MAS and AirAsia Shares Swap

[Isaac 0]

and that is the old logo right?

Yes

[Sharil Abdul Rahman 0]

Clowns. Real Clowns.

 

i feel for you Datuk.

 

had a chat with Tengku the other day.

He is a good guy, but powerpoint men helped to not float the company.

 

Also the measures taken to avoid another TR mishap and tai-chi of money hurting the company too.

[flee 5]

From TMI:

 

KUALA LUMPUR, Sept 13 — Loss-making Malaysia Airlines (MAS) has chosen corporate veteran Ahmad Jauhari Yahya as its new chief executive from among a shortlist of four names, in an effort to nurse the national carrier back to profitability and launch an express airline named Sapphire in November, sources say.

 

Ahmad Jauhari is expected to have his hands full dealing with MAS’s three in-house unions that are upset with plans for a new carrier that could deplete their membership and questions over yesterday’s news of MAS sponsoring English football team Queens Park Rangers, owned by new company director Tan Sri Tony Fernandes.

 

“There were four names but Ahmad Jauhari (picture) has the best credentials to motivate the staff for the airline’s future,” a source told The Malaysian Insider.

 

“He has agreed in principle for what is seen as a national service,” another source confirmed, saying the 56-year-old fitness buff will likely to be assisted by newly-appointed executive director Mohammed Rashdan Yusof as the number two.

 

Their first task is to speak to union leaders upset over talk that a number of union members will be asked to move to Sapphire, the new brand that will take over the narrow-body aircraft assets such as the Boeing 737-800 belonging to MAS and Firefly.

 

Sapphire is planned to start in November as a premium short-haul carrier against Fernandes’ AirAsia budget airline. Firely, MAS’s community airline, will stop using the Boeing jets from September 15 and instead focus on turbo-prop operations within the Malay peninsula from its Subang Skypark base.

 

Union sources told The Malaysian Insider that their experience showed that MAS staff will receive incentives to move to the new airline brands but will lose long-term perks. “This is a form of union-busting,” the source said, echoing MAS Employees’ Union (Maseu) president Alias Aziz’s statement last week.

 

Ahmad Jauhari is expected to work with Fernandes in marketing MAS as a premium international airline for better yields although the QPR sponsorship could also raise a stink as the national carrier is not expected to make a profit this year.

 

“MAS needs to make money with better planes and service, not more publicity from sponsoring football kits,” an airline source said, adding Ahmad Jauhari will have to find competent marketing experts to fill the seats on the fleet, which is to include the world’s biggest passenger jet, the Airbus A380, from next year.

 

MAS is also hoping to be a full member of the oneworld alliance within 18 months and benefit from the airline grouping’s marketing and network reach.

 

MAS announced in August a net loss of RM527 million for the second quarter of 2011 due to higher fuel costs despite recording a better yield and a nine per cent growth in passenger revenue from the same period last year.

 

This brings total losses in the first half of the year to RM769 million even as the airline said that profit outlook for the second half of the year appears bleak. Its main regional competitor Singapore Airlines, while also hit by higher fuel costs, fared better with a S$44.7 million (RM108 million) net profit for the same period.

 

The flag carrier said its group total revenues increased to RM3.485 billion for the second quarter of 2011, or eight per cent more than the RM3.213 billion for the same quarter last year, while passenger revenue was RM2.086 billion for the same period this year compared to RM1.912 billion for the corresponding period in 2010.

 

Ahmad Jauhari’s only experience in aviation is his appointment to the Malaysia Airports Holdings Bhd board last March as a nominee of Khazanah Nasional Berhad, the state asset manager that has stakes in both MAS and AirAsia.

 

He is now the managing director and chief executive officer of Premium Renewable Energy (Malaysia) Sdn Bhd since March 2011 and has previously served as the managing director at several companies, including Malakoff Bhd, Malaysian Resources Corp Bhd and Time Engineering Bhd.

