MAS and AirAsia Shares Swap

[flee 5]

Community airline begins silent cancellation, leaving passengers and tour operators fuming

 

KUCHING: Firefly, Malaysia Airlines’ (MAS) community airline, has apparently begun cancelling some of its flights to and from Sarawak since yesterday.

 

This is ahead of Firefly’s rumoured pullout from the state by end of October.

 

http://www.thestar.com.my/news/story.asp?file=/2011/9/30/sarawak/9603409&sec=sarawak

This will go someway towards stemming the RM 5+m a day losses incurred during Q2 2011.

 

Looks like FY is learning AK's tactics fast, real fast!

 

Having said that, my sister had her MH KUL-JHB flight cancelled last week. She had to opt to take FY from SZB as there were no alternative flights from MH.

[KK Lee 5]

What the new MAS management should do is to clearly project what each brand means - Firefly (community airline), MAS (premium regional/long haul airline), Sapphire or its new name (premium short haul airline). That way, there will be no confusion for customers.

 

If Sapphire is a premium regional airline, how will it compliment MH? MH to downgrade from 5 star in regional?

[dean hizudy 0]

If Sapphire is a premium regional airline, how will it compliment MH? MH to downgrade from 5 star in regional?

Fly to regional destinations not served by MH.

[KK Lee 5]

Fly to regional destinations not served by MH.

 

Such as VTE, BPN, BDJ, KBU, CRK?

Edited September 30, 2011 by KK Lee

[Isaac 0]

If Sapphire is a premium regional airline, how will it compliment MH? MH to downgrade from 5 star in regional?

Such as VTE, BPN, BDJ, KBU, CRK?

That's true! There simply isn't enough premium demand to these cities

[dean hizudy 0]

That's true! There simply isn't enough premium demand to these cities

but silkair can make it

[Isaac 0]

but silkair can make it

Because all their flights are from/going to SIN

[affendi osman 0]

uncle tony has clarified it on TV3

[CH Teo 0]

PETALING JAYA: Malaysia Airlines (MAS) has radically revamped the line of reporting and divisions, where managing director/group chief executive officer Ahmad Jauhari Yahya will focus on long-haul while deputy CEO Mohammed Rashdan Yusof will look after the airline's short-haul operations.

 

While Jauhari will oversee the entire operations at MAS, Rashdan will also assume the role of head of commercial, pending the appointment of a new commercial director. The commercial director's job is basically to drive sales, oversee its network and revenue management.

 

Datuk Eddy Leong, the managing director of community airline Firefly, has been appointed chief operating officer for the short-haul operations. There is, however, no indication whether the Firefly brand name will be retained or be renamed.

 

A share-swap deal in August saw the entry of AirAsia founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun as MAS shareholders with a 20% equity stake. They are now directors of the national carrier.

 

Following the shake-up, MAS will realign itself to be a preferred premium carrier, focusing on long and short-haul operations, while AirAsia will continue to focus on the low-cost sector, covering both long and short-haul routes.

 

The shake-up also involved a revamp of the MAS board with Tan Sri Md Nor Yusof becoming its chairman. Rashdan, who in August was appointed executive director, has been designated as deputy CEO. Jauhari came on board MAS as its MD/group CEO on Sept 19.

 

After nearly two weeks on the job, Jauhari has come up with a new organisational structure that has distinct operating responsibilities, since the key focus is to rev up revenues.

 

The new structure had five main pillars, sources said.

 

The first four pillars are wide-body operations to oversee operations and customer experience; narrow-body operations, comprising short-haul and turboprops operations; finance and commercial (finance, corporate finance and strategic procurement, and commercial); human capital and support functions (HR, internal audit, communication, strategy, legal/risks, safety and company secretary).

 

And the last pillar covers key operating subsidiaries, MASKargo, MAS engineering and maintenance (MAE) and MAS Wings.

 

Besides being fully in-charge of the entire MAS group and long-haul operations, Jauhari will also oversee customer experience, operations, human capital, strategy/communications/legal/risk and three key operating subsidiaries.

 

Rashan will look after the short-haul operations, commercial, finance, corporate finance and strategic procurement units.

 

The head of units have been retained. They include operations under Capt Mohd Azharuddin Osman, Datuk Mohd Salleh Ahmad Tabrani is tasked with customer experience, Mohd Azha Abdul Jalil, finance, Abdul Aziz Abu Bakar, corporate finance/procurement, and Raja Azura Raja Mahayuddin, human capital.

 

The heads of the key operating subsidiaries remain Shahari Sulaiman (cargo), Mohd Roslan Ismail (MAE) and Datuk Capt Mohd Nawawi Awang (MASWings).

 

Sources said the seven regional heads would now report to Rashdan.

