new problems with the aircraft -- a minor fuel leak and a cracked cockpit windscreen. Many of the 787s problems are typical of well-established planes around the world, Hiatt said, adding that he would have no qualms about flying aboard a 787. "That airplane is the most scrutinized plane in the air," he said. "I would get on the airplane tomorrow." Hours before the FAA announced its emergency order, Transportation Secretary Ray LaHood dismissed any doubts about the FAA's diligence in certifying the plane. "Our people are the best, but we need to work with Boeing and to make sure everything we've done has been done correctly," he told reporters Wednesday at a luncheon in Washington. The FAA's decision canceled plans by LOT Polish Airlines to begin regular 787 service between Chicago's O'Hare Airport and Warsaw. The inaugural flight was due to land at O'Hare late Wednesday, but the airline called off the return trip. Boeing was already under scrutiny for last week's fire, which was also tied to the battery in the back of the plane. That fire prompted investigations by the National Transportation Safety Board and the Federal Aviation Administration, and the FAA later said it would review the design and manufacture of the plane, focusing on its electrical systems. The NTSB said Wednesday that it would send an investigator to Japan to join the latest probe, and that representatives from the FAA and Boeing were on their way, too. United frequent flier Josh Feller said he changed his plans to fly a United 787 from Los Angeles to Houston next month because of the 787's troubles. "I've been following the 787 news closely, and the latest incident finally spooked me into changing my flight," he said by email. "It's an unnecessary risk, and since I was going out of my way to fly the plane in the first place, decided to change flights." Boeing shares dropped $2.60, or 3.4 percent, to close Wednesday at $74.34, and the selloff continued in after-hours trading. Read more: http://www.foxnews.com/us/2013/01/17/faa-grounds-boeing-787s-to-address-risk-battery-fires/#ixzz2IFKTuomi

Airbus CEO: No reason to change A350 electric architecture By Kurt Hofmann | January 17, 2013 Announcing that 2012 was a record year for aircraft orders and deliveries, Airbus executives steered clear of criticizing the grounded Boeing 787. They also said they remained satisfied with the electric architecture of the new Airbus A350 XWB. Briefing journalists in Toulouse on year-end results, Airbus CEO and president Fabrice Bregier said it was too early to analyze FAA’s decision, announced late Wednesday, to ground US-registered 787s and issue an emergency airworthiness directive regarding the aircraft’s lithium ion batteries. The batteries are the focus of two investigations into incidents earlier in January; a fire that broke out on a parked Japan Airlines 787and a battery leak on an All Nippon Airways aircraft that was forced to do an emergency landing. “We like to say, in this industry, that both Boeing and Airbus give same priority to safety. This is paramount. There is a decision of FAA and this decision confirms that aviation is one of the safest transportation around the world,” Bregier said. He said the electric architecture of the A350 and its use of lithium batteries has been through the certification process and both FAA and European regulatory authority EASA were “very happy” with the architecture. He said Airbus saw no reason at this stage to change the A350’s architecture and the manufacturer had full confidence in its robustness. “Of course, if FAA chooses to give some direct recommendation, we will study them very carefully; they might apply to the A350. There is not more I can say at this point in time,” he said. The A350’s final assembly line became fully operational in 2012, the structural assembly of the first A350 XWB that will fly was completed and “electrical power on” of the aircraft was accomplished. Source: ATW

I would like to suggest to the MalaysianWings Moderators to create a new section to enable members to upload their videos related to aviation. I think this is another way for members to share and to bring up any issues or news such as flying experiences, airport visits or flying incidents through a live video other than normal photos. Hope my suggestion will put into consideration and support from all moderators and members. Thank you.

I believe there are too much electrical wiring on the 787 that ignites fuel sparks.

Checked with Viking last year and was informed it takes at least 2 years waiting period for new DHC6-400 series. Wonder, must be a special arrangement by Datuk Mohd Nawawi with Viking to have it ready middle of this year.

