MAS and AirAsia Shares Swap

[BC Tam 2]

I noticed that the snackbox presentation has now reverted back to the (more elegant) meal tray presentation on my recent MH flights - would it be premature to offer congratulations ?

Also, what that was offered were much tastier than what I remember of MH's inflight meals previously - bravo !

[affendi osman 0]

I noticed that the snackbox presentation has now reverted back to the (more elegant) meal tray presentation on my recent MH flights - would it be premature to offer congratulations ?

Also, what that was offered were much tastier than what I remember of MH's inflight meals previously - bravo !

 

I posted something @ airlines meal page....

yeap, reverted to tray, but according to the crew, they run out of snakebox!

[Naim 6]

I posted something @ airlines meal page....

yeap, reverted to tray, but according to the crew, they run out of snakebox!

 

Reminds me of 'snakebar'. Sorry O/T.

In '93, I went to Saigon, while the US embargo was still on - a decrepit, run-down place. Bunked in a cheap hotel behind the concert hall, and one afternoon this young chap loitered around and offered to take me to the 'snakebar' on his bike ... very nai, he said, you like it. I said, why should I go, I don't like snakes. He was surprised, no, no, no, no snake there, only girl, many girl! Then I got it, ahhhh -- 'snackbar' not 'snakebar'. The chap's probably running an IT outsourcing company right now, hahaha!

[BC Tam 2]

I think story not complete yet lah

Snakebar, snackbar - did you make it there and if so, was it the very nai as promised ?

[Radzi 2]

In some good news - apparently the lopsided LSGB contract has been renegotiated so that MAS only needs to pay what's taken onboard.

 

 

 

http://biz.thestar.c...6AAvuko.twitter

 

Then again, what is the unit cost?

[Nik H. 3]

As far as the catering Agreement is concerned, any change will be better than no change. Given the interests involved in the renegotiated agreement, this is indeed a major victory for MH.

[Mohd Azizul Ramli 2]

I hope this is the beginning of more pleasant revelations and announcements from MH en route to profitability. The new team needs to communicate every success so that we, the public, know that they are doing their job in ensuring the corporate governance is upheld. Now we have:

 

- catering contract renegotiated

- QPR sponsorship terminated

- 2 years unpaid leave scheme for employees offered

[affendi osman 0]

I hope this is the beginning of more pleasant revelations and announcements from MH en route to profitability. The new team needs to communicate every success so that we, the public, know that they are doing their job in ensuring the corporate governance is upheld. Now we have:

 

- catering contract renegotiated

- QPR sponsorship terminated

- 2 years unpaid leave scheme for employees offered

 

 

Agree with MAR

I found that the QPR sponsorship is so irrelevant with MH current situation.

[Waiping 12]

Agree with MAR

I found that the QPR sponsorship is so irrelevant with MH current situation.

 

It was drag into the mess by the mistress.

[Mohd Suhaimi Fariz 2]

A shrink in losses - but not time to rest, still lots of things to do.

 

MAS Q1 losses shrink to RM171m from RM242m year ago

 

KUALA LUMPUR: Malaysian Airline System Bhd's (MAS) net losses in the first quarter ended March 31, 2012 were lower at RM171mil compared with the RM242mil a year ago.

 

MAS said the losses showed a decline of 29% on-year despite that jet fuel averaged about US$135 per barrel compared to US$120 per barrel a year ago.

"Total revenue of the group stood at RM3.11 billion while overall operating expenditure was RM3.42bil, thus leading Malaysia Airlines to register an operating loss of RM307mil for the first three months of 2012, 10% lower year-on-year," it said.

 

MAS group CEO Ahmad Jauhari Yahya said: "We were able to achieve a lower net loss for the first three months of 2012 compared to the previous year because we made some tough decisions per our Business Plan."

 

The airline had cut unprofitable routes especially in long haul where yields were low, he said, adding this helped it to immediately improve its revenue per available seat kilometre (RASK) performance year-on-year.

 

Ahmad Jauhari said the lower fuel bill was due to improved consumption due to newer fuel-efficient aircraft.

 

Passenger yield increased 12% while RASK increased by 8%. Passenger capacity decreased 8% due to network rationalisation that included 12 route cuts during the period.

 

Cargo saw a 15% decrease in operating revenue for the quarter to RM431.2mil compared to last year due to proactive capacity management. Capacity decreased 19%, with yield increasing by 6%.

 

MAS reported that the group operating expenses fell 3.1% to RM3.42bil. Fuel accounted for 38% of the operating expenses or RM1.31bil, up RM142mil in spend on jet fuel alone.

 

Staff cost increased 7% to RM591mil due to salary increments and upward adjustments to the salary structure due to a collective agreement signed with a union.

 

http://biz.thestar.c...10&sec=business

[Mohd Azizul Ramli 2]

That is so much better than the RM 330 million losses predicted by the analysts. Share price should go up tomorrow.