 

Malakoff is Malaysia’s largest independent power producer with an installed capacity of over 7,000MW. Due to his years in the energy sector, Ahmad Jauhari is also president of Penjanabebas, Malaysia’s association for independent power producers.

 

Before entering the corporate world, he was the senior group general manager for production and circulation at the New Straits Times Press Bhd.

[alberttky 0]

MAS and AirAsia lobbying power too strong for Malaysia Airports

 

PETALING JAYA: The lobbying power of Malaysia Airlines (MAS) and AirAsia has proved to be too strong for airport operator Malaysia Airports Holdings Bhd (MAHB), based on the Government's decision to reverse an increase in aeronautical charges at local airports to be implemented by MAHB.

 

Analysts said they were not surprised by MAHB's announcement on Friday that the Transport Ministry had asked it to put on hold the recently announced increases in passenger service charge (PSC), aircraft landing and parking charges.

 

MAHB had previously announced that travellers going overseas via the KL International Airport (KLIA) would have to pay RM65 (up from RM51), while the charge for those departing from the Low-Cost Carrier Terminal (LCCT) would be RM32 (up from RM25). The aircraft landing and parking charges were to be gradually increased by 30% and 64% respectively over three years starting January next year.

 

“The Government's move to put on hold the recently approved increases in airport charges for an indefinite period did not come as a surprise, given the intense lobbying from AirAsia and MAS following the sealing of their collaboration agreement early last month,” OSK Research said in a report yesterday.

 

“While the freeze on raising tariff is negative for MAHB, the turn of events demonstrates the Government's (i.e. Khazanah Nasional Bhd) commitment to the recently signed collaboration between AirAsia and MAS.” it said.

 

CIMB Research said that the U-turn showed the strength of the airline lobby at the moment, with both MAS and AirAsia under the stewardship of Tan Sri Tony Fernandes.

 

“The hikes came at a time when MAS is racking up huge losses, which may have made the lobbying easier. MAS needs every bit of help it can get and aeronautical charge hikes fly in the face of the Government's priority of turning MAS's fortunes around.

 

“On the other hand, MAHB is currently earning decent profits with the existing tariffs. Furthermore, MAHB cannot discriminate between the airlines by charging different fees,” the research house said in a report.

 

CIMB Research also said the MAHB management revealed that the Government would continue to pay RM14 per passenger as compensation for international passengers departing from the non-LCCT airports.

 

“However, we are unclear if the Government will compensate MAHB for the proposed RM7 per passenger hike for each international departure from LCCT airports.

 

“While the management mentioned that it is still in discussions with the Government, we note that the 2009 restructuring agreement had allowed for a PSC hike only in 2014, rather than in 2011, and we are uncertain if MAHB will receive any compensation for this hike deferment,” it added.

 

The research house has reflected the tariff hike deferrals by removing them from its earnings model.

 

“We now reduce our earnings per share forecasts by 6.6% for financial year 2012 (FY12) and 7.9% for FY13. By itself, this would have reduced our end-2011 target price from RM8 to RM7.50.

 

“However, we are also taking the opportunity to roll forward the time horizon of our target price from end-2011 to end-2012. Our new discounted cashflow-derived target price is RM7.80,” CIMB Research said.

 

Meanwhile, OSK Research said it continued to view MAHB as a defensive aviation play, which would do well in both good and bad times, owing to resilient air travel demand and its large base of low-cost carrier passengers.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/9/13/business/9483632&sec=business

[BC Tam 2]

“The hikes came at a time when MAS is racking up huge losses, which may have made the lobbying easier. MAS needs every bit of help it can get and aeronautical charge hikes fly in the face of the Government's priority of turning MAS's fortunes around.

Well, I suppose QPR's need for sponsorship money could be more urgent ?

[CH Teo 0]

Sapphire to start in November? Now, let's see how it goes with all those turbulence that FY is undergoing...not forgetting MAS which is in red and MASwings wish to be a regional player from Borneo...

[flee 5]

The worms are emerging, aren't they?

 

I never fully understood the rationale for Firefly jet and how it is supposed to help MAS. Now I wait to see how will Sapphire fit in to the MAS group. Even less is said about MASWings. The next few months will be interesting...

