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MAS and AirAsia Shares Swap

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The manifestos in the petition is full of bshit except point no. 9.

 

9. Security Council Bursa Saham Malaysia telah menyatakan bahawa ada unsur penyelewangan dalam urusan pertukaran saham MAS dan Air Asia tetapi setelah lebih dari 3 bulan, masih belum ada apa-apa siasatan.

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Malaysia Airlines Top Priority To Stem Losses

 

by M. Saraswathi

 

KUALA LUMPUR, Feb 23 (Bernama) -- The top priority for Malaysia Airlines now is to stem its huge losses and a return to profitability soon, besides striving to regain its stature as a preferred premium airline with better services and newer aircraft, its Group Chief Executive Officer (CEO), Ahmad Jauhari Yahya, said Thursday.

 

Its recent senior management shake-up and drastic route cuts are among the many strategies being taken to put the national airline back on track towards profitability from the 2013-14 financial year onwards, he said.

 

He also said it was imperative that solutions be found to address issues at the national carrier, as the Malaysia Airlines name, invoked much pride among Malaysians.

 

For the nine months ended Sept 30, 2011, Malaysia Airlines incurred RM1.209 billion in pre-tax losses as compared to a RM23.73 million profit for the same period in 2010. It is scheduled to release its full year financial result next week.

 

To avoid "rivers of red ink" for a considerable period if nothing drastic is done, major shareholders of Malaysia Airlines decided to undertake a top management change, as well as a landmark share swap deal late last year between Malaysia Airlines and its closest local rival, AirAsia.

 

Under the deal, AirAsia's major shareholder, Tune Air Sdn Bhd, took a 20.5 per cent share in Malaysia Airlines while Khazanah Nasional Bhd got 10 per cent of the low budget airline.

 

As part of the revamp, Ahmad Jauhari, 57, an engineer by training and a corporate figure who had made his mark at Malaysian Resources Corporation Bhd and Malakoff Bhd, was appointed CEO last September.

 

"We have to stem losses first before moving forward. So, the first thing we did was to review all the "bleeding" routes, then on managing costs and finally, relooking our network," he told Bernama in an interview today.

 

The company's new board of directors, he said, had also looked at how other factors could be improved, including, increasing frequencies on certain profitable routes such as to Manila, Jakarta, Shanghai and Beijing.

 

Although the move by Malaysia Airlines to cut off certain routes had caused lots of rumbling, including from employees, Ahmad Jauhari said such decisions were common in the aviation industry.

 

"It's a norm for airlines. You must get the volume. Japan Airlines slashed 40 per cent of the routes when it was in trouble," he said in citing an example.

 

But he said Malaysia Airlines may relook some routes that were cut if profitability could be ensured in future.

 

Route cutting, he explained, would also help Malaysia Airlines to slash its maintenance and operating costs, as 36 aircraft in its fleet were at the end of their leases, and this meant it need not ground them as they would be returned to the lessors.

 

At the same time, Malaysia Airlines will be receiving 23 new aircraft, thus reducing its average fleet age to eight years from 14 years previously, and improving cost efficiency through newer and fuel-efficient engines.

 

In refuting claims that the route cuts had benefited its strategic partners, AirAsia and AirAsia X, he said: "Both airlines (Malaysia Airlines and AirAsia) actually act (separately) in terms of their own networks. Just as we cut and introduce new routes, they also do the same all the time."

 

Ahmad Jauhari said Malaysia Airlines withdrew from Capetown and Johannesburg but neither AirAsia or AirAsia X were flying there.

 

Similarly, AirAsia X withdrew from London, Paris, New Delhi and Mumbai but these routes are still serviced by Malaysia Airlines, and when AirAsia X stopped flying to Abu Dhabi, Malaysia Airlines did the same with Dubai.

 

"So, it is completely an independent decision of both airlines. But whenever airlines cut routes, the incumbent get the traffic. That could be any airline," he pointed out.

 

On suggestions by some quarters that the partnership with Air Asia may eventually turn Malaysia Airlines into a low cost carrier over the long haul, Ahmad Jauhari said emphatically that it would always remain a full service carrier.

 

Commenting on plans to revitalise the airline as a preferred premium airline and attract more passengers, Ahmad Jauhari said it would embark on a major advertising and promotion campaign from mid-2012.