[flee 5]

MAS' Bursa Malaysia Announcement: http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/4A25A9313D90F9A948257A0600339471/$File/Bursa%20%5BQ12012-Final%5D.pdf

 

Funding Plan Proposals as disclosed to Bursa Malaysia:

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/4A25A9313D90F9A948257A0600339471/$File/BursaAnnouncement%20Attchmnt126%20%5BMediaRelease-FundingPlan%5D.pdf

[flee 5]

Tuesday, 22 May 2012, Subang – Malaysia Airlines Group registered a loss after tax of RM171 million for the first quarter ended 31 March 2012, a significant 29% reduction from the RM242 million loss for the same period last year despite higher jet fuel price averaging USD135 per barrel during the quarter compared to USD120 per barrel in the previous year.

 

Total revenue of the Group stood at RM3.11 billion while overall operating expenditure was RM3.42 billion, thus leading Malaysia Airlines to register an operating loss of RM307 million for the first three months of 2012, 10% lower year-on-year.

 

According to Malaysia Airlines Group Chief Executive Officer, Ahmad Jauhari Yahya, “We were able to achieve a lower net loss for the first three months of 2012 compared to the previous year because we made some tough decisions per our Business Plan. We cut unprofitable routes especially in long haul where yields were low. This helped us to immediately improve our Revenue per Available Seat Kilometre (‘RASK’) performance year-on-year. On the cost side, we lowered our fuel bill with improved consumption as a result of newer fuel-efficient aircraft.”

 

Ahmad Jauhari added, “Improved cost management was also seen for non-fuel variable costs, although we are currently unable to address our fixed costs. We are optimistic this situation will change in the not too distant future. From these Q1 results, we feel confident of continuing improvements in performance, given that the initiatives from our Business Plan are bearing fruit.”

 

For the airline, passenger yield increased 12% while RASK increased by 8%. Passenger capacity decreased 8% due to network rationalization that included 12 route cuts during the period. The Group’s aggressive focus to consolidate its network has begun to show promising results.

 

Cargo saw a 15% decrease in operating revenue for the quarter to RM431.2 million compared to last year due to proactive capacity management. Capacity decreased 19%, with yield increasing by 6%.

 

Group operating expenses for this quarter was RM3.42 billion, 3.1% lower than the same quarter last year. Fuel remained the largest component at 38%, equivalent to RM1.31 billion, which was an increase of RM142 million in spend on jet fuel alone. Aided by the network rationalization and improved fuel consumption from more efficient aircraft, the Group was still able to record a significant achievement with a lower total expenditure despite the rise in fuel price.

 

Staff cost increased 7% to RM591 million for the quarter ended 31 March 2012 due to salary increments and upward adjustments to the salary structure as a result of one Collective Agreement signed with a union.

 

Ahmad Jauhari expressed his gratitude to the staff, “I am pleased that the Management and employees are committed to the success of the Business Plan. This is evidenced by improved the On-Time Performance (OTP) which averaged 91.26% for the quarter ended 31 March 2012, representing a high 9.36% improvement on the 81.9% average for the same quarter last year.”

“We are also on track to win back more customers with a major re-fleeting exercise. This year, 23 new aircraft equipped with state-of-the-art passenger amenities will join our fleet. This is led by our flagship A380 aircraft which is on schedule to enter into service on 1 July 2012. Supported by intensified sales and marketing, we are confident of improving our customer base to boost yield and load factors”, said Ahmad Jauhari.

 

The airline is also moving quickly to increase productivity and efficiency. This includes increasing utilization of its fleet through greater frequency to most popular regional destinations and a faster aircraft turnaround times at airports. This will be a foundation for Malaysia Airlines to implement a continuous improvement philosophy across all of operating areas to become a world class airline, and achieve the airline’s vision of being the preferred premium carrier.

 

Ahmad Jauhari also took the opportunity to thank the Board members for their support of the tough decisions taken to implement the Business Plan. “I thank the Board of Directors for their support of Management’s implementation of the Business Plan. Their support was imperative to our ability to get to this stage of the Plan towards getting our Company back to profitability. Our appreciation also goes to former Directors, Tan Sri Tony Fernandes and Dato’ Kamarudin Meranun, for their invaluable support and guidance during their tenure on our Board.”

 

Source: http://www.malaysiaairlines.com/my/en/corporate-info/press-room/latest/malaysia-airlines-registered-29.html

[nrazmoor 0]

“We are also on track to win back more customers with a major re-fleeting exercise. This year, 23 new aircraft equipped with state-of-the-art passenger amenities will join our fleet. This is led by our flagship A380 aircraft which is on schedule to enter into service on 1 July 2012.

 

Source: http://www.malaysiaa...istered-29.html

 

23 new aircraft FY2012?? Apart from 5 A380 schedule delivery and 2 A330 what else??

Edited May 22, 2012 by nrazmoor

[flee 5]

Lotsa Boeing 737-800s. If you look back at the PowerPoints that were linked earlier on this thread, you will find a slide that shows the delivery schedule.