[Mohd Suhaimi Fariz 2]

I never fully understood the rationale for Firefly jet and how it is supposed to help MAS.

 

Firefly jet was supposed to fight with AirAsia, because under the original plan MH was going to forego the price sensitive travellers and focus on premium travellers (basically what the "EXCO" are doing now).

 

Unfortunately, the plans got sidetracked and now AK has the power to rule over the Malaysian flying public. Bravo.

[KK Lee 5]

From TMI:

Ahmad Jauhari’s only experience in aviation is his appointment to the Malaysia Airports Holdings Bhd board last March as a nominee of Khazanah Nasional Berhad, the state asset manager that has stakes in both MAS and AirAsia.

 

He is now the managing director and chief executive officer of Premium Renewable Energy (Malaysia) Sdn Bhd since March 2011 and has previously served as the managing director at several companies, including Malakoff Bhd, Malaysian Resources Corp Bhd and Time Engineering Bhd.

 

Malakoff is Malaysia’s largest independent power producer with an installed capacity of over 7,000MW. Due to his years in the energy sector, Ahmad Jauhari is also president of Penjanabebas, Malaysia’s association for independent power producers.

 

Before entering the corporate world, he was the senior group general manager for production and circulation at the New Straits Times Press Bhd.

 

Given his credential, unlikely there will be radical or drastic changes at MH.

 

[flee 5]

Firefly jet was supposed to fight with AirAsia, because under the original plan MH was going to forego the price sensitive travellers and focus on premium travellers (basically what the "EXCO" are doing now).

 

Unfortunately, the plans got sidetracked and now AK has the power to rule over the Malaysian flying public. Bravo.

The Firefly jet services hurt MH even more than AK - that was why I never understood its rationale.

[Mohd Suhaimi Fariz 2]

The Firefly jet services hurt MH even more than AK - that was why I never understood its rationale.

 

In the short term, but in the long term it would've helped because MH can easily hive off routes to FY and operate it at different costs to mainline MH. It should've allowed them to focus on their international routes.

[KK Lee 5]

In the short term, but in the long term it would've helped because MH can easily hive off routes to FY and operate it at different costs to mainline MH. It should've allowed them to focus on their international routes.

 

Unless MH’s overhead can shrink proportionally, it is unlikely to be profitable.

 

[CH Teo 0]

With all the high and low since the deal was announced, only one conclusion can be drawn: Sit back, relax and see the dramas...but I personally see more complication rather than more ease...just let's see...

[flee 5]

In the short term, but in the long term it would've helped because MH can easily hive off routes to FY and operate it at different costs to mainline MH. It should've allowed them to focus on their international routes.

I am not so sure about that. FY is taking over only MH's low yield routes. So how to make money unless they can drastically cut costs. Perhaps Sapphire will be better thought out and become MH's narrow bodied jet services regional airline.

 

Maybe that is why this share swap is needed. It would be almost impossible to modify MAS' cost structures quickly. So the co-operation with AirAsia will buy it some time to do the cost restructuring without bleeding as much as before. AirAsia will then be able to improve yields due to lack of competition - a win-win situation...

 

With all the high and low since the deal was announced, only one conclusion can be drawn: Sit back, relax and see the dramas...but I personally see more complication rather than more ease...just let's see...

Yes, if you are an aviation industry observer, these are interesting times.

 

Tony Fernandes better be aware that he is now playing with public property. So he will be subjected to very serious scrutiny by the public...

[KK Lee 5]

Tony Fernandes better be aware that he is now playing with public property. So he will be subjected to very serious scrutiny by the public...

 

Believe TF is given 007 license like Mr 019 before him

[Sandeep G 1]

Can change what's already happening. Let's just wait and see what happens!

[KK Lee 5]

Believe there isn’t any established business model except regional airline (i.e. operating ERJ or CRJ) for Sapphire to compliment MH, curious to see what aircraft Sapphire will operate.

