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MAS and AirAsia Shares Swap

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Just flew with MH Perth-KL-Penang return.. The Perth-KL part was like 50% full...Most were caucasians..

 

Cost cutting were quite obvious.. It's like each time I flew with them, something is missing.. No more towels, then no menu cards, then leg rest removed, less movies, some aesthetically hopeless pillow cover.. less drink rounds.. And no ice cream this time (they used to serve ice cream after meal).

 

Having said that, the flight was good cause I got several seats to myself.. It's like that's their selling point now.

 

MH really need to tackle their core problems, not some window dressing turnarounds, cut routes here and there.. If not, they will close shop... And too much turnaround, you will end up at the same place..

 

Also I feel that MH should focus more on high yielding overseas market..ie people who are willing to pay more for quality products.. Malaysians in general are demanding yet stingy..Hard to please.

 

I like this one, turning too many times around maybe bringing someone back to the original point...

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Flew to LAX a couple of times as a passenger and the last 2 flights had loads of burmese refugees being brought to the US.Rear economy section was full of them. Ex-LAX, those going to kl numbered 60-80 people(when I counted at transit in TPE)? the rest were going to TPE or joining in from TPE. Sans refugees, I think the flight would have been 65-70% full.

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Umno MPs call Azman Mokhtar, Tony Fernandes cheats in MAS-AirAsia share swap

By Shannon Teoh

November 14, 2011

 

KUALA LUMPUR, Nov 14 — Umno lawmakers accused Tan Sri Azman Mokhtar and Tan Sri Tony Fernandes today of cheating the public in the Malaysia Airlines (MAS) and AirAsia share swap.

 

Kinabatangan MP Datuk Bung Mokhtar Radin called on Khazanah chief executive Azman to be investigated by graftbusters after the state investment agency exchanged 20.5 per cent of the national carrier for a 10 per cent stake in Asia’s top-performing budget airline.

 

“The Malaysian Anti-Corruption Commission (MACC) must call Tan Sri Azman ... all of them ... if there is any misappropriation, stuff them into jail,” the Barisan Nasional (BN) backbenchers deputy chief told Parliament.

 

“How can Khazanah be fooled? Azman Mokhtar, how can he be so stupid, to be ‘tuned’ by Tony Fernandes. If I was in such a position, I would resign rather than troubling others.

 

“Maybe they are not stupid. Maybe they get huge profits by squeezing and grabbing money from the public,” he said, referring to the AirAsia CEO’s company Tune Air which now owns a fifth of MAS.

 

Sri Gading MP Mohamad Aziz also accused AirAsia of “clearly cheating the public and now trying to cheat MAS.”

 

“If this kind of man (Fernandes) can control us, God forgive us,” he said while debating Budget 2012.

 

Bung Mokhtar also said the government should “not be scared of Fernandes.”

 

“Whatever he wants, we give. He wants to overcharge for excess baggage and suck the blood of poor villagers.

 

“Now I hear he has a plan in the future to take over all domestic flights and MAS will only have international flights. If we give this to him, the country will be in ruins. It will be the end of the world for us,” he said.

 

Bung said if the government could not provide a satisfactory answer, it meant that “government officials colluded with AirAsia and has vested interests.”

 

The MAS-AirAsia swap has come under fire from both sides of the political divide as well as employees of MAS who believe the deal will affect their careers.

 

The finance ministry said earlier this month that the deal is being investigated by Bursa Malaysia and the Securities Commission for insider trading despite the swap being agreed on three months ago.

 

MAS’s poor financial performance of late had resulted in the share swap with AirAsia on August 9.

 

This allowed AirAsia boss Fernandes to sit on the MAS board, ostensibly to help turn the ailing airline around.

 

MAS had 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.

 

Putrajaya insisted last month it had “no choice” but to implement the controversial share swap as “if (MAS) continues to make losses and the government has to inject funds, then there will be even more anger.”