[nrazmoor 0]

Lotsa Boeing 737-800s. If you look back at the PowerPoints that were linked earlier on this thread, you will find a slide that shows the delivery schedule.

 

Will try to find it.. or if you dont mind care to share the link?

[Mohd Azizul Ramli 2]

 

23 new aircraft in 2012 - 5 A380, 5 A333 and 13 B738. From my understanding, MH has managed to secure the financing for 3 A333 and 13 B738 but not the 5 A380 and another 2 A333 due this year.

[Lock SH 0]

MH has managed to secure the financing for 3 A333 and 13 B738 but not the 5 A380 and another 2 A333 due this year.

 

No worries ........ CIMB will take care of 'em .........

 

 

[Josh T 0]

So nice to see so many of the B734s leaving the fleet this year and so many new B738s coming on board.

[Radzi 2]

I wonder if those international flights from BKI (HND, KIX, SEL and PER) will be resurrected.

[Josh T 0]

I wonder if those international flights from BKI (HND, KIX, SEL and PER) will be resurrected.

I think that's what we call a dead horse. No point flogging it anymore...

[Radzi 2]

I think that's what we call a dead horse. No point flogging it anymore...

 

Why not?

 

The routes were killed off during the share swap / "collaboration", which is now off. MH also is getting more B738. If the routes make sense, why not?

 

Of course, the viruses and trojans will have to be flushed out first.

[Josh T 0]

Why not?

 

The routes were killed off during the share swap / "collaboration", which is now off. MH also is getting more B738. If the routes make sense, why not?

 

Of course, the viruses and trojans will have to be flushed out first.

If there's a business case for it, sure. I'd like to know what the loads and yields were like for those flights originating from BKI.

[KK Lee 5]

As far as the catering Agreement is concerned, any change will be better than no change. Given the interests involved in the renegotiated agreement, this is indeed a major victory for MH.

 

LSG Sky Chefs has cashed out from its in-flight catering services joint venture in Malaysia with Brahim’s Holdings Bhd.

 

 

 

The German group yesterday struck a deal with Brahim’s to sell its 49 per cent stake in Brahim’s LSG Sky Chefs Holdings

Sdn Bhd (BLH), held via LSG Asia, for RM130 million.

 

The deal will also see BLH renegotiate its technical assistance contract with LSG, Brahim’s said in its statement to Bursa Malaysia yesterday.

 

LSG-Sky Chefs-Brahim’s (LSGB), a subsidiary of BLH, signed a

lucrative 25-year exclusive catering agreement for the Kuala Lumpur International Airport in Sepang and the Penang International Airport with Malaysia Airlines (MAS) in 2003.

MAS holds a 30 per cent stake in LSGB. At the time, LSGB also signed a 25-year deal with LSG Asia for various technical assistance.

 

According to the Bursa announcement, a new technical assistance contract will now supercede the one in 2003, and will only see

another two years of such an arrangement with LSG Asia.

 

“There can be no assurance that any adverse change in the business relationship between LSG Asia and LSGB or expiry of the

new technical assistance agreement will not have any material and/or adverse effect on the business operations of LSGB and consequently, BLH,” Brahim’s said.

 

“Notwithstanding this, the board believes that management of BLH and LSGB has the relevant expertise and experience in managing

and operates LSGB after the expiry of the new technical assistance agreement.”

 

MAS’ plan to review contracts with its suppliers as a means to

turn it around last year has put LSGB’s 25-year catering agreement in the limelight.

 

Brahim’s executive chairman Datuk Ibrahim Ahmad Badawi did not directly comment when approached after the company’s annual

general meeting recently, but had hinted at possible talks.

 

Brahim’s expects the stake acquisition to be completed in the third quarter of the year, subject to shareholders’ approval.

 

Read more: Sky Chefs ends Brahim’s journey http://www.btimes.com.my/articles/20120522004537/Article/#ixzz1veZlQJ7D

 

 

According to rumour mill; unwinding of the profit guarantee contract was initiated by TF.

[flee 5]

Why not?

 

The routes were killed off during the share swap / "collaboration", which is now off. MH also is getting more B738. If the routes make sense, why not?

 

Of course, the viruses and trojans will have to be flushed out first.

Share swap may be off. But collaboration is still on.

 

Many people, especially those who do not have corporate/finance understanding, have misinterpreted the reason for the share swap.

 

MH were looking at BKI "eastern hub" ops as a whole, not just purely on the routes that were operated. I believe the yields from the eastern hub routes are not able to cover all the operating costs. That is why the eastern hub was axed - cost cutting.

 

However, from the Q1 2012 results, MH has only managed a start at recovery - operating losses were cut by RM 33.6m. The reduction in losses was mainly due to Forex gains of RM 199.6m.

 

MH is still a long way from operational cost effectiveness and efficiency. The unpaid leave offer to staff is nothing unique really. Even SQ used this measure in bad times. So do expect more painful measures to be taken, maybe after the next general election.