 

This would be just as Malaysia Airlines receives the first of its A380 jumbo aircraft, which would be deployed for the Kuala Lumpur-London sector from July 1.

 

The campaign will be rolled out in stages, in South East Asia first, before going worldwide.

 

"The A380 will be our flagship aircraft to compete with other airlines. It is also a good opportunity to place Malaysia Airlines deservingly as a premium entity and help us win back customers," he said.

 

Asked why Malaysia Airlines had lost ground as a premium airline, Ahmad Jauhari said its competitors had been improving their services and offerings with newer aircraft.

 

"As such, regaining premium customers would not be on price alone, as Malaysia Airlines needs to put in more hard work, to entice them by offering better services and frills as they are now spoilt for choice," he said.

 

On the Kuala Lumpur-London sector, for example, carriers such as Etihad, Emirates and Singapore Airlines are also flying the same route.

 

"We can't force customers to fly Malaysia Airlines. It's all about winning back customers by providing the better choice. These days you got to pamper customers.

 

"The mission is very clear. We basically have a large competition out there and the company needs to do this in order to survive. It is really about survival and winning back customers," he added.

 

As part of the campaign to capture more premium passengers, Ahmad Jauhari hoped that Malaysia Airlines' emergence as a member of the "One World" alliance in November this year would help, as it allowed access to almost 950 destinations in 150 countries, served by a combined fleet of 2,600 aircraft operating around 10,000 flights a day and carrying 358 million passengers.

 

Asked to elaborate on the introduction of new destinations, he said this would have to wait until the airline turned profitable.

 

"It takes at least a year to build-up traffic for a new route. For the first few months, you are going to lose some money. So, until we are financially sound, we can't give that a try, and unless very certain of enough traffic," he added.

 

As to the possibility of Malaysia Airlines being forced to offer a voluntary employee separation scheme following the route cuts, Ahmad Jauhari said the management would look at seconding its skilled workforce to other airlines first, if there was a surplus.

 

"Secondment means these skilled workers would be gainfully employed until such time when the situation improves and Malaysia Airlines could then fully utilise them again," he added.

 

He said the highly trained cabin crew, pilots and technical personal of Malaysia Airlines were much sought after in the industry.

 

"If we have more than necessary, we can send them on secondment. This is also a norm in the industry. We helped start India's Jet Airways (in that way), as they used our cabin crew, pilots and planes," he disclosed.

 

He stressed that the management would ensure that its work force would be "usefully employed."

 

Asked what he meant by "usefully employed", Ahmad Jauhari explained that they would have to undertake tasks to help boost the national airline's current turnaround and ensure future profitability.

 

-- BERNAMA

 

Source : http://www.bernama.com/bernama/v6/newsindex.php?id=647407

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AJ firmly puts quit rumours to rest

 

Malaysia Airlines (MAS) will be releasing its fourth-quarter results next week.

 

And going by AirAsia and Singapore Airlines' recent financial numbers, it is clear the results are going to be bad for MAS.

Recently, an analyst wrote in his report to expect a “hard landing''. He may not be wrong because he expects a net loss of RM276mil for the fourth quarter and full year, a RM1.3bil net loss or even more. MAS flew in RM1.2bil in net loss for the first nine months of 2011. (See Stemming losses top riority, says MAS chief)

 

Maybe the newly appointed numbers maverick, Rosman Omar, could massage the numbers for a softer landing, though it will be tough.

 

Some say MAS had planned to release the numbers three days ago but now it is Tuesday next week, so let's see.

 

As though that is not bad enough, there are swirling rumours that Ahmad Jauhari Yahya, the recently-appointed MAS supremo, is quitting. But AJ, as he likes to be called, has put these rumours to rest. In an SMS to this writer late yesterday, he says all the talk about him quitting is not true.

 

The CEO, it must be recalled, was sought after for the job and given a three-year contract. Even if he wants to quit, he cannot because the onus is on him to deliver no matter how rough the ride.

 

Somehow AJ is attracting a lot more publicity as the CEO of MAS than when he was at the power companies. Perhaps because he holds the trump card to MAS' health and many want to know the real situation, not PR spins.

 

But one of his strong supporter had this to say: “AJ is doing a great job, it's just people who are unhappy because things are changing.'' But his critics say, “it is like a closely-knit group there, only a few know what is happening, for the rest the picture is still cloudy.''

