MAS and AirAsia Shares Swap

[Alif A. F. 0]

You are assuming we second class cousins on this eastern side of the South China Sea are not deserving of those super duper spanking new 738's then ? And we don't feel "cheated" for having to make do with the "old" 734's still ?

 

Furthermore, there should be (and there is) more to life than KLIA in the national aviation scene. Having poured in vast sums of (taxpayers') money into redoing airports around the country and decide only now to just "concentrate" on KLIA - doesn't sound very prudent does it ? Particularly when it is this part of the nation that has high reliance on air transport, we here not having been blessed with super duper road networks like those in Semenanjung ........

 

I would say "welcome to pork-barrel politics!"

[nrazmoor 0]

You are assuming we second class cousins on this eastern side of the South China Sea are not deserving of those super duper spanking new 738's then ? And we don't feel "cheated" for having to make do with the "old" 734's still ?

 

Furthermore, there should be (and there is) more to life than KLIA in the national aviation scene. Having poured in vast sums of (taxpayers') money into redoing airports around the country and decide only now to just "concentrate" on KLIA - doesn't sound very prudent does it ? Particularly when it is this part of the nation that has high reliance on air transport, we here not having been blessed with super duper road networks like those in Semenanjung ........

 

i think u got me wrong overthere..., what i meant was the idea of turning BKI as a secondary hub and using the new B738s to serve the route from there. I am not saying that MH shld fly their oldies to Sabah/Sarawak

 

Being the main hub dont you think that MH should focus on KLIA first before proceed to other states? Having a secondary hub when your living in a multiple life-support is not a good thing. I would rather have a quality than quantity. Besides, its a good thing that some airports on the eastern side manage to attract foreign carrier to serve it, it proved that they are demand for it and you guys still have a choice.

 

I am not a politician, hence i believe that MH must be run as a business entity first rather than making empty promises of the moon and the sun... and in the end serve rubbish to the paying customers. Once all the new plane have coming in only then MH can rejuv back the ideas of BKI/KCH as their second hub.

 

Btw, living on the east coast side of peninsular i know how the feel as a second class citizen, with all the multiple new highways/better rail services on the west coast side we on the the other side of peninsular still have to rely on rubbish infrastructure. Even though it is just couple of hours ride, you can see a stark different between the two sides.

 

cheers!

[BC Tam 2]

I would say "welcome to pork-barrel politics!"

No 'welcome' required - where I'm from that is already an up and running SOP since when I can remember

[flee 5]

Bottom line - we need a change in the Federal Government.

[Raymund Yeoh 1]

Bottom line - we need a change in the Federal Government.

 

add-on...."need a change of governance" and also a change in Federal Goverment

[michgyver 0]

blue and red swoosh livery ditched?

 

[jahur 0]

blue and red swoosh livery ditched?

 

 

She was in her normal dressing after painting in KUL.

[Radzi 2]

The airline that gave most Malaysians their flying experience is now technically bankrupt.

 

In the face of prolonged losses, Malaysia Airlines (MAS) and its employees will have to go the extra mile to restore the pride of Malaysia and the national carrier.

The airline that gave most Malaysians their flying experience is now technically bankrupt.

“Currently, MAS remains in business even though it is technically bankrupt due to assistance from the government because the company is a national pride,” said an investment strategist who declined to be identified.

“But this time around the government has to do it right,” he said when referring to plans to turn around the airline as the government is its major shareholder.

MAS has tried to make many turnaround plans in the past whenever it faced falling revenues.

However, its share swap deal with AirAsia was aborted after strong protests from the premium service airline’s employee unions and some sections of the public, as it was perceived that MAS was getting a raw deal.

Now, it has to come up with a new turnaround strategy to maximise yields from its operations and reduce costs wherever possible.

One of the plans being floated is a possible move of its offices from Subang to its main operational hub at Kuala Lumpur International Airport (KLIA) in Sepang.

But this idea of “going the extra mile” to cut costs is said to have met strong opposition from the affected staff.