Firefly All Geared Up For 2013 Expansion KUALA LUMPUR, Jan 14 (Bernama) -- Firefly is all geared up with its expansion plans in place as 2013 crawled in with brand new aircraft and increasing weekly flights. Following the recent signing of an agreement between its parent company Malaysia Airlines and ATR, the French-Italian aircraft manufacturer, Firefly will gradually take on 20 brand new ATR 72-600s, beginning in June this year. The additional enhanced series of turboprop planes will be used to complement the growing demand for Firefly's services with newly added frequencies on its popular routes and bloomimg socio-economic destinations while monitoring potential new routes. Firefly will also be increasing its 28 weekly flights between Subang and Johor Baharu to 38 flights with effect from Feb 19, 2013. "With the progression of a new airport and new player, we believe this will be an interesting and aggressive year for the industry," Firefly chief executive officer Ignatius Ong said in a statement Monday. Firefly currently flies to domestic and regional destinations in the Asean network serving more than 25 destinations within Malaysia, Singapore, Thailand and Indonesia. -- BERNAMA

MASwings' Six New Twin Otters To Operate From Mid-year KUCHING, Jan 14 (Bernama) -- Regional airline MASwings is expected to operate its six new Twin Otter (DHC6) aircraft, particularly to serve in the interiors of Sarawak and Sabah, by mid-year, its chief executive officer Datuk Mohd Nawawi Awang said. Despite numerous appeals for its current fleet of ageing 17-seat DHC6 aircraft to be replaced with bigger capacity ones, he said, the Twin Otters were more practical for short takeoff and landing (STOL) operations in rural airstrips, including Marudi and Bario. "The new aircraft will be deployed in stages from the middle of this year until 2014," he told reporters after giving a briefing on Maswings BIMP-EAGA second phase expansion of its international network here, which was attended by Sarawak Tourism Minister Datuk Abang Johari Tun Openg. Previously, MASwings had four Twin Otters but the fleet was reduced to three following the Marudi airport incident in November last year when one of its aircraft veered off the runway upon landing. It was reported that MASwings' flight operations were slightly affected by the incident but the frequencies were expected to be back to normal by this year. -- BERNAMA No Need For Sarawak To Hold Stake In MASwings, Says Abg Johari KUCHING, Jan 14 (Bernama) -- There is no need for the state government to have a stake in regional airline, MASwings, as the federal government has ensured that the interests of Sarawak and Sabah will be the primary decision to expand its routes, especially within the Brunei, Indonesia, Malaysia, the Philippines-East Asean Growth Area (BIMP-EAGA). Sarawak Tourism Minister, Datuk Abang Johari Tun Openg, said MASwings, a wholly-owned unit of Malaysia Airlines (MAS), would become the feeder for the BIMP-EAGA routes as well as within the two states. "Initially, we requested for a equity in MASwings but following the restructuring exercise, involving MASas the primary airline, our original objective that the interests of Sarawak and Sabah are being taken into consideration has been met," he told reporters after a briefing on the second phase of MASwings' BIMP-EAGA expansion of its international network here today. Effective Feb 1, MASwings will commence thrice weekly lights from Kuching and Kota Kinabalu to Balikpapan in East Kalimantan, Indonesia using the 68-seater ATR72-500 turbo-prop aircraft. He said Sarawak and Sabah had a common stand to work with existing airlines to protect their interests, such as through the MASwings route expansion which was in line with the government's initiative to woo more tourists to the two states and making Malaysia a destination haven during a promotional campaign for Visit Malaysia Year 2014. However, he said, the state tourism players should also leverage on the new regional routes in preparation for the 'open sky' policy to be implemented by 2015, with point-to-point destinations. Earlier, MASwings chief executive officer, Datuk Mohd Nawawi Awang, said the second phase would also see the airline spreading its wings to Puerto Princess in Palawan Island, Philippines by March this year and Zamboanga in Mindanao, Philippines by June this year. In conjunction with its inaugural flight into Balikpapan, which served as headquarters for international oil companies, mining companies and related industries in East Kalimantan, MASwings would offer special introductory fare from as low as RM312 for a return flight until Feb 14, he said. Last year, MASwings commenced its first phase by adding three destinations, Bandar Seri Begawan in Brunei as well as Pontianak and Tarakan in Kalimantan. It has operated 2,420 flights with 84,014 passengers to date. -- BERNAMA