 

Whatever, and while he is on a marathon to get things sorted at MAS, one of the unions that represents 7,000 out of the 21,000 MAS employees had since Monday stepped up its protest against the share swap and collaboration with AirAsia.

 

The union is distributing badges that read “NO'' to share swap and collaboration, and many of its members are happily wearing it around, although there is a move to get the badges off them.

 

Don't be surprised if posters, banners and even car stickers come out pretty soon as the protest continues.

 

The challenge upon MAS is not just to stem the losses but beyond. It is therefore interesting to ask if the problems are deeper and how much of this slashing, cutting or reduction of cost and routes will help the airline return to the black? Has the issue of leakages been addressed or are they just skimming the surface?

 

AJ has assembled a core team to revive the airline with AirAsia stalwarts such as Rosman and Azahari Dahlan (head of engineering unit) joining the airline. The others include experienced people like Shayne Nolan (interim commercial director), Al-Ishsal Ishak (senior vice-president for marketing and promotions), Hugh Dunleavy (head of network, alliance, strategy and planning) and Shihaj Kutty (revenue management). More new staff are expected as some of the existing ones find it trying to stay on.

 

But those who have invested in MAS want a glimpse of the future. They need to know if there really is a light at the end of the tunnel or is this one endless choppy ride. MAS must remember, the people are losing their patience.

 

Source: http://biz.thestar.com.my/news/story.asp?file=/2012/2/24/business/10795026&sec=business

 

TF Tweets:

 

I read in BK sidhu article in the star that some mas staff want to use badges against the colloboration. This is led by the unions. Protest is fine. I support. We live in a free world. And we must listen to all views. AJ the ceo of mas is a superb guy and listener and has the staff as his paramount. Change must come. The world doesn't wait for anyone.

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Learn From AirAsia, Dr Mahathir Tells Malaysia Airlines

By Prem Kumar Panjamothy

 

KUALA LUMPUR, March 3 (Bernama) -- Tun Dr Mahathir Mohamad has urged Malaysia Airlines (MAS) to study AirAsia's cost-cutting measures and management structure for it to return to the black.

 

Now was the best chance to understudy and see why the national carrier had plunged into a deep fiscal crisis while the budget airline was making profits, the former prime minister told Bernama.

 

The swap deal between Khazanah Nasional and key shareholder of AirAsia should tie them together, he said.

 

In August last year, MAS and AirAsia entered into a collaboration agreement that was strengthened by Tune Air and Khazanah -- the major shareholders of AirAsia and MAS respectively -- swapping their shares.

 

This resulted in Tune Air holding 20.5 per cent equity interest in MAS and Khazanah owning 10.0 per cent of AirAsia, and also Tune Air founder and co-founder Tan Sri Tony Fernandes and Datuk Kamarudin Meranun joining MAS' board.

 

"Given that both the airlines operate from the same country, there is no reason for MAS to fail. They have to team up with AirAsia," Dr Mahathir said.

 

"AirAsia is making plenty of money. They are making profit even though their fares are very low.

 

"So there is something MAS can learn from AirAsia in terms of management, cutting down costs and therefore, making profit," he said.

 

MAS posted RM2.52 billion net loss for its financial year ended Dec 31, 2011 -- the biggest-ever in its corporate history, on the back of RM13.9 billion revenue.

 

AirAsia, meanwhile, reported a net profit of RM564.1 million on the back of RM4.47 billion record revenue.

 

Asked whether Khazanah should divest its shares in MAS if the crisis continues, Dr Mahathir said: "Well, I would not be able to say on that."

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Why don't learn from Singapore Airlines rather than learn from AirAsia? Frankly, Tun Dr M should told and advise this solutions during he was a PM and got the power but not now.

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Why don't learn from Singapore Airlines rather than learn from AirAsia? Frankly, Tun Dr M should told and advise this solutions during he was a PM and got the power but not now.

 

Publicly advising a national carrier to learn from SQ is akin to acknowledging that SQ is superior, and few local politicians want to admit it. :pardon:

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What Dr. M and the government should have done is to allow MAS to take Tajuddin Ramli to the cleaners for his thieving ways! Instead TR still gets protected and whoever that tried to bring him to justice has found themselves on the sidelines & humiliated badly.

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What Dr. M and the government should have done is to allow MAS to take Tajuddin Ramli to the cleaners for his thieving ways! Instead TR still gets protected and whoever that tried to bring him to justice has found themselves on the sidelines & humiliated badly.