 

Critics have accused the budget carrier’s boss of taking advantage of the loss-making national airline to fuel his personal ambitions, the latest being the acquisition of English Premier League club, Queens Park Rangers (QPR).

 

The national carrier will sponsor QPR’s home jersey for the next two seasons, while AirAsia’s logo will be emblazoned on the team’s away and third kits in a “multi-million pound” deal.

 

from here

:rolleyes:

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MAS-AirAsia CCF Part Of MAS Recovery Plan

 

KUALA LUMPUR, Nov 14 (Bernama) -- The government reiterated its stand that the Comprehensive Collaboration Framework signed between Malaysia Airlines (MAS) and AirAsia which brought about the exchange of shares between the two, was part of the plan to recover MAS.

 

Deputy Transport Minister Datuk Abdul Rahim Bakri said the move has given a new lease of life to MAS to carry on with its operations after having suffered major losses.

 

MAS recorded a loss of RM769 million for the first half of this year; RM242 million for the first quarter and RM527 million in the second quarter of 2011, brought on by the rising price of fuel globally.

 

"MAS is a national treasure and its impact on the country's economy will be significant. Whatever the action taken, the government's intention is to enable MAS to continue to operate and prevent a bankruptcy," he said when wrapping up a debate at the Dewan Rakyat.

 

The government could take an easier way of injecting more funds to help MAS but that would not be a good commercial decision, Abdul Rahim said.

 

"We hope the CCF, although not a popular move, would be able to give new life to MAS and prevent it from falling," he said.

 

Earlier during the debate, several BN and Opposition parliament members hurled criticisms at the upper management of AirAsia, alleging the low cost airline of having taken advantage of the government and the people.

 

They also claimed that the government and MAS were forced to give in to the demands of the airline.

 

Datuk Bung Mokhtar Radin (BN-Kinabatangan) also suggested that the Malaysian Anti-Corruption Commission be called in to investigate those involved in the decision to undertake the shares exchange including Managing Director of Khazanah Nasional, Tan Sri Azman Mokhtar.

 

He also wanted the government to provide the guarantee that the deal would not fall into the hands of foreign parties in the future.

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PETALING JAYA: Low budget airline AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes lashed out at several MPs for criticising him in the AirAsia-Malaysia Airlines share swap deal.

 

Taking to his Twitter account yesterday morning, he fired back at the four MPs who criticised him in the deal, telling them to train their guns on the rising airport fees instead.

 

“Four MPs have criticised me. Made it very personal for five years. One MP said I rape poor villagers.

 

“Villagers could never fly before.

 

“We have worked so hard to make flying affordable and 130 million people have flown due to us.

 

“Why are these member of parliaments not questioning the cost of airports and fighting for the people for lower taxes for the rakyat?” he asked in his tweets, taking potshots at airport operator Malaysia Airports Holdings Berhad at the same time.

 

Barisan Nasional MPs led by backbenchers deputy chief Datuk Bung Mokhtar Radin (BN-Kinabatangan), in Parliament on Monday, hit out at AirAsia for purportedly imposing exorbitant excess luggage fees on passengers as well as the lack of plans for aerobridges at KLIA2.

 

Independent MP for Wangsa Maju Wee Choo Keong also fired salvos at AirAsia, saying that safety must come first for passengers in deciding on having aerobridges.

 

The Finance Ministry had previously announced that the Securities Commission and Bursa Malaysia had launched an investigation into the swap deal.-

Star online

 

I think its for a simple fact that they did not get a share in the deal..!

That's why they are barking all day and night.

 

TF should stand in good business sense and should not be cowed by these jokers who are looking for issues to highlight their popularity. Elections are coming, and these poor SOBs are trying to get on the good side of the citizen and Najib. Useless imbeciles !

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..... jokers who are looking for issues to highlight their popularity. Elections are coming, and these poor SOBs are trying to get on the good side of the citizen and Najib. Useless imbeciles !

