MAS and AirAsia Shares Swap

[Nik H. 3]

There's MASEU, MESA, ATWUSabah, ATWUSarawak, MAPA, MASMA. I may miss out a few.

 

Yesterday was the second month of me being jobless after I retired from MAS last June 15th. I visited my former office ( now better known as the Morgue ), then HR to sort out my outstanding tickets. After that I had a drink at the canteen and heard stories from many of the staff there. Almost all of the staff were walking with their heads down, the atmosphere is as if someone in the family died. When this share swap issue was announced, many were shocked, followed by disbelief, then anger, but now I see them in the acceptance phase. Which is good. Because defiance will, get them nowhere.

 

To the staff and Union I say better toe the line because the Management already have a plan, and a back-up plan if they face a problem. Management will prevail. MAS is classified as 'essential services', any serious Union action will invite an unfriendly response from the Government. It will be unwise to strike as many will break ranks. Even if the staff suffers, it will only be considered as collateral damage in the light of the Grand Scheme that is alleged to be of vital importance to the Country.

 

Accept whatever is dished out, and unless you are a Pilot or Engineer, it will be difficult to find alternative employment. I know this because most who left MH are not marketable at all. Unless you leave with some level of technical skills, which means alternative employment chances are bright, do not get involved in fighting a battle you cannot win. Play ball, adapt to the new conditions, this will lessen the pain.

 

Its not a fair world for many of the Employees who have given all their lives to MAS. Outsiders like the last MD came in with a silver spoon in the mouth, stayed for 6 years, led for two years, looking like a little boy lost, lost buckets of money, and still got a job looking after the country's investments.

 

Huddle together, and make the best of the situation so you can put a decent meal on the dinner table. Good Luck old friends.

Don't let unfairness get you down, you will lose enthusiasm and drive, not good for you. Life is like that.

 

Even the French have a term for it; ces't la vie. But the Chinese puts it better : Hai Kam Yong......

 

Right, now I'm off for a Teh Tarik session with my biker friends. Cheers.

[V Wong 0]

There's MASEU, MESA, ATWUSabah, ATWUSarawak, MAPA, MASMA. I may miss out a few.

 

Yesterday was the second month of me being jobless after I retired from MAS last June 15th. I visited my former office ( now better known as the Morgue ), then HR to sort out my outstanding tickets. After that I had a drink at the canteen and heard stories from many of the staff there. Almost all of the staff were walking with their heads down, the atmosphere is as if someone in the family died. When this share swap issue was announced, many were shocked, followed by disbelief, then anger, but now I see them in the acceptance phase. Which is good. Because defiance will, get them nowhere.

 

To the staff and Union I say better toe the line because the Management already have a plan, and a back-up plan if they face a problem. Management will prevail. MAS is classified as 'essential services', any serious Union action will invite an unfriendly response from the Government. It will be unwise to strike as many will break ranks. Even if the staff suffers, it will only be considered as collateral damage in the light of the Grand Scheme that is alleged to be of vital importance to the Country.

 

Accept whatever is dished out, and unless you are a Pilot or Engineer, it will be difficult to find alternative employment. I know this because most who left MH are not marketable at all. Unless you leave with some level of technical skills, which means alternative employment chances are bright, do not get involved in fighting a battle you cannot win. Play ball, adapt to the new conditions, this will lessen the pain.

 

Its not a fair world for many of the Employees who have given all their lives to MAS. Outsiders like the last MD came in with a silver spoon in the mouth, stayed for 6 years, led for two years, looking like a little boy lost, lost buckets of money, and still got a job looking after the country's investments.

 

Huddle together, and make the best of the situation so you can put a decent meal on the dinner table. Good Luck old friends.

Don't let unfairness get you down, you will lose enthusiasm and drive, not good for you. Life is like that.

 

Even the French have a term for it; ces't la vie. But the Chinese puts it better : Hai Kam Yong......

 

Right, now I'm off for a Teh Tarik session with my biker friends. Cheers.

 

 

Pretty sad to see staff going through Kubler Ross' 5 stages of grief : Denial, Anger, Bargaining, Depression, Acceptance...

Not only Hai Kam Yong, Malaysians also like to say 'whatudo'....