Edited September 13, 2011 by KK Lee

[reyneo 0]

I guess the main benefit to both carriers is that they'll both get to reduce overlapping flights and increase ticket prices, hence gaining better yields (unfortunately, at the expense of Malaysian flyers).

IMO there are 3 types of travellers that would react differently to increased prices:

Type 1) Since AK & MH are both so expensive, I might as well pay that extra RM50 for MH.

Type 2) Both AK & MH have increased their prices proportionately, AK is still cheaper, so I should still fly AK.

Type 3) My travel is non-essential (Holiday, leisure, VFR), so I wont fly at all if its expensive.

 

The number of Type 3 travellers will definitely drop in the coming months, but the increased tickets prices paid by both Type 1 & Type 2 flyers will probably more than make up for the lack of Type 3s - translating into reduced expenses and better profits for BOTH AK & MH.

 

Routes that the 2 airlines currently have a duopoly will be most affected; basically all domestic routes and some of the intra-asia flights with no competition. Routes with competition like KUL-SIN/HKG/CGK/BKK, Australia-KUL-Europe, etc would likely see little or no change in prices thanks to the other airlines.

 

For all we know, in the not-so-distant future, a KUL-PEN ticket could cost more than a KUL-SIN/BKK one and the prices of a KUL-BKI seat on AK/MH could be higher than those for their KUL-TPE seats!

[Sri Ramani K. 0]

In the short term, but in the long term it would've helped because MH can easily hive off routes to FY and operate it at different costs to mainline MH. It should've allowed them to focus on their international routes.

 

As much as you love supporting the old MH, let me just correct this one thing. Since when was MH "focused" on anything in the past? FY looked good on its own but the normal joe wouldn't know the mess they were also in. As far as I know and remember, they we're rebranding both MH and FY into a low-cost carrier; fighting head-to-head with AK. Never that I have seen MH wanting to rebrand itself and "focus" on the premium pax. It is similar to telling your child to behave when the parents themselves do the opposite.

[Mohd Suhaimi Fariz 2]

As much as you love supporting the old MH, let me just correct this one thing. Since when was MH "focused" on anything in the past? FY looked good on its own but the normal joe wouldn't know the mess they were also in. As far as I know and remember, they we're rebranding both MH and FY into a low-cost carrier; fighting head-to-head with AK. Never that I have seen MH wanting to rebrand itself and "focus" on the premium pax. It is similar to telling your child to behave when the parents themselves do the opposite.

 

Well it started this year before all this brouhaha.

 

But one thing that's obvious I want to point out - take a look at their promo collaterals this year. You will not find the much maligned 5 Star Value Carrier tagline anywhere right?

[flee 5]

As much as you love supporting the old MH, let me just correct this one thing. Since when was MH "focused" on anything in the past? FY looked good on its own but the normal joe wouldn't know the mess they were also in. As far as I know and remember, they we're rebranding both MH and FY into a low-cost carrier; fighting head-to-head with AK. Never that I have seen MH wanting to rebrand itself and "focus" on the premium pax. It is similar to telling your child to behave when the parents themselves do the opposite.

It is interesting to note the different responses that were received at QPR and MAS.

 

QPR has embraced the changes made at the club and the fans/supporters are now looking at the club in positive light. Compare and contrast the negative reactions to the changes at MAS that we see here and in the Malaysian media.

 

Perhaps MAS should just be left to rot. They don't deserve anything better!

[alberttky 0]

Ex-MD expresses caution over Mas-AirAsia share-swap deal

 

KUALA LUMPUR, Sept 14 (Bernama) Malaysia Airlines (MAS) former managing director Tan Sri Abdul Aziz Abdul Rahman says the recent share-swap deal between MAS and AirAsia does not necessarily mean a solution to the ailing national carrier which continues to suffer losses due to high operating costs.

 

Instead of hammering out a share swap, stakeholders should find out the reasons behind MAS' current standing, which in his opinion are due to two possible causes

 

"Firstly, it was due to lack of good management over the past 15 years and secondly, it may be caused by the government's failure to have an orderly air transport policy. "As far as I am concerned, AirAsia was initially approved on the ground that it travels to international routes not taken by MAS instead of what happened later, the frills-free airline was also involved in domestic routes.