Hey, you may be onto something here - what with all this 'fighting for the rakyat' rhetoric lately

Anyone care to absolutely rule out T/S TF running for elected office within a year or two ?! :D

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...

TF should stand in good business sense and should not be cowed by these jokers who are looking for issues to highlight their popularity. Elections are coming, and these poor SOBs are trying to get on the good side of the citizen and Najib. Useless imbeciles !

 

Do you know who brokered this AK/MH deal? Najib's little brother, the CIMB chief. Personally I would like this deal to be scrutinised.

 

Hey, you may be onto something here - what with all this 'fighting for the rakyat' rhetoric lately

Anyone care to absolutely rule out T/S TF running for elected office within a year or two ?! :D

 

TF may have done good for travelers, but he ain't no saint either. :)

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TF may have done good for travelers, but he ain't no saint either. :)

Correct.

 

However, if he is found to have committed wrongdoings, justice must be served.

 

Another former CEO of MH, TR has gotten away with the murder of MH. Lets not have a repeat of that. Once is more than enough!

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Correct.

 

However, if he is found to have committed wrongdoings, justice must be served.

 

Another former CEO of MH, TR has gotten away with the murder of MH. Lets not have a repeat of that. Once is more than enough!

 

But remember MH is not founded by TR while AK is founded by TF.

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But remember MH is not founded by TR while AK is founded by TF.

 

AirAsia was founded by Hicom Bhd, then TF bought it. The Hicom guy who set up the original company and thot up the name 'AirAsia' is now residing in Singapore. Initial name was 'Pacific Eagle' as requested by then-PM Mahathir, but it was taken up already.

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AirAsia was founded by Hicom Bhd, then TF bought it. The Hicom guy who set up the original company and thot up the name 'AirAsia' is now residing in Singapore. Initial name was 'Pacific Eagle' as requested by then-PM Mahathir, but it was taken up already.

 

Yes, but what I trying to say is TF has no reason to bring down his own business that he has built for so hard.

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TF may have done good for travelers, but he ain't no saint either. :)

Oh dear, never been under any impression that a business entity such as AK can be saintly and still survive (let alone thrive) :)

Anyway, I believe sainthood is not a prerequisite for success in politics here :D

 

.....n FY JETS were murdered!

.....big fish eat small fish :D

Conforms with natural food chain rules :lol:

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MAS taking longer than expected to unveil turnaround plan

 

PETALING JAYA: Investors and analysts are basically growing tired, having waited for nearly three months now for the new team at Malaysia Airlines (MAS) to announce some definitive execution plans to turn the ailing airline around.

 

In a report, Maybank Investment Bank said: “The first impression we get is that the new management is busy learning the ropes and dealing with internal matters first before unveiling their grand plan.''

 

The house expects MAS to report a net loss of RM242mil for the third quarter. It said the fourth quarter, which is traditionally a good period for airlines, would be equally challenging for the national carrier. “It has been more than three months since the announcement of the MAS-AirAsia tie-up. Unfortunately, not much progress has been made in terms of operational matters.''

 

The research house said: “We have lowered our earnings forecast to adjust for higher fuel prices, lower yields and lower capacity deployment. We are optimistic on the tie-up as it brings forth exciting opportunities with synergy potential in the billions, but execution plans are iffy and very slow.''

 

“Against this backdrop, we have lowered our earnings forecast and downgraded MAS to a “hold” (from “buy”) with a target price of RM1.55 per share (from RM2.70) pegged to 5.6 times 2012-adjusted enterprise value/earnings before interest, taxes, depreciation and amortisation on par with global peers,'' it said.

 

It estimates that the third-quarter core net loss to be RM242mil after adjusting for FRS139 derivative mark-to-market, which is non-cash. The target is largely based on a 45% year-on-year rise in fuel price.

 

“We forecast the third quarter and the early part of 2012 to be loss-making after imputing for a higher jet fuel price of US$120 per barrel (from US$110 per barrel) and softer yield environment. MAS' cost structure is not nimble enough to deal with the current market environment. It should be in better shape in 2H12 when it removes most of its old aircraft from the fleet, ” according to the report.