 

Sources said MAS' new customer experience unit showed its seriousness in building customer relationship which is crucial in the premium business. The long- and short-haul operations would use widebody and narrowbody aircraft, respectively. MAS is expected to take delivery of the A380 aircraft next year.

 

Sources said a management committee chaired by Jauhari would be set up and it was expected to meet every Monday. With the setting up of the management committee, the exco formed earlier would be disbanded, they said.

 

Sources: http://biz.thestar.com.my/news/story.asp?file=/2011/10/1/business/9613576&sec=business

 

Looks like all set to go regarding transformation for MAS with the management structure being finally drawn up with clear cut in responsibilities...hope for a best outcome that is customer friendly in terms of affordability, frequencies and services...

 

KUALA LUMPUR, Oct 1 (Bernama) -- AirAsia today assured that the airline will continue to remain a low-cost carrier and maintain the current fare structure despite its recent collaboration with Malaysia Airlines.

 

Group Chief Executive Officer Tan Sri Tony Fernandes reiterated that there "was no way, as far as AirAsia is concerned, that fares would go up or that there will be less competition."

 

"AirAsia started as a low-cost carrier and we will stay a low-cost carrier. There will be no benefit to us (AirAsia) if fares are increased," he said after presenting a talk at the Tunku Abdul Rahman College here today.

 

Tony was responding to claims that AirAsia will increase fares which will automatically reduce competition between the two aviation companies.

 

"AirAsia is about having low fares. We want to have more flights and in order to have more flights we have to be cheaper.

 

"You have a choice, if you do not like our (AirAsia) fare, you will not fly with us," he said, adding that even AirAsia had to compete for business. Malaysians should place more faith in the collaboration (between MAS and AirAsia) which would not only benefit the industry but also the country, Tony said.

 

"Malaysians, by nature, will only be convinced after they see success, they will (later) regret their mistakes.

 

"So, give us some time and we will prove to you that the deal will be profitable," Tony said, adding that he welcomed parties which criticised AirAsia, MAS or the share swap deal to sit down with the management and hear their side of the story.

 

Meanwhile, on AirAsia, Tony hoped Malaysia Airports would further realise the benefits of low cost travel by granting the airline more low-cost terminals at Malaysian airports.

 

"We have one in Kota Kinabalu and we would love to have one in Penang and Kuching, Sarawak, as we think low cost travel is a separate business than the premium," he said.

 

AirAsia, on the other hand, is also accelerating AirAsia Japan, Thailand Indonesia and the Philippines.

 

"All of these are looking good as we continue to record more routes and more frequencies in the last 12 months.

 

"Financially, our third quarter looks good, I hope the fourth quarter will also be very good and I am not worried about any recession, if there is any.

 

"In reality, it is now MAS and AirAsia's glorious moments as we can catch up in business and passenger traffic while others (airlines) are still struggling," Tony added.

 

Sources: http://www.mysinchew.com/node/64507

 

Hopefully this stay true...

[Kenneth Chong WT 0]

Seems like the real problem is with the name "Firefly"...duh!!!

[BC Tam 2]

"Malaysians, by nature, will only be convinced after they see success, they will (later) regret their mistakes.

Oh yeah, very true

[CH Teo 0]

The Malaysian Airlines System Employees Union (MASEU) today expressed dissatisfaction over the explanation given by the airline's management on the company's collaboration with budget carrier AirAsia Bhd.

 

Its president, Alias Aziz, said the explanation by MAS managing director Ahmad Jauhari Yahya yesterday on the share swap between MAS and AirAsia was not satisfactory.

 

"As such, we have decided to write to the prime minister. We want to meet Datuk Seri Najib Tun Razak to convey our views and opposition to the MAS-AirAsia deal," he told a news conference at the MASEU office in Subang Jaya.

 

Alias requested MAS to buy back its shares sold to AirAsia and return the AirAsia shares it had bought. -- Bernama

 

 

Read more: Union still opposes MAS-AirAsia deal http://www.btimes.com.my/Current_News/BTIMES/articles/20111001212446/Article/index_html#ixzz1ZbBDv1Yf

 

What's next?

[alberttky 0]

The Malaysian Airlines System Employees Union (MASEU) today expressed dissatisfaction over the explanation given by the airline's management on the company's collaboration with budget carrier AirAsia Bhd.

 

Its president, Alias Aziz, said the explanation by MAS managing director Ahmad Jauhari Yahya yesterday on the share swap between MAS and AirAsia was not satisfactory.

 

"As such, we have decided to write to the prime minister. We want to meet Datuk Seri Najib Tun Razak to convey our views and opposition to the MAS-AirAsia deal," he told a news conference at the MASEU office in Subang Jaya.