 

"With Malaysia being a "price-sensitive" market, this collaboration would also bring about continuous competition for MAS," said Aziz, when interviewed on "Kerusi Panas" (Hot Seat) programme hosted by Wan Syahrina Wan Abdul Rahman of Bernama Radio24 last night.

 

Domestic travellers would prefer to go for lower airfares rather than premium travelling, said Aziz, who served as MAS managing director and chief executive officer from 1982 till September 1991.

 

Aziz said: "Under such circumstances, both airlines are not cooperating but rather competig with each other in which MAS will ultimately lose out as it relies heavily on premium air travel service."

 

The share-swap deal signed last month expected to see MAS focusing on premium travel while AirAsia maintaining its grip on the low-cost sector.

 

Aziz said it was also illogical to conclude that domestic airlines' competitiveness in the international market would be enhanced by having a single entity through such collaboration as MAS already have the capabilities to do so.

 

"This move is unnecessary as MAS already has its own edge to compete globally such as quality services although it is still lacking in terms of a strong marketing strategy compared to the airlines in the Middle East," he said.

 

For the future, Aziz suggested that MAS changed its way of handling flights, such as introducing low-cost seats within its fleet of aircraft in order to stay competitive.

 

He said a thorough study was needed should such a plan was taken into consideration.

 

Aziz also urged MAS and AirAsia to disclose more details about the nature of their collaboration to clear the air among various stakeholders in the country.

 

He also held various posts in the national carrier throughout his 20-year stint there. - BERNAMA

 

http://biz.thestar.com.my/news/story.asp?file=/2011/9/14/business/20110914113845&sec=business

[flee 5]

Khazanah Needs More Clarity On AirAsia X

 

KUALA LUMPUR, Sept 14 (Bernama) -- Khazanah Nasional Bhd will only acquire 10 per cent of shares in AirAsia X Sdn Bhd when there is more clarity in both the financial and business model of the long-haul budget carrier.

 

"When there is more clarity, we will be interested (to proceed)," its managing director, Tan Sri Azman Mokhtar told reporters, on the sidelines of the Forbes Global CEO Conference here today.

 

Besides clarity in the financial and business models, the government investment arm is also looking at the timing.

 

"They have a certain timeline, in terms of when they want to go on to the next stage of evolution, such as initial public offerings and so forth," he said.

 

In August this year, Khazanah proposed to acquire 10 per cent of shares in AirAsia X on "terms and at a price to be mutually agreed later."

 

The proposal came about following the signing of a collaboration agreement between Malaysia Airlines (MAS), AirAsia and AirAsia X.

 

The outcome of the agreement will see Khazanah remain as the single largest and major shareholder of MAS with a 10 per cent stake in AirAsia.

 

It will also see MAS focusing on being a full-service premium carrier, AirAsia as a regional low-cost carrier (LCC) and AirAsia X, a medium-to-long-haul LCC.

 

Elaborating further on the business model of AirAsia X, Azman said: "We know the model does work in terms of the short-haul but for the medium and long-haul, I think it is still relatively early days.

 

"We need more clarity on that."

[alberttky 0]

MAS union strike on hold

 

PETALING JAYA: A Malaysian Airlines (MAS) workers’ union, which had earlier threatened to picket over the airlines’ share swap deal with AirAsia Bhd, has put the plan on hold until they are thoroughly briefed over the matter.

 

The announcement came after a two-hour meeting between MAS chairman Tan Sri Mohd Nor Yusof and the Malaysian Airlines System Employees’ Union (Maseu).

 

Maseu secretary-general Abdul Malek Ariff said Mohd Nor had assured that they would be given information on the collaboration within a month.

 

The union, one of eight in MAS, represents about 15,000 of the company’s staff members who had expressed concern over their job security after the share swap was made public early last month.