 

It added that both airlines can save huge sums (RM200mil-RM300mil per year each) by eliminating irrational competition and reducing wastages. There is also potential yield enhancement stemming from better market supply demand relationship.

 

MAS has many routes in its network that are thin and have no potential to make profits (irregular non-daily flights, using big aircraft for small routes). Most of these routes were legacy in nature and served a different purpose in the yesteryears. Since the core focus was to revert back to profitability, MAS must be decisive and cull these routes immediately, the report said.

 

The report suggested that there were many areas where MAS and AirAsia could work to save cost.

 

“We believe both airlines should be smart and combine powers against the common enemy. For example, AirAsia X should stop its flights to Europe (London, Paris) and let MAS fight the battle alone against the Middle Eastern airlines (Emirates, Etihad, Qatar, Gulf) on these routes. Similarly, MAS should also get out from routes where there is no business travel or low yielding routes,'' it said.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/11/18/business/9926436&sec=business

 

AirAsia X should stop its flights to Europe (London, Paris) and let MAS fight the battle alone against the Middle Eastern airlines (Emirates, Etihad, Qatar, Gulf) on these routes.

 

Hahaha!!! Good one. :good: :rofl: :lol: :D

Edited by alberttky

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Well I believe MH is already beginning its A380 marketing activities in the UK.

 

Believe it or not, the A380 is still a big pull factor (due to Airbus being unable to ramp up production as originally planned) for passengers. EK reports that many people in the UK prefer to drive to Manchester just to take their A380 flights even though Birmingham airport is nearer!

 

So MH must try to use the A380 as its marketing tool for its European flights.

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Well I believe MH is already beginning its A380 marketing activities in the UK.

 

Believe it or not, the A380 is still a big pull factor (due to Airbus being unable to ramp up production as originally planned) for passengers. EK reports that many people in the UK prefer to drive to Manchester just to take their A380 flights even though Birmingham airport is nearer!

 

So MH must try to use the A380 as its marketing tool for its European flights.

 

It's a new big giant bird. Everyone wants to have a bite too!

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Talib admits MAS-AirAsia share swap impacted tourism

by Churchill Edward, Johnson K Saai, Lim How Pim, Antonia Chiam, Simon Ingka, and Lee Ya Yun, Photographers: Chimon Upon and Jeffery Mostapa, reporters@theborneopost.com. Posted on November 18, 2011, Friday

 

 

 

KUCHING: The state government acknowledged that the recent MAS-AirAsia share swap had affected the state’s tourism sector.

 

 

“The lack of public information on the future plan of this joint collaboration between MAS and AirAsia has created anxiety among industry players.

“Furthermore, Sarawak has experienced cancellations of flights and this has caused inconvenience to the public,” noted Tourism Assistant Minister Datuk Talib Zulpilip at the State Legislative Assembly yesterday.

He was responding to state DAP chairman Wong Ho Leng (DAP-Bukit Assek) who asked how the collaboration had affected Sarawak both positively and adversely.

On Firefly ceasing to operate its Kuala Lumpur-Kuching and Johor Bahru-Kuching routes from Oct 31, Talib also noted that the move had undoubtedly left behind a vacuum.

“To address the issue, the state government has written to the federal government to express concern and displeasure on the lack of communication and consultation. The abrupt cancellation of firefly services after the announcement of the swap and collaboration between the two airlines do not augur well for the state.

“The state government has also initiated dialogues and meeting sessions to seek opportunities for foreign airlines to operate in Sarawak. The state government through Malaysia Airport Holdings Bhd has offered attractive incentives such as three years free landing and parking fees and marketing support,” he said.

Talib said the government, however, had no intention to establish its own airlines.

“We are looking at various options including the positioning of MASWings as a regional airline to service Sarawak, Sabah and BIMP-Eaga region,” he added.