By Niam Seet Wei BEIJING, Jan 14 (Bernama) -- Chinese leaders had given the nod to build the new US$11.2 billion international airport here to ease the congestion at the existing facility, said state-run media, China Daily. It quoted Beijing airport spokesman, Li Shengbo, as saying the decision was approved by the State Council. China Daily also said, citing CAAC News, a newspaper affiliated with the aviation administration, that the new airport would be located between Beijing's southern suburban Daxing district and Hebei province. "Construction will commence next year, and it is expected to start its operation by end of 2018. "It will be able to handle 70 million passenger trips annually by 2025," it said. Beijing Capital International Airport has been ranked as the world's second-busiest airport for three consecutive years, behind Atlanta's Hartsfield-Jackson International Airport in the US. It handled 81.8 million passenger trips last year, an increase of 4.2 per cent year-on-year, it said. -- BERNAMA

Gulf Air announces major restructuring plan By Alan Dron | January 15, 2013 Bahrain-based Gulf Air will launch a major cost-cutting plan and focus increasingly on regional services. In a statement issued Tuesday, the carrier said it intends to strengthen its Middle East and North African (MENA) services, target 24% in cost savings by year end and simplify its fleet structure. The restructuring was foreshadowed by October’s announcement of a BD185 million ($494 million) government cash injection in the loss-making national carrier. Lawmakers also talked of halving the current 3,800 workforce and reducing its fleet from 39 to 20 aircraft. In November, Gulf Air reduced its outstanding orders with Airbus and Boeing and CEO Samer Majali resigned. Few details of the restructuring plan were given in Tuesday’s statement. However, the carrier said the network’s realignment would result in it “moving away from low-yield transit traffic and concentrating on high-demand and high-yield, point-to-point routes to connect Bahraini businesses with regional markets.” It would aim to have the largest network within the MENA region. This strengthening of its core network would be accompanied by fleet optimization and streamlining of its organizational structure. The fleet would retain both twin- and single-aisle equipment. “Gulf Air’s workforce requirement will be aligned to meet the operational, maintenance and administrative needs of the revised fleet and network,” the statement added. “Right-sizing will be implemented across all levels of the organization and will be done on a performance-based review and individual job assessment against business-critical requirements. Priority will be on retaining the most productive employees with focus on maintaining key talent.” Source: ATW

I agree with JuliusWong. The research is very questionable. In my opinion, most LCC within 2 hours flight only served snacks. For example instant noodles served on AK. That should not be considered as a complete meals. The survey on Best In Flight Meals should only be done on a full service carrier with 3 or more flight hours.

Thanks Reezal. The new building seems very refreshing and spacious! Just wonder how does the apron and the new runaway looks like? Hopefully someone on a Firefly flight to or from Singapore have a chance to snap some aerial photos!

New building at Sultan Azlan Shah Airport Ipoh Anybody members in this forum have photos of the new renovated and facelift of the Ipoh Airport? I heard it was supposed to be ready by September last year but never heard anything so far. I heard too the flying school – Integrated Training and Services is closing down. Somebody can verify on this?

By Linda Blachly | January 14, 2013 Garuda Indonesia’s low-cost subsidiary (LCC) Citilink has placed a firm order with Airbus for 25 A320neos. The contract, signed in December, represents Citilink’s first direct purchase from Airbus. It follows an order placed in 2011 at the Paris Air Show by Garuda Indonesia for 15 A320ceos and 10 A320neos aircraft for operation by Citilink. Citilink currently operates a fleet of 12 leased A320s on its fast-growing domestic network. Source: ATW

Another year of rapid growth is expected in the Myanmar market as international and domestic carriers continue to expand in response to growing business and leisure demand. Myanmar’s international market has already recorded a 64% capacity increase in the nine months since Aung San Suu Kyi’s National League for Democracy won landmark elections in Apr-2012, leading to the rapid opening up of the Southeast Asian country and the lifting of economic sanctions. Eight foreign carriers have since launched services to Myanmar while several carriers which already served the country added capacity. Following the 09-Jan-2013 addition of Dragonair, Myanmar is now served by 21 foreign carriers which account for about 80% of total capacity to and from the country. International carriers will continue to expand their operations to Myanmar in 2013 although at a more modest level as it will take time for the capacity added in 2H2012 to be absorbed, particularly given the shortage of hotel rooms and other infrastructure constraints. However, 2013 could see more rapid domestic growth as the country’s six existing domestic full-service carriers look to profit from growing demand for travel within the country and Myanmar’s first low-cost carrier, Golden Myanmar Airlines, enters the market. Source: CAPA

Does that mean their AOC still valid to enable them to fly?