 

 

Rotting at MH can be traced back to Mr 019 i.e. Dr M

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Rotting at MH can be traced back to Mr 019 i.e. Dr M

 

It actually started at the forex trading room at a particular central bank. And since then, the hole is dug deeper & deeper...maybe soon, they can come out at the other side of the earth.

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And since then, the hole is dug deeper & deeper...maybe soon, they can come out at the other side of the earth.

Meaning soon there will be light at end of the tunnel ?! :p

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Is it true that SQ got 6 months bonus while MH got zero bonus for 6 years?

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Is it true that SQ got 6 months bonus while MH got zero bonus for 6 years?

 

Yes that's right. Especially when SQ net profit exceeds SGD1 billion. So during the good days, 6 months bonus is quite common. We've not seen those for a while now.

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Could be a train heading towards you!

That would imply someone actually laid tracks as they dug, ie there was meaningful purpose to all that digging

In this case though, it was probably digging for sake of ....... well, digging :)

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In this case though, it was probably digging for sake of ....... well, digging :)

 

Or rather, for getting the contract on the digging.

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I have previously mentioned my flight from KUL to LHR (early 2011) on MAS and how tiny the nasi lemak breakfast was. Last week, I flew with MAS from KUL to LAX in J-class ... and while the food quality was good, its portion is still miniscule.

 

From KUL to TPE, a light meal was served ... the operative word here is "light". I elected to try the "Stir fried prawn with dry chilli and cashewnut". The amount of rice served probably amounted to five spoonfuls ... almost disappearing under the swirl of pak choy. There was absolutely no hint - either in taste or in form - of the dry chilli.

 

Out of TPE, dinner was served and I elected for "Wok fried chicken in spicy lemongrass sauce" ... and unsurprisingly, there was no hint of lemongrass ... instead, the sauce that the entire dish was cooked in was very salty. I was left gulping water like a dugong.

 

Prior to landing in LAX, brunch was served ... and again, I chose the Asian option of "Stir fried chicken thigh in ginger and spring onion with egg noodle and seasonal vegetables". Thank goodness I could taste the ginger but I gulped even more water as it was once again very very salty. I gather the generous quantity of salt is the perhaps the doing of the caterer in TPE.

 

The catering aside - and I gather this area took the brunt of the cost cutting at MAS, I must compliment the crew from TPE to LAX for the fantastic service. And I felt so positive not because the crew on the KUL-TPE sector was so rough at the edges (and I saw a cabin attendant trying to settle a seating situation in J-class and bungling it big time. Not only did she admit that although a passenger failed to get seat 4J - this was confirmed in his booking, she ended up infuriating two other passengers) ... the crew out of TPE consisted of a very happy team of cabin attendants. They were very attentative, very warm and one of them - Gina Yap - was particularly superb. People like her are the reasons why MAS cabin crew are voted the best for several years.

 

I must also mention the excellent staff member who checked me in at KLIA ... he has managed to change my perception of MAS check-in staff (a perception from a previous experience around the time MAS rolled out the "Hibiscus" B744). That is how long a bad impression stayed ...

 

While MAS seems to have cut costs in many areas impacting on the passengers' flying experience (certainly something it learnt from AirAsia even before the Comprehensive Collaborative Framework), it probably did not cut costs elsewhere ... I still wonder what accounted for the 50% increase in non-fuel costs.

 

It does not matter where MAS' management draws its lessons from ... and certainly it would be a bad idea for anyone in the corridors of power to suggest learning from SIA ... what matters is the grim fact that MAS must stop the bleeding that has taken place for several quarters already. The introduction of the A380 is going to suddenly spike the level of spendings ... long before any spike in revenue can be realised ... so I shudder to imagine what MAS' financial reports will look like in the next two quarters. Hopefully as most expect, the economic situation in Europe and the rest of the world rebounds in the later part of 2012.

 

The accountants will do well to find ways to divert losses at MAS to the new "premium airline" that is being established with Qantas ... that way, there are more shoulders to bear the financial burden.

 

KC Sim

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The accountants will do well to find ways to divert losses at MAS to the new "premium airline" that is being established with Qantas ... that way, there are more shoulders to bear the financial burden.

And what makes you think the Australians will stomach that ?! :p

Notice that everyone has shied away from making any binding commitment thus far ? :)

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