 

“We want to make it clear that we are not holding a grudge against MAS.

 

“We are merely worried that the collaboration may produce an unfair result.

 

“Until today, we do not understand why there is a collaboration with AirAsia,” Abdul Malek said at the union’s office in Subang Jaya yesterday.

 

The share swap, announced on Aug 9, saw MAS’ parent company Khazanah Nasional Bhd taking a 10% stake in AirAsia and its sister company AirAsia X.

 

In turn, AirAsia’s Tan Sri Tony Fernandes and Datuk Kamarudin Meranun have claimed stake to a 20.5% equity in MAS via Tune Air Sdn Bhd. The two are also on MAS’ board.

 

There were rumours that 80% of MAS’ staff could be moved to the new Sapphire airline as a result of the MAS-AirAsia deal.

 

Mohd Nor was quoted by the union as saying that details on the collaboration, including with Sapphire, were still on the drawing board.

 

“What we have been told is that the new airline, if it goes through, will be fully a MAS subsidiary,” said Abdul Malek.

 

http://www.thestar.com.my/news/story.asp?file=/2011/9/15/nation/9504378&sec=nation

 

MAS-AirAsia tie-up necessary

 

KUALA LUMPUR: Malaysia Airlines’ (MAS) largest shareholder Khazanah Nasional Bhd has defended the collaboration agreement between the national carrier and budget carrier AirAsia Bhd signed a month ago, calling the decision a “necessary” move.

 

Critics have raised concern over the comprehensive collaboration framework between the airlines and the share-swap deal agreed by major shareholders of MAS and AirAsia, with some parties highlighting that the share-swap deal was not a solution to turn around loss-making MAS.

 

Khazanah managing director Tan Sri Azman Mokhtar acknowledged that the collaboration was not sufficient on its own to turnaround MAS, but deemed it beneficial for both airlines.

 

“I would say the indications are quite positive and that there are many synergies to be had from the collaboration, such as procurement, learning from each other’s strengths and co-branding, but the collaboration is a necessary, rather than sufficient, condition for success,” he told the media yesterday on the sidelines of the Forbes Global CEO Conference.

 

When asked what would be needed for the collaboration to bear fruit, Azman cited “route network, returns and management performance” as areas of focus.

 

Former MAS managing director Tan Sri Abdul Aziz Abdul Rahman had said the recent share swap deal between MAS and AirAsia was not a guaranteed fix to the ailing national carrier, which continues to suffer losses due to high operating costs.

 

Bernama quoted him yesterday as saying that MAS stakeholders should get to the root of the problem in terms of the airline’s poor performance instead of hammering out a share swap.

 

Abdul Aziz attributed MAS’ poor showing to two factors – lack of good management in the last 15 years and the Government’s failure to have an orderly air transport policy.

 

“As far as I am concerned, AirAsia was initially approved on the ground that it travels to international routes not taken by MAS instead of what happened later, the no-frills airline was also involved in domestic routes. With Malaysia being a “price-sensitive” market, this collaboration would also bring about continuous competition for MAS,” he had said in a Bernama Radio24 interview.

 

On Aug 9, Khazanah announced that it would take up a 10% stake in AirAsia while Tune Air Sdn Bhd, the investment vehicle of AirAsia founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, would own a 20.5% stake in MAS under a share-swap deal. Both Khazanah and Tune Air have agreed not to sell their shares for a period of 30 months under the share swap deal.

 

On top of the share swap, a collaboration agreement was signed simultaneously by MAS, AirAsia and AirAsia X, which would effectively see MAS concentrate on being a full-service premium carrier, AirAsia on being a regional low-cost carrier and AirAsia X, a medium-to-long haul LCC.

 

Meanwhile, Azman said earlier during a Forbes Global CEO conference session entitled “Backseat drivers: Building and managing your board” that “the fish gets rotten from the head”, underscoring the role of a strong board in providing stewardship and guidance.

 

He made three key points about Khazanah’s management style for board members. “The first is the ‘no bulldoze’ principle. But we make an exception to this rule on two occasions, when there is ‘bull’ going on, and when there is ‘dozing’.