 

I can only wish MH staff all the best, pray hard, work hard and may your resilience be rewarded!

Edited September 15, 2011 by V Wong

[Isaac 0]

Even the French have a term for it; ces't la vie.

But the Chinese puts it better : Hai Kam Yong......

Not only Hai Kam Yong, Malaysians also like to say 'whatudo'....

Well said

[Nik H. 3]

To the new MD, please look within MAS for the right people before looking outside. There are many of them who are not only smart,but also have the appropriate experience and track record to bring the company to a higher level. Resist putting square pegs in round holes just because the staff is a nice person and hence reward him with a promotion doing a job he/she cannot do. With a resume like yours, and given your obvious trait in not chasing titles, and ignoring status ( not even a Datukship when many carry the title for doing less ) I hope you will be able to see the pretenders from the real deal. I hope you will be able to see through those who have practised and elevated the bodek culture into an art form. Being the smart man you are, it is also my hope that you can put accountability in place, assign authority to the right people, and ensure there is also a personal to holder reward system for the outstanding few. Stop the culture of celebrating mediocrity so you can get the best help in ensuring success. Create an environment where everyone in MAS has an opportunity to be a Hero in their field.

 

I may not be in MAS anymore as a staff, but I have an emotional attachment after 30 years of giving my best.

 

I am also a stakeholder as in the past 6 months my new company has contributed RM6.5 million in revenue, chartering 'your' planes. I have a grand plan next year, and MAS is in it.

 

Go for Gold, because that's what MAS means.

 

p.s. just now I had Teh tarik with my biker friends at Showru, and i met some of my former colleagues. I heard the same sad story from them. They feel that the worst is yet to come. They tread carefully, heads hung low, resigned to the fact that they are not even remotely Masters of their own destiny, let alone the company.

[KC Sim 2]

Saddens me to read Nik H's plea to the new MD of Malaysia Airlines.

 

How is it so many could see through the plot behind the share swap and yet this whole CCF-nonsense is able to get all the blessings! And suddenly the tourism folks in East Malaysia are once again left in the lurch ... the letter "F" must increasingly sound more like a bad-word here, given the treatment previously by FAX and now Firefly ... both bearing the signature of Tony F.

 

Three of us from your Southern neighbour recently went on a Firefly flight from Johor Bahru to Kota Kinabalu and back ... although we flew on the ancient B737-400, we had a thoroughly enjoyable experience. The cabin crew members were absolutely fabulous and the food was incredibly tasty. I am left in total amazement comparing the nasi lemak on Firefly's 2-hour flight (it was flavourful beyond belief) and on MAS' almost 12-hour flight to London. So wonderful were the Firefly food offers that I sampled four dishes on two flights and was contemplating ordering take-aways (except that the nasi-lemak was not available on the night flight from BKI-JHB).

 

At that time (end-August), the cabin attendants on the B734s were completely clueless about their fate but they remained cheerful and continued to be very enthusiastic about Firefly. I feel sadness when I contemplate what their fate would be. I hope that MAS absorbs them into its operation and not let them be gobbled up by AirAsia. They were so good at what they were employed and trained to do and would be able to stand tall among MAS' kebaya-clad girls (and probably don't need to wear wigs).

 

This Sapphire-scheme still baffles me ... how much demand is there for a super-premium all-business class service ("super-premium" and "all-business class" were words from a member of the MAS team)? Even in Singapore which is the regional HQ for hundreds of MNCs, the only such service are those to Los Angeles and New York-Newark.

 

I wait in anticipation of more coming out of this share-swap ... thus far, I fail to see what this has done for Malaysia Airlines.

 

KC Sim

[BC Tam 2]

They feel that the worst is yet to come. They tread carefully, heads hung low, resigned to the fact that they are not even remotely Masters of their own destiny, let alone the company.

 

... thus far, I fail to see what this has done for Malaysia Airlines.

 

Those two quotes when read together - chilling isn't it ?!

[flee 5]

I wait in anticipation of more coming out of this share-swap ... thus far, I fail to see what this has done for Malaysia Airlines.

I wrote earlier on how QPR embraced the changes brought about by TF positively while MH languishes in doom and gloom.