Later at a press conference, Wong said he was disappointed that he did not get any answer to his supplementary question on MAS-AirAsia’s share swap that involved a Comprehensive Collateral Arrangement and for clarification on what the arrangement actually entailed.

He also said he was upset with the assistant minister for not knowing what the term ‘comprehensive collateral arrangement’ meant.

“He does not even know what Comprehensive Collateral Arrangement is. Barisan Nasional backbenchers and frontbenchers shouted at me not to use such jargon but I did not come up with the jargon. It is used by MAS and AirAsia.

“We want a fair deal for Sarawakians so that locals will not be penalised by monopolisation as a result of the arrangement. The tourism industry must not be further affected adversely,” he pointed out.

“With airfares increasing, flights reducing, we do not even know what is coming up in the airline industry.

“Yet the ministry cannot give more details as to how many more flights will be affected,” he lamented.

Meanwhile, state DAP secretary Chong Chieng Jen said before the collaboration was even proposed, there should be a study on its effect on Sarawak which relied very much on air travel.

“What are the detailed figures regarding flight reduction and increase in airfare?

“The results will form a ground for Sarawak people to fight for increased flights or reduction in fares.

“Even though the ministry claimed that MAS has not increased airfares for the past 15 years, all other things have increased such as fuel charges, administration charges and airport taxes,” he pointed out.

 

 

Read more: http://www.theborneopost.com/2011/11/18/talib-admits-mas-airasia-share-swap-impacted-tourism/#ixzz1e1b8NEuF

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Talib admits MAS-AirAsia share swap impacted tourism

by Churchill Edward, Johnson K Saai, Lim How Pim, Antonia Chiam, Simon Ingka, and Lee Ya Yun, Photographers: Chimon Upon and Jeffery Mostapa, reporters@theborneopost.com. Posted on November 18, 2011, Friday

 

 

 

KUCHING: The state government acknowledged that the recent MAS-AirAsia share swap had affected the state’s tourism sector.

 

 

“The lack of public information on the future plan of this joint collaboration between MAS and AirAsia has created anxiety among industry players.

“Furthermore, Sarawak has experienced cancellations of flights and this has caused inconvenience to the public,” noted Tourism Assistant Minister Datuk Talib Zulpilip at the State Legislative Assembly yesterday.

He was responding to state DAP chairman Wong Ho Leng (DAP-Bukit Assek) who asked how the collaboration had affected Sarawak both positively and adversely.

On Firefly ceasing to operate its Kuala Lumpur-Kuching and Johor Bahru-Kuching routes from Oct 31, Talib also noted that the move had undoubtedly left behind a vacuum.

“To address the issue, the state government has written to the federal government to express concern and displeasure on the lack of communication and consultation. The abrupt cancellation of firefly services after the announcement of the swap and collaboration between the two airlines do not augur well for the state.

“The state government has also initiated dialogues and meeting sessions to seek opportunities for foreign airlines to operate in Sarawak. The state government through Malaysia Airport Holdings Bhd has offered attractive incentives such as three years free landing and parking fees and marketing support,” he said.

Talib said the government, however, had no intention to establish its own airlines.

“We are looking at various options including the positioning of MASWings as a regional airline to service Sarawak, Sabah and BIMP-Eaga region,” he added.

Later at a press conference, Wong said he was disappointed that he did not get any answer to his supplementary question on MAS-AirAsia’s share swap that involved a Comprehensive Collateral Arrangement and for clarification on what the arrangement actually entailed.

He also said he was upset with the assistant minister for not knowing what the term ‘comprehensive collateral arrangement’ meant.

“He does not even know what Comprehensive Collateral Arrangement is. Barisan Nasional backbenchers and frontbenchers shouted at me not to use such jargon but I did not come up with the jargon. It is used by MAS and AirAsia.

“We want a fair deal for Sarawakians so that locals will not be penalised by monopolisation as a result of the arrangement. The tourism industry must not be further affected adversely,” he pointed out.