National Chamber of Commerce and Industry of Malaysia secretary-general Syed Hussein Al Habshee feels that the airline’s management and employees should continue to have an open dialogue on the matter as this is the only way to achieve better understanding.

Speaking to Bernama, he said the issue of moving or not should be the management’s decision alone, and it must have solid reasons behind that move.

Syed Hussein said while the employees’ views should be considered, the airline’s financial perspective also would be taken into account.

Strong bargaining position

It makes practical sense over the long term for MAS to have its offices next to its main operational hub at KLIA, said the investment strategist, who believed the airline’s present management is more than capable of lifting it out of trouble if given the right support and opportunity.

But whether it is a good time to implement the relocation in view of its financial position will have to depend on its priorities and whether the benefits of moving outweigh those of deferring such a decision.

The employees, he said, should also not take advantage of their strong bargaining position at the moment, and should instead adopt a “give and take” attitude for the benefit of the airline.

“Just because the unions have many members, they should not make demands on selfish reasons,” an analyst at an investment bank said.

In managing a company, first and foremost, he said the management must be practical and should not be listening to the employees 100%.

“At the end of the day, for people like myself, let us say, if the management makes a decision that is good for the company, I have to follow or find another job.

“Today the fundamentals of making business work is all about financials. The bottom-line is what everybody is looking at,” he added.

Another analyst said MAS and national carmaker Proton shared a similar problem.

But he felt that the government did not have a suitable candidate like DRB-Hicom Bhd to take over MAS at present “because it’s financially too big and there are also legacy issues and the need to uphold national service”, said the analyst, who also declined to be quoted.

If MAS moved to KLIA, its existing building in Subang could be used for something else that could generate income for the airline, he said.

He agreed that the only obstacle for such a move was resistance from the unions.

Some quarters believed that opposition to the relocation had stemmed from a perception that the valuable piece of property in Subang would benefit other parties instead and not MAS.

Now that MAS is on its own, perhaps it could look at how best to generate revenue from the Subang property.

 

News from BERNAMA

 

Starting today crew reporting point has moved from FMB to somewhere within MTB, to make way for the movement of SZB staff to KLIA.

[Mohd Suhaimi Fariz 2]

Starting today crew reporting point has moved from FMB to somewhere within MTB, to make way for the movement of SZB staff to KLIA.

 

Is that confirmed? SZB's people are supposed to start moving now but there is not one info on the move whatsoever.

 

Anyways - I wonder how much have the top management given up to help save the company? Has AJ asked to slash his salary by 50%? Are the board of directors serving on a token sum of RM 1?

[Pieter C. 5]

blue and red swoosh livery ditched?

 

 

1st 737 to be painted in the new 'blue' MH livery ?

[Isaac 0]

1st 737 to be painted in the new 'blue' MH livery ?

No. Refer to post #1809

[flee 5]

AirAsia Malaysia's New CEO Vows To Maintain 60 Pct Domestic Market Share

 

KUALA LUMPUR, June 18 (Bernama) -- Profit-making budget carrier AirAsia's newly appointed chief executive officer for Malaysia's operations Aireen Omar aims to maintain 60 per cent domestic market share.

 

"I know I have a big shoe to fill and I am confident to keep the target alive. Everyone can fly not only now but forever.

 

"We have 60 per cent domestic and 40 per cent international market share. We intend to maintain that and grow it," she told reporters after being named AirAsia's chief executive officer for Malaysia's operations.

 

Aireen said AirAsia Malaysia would continue to be creative and innovative.

 

She said maintaining market leadership, cost discipline and increasing revenue would be among the main challenges helming the post.

 

Aireen, former AirAsia's Regional Head of Corporate Finance, Treasury and Investor Relations, succeeds Group Chief Executive Officer Tan Sri Tony Fernandes, who will move to Jakarta to oversee the airline's expansion plans in the Asean region, effective July 1.

 

AirAsia has set up a regional office in Jakarta, AirAsia Asean.

 

Fernandes said that it had become clear that as AirAsia entered its second decade, there need to be a major shift in the group's perspective, strategies and operstions to sustain its trajectory.