Never heard any news from Transmile so far. Anybody knows what's is going on with Transmile right now? This is the latest info that I got. OUTCOME OF 16th ANNUAL GENERAL MEETING, 24 May 2012 All resolutions set out in the Notice of AGM dated 2 May 2012 were duly passed by shareholders at the 16th AGM of the Company (Transmile) held on Thursday 24 May 2012. REVIEW OF TRANSMILE'S MILESTONES OVER LAST FIVE YEARS Shareholders were given a review of the efforts by the current Management over the last five (5) years to resolve the outstanding debt and operational issues despite the unrelenting legal challenges from certain lenders. The following major milestones in each of the following specific areas culminating in the Court's sanctioning of the Scheme of Arrangement (SOA) on 20 February 2012 were elaborated on and duly noted by shareholders:- Debt Restructuring & Related Legal Challenges • Bursa Malaysia’s classification of Transmile as a PN1 and PN17 company and Transmile’s appeals to maintain its listing status and subsequent delisting in May 2011; • Negotiations and preparation of a Common Terms Agreement which was subsequently found not workable due to business and regulatory issues and substituted with an alternative proposal but was not acceptable to lenders; • Meeting with the Corporate Debt Restructuring Committee (CDRC) of Bank Negara Malaysia to explore CDRC's assistance in the debt restructuring; • Winding-up petition and civil suit for breach of Trust Deed by certain lenders; • Approval of Scheme of Arrangement (SOA) of Transmile and its subsidiary, Transmile Air Services Sdn Bhd (TAS) , by a majority of scheme lenders at the respective Court Convened Meetings held in April 2011; • Invitations to potential investors to submit proposal for acquisition of TAS in accordance with the SOA; Legal Action Against Former Management • Transmile’s internal investigation on financial irregularities and independent review by PriceWaterhouseCoopers; • Civil suit by Transmile against its former management; Operational Matters • Preparation and sale of entire fleet of four (4) MD-11 aircraft in March 2011; • Termination and expiry of business contracts and development of new routes and customers; • Re-location of Subang air cargo operations to KLIA required by the Ministry of Transport and application for an extension of time and efforts to secure a new site at KLIA; • Proposed disposal of Maintenance Repair and Overhaul (MRO) facility and tie-up with other major airline and cargo operator; OPTIONS AND IMPLICATIONS OF SOA The Chairman explained to shareholders that TAS has to repay the monies it had borrowed from lenders. The easiest solution would be to wind-up Transmile which would be drastic and to the detriment of all stakeholders as compared to the SOA which provides for:- • TAS to be disposed of as a going concern to a potential investor and all proceeds together with the MD-11 sales proceeds would be transferred to the lenders; • However, in the event the proposed TAS disposal cannot be achieved within nine (9) months from 20 February 2012 or such extended period, TAS would be placed under voluntary liquidation. Shareholders were further advised that whether an investor is found for TAS or it is liquidated, the overall effect is that shareholders would lose all their investment as the loans far exceed the value of the Group’s assets. In view of the legal challenges which had unduly delayed sanctioning of the SOA, the Company may also be forced to opt for liquidation if it cannot find an investor soon for TAS due to depleting cash for the Company’s operations. SHAREHOLDERS' RESPONSE The shareholders present unanimously expressed:- • their support for the current Board of Directors comprising a majority of senior management staff to implement the SOA as sanctioned by the High Court and to take whatever steps necessary to ensure Transmile’s viability and continued existence in the best interest of all stakeholders; • that they are not blaming the current Board for the losses they have incurred and the parties responsible for the financial irregularities should be quickly brought to justice; • that the current Board and Management including pilots, engineers and other staff and employees who have stayed in their jobs despite the difficult conditions are to be commended for their commitment and loyalty in keeping the Company going; RE-ELECTION OF DIRECTORS All four (4) Directors retiring at the 16th AGM comprising Encik Mohd Lutfi bin Mat Lazim, Mr Krishnasamy A/L Rengasamy, Ms Kam Wai Peng and Mr Tan Teong Boon were unanimously re-elected and the composition of the Board of Directors is as follows:- Board of Directors as at 24 May 2012 1. Mr Liu Tai Shin (Chairman/Managing Director) 2. Encik Mohd Lutfi bin Mat Lazim (Nominee Director of Pos Malaysia Berhad) 3. Mr Krishnasamy A/L Rengasamy (General Manager, Flight Operations) 4. Ms Kam Wai Peng (Chief Financial Officer) 5. Mr Tan Teong Boon. (Head, Corporate Affairs) And plus this one from The Star. NEW INVESTORS FOR TRANSMILE? By EDY SARIF edy@thestar.com.my Saturday May 28, 2011 SHAH ALAM: Recently-delisted Transmile Group Bhd is still fighting for its lifeline as its appointed investment banker seeks new investors to keep the company afloat. Transmile, which was officially removed from the stock exchange on Tuesday, has given Kenanga Investment Bank Bhd the mandate to deal with potential investors looking to participate in the air-cargo operator's business. “A number of investors have approached us and we are giving Kenanga the mandate to deal with them. However, we can't reveal much,” Transmile managing director Liu Tai Shin said after the company's shareholders meeting yesterday. Liu said interested parties would need to have the financial muscle to invest in the company and to finance its operations and its re-location, should the company moved out from its current office in Subang Airport. Transmile chief financial officer Kam Wai Peng (left) and Liu Tai Shin at the shareholders meeting. Asked if the existing Transmile management would consider a buyout, Liu said: “They loved the idea but did not have the money for such a plan.” He also said the company's restructuring plan was currently stalled as a result of lawsuits and legal actions by its lenders. Transmile, which provides courier services between Peninsular and east Malaysia for Pos Malaysia Bhd, became a troubled air cargo operator after an accounting scandal in mid-2007. A new management led by Liu was then put in place to turn the company around. The current management has had to grapple with settling large outstanding debts and fighting off its delisting. But it could not fight off the delisting, as the company was unable to submit its regularisation plan on time. Its creditors had pursued the winding-up of Transmile's unit, Transmile Air Services Sdn Bhd. Creditors had sought the action on the basis that Transmile was not able to turn itself around in the initial period given to it. Creditors were also worried that the little cash reserves the company had were depleting. Transmile's debt obligations include medium-term notes (MTN) of RM105mil, a syndicated term loan of US$66.9mil (RM205mil) and guaranteed convertible bonds of US$65.6mil (RM201mil), which it was unable to repay after freight traffic crashed in late 2008 resulting in a sharp fall in freight rates. The MTN holders include Meridian Asset Management, OSK Group, Agrobank and AmBank Group and the Employees' Provident Fund, which holds about half of the RM105mil. Transmile did come into cash earlier this year, from the sale of its four MD-11F aircraft for RM208.8mil to Federal Express Corp. Proceeds from the disposal was to be used to partially settle the company's outstanding debt, which amounted to RM528.9mil as at Sept 30, 2010. Transmile now has three Boeing 737 and nine Boeing 727 aircraft under its stable. Its chief operating officer Robert John said the group was currently getting revenue from three business streams chartering aircraft, leasing equipment to airlines and scheduling air cargo (selling cargo capacity through agents and freight forwarders). Although the company has been delisted, Liu said its business was running as usual. “Business is as usual and our operations have nothing to do with the delisting as we still have jobs to do. “Our shareholders are still holding shares in the company, only now the shares are not traded anymore,” he said, adding that about 67% of the company's shares were held by minority shareholders.