 

I think that this is the story of MH's life - it is a GLC and it moves at the pace that politicians and interested parties allows it to. The local media is still full of stories of everyone (who has little understanding of aviation) wanting a say in the whole thing. I hope that TF realises what he has to deal with when he agreed the share swap. MH is a GLC and it behaves like a giant supertanker on the high seas, not a nimble F1 Lotus car. Unlike nimble entities like QPR or AirAsia, MH needs time to get things done.

 

So one month after the takeover, we see two announcements made - QPR shirt sponsorship and announcement of new MD. Its not bad for a GLC like MH! Perhaps the management committee was waiting for the new MD to arrive before more announcements are made. Now that we have a new MD, we should see more announcements about MAS, Firefly, MASWings and Sapphire.

[flee 5]

MAS new captain is fit to helm the airline in the current turbulent times

 

It's safe to say that the task before Ahmad Jauhari Yayha, as he assumes the post of Malaysia Airlines new chief, will be the toughest yet for a man known to push his body to the limit.

 

A triathlete, Ahmad Jauhari takes over the daunting task of helming the loss-making airline and turning it around, while simultaneously learning about the airline business from scratch. He has spent the bulk of his professional career in the power and energy sector.

 

People in the corporate circles believe Ahmad Jauhari is equipped to navigate MAS through one of its more turbulent times. He is said to be a disciplined, no-nonsense manager who is not afraid to get his “hands dirty” while learning the operations of a company.

 

And with MAS executive director Mohammed Rashdan Mohd Yusof as his colleague, Ahmad Jauhari can be brought up to speed in terms of the airline's fleet replacement strategy, re-branding and stemming further losses.

 

AirAsia group chief executive officer Tan Sri Tony Fernandes points out that with Ahmad Jauhari's appointment, the five-member executive committee (exco) at MAS will be disbanded. The exco, chaired by MAS chairman Tan Sri Md Nor Yusof, was an interim measure to manage the airline while it searched for a new chief . Other members included Datuk Mohamed Azman Yahya, Mohammed Rashdan, AirAsia group deputy CEO Kamarudin Meranun and Fernandes.

 

“Both Kamarudin and myself can go back to AirAsia full time now with Ahmad Jauhari appointed MD,” says Fernandes, who is now one of MAS board members under a share-swap agreement last month.

 

Essentially, MAS' major shareholder Khazanah Nasional Bhd and AirAsia's largest shareholder Tune Air Sdn Bhd announced a share-swap deal, whereby Khazanah took up a 10% stake in AirAsia while Tune Air, the investment vehicle Fernandes and Kamarudin, bought a 20.5% stake in MAS.

 

A collaboration agreement was also signed on the same day by MAS, AirAsia and AirAsia X, which would effectively see MAS concentrate on being a full-service premium carrier, AirAsia a regional low-cost carrier and AirAsia X, a medium to long haul low-cost carrier.

 

Fernandes says Ahmad Jauhari is a good fit to be the airline's new leader, given his wealth of experience, people skills, and down-to-earth approach.

 

“I was very taken with his humility and believe that he will be a powerful force to drive the change within MAS given his can-do attitude. His appointment and with Danny (Rashdan) working alongside can develop a formidable team at MAS,” Fernandes says.

 

However, a drawback for Ahmad Jauhari could be his limited airline experience, which seems confined to only his recent appointment to the board of Malaysia Airports Holdings Bhd earlier this year.

 

“It's a no-brainer that the job ahead of him will be extremely challenging and he will need a crash-course on running the airline, similar to what (former MAS managing director Datuk Seri) Idris Jala needed when he came on board in late 2005,” said an aviation analyst.

 

Backed by 23 years of turnaround experience in Shell London, Shell Sri Lanka and Shell Malaysia, Idris was brought into MAS to turnaround the airline.

 

He did so by swiftly implementing the Business Turnaround Plan that essentially raised cash for the airline through the sale of properties, trimmed MAS' operating expenses and returned the airline to profitability by the end of 2006.

 

But Fernandes is quick to dispel the thought that a throughbred airline individual is required to helm the national carrier.

 

“I was a music man. But look at what we have done with AirAsia. I don't think you need to be an airline person, you just need to have direction and determination to succeed. I think he (Ahmad Jauhari) will be an excellent leader ,” he says.