“With airfares increasing, flights reducing, we do not even know what is coming up in the airline industry.

“Yet the ministry cannot give more details as to how many more flights will be affected,” he lamented.

Meanwhile, state DAP secretary Chong Chieng Jen said before the collaboration was even proposed, there should be a study on its effect on Sarawak which relied very much on air travel.

“What are the detailed figures regarding flight reduction and increase in airfare?

“The results will form a ground for Sarawak people to fight for increased flights or reduction in fares.

“Even though the ministry claimed that MAS has not increased airfares for the past 15 years, all other things have increased such as fuel charges, administration charges and airport taxes,” he pointed out.

 

 

Read more: http://www.theborneopost.com/2011/11/18/talib-admits-mas-airasia-share-swap-impacted-tourism/#ixzz1e1b8NEuF

 

These people only know how to moan and cry, and blame the airlines for dwindling number of visitors.

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I think Firefly may have left a gap in the "low cost but premium service" segment. However, since MAS did not reduce its capacity, Firefly was cannibablising a lot of the passenger traffic, thereby leaving MAS with big losses. There are unofficial reports that MAS Q3 losses are about half of the Q2 losses. So cutting out Firefly jet may have helped to cut MAS' losses.

 

These people only know how to moan and cry, and blame the airlines for dwindling number of visitors.

Yes, Sarawak tourist infrastructure is so poor. That is why not many people come back after visiting once.

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Sarawak tourist infrastructure is so poor. That is why not many people come back after visiting once.

 

I tell people not to go to Sarawak cuz it's a waste of time.

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Sarawak tourism infrastructure may be poor and does not meet the standard requirement. But I won't rate it to an F, probably B or C.

 

Besides, please do not narrow down the Sarawak flight connectivity is just merely catering tourism. Don't forget about the business travelling, especially now Sarawak got the SCORE project. On top of that 70% load factor by FY between KUL - KCH is really a lot! The immediate and sudden cancellation does affect the passengers!

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I just checked AirAsia and MAS KUL-KCH flight frequencies.

 

Dec 2011 - 14 flights daily = approx 2520 seats from KUL-KCH

Mar 2012 - 12 flights daily = approx 2160 seats from KUL-KCH

 

Dec 2011 - 5 B734 and 2 B738 flights daily = approx 1052 seats from KUL-KCH

Mar 2012 - 4 B734, 2 B738 and 1 A330 flights daily = approx 1190 seats from KUL-KCH

 

So total number of seats available per day in December 2011 is approx 3572 (110732 seats for whole month) while for March 2012, it is 3350 (103850 seats for whole month).

 

Is this enough connectivity from KUL to KCH?

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I just checked AirAsia and MAS KUL-KCH flight frequencies.

 

Dec 2011 - 14 flights daily = approx 2520 seats from KUL-KCH

Mar 2012 - 12 flights daily = approx 2160 seats from KUL-KCH

 

Dec 2011 - 5 B734 and 2 B738 flights daily = approx 1052 seats from KUL-KCH

Mar 2012 - 4 B734, 2 B738 and 1 A330 flights daily = approx 1190 seats from KUL-KCH

 

So total number of seats available per day in December 2011 is approx 3572 (110732 seats for whole month) while for March 2012, it is 3350 (103850 seats for whole month).

 

Is this enough connectivity from KUL to KCH?

 

Well I cannot really answer if the seats are enough or not enough. What I doubt is how MH is going to cope up FY's 7 daily flight on KUL - KCH sector? Obviously the deal between MH and AK has been announced but the actual plan is yet to be rolled out which leaves many hesitate and worry.

 

Besides, what I think is not only the KUL - KCH sector, Sarawak just simply wishes more connectivities, in and out of Sarawak, could be made. Of course the more, the merrier. I suppose instead of waiting, perhaps Sarawak Government may come out the proposal plan first since they have no intention to set up an own airlines but to utilise MasWings.

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