FAA opens review of Boeing 787 but stands by aircraft’s safety By Aaron Karp | January 11, 2013 US regulatory officials have launched a full review of the Boeing 787, with a focus on the aircraft’s electrical power and distribution system, but have not grounded the aircraft. US Dept. of Transportation, FAA and Boeing chiefs emphasized their confidence in the safety of the 787 Friday even as they announced the FAA will lead a “comprehensive review” of the Dreamliner program. A fire aboard a parked Japan Airlines 787 at Boston Logan Airport at the beginning of the week was the latest of a number of safety incidents for which the review will work to find root causes. The review’s aim is to “validate the work we did in the [787] certification process,” FAA administrator Michael Huerta said during a press conference at DOT offices in Washington DC. He said there was no reason to ground any aircraft. “A team of FAA and Boeing engineers and inspectors will conduct this joint review, with an emphasis on the aircraft’s electrical power and distribution system,” FAA said in a statement. “The review will also examine how the electrical and mechanical systems interact with each other.” It noted the review would include “the aircraft’s design, manufacture and assembly.” Huerta pointed out the FAA performed 200,000 hours of technical work in certifying the 787. “Our review and our analysis are going to be very data driven and we will bring in whatever technical experts we need,” Huerta said. “What we’re very focused on is developing data. If we see issues, we’ll address them, but we have to see what the data shows.” He added, “There is nothing I have seen that leads me to believe this airplane isn’t safe.” Boeing Commercial Airplanes VP and 787 chief project engineer Mike Sinnett said earlier in the week that the 787 “has more electrical service than any other airplane in service.” He explained that the more electric nature of the 787’s architecture was a design choice enabling the aircraft to require almost no pneumatic power and providing fuel burn savings of around 2%. Boeing chairman, president and CEO Jim McNerney said in a Friday statement that the company stands “100% behind the integrity of the 787 and the rigorous process that led to its successful certification and entry into service. We look forward to participating in the joint review with the FAA, and we believe it will underscore our confidence, and the confidence of our customers and the traveling public, in the reliability, safety and performance of the innovative, new 787 Dreamliner.” The JAL 787 fire is believed to have begun in the 32-volt lithium ion battery that starts the aircraft’s auxiliary power unit; the 787 is the first Boeing aircraft to use a lithium ion battery. The FAA’s review, which Huerta said will look at “the entire picture” of the 787 program, will be conducted as the US National Transportation Safety Board specifically investigates the JAL 787 fire. US transportation secretary Ray LaHood said he would have no problem boarding a 787. Though he noted, “This plane is different than any other plane that has been manufactured in so many different ways.” Boeing Commercial Airplanes president and CEO Ray Conner, appearing alongside LaHood and Huerta at the press conference, said the 787 had undergone the “most robust certification process in the history of commercial aviation” and the new review is in many ways a formalization of ongoing, post-certification cooperation between the FAA and Boeing. “We’ve logged more than 50,000 hours of flight” on the 50 787s now in service worldwide, Conner said. “We have complete confidence in the 787. It’s been more than 15 years since an all-new commercial airplane was certified and entered service in the US … Every new commercial airplane has issues when it enters service … We have complete confidence in our production system. We have no reason to believe the airplane isn’t safe.” Huerta said he could not give a timeline for how long the review would take. Source: ATW