 

Fernandes adds that Ahmad Jauhari will need to communicate with his employees about the future plans of the airline and get their buy-in, as well as motivate them.

 

The Ahmad Jauhari, 56, is best known for his stewardship at independent power producer (IPP) Malakoff Bhd, which he helmed from 1994 to 2010. Malakoff, which was incorporated in 1975 as a plantation-based company and was listed on the local bourse a year later. It is the country's leading IPP currently with an effective capacity of 5,020 MW comprising six power stations.

 

He joined Malakoff soon after the corporate direction of the company shifted, with the disposal of its plantation-based asset in October 1993 to venture into the power sector.

 

Malakoff has grown in leaps and bounds during Ahmad Jauhari's tenure from a revenue base of RM136.5mil in 1996 to RM5.3bil in 2009. The company has remained profitable from 1996 to 2009, reporting an increase in profit after tax from RM22.1mil in 1996 to RM243.78mil in 2009.

 

With a strong financial track record at Malakoff and him being best known as a professional manager in the industry, Ahmad Jauhari seems poised to be shoe-in to get the national carrier back into shipshape condition.

 

Aside from Malakoff, he was also managing director of Malaysian Resources Corp Bhd.

 

Source

[BC Tam 2]

I wrote earlier on how QPR embraced the changes brought about by TF positively while MH languishes in doom and gloom.

Quite understandable

 

He discounted ticket prices and refunded those who had purchased season passes whilst promising money to bring new players into the team. Must be quite popular with QPR fans

He brought in a shirt sponsor willing to pay above market rate (yes, a subjective and debatable point) for the privilege - the QPR board must be suitably impressed too

That I suppose accounts for the QPR embrace

 

Those within MH are probably still shell shocked by manner in which Khazanah has (for want of a better term) betrayed their trust by bringing in 'the enemy' into their fold. Those with better memory span could also still recall the unsavoury Fly Asian Express (FAX) episode, where circumstances were engineered to welcome Air Asia into domestic market (remember the trunk and non-trunk routes fiasco ?) but at end of the day, the RAS here in Sabah and Sarawak was abandoned in near collapse (well, it's a bit difficult for west Malaysians to appreciate fully what the RAS means here in the east)

So, wouldn't some degree of apprehension be justified from this quarter ?

 

 

[CH Teo 0]

Agree, MASwings are doing well with the RAS services for now...just hope that more improvement to come on ATR 72 fleets' interior maintenance and change the mighty twin otter to newer one...and best of all, grow the turboprop services if government agrees...

[flee 5]

One thing about the FAX RAS fiasco was that it was shortlived. FAX decided that it had to cut losses fast - so we did not have to wait till we see a financial or air crash disaster before something was done. So at least we now have a positive development in the form of MASWings. Perhaps they can now get more new Twin Otters to beef up the RAS.

[V Wong 0]

The cabin crew members were absolutely fabulous and the food was incredibly tasty. I am left in total amazement comparing the nasi lemak on Firefly's 2-hour flight (it was flavourful beyond belief) and on MAS' almost 12-hour flight to London. So wonderful were the Firefly food offers that I sampled four dishes on two flights and was contemplating ordering take-aways (except that the nasi-lemak was not available on the night flight from BKI-JHB).

 

At that time (end-August), the cabin attendants on the B734s were completely clueless about their fate but they remained cheerful and continued to be very enthusiastic about Firefly. I feel sadness when I contemplate what their fate would be. I hope that MAS absorbs them into its operation and not let them be gobbled up by AirAsia. They were so good at what they were employed and trained to do and would be able to stand tall among MAS' kebaya-clad girls (and probably don't need to wear wigs).

 

 

KC Sim

 

OT - I was similiarly smitten by the level of service and enthusiasm shown by Firefly's FA in a KUL-BKI flight a few months ago. It was indeed refreshing and rewarding if you are used to the Red one's level of service.

Although I've only sampled 2 trips, I do think they can match the kebaya clad girls anytime!

[JuliusWong 0]

I hope through this episode MH will wake up once and for all!!

 

We had seen too many episodes of bailout, losses and changing CEOs.....Its time for a change!! a REAL change!