 

"She (Aireen) might look sweet but she's aggressive, tough as me with different approaches. She's no little red riding hood and don't be fooled by her exterior.

 

"Malaysia has grown to be profitable, from a baby to a teenager, So, we are now leaving our teenager to Aireen and heading to become an adult," he said, adding that the 38-year-old Aireen will report directly to him.

 

Meanwhile, AirAsia co-founder Kamarudin Meranun said Aireen kept AirAsia "ahead of the curve" during the credit crisis.

 

"While other airline companies got into trouble when they failed to secure any financing at all, Aireen was able to lock up financing at very competitive rates for two years to buy aircraft for AirAsia," he added.

[Mushrif A 3]

Has AJ asked to slash his salary by 50%?

 

This will never help MH. AJ is not paid RM2m a week.

 

If you want to pay your new CEO RM5000/mth or similar figures, who do you seriously expect to take up the post?

[Mohd Suhaimi Fariz 2]

This will never help MH. AJ is not paid RM2m a week.

 

If you want to pay your new CEO RM5000/mth or similar figures, who do you seriously expect to take up the post?

 

Then how come JAL's CEO was lauded for taking a paycut? If you want to talk about contributing to help save the company then everybody must contribute - no sense asking those lower down to sacrifice but those up top still enjoy great benefits.

[Mushrif A 3]

Then how come JAL's CEO was lauded for taking a paycut? If you want to talk about contributing to help save the company then everybody must contribute - no sense asking those lower down to sacrifice but those up top still enjoy great benefits.

 

AJ was roped in to try and clean up the mess he didnt create, or was part of.

 

On the "lower downs" - from my experience, some of them do deserve the boot as they are totally ignorant of their own products or are just practically useless. E.g. some of the staff that answer customer calls on Enrich issues are so naive about the product. I would have fired them there and then.

 

Btw, if u're wondering what AJ and Rashdan (MH staff's favourite posterboy!) are bringing home, page 35 of the latest annual report will provide some insight.

[H C Chai 4]

... they are totally ignorant of their own products or are just practically useless. E.g. some of the staff that answer customer calls on Enrich issues are so naive about the product.

 

I couldn't agree more! Some are lack in customer service skills too. When I was told to call back in the morning to make a payment on an Enrich redemption, I asked the question why can't the payment be processed straightaway - the staff didn't give me an answer and kept asking me to call back the following morning. When I asked if there is a specific time I need to call, he said he didn't know because he always works on a night shift. You don't say things like these to customers...

Edited June 18, 2012 by H C Chai

[Naim 6]

...

Btw, if u're wondering what AJ and Rashdan (MH staff's favourite posterboy!) are bringing home, page 35 of the latest annual report will provide some insight.

 

[Raymund Yeoh 1]

MH have 19 non-Exec Directors on the payroll.....goodness....can anyone tell me if we or an airline really need that many non-Exec Directors....

[Kee Hooi Yen 0]

MH have 19 non-Exec Directors on the payroll.....goodness....can anyone tell me if we or an airline really need that many non-Exec Directors....

 

In Bolehland, anything is Boleh. Similar question : does Malaysia need more than 200 Federal Parliament seats ? As a comparison, Australia (similar population to Malaysia but with much greater land size) has only 150 parliament seats.

[tktoh 0]

Page 33 & 34 of the annual report discloses who are the directors of the board, including those appointed and resigned during the year. The high number of non-exec directors is due to existing directors resigning & newly appointed directors as a result of the share swap. Since the share swap was undone, directors such as Tony & Kamarudin had also resigned without completing a whole year tenure on the board.

[Alif A. F. 0]

 

 

In Bolehland, anything is Boleh. Similar question : does Malaysia need more than 200 Federal Parliament seats ? As a comparison, Australia (similar population to Malaysia but with much greater land size) has only 150 parliament seats.

 

Well, population of Malaysia is still roughly 5 million more than Australia. That affects a lot in terms of federal representation in Dewan Rakyat. But Australia has larger land area, of course, and areas at hinterland or the outback has so few people that it is better represented in larger electoral area. And some federal representative areas in that country is bigger in size than Malaysia.