Poland’s LOT is the latest airline of the former Eastern Europe to run into financial difficulties. It means that LOT will cut staff numbers by 30 per cent and reduce the number of planes in its fleet from 40 to 25. Just before Christmas last year, the Polish government (which owns 93 per cent of LOT) granted the carrier an emergency loan of US$127 million in order to keep operating. And now, according to The Wall Street Journal (Europe) if the EU rules that the loan is a form of illegal state aid distorting competition then LOT would be forced to hand back the money and file for bankruptcy. LOT has made a loss every year since 2010. It was thought the carrier had turned the corner this year. But passenger numbers fell by 20 per cent in the past quarter so LOT will end 2012 with a deficit of US$63.7. Last Friday LOT agreed to slim down its fleet and to concentrate only on flying its most economical planes over its most lucrative routes. It means that LOT’s older and less fuel-efficient planes will be retired from service and secondary destinations will be axed. It should not affect services between Poland, the UK and North America because of the strong cultural and trade links which exist between these countries. These developments come at the time when LOT was basking in the glow of positive publicity. It has begun taking delivery of eight B787 Dreamliners with the first planes set to inaugurate transatlantic service from Warsaw to Chicago in mid January. The new B787s with fresher interiors and fully lie-flat beds in business class (LOT does not offer a first class cabin) will enable LOT to ‘up its game’ on the transatlantic routes which, until now, have been flown by its elderly B767s. Airlines of the former Eastern Europe have not adapted well to the modern aviation age. Malev of Hungary ceased operations last year (leaving that country with no national airline at all), Czech Airlines of the Czech Republic is facing financial hardship while Slovakia’s Skyeurope failed ages ago. They face competition from carriers like Air France, British Airways, KLM and Lufthansa on long routes while, closer to home, the budget airlines have captured most of their traffic. For more information visit lot.com. Report by Alex McWhirter – Business Travellers