 

It is also our time to show support for our ailing national airline, no matter what had happened, Not to their management, but to their staff who work tirelessly and great effort to bring Malaysian Hospitality to the World! A BIG KUDOS TO THEM, but not to the screwed up management....

 

I am flying MH tomorrow to Shanghai, first long haul/regional with MH! I really look forward to it! Excited to max!!

Edited September 17, 2011 by JuliusWong

[Raymund Yeoh 1]

I took a cab when I touch down Pen last nite. The cabbie was a former MAS Cargo employee.....we were talking about MH situation now a days...he told me he is not confident the new MD will be able to turn around the company....

[Johan Z 0]

As long as MD is chosen from a small group of people, MH will never be turned around.

[flee 5]

MAS Needs To Focus More On Rebranding Moving Forward, Says Tony

 

KUALA LUMPUR, Sept 14 (Bernama) -- MAS will need to focus more on rebranding exercise as one of the ways for the national carrier to turnaround, says AirAsia Bhd chief executive officer Tan Sri Tony Fernandes.

 

Citing the success stories of AirAsia and Emirates of the United Arab Emirates (UAE) in terms of branding, he said, there were huge opportunities for MAS to invest in brands, especially getting people to know more about the airline.

 

"MAS is a good airline. There's no cost problems in MAS. The problem is revenue (and) if we continue not to brand ourselves, then we may as well allow Etihad, Emirates, Singapore Airlines, (and), Cathay Pacific to be the national carrier in this country.

 

"So, if we really want to be a global leader and have a brand that is globally recognised, you have to invest," he told reporters on the sidelines of the 11th Forbes Global CEO Conference here.

 

Tony said AirAsia has invested substantially in building up its brand by sponsoring in sports and cultural activities and it has been proven with the recognition it has gained overseas.

 

However, it was up to the new chief executive officer to take up the challenge and to deal with the challenges within the company, said Tony, who is also a non-independent non-executive director of MAS.

 

Despite scepticism from the public and vested interest on MAS-AirAsia collaboration, Tony was optimistic with the future outcome from the partnership.

 

"I think put in the right management in place, put in the right model in place, focus model. The collaboration between Airasia and MAS, I think MAS has a very rosy future because we are blessed to be in the right part of the world, where there are a lot of people who want to travel," he said.

 

"Let the CEO be placed. He has not even got into the job. He will know how to turnaround.

[JuliusWong 0]

Out of story:

 

Reporting back from my flight with MH...MH 388 KUL-PVG B777-2H6ER 9M-MRO

 

The aircraft looks very tired, with oil stained fingerprints over some overhead compartments, plastic is peeling off. 2-5-2 configuration looks dreadful, at least for me. 3-3-3 wud be better choice.

 

Well the flight was fully packed. Long lines to toilet after meal. Crews were very very cheerful although the 'pax' were demanding in this flight.

 

Downsides: My IFE was not working. even after two reset. My neighbour's as well. 29J and K...told the stewardess to report. Apparently some of the aircraft intercom were out of order as well. Its normal occurrences according to the staff. They gave me three big package of peanuts...hahas!! more peanuts...

 

Judging from this, MH really need to hit the nail correct for their hard products, short, regional and long haul....soft products alone cannot your company long.....I don't think the new Y class and J class will be roll over to the B772ER...lets wait and see. Please please order B772ER replacement now~~~

Edited September 18, 2011 by JuliusWong

[Isaac 0]

2-5-2 configuration looks dreadful, at least for me. 3-3-3 wud be better choice.

2-5-2 is good for two people travelling together

[Josh T 0]

Out of story:

 

Reporting back from my flight with MH...MH 388 KUL-PVG B777-2H6ER 9M-MRO

 

The aircraft looks very tired, with oil stained fingerprints over some overhead compartments, plastic is peeling off. 2-5-2 configuration looks dreadful, at least for me. 3-3-3 wud be better choice.

 

I don't understand why people think 3-3-3 seating is better than 2-5-2! 2-5-2 makes much more sense, as most people travel in pairs. You also have 2 chances (per row) of sitting alone together rather than none! 3-3-3 seating means you have 2 passengers per row who are 2 seats away from the aisle rather than only 1 passenger who is 2 seats away from the aisle in 2-5-2 configuration. So, how on earth can 3-3-3 possibly be better? I'd love to hear an argument for this configuration.