 

“The second is the Vidal Sassoon principle, which basically means when you (the company) look good, we (the major shareholders) look good too,” he said.

 

On the third point, he said the best boards maintained an open culture: “Great boards have a fantastic culture of dissent.”

 

http://biz.thestar.com.my/news/story.asp?file=/2011/9/15/business/9499788&sec=business

[flee 5]

MAS confirms Ahmad Jauhari as MD

 

KUALA LUMPUR, Sept 14 – Malaysia Airlines (MAS) has confirmed corporate veteran Ahmad Jauhari Yahya as its new managing director in a filing to the Bursa Malaysia this evening. The appointment is to be effective September 19, 2011.

 

The Malaysian Insider reported his appointment yesterday.

 

He was also appointed as a Khazanah Nasional Berhad nominee in the Malaysia Airports Holdings Bhd board last March. The state asset manager is the largest shareholder in MAS.

 

Ahmad Jauhari (picture) is currently a non-independent, non-executive director in Malaysia Airport Holdings Bhd. He takes over from Tengku Dato’ Sri Azmil Zahruddin who left last August.

 

Prior to his appointment in MAS, Encik Ahmad Jauhari was managing director/CEO of Premium Renewable Energy (M) Sdn Bhd. He has had a vast and diverse working experience in various industries which includes oil & gas, publication, engineering, power and energy.

 

He started his career with ESSO Malaysia Berhad before joining The New Straits Times Press (M) Berhad, where he rose to the rank of Senior Group General Manager, Production and Circulation in 1990.

 

In 1992, he went to become deputy managing director and was subsequently made managing director of Time Engineering Bhd in the same year.

 

He then served as the managing director of Malaysian Resources Corporation Bhd and Malakoff Bhd.

 

Ahmad Jauhari is also not new in managing organisations on the international front as he had also served as director and chairman of Executive Committee of Central Electricity Generating Company Ltd (Jordan) and a director of Shuaibah Expansion Project Company Ltd (Saudi Arabia). He is also the former honorary president of Penjanabebas (Association of Independent Power Producers in Malaysia).

 

Ahmad Jauhari holds a Bachelor of Science (Hons) Degree in Electrical and Electronic Engineering from University of Nottingham, United Kingdom.

 

He is expected to have his hands full dealing with MAS’s three in-house unions that are upset with plans for a new carrier that could deplete their membership and questions over yesterday’s news of MAS sponsoring English football team Queens Park Rangers, owned by new company director Tan Sri Tony Fernandes.

 

Encik Mohammed Rashdan remains as the executive director reporting to the managing director.

 

Their first task is to speak to union leaders upset over talk that a number of union members will be asked to move to Sapphire, the new brand that will take over the narrow-body aircraft assets such as the Boeing 737-800 belonging to MAS and Firefly.

 

Sapphire is planned to start in November as a premium short-haul carrier against Fernandes’ AirAsia budget airline. Firely, MAS’s community airline, will stop using the Boeing jets from September 15 and instead focus on turbo-prop operations within the Malay peninsula from its Subang Skypark base.

 

Union sources told The Malaysian Insider that their experience showed that MAS staff will receive incentives to move to the new airline brands but will lose long-term perks. “This is a form of union-busting,” the source said, echoing MAS Employees’ Union (Maseu) president Alias Aziz’s statement last week.

 

Ahmad Jauhari is expected to work with Fernandes in marketing MAS as a premium international airline for better yields although the QPR sponsorship could also raise a stink as the national carrier is not expected to make a profit this year.

 

“MAS needs to make money with better planes and service, not more publicity from sponsoring football kits,” an airline source said, adding Ahmad Jauhari will have to find competent marketing experts to fill the seats on the fleet, which is to include the world’s biggest passenger jet, the Airbus A380, from next year.

 

MAS is also hoping to be a full member of the oneworld alliance within 18 months and benefit from the airline grouping’s marketing and network reach.

 

Source