[J Chong 0]

i wonder which exec director got paid RM3m

Edited June 20, 2012 by J Chong

[Mushrif A 3]

i wonder which exec director got paid RM3m

 

The answer is none - nobody got PAID RM3m.

[KK Lee 5]

Heated MAS AGM expected

 

By Lee Wei Lian

June 21, 2012

 

KUALA LUMPUR, June 21 — Sparks could fly at this morning's Malaysia Airlines AGM as shareholders are likely to demand answers from the flag carrier's executives on the larger than expected losses posted in the first quarter as well as the uncertain outlook following the unwinding of the controversial equity-swap with AirAsia.

 

Despite unveiling a business turnaround plan last December, Malaysia Airlines (MAS) posted a first quarter core net loss of RM347 million, or 87 per cent of the full-year consensus net loss forecast of RM401 million, prompting research houses to revise the airline's net losses for the year up dramatically to as much as RM858 million as compared with previous estimates of RM521 million.

 

“It could be a scene like from the WWF (World Wrestling Federation),” said one industry observer. “EPF is likely to be quite vocal. Then there are the aunties and uncles who are also not happy.”

 

Other likely questions could touch on the stability of the top management following the departure of deputy CEO Mohammed Rashdan Mohd Yusof who quit on June 12, a mere eight months into his contract.

 

Speculation is also rife that chief financial officer Rozman Omar is also on his way out of the airline just four months after being appointed, which could potentially be a big loss as Rozman is one the most senior executives left with extensive airline industry experience.

 

Rozman was formerly AirAsia's regional head of finance.

 

A rash of departures from the company's top ranks could mean a period of instability which the airline could ill afford given its troubled situation and the tough outlook for the aviation sector this year.

 

Investors would also likely want to know if state asset manager Khazanah Nasional, which is MAS's biggest shareholder is preparing to 'do a Proton' and divest its stake in the carrier after the latest round of corporate and financial turmoil.

 

Khazanah had in January sold its entire stake in the national car maker to DRB Hicom for RM1.3 billion.

 

It said then that it had divested its stake to an investor who could take Proton to the next level of strategic growth.

 

Seven directors are also up for re-election at the AGM with one – Tan Sri Mohamed Azman Yahya, CEO of Symphony House – not seeking to be re-elected.

 

MAS has had a turbulent past decade after the government bought back the airline from former corporate high-flyer Tan Sri Tajudin Ramli in 2001.

 

Despite several turnaround efforts, the airline has been financially lacklustre, shocking the market with its worst ever annual loss last year even while rivals such as Singapore Airlines reported profits, albeit reduced.

 

It is also facing the prospect of having its coveted 5-star rating by Skytrax revoked.

 

To make up for depleted cash reserves arising from losses racked up over the past several quarters, MAS is proposing to raise about RM9 billion through a combination of perpetual Islamic bonds, commercial loans and government financial assistance to help with operational expenses and aircraft delivery.

 

One Maybank Investment Bank analyst said that the government should look to Indonesia's Garuda as an example of a turnaround plan that worked.

 

The analyst said that the Indonesian government did the right thing by appointing an airline man – Emirsyah Satar – to head Garuda and also came up with a pragmatic step-by-step approach to fixing its issues.

 

He noted that Garuda, which was worse off than MAS in 2005 when both airlines were just about to embark on their turnaround journeys, was now the star performer in the Asian region with its shares up more than fifty per cent over the past one year.

 

It also posted a 56 per cent increase in profit in 2011.

 

“They waited until they resolved all the structural issues before going for their IPO last year,” he said. “The shortcut is actually the long cut. Doing things step by step the right way is the short cut. If you try to do quick fixes, you will ultimately make things worse and consume more time.”

 

http://www.themalaysianinsider.com/business/article/heated-mas-agm-expected/

[Mohd Suhaimi Fariz 2]

I for one would welcome a heated AGM - the auditorium is unbelievably cold!

 

(I know, lame joke )