Edited September 18, 2011 by Josh T

[Mike P 0]

I don't understand why people think 3-3-3 seating is better than 2-5-2! 2-5-2 makes much more sense, as most people travel in pairs. You also have 2 chances (per row) of sitting alone together rather than none! 3-3-3 seating means you have 2 passengers per row who are 2 seats away from the aisle rather than only 1 passenger who is 2 seats away from the aisle in 2-5-2 configuration. So, how on earth can 3-3-3 possibly be better? I'd love to hear an argument for this configuration.

 

I couldn't agree more. While the 2 seats at the windows are reserved for couples, the middle one could be reserved for the family.

[Johan Z 0]

3-3-3 is dreadful because it reminds me of sitting inside 747. If you were on the window seat, you really need to pull a sorry face for two pax beside you to go to the loo!

If you were on 2-5-2, always request window or aisle seat!

[Cheng Long 0]

Out of story:

 

Reporting back from my flight with MH...MH 388 KUL-PVG B777-2H6ER 9M-MRO

 

The aircraft looks very tired, with oil stained fingerprints over some overhead compartments, plastic is peeling off. 2-5-2 configuration looks dreadful, at least for me. 3-3-3 wud be better choice.

 

Well the flight was fully packed. Long lines to toilet after meal. Crews were very very cheerful although the 'pax' were demanding in this flight.

 

Downsides: My IFE was not working. even after two reset. My neighbour's as well. 29J and K...told the stewardess to report. Apparently some of the aircraft intercom were out of order as well. Its normal occurrences according to the staff. They gave me three big package of peanuts...hahas!! more peanuts...

 

Judging from this, MH really need to hit the nail correct for their hard products, short, regional and long haul....soft products alone cannot your company long.....I don't think the new Y class and J class will be roll over to the B772ER...lets wait and see. Please please order B772ER replacement now~~~

 

Yea, MH really needs to improve their hardware and services. And make it their urgent priority rather than some "rebranding" as per TF which is some sport sponsorship..

 

2-5-2 make the plane looks cramped but I like it.. easy for couple.. don't have to share with strangers..

[jani 0]

I believe the main issue regarding the 2-5-2 is related to the person who has to sit in the middle of the "5". Two people on each side before seeing the aisle. Not the most comfortable situation to be in.

[Raj 0]

Out of story:

 

Reporting back from my flight with MH...MH 388 KUL-PVG B777-2H6ER 9M-MRO

 

The aircraft looks very tired, with oil stained fingerprints over some overhead compartments, plastic is peeling off. 2-5-2 configuration looks dreadful, at least for me. 3-3-3 wud be better choice.

 

Well the flight was fully packed. Long lines to toilet after meal. Crews were very very cheerful although the 'pax' were demanding in this flight.

 

Downsides: My IFE was not working. even after two reset. My neighbour's as well. 29J and K...told the stewardess to report. Apparently some of the aircraft intercom were out of order as well. Its normal occurrences according to the staff. They gave me three big package of peanuts...hahas!! more peanuts...

 

Judging from this, MH really need to hit the nail correct for their hard products, short, regional and long haul....soft products alone cannot your company long.....I don't think the new Y class and J class will be roll over to the B772ER...lets wait and see. Please please order B772ER replacement now~~~

 

 

Great Feedback and insight there Julius. But I think what they need to do is get the B777's refurbished with new interiors, IFE etc. The 777 is still a good and fine aircraft and it performs well for MH. Service is good as usually but its just the Interior, IFE and sum small other things that need to be changed and like the rest I prefer the 2-5-2 config. Flew SQ frm AKL to SIN on the 3-3-3 and it wasn't all that fun.

[Ken K. Kour 0]

I believe the main issue regarding the 2-5-2 is related to the person who has to sit in the middle of the "5". Two people on each side before seeing the aisle. Not the most comfortable situation to be in.

 

Agreed, but if its 3-3-3, the there will be 2 people (either window seat) who is faced with climbing over 2 people in order to get to the aisle, as opposed to only one person who has to get past two people in a 2-5-2 configuration.