 

Alias requested MAS to buy back its shares sold to AirAsia and return the AirAsia shares it had bought. -- Bernama

 

 

Read more: Union still opposes MAS-AirAsia deal http://www.btimes.com.my/Current_News/BTIMES/articles/20111001212446/Article/index_html#ixzz1ZbBDv1Yf

 

What's next?

 

Muahahaha....

[Raymund Yeoh 1]

 

Rescind MAS-AirAsia deal or we’ll picket, unions warn

By G. Manimaran

Bahasa Malaysia EditorOctober 01, 2011KUALA LUMPUR, Oct 1 — Upset that their grievances are being ignored, Malaysia’s airline workers have given their bosses two months to cancel the share swap deal or face protests in December.

 

Eight aviation workers’ unions made the decision today, insisting Malaysia Airline System’s (MAS) deal with AirAsia has affected the jobs of some 20,000 employees in the national carrier.

 

“We give Khazanah [Nasional] two months to cancel the deal and return to the original agreement. If not, we will go ahead with our picket, which we have decided will be in early December,” MAS employees’ union (Maseu) president Alias Aziz (picture) said today, referring to the federal government’s investment arm.

 

Alias told The Malaysian Insider that all eight workers’ groups want MAS to buy back the shares that have been sold to AirAsia while returning those bought from the budget carrier.

 

Besides Maseu, the other affected groups are the MAS Pilots’ Association; MAS Executive Staff Association; the Sabah Executive Union of MAS; the MAS Managers’ Association; the Airline Working Union of Sabah; the Airline Working Union of Sarawak; and the Sarawak Executive Staff Committee.

 

Alias said the groups decided in a meeting today they will urge the International Transport Workers’ Federation (ITF) to boycott both airlines if the deal goes through allowing a new airline to emerge from their partnership.

 

It has been rumoured that 80 per cent of MAS staff could be moved to the new Sapphire airline as a result of the MAS-AirAsia deal.

 

MAS and AirAsia inked the deal on August 9, which allows the loss-making national carrier to swap a 20.5 per cent stake for 10 per cent in Asia’s top money-making budget flier.

 

The swap enabled AirAsia bosses Fernandes and Datuk Seri Kamaruddin Meranun to sit on the MAS board and ostensibly help turn its fortunes around.

 

The workers’ unions have accused the budget carrier’s ambitious 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.

 

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.

 

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 the profit outlook for the second half of the year appears bleak.

 

MAS had been doing well until the Asian financial crisis hit in 1998, which later led to its assets being sold off to resolve its balance sheets.

 

 

[Lock SH 0]

Yeah right Alias ........... What have you done so far to improve the quality Ts & Cs of MAS employees after 15 years of holding the reign? ........

 

Talk is free dude ..... if you want to play 'politics' please go and join a political party and stop making MASEU as your 'milking cow' .........

 

 

[Cheng Long 0]

Don't think picket will be helpful apart from causing inconvenience to others and makes things even more complicated.. Just don't vote BN in the coming election..

[filipeseda 0]

Don't vote BN, who to vote? PAP lol....

[BC Tam 2]

Don't vote BN, who to vote? ....

Wow, you mean there isn't an alternative ?!

(mind you, whether there is a viable alternative is a whole new issue, much more convuloted and subjective)

[Waiping 12]

Don't vote BN, who to vote? PAP lol....

 

The most important thing is you MUST vote. Whether for or against any party. Quite a lot of people decided not to as they thought it's foregone conclusion. You MUST voice out!

[Rashdan Radzi 0]

If Sapphire is a premium regional airline, how will it compliment MH? MH to downgrade from 5 star in regional?

 

Actually, I’ve been wondering the same too and with allegedly 80% of MAS staff to move to the new airline, where does that leave the scale of MH’s operations in the new scheme of things?

 

Seems to me that ultimately, MH will be reduced to becoming a shadow of its former self, operating a dozen or so widebodies, like an “exotic” bird that's legendary but hardly ever seen except occasionally.......

[alberttky 0]

Tourism industry players want answers from airlines to flight schedule changes

 

 

KUCHING: Tourism industry players in Sarawak are not going to sit by idly and watch the state’s air accessibility issue unresolved.

 

Sarawak Tourism Federation (STF) is expected to forward a memorandum to Malaysia Airlines (MAS) and AirAsia on Tuesday, asking the airlines to explain and clarify changes in flight schedules.

 

Some federation members are also lobbying for the memorandum to be forwarded to the Federal Transport Ministry and Tourism Ministry.

 

The memorandum was initially slated to be presented at the Sarawak Hornbill Tourism Awards here last night, but STF is now seeking more time to seek consensus from its member bodies, which ranges from tour operators to hoteliers.

 

STF president Audry Wan Ullok told The Star other organisations, like local Chamber of Commerce associations across the state, were also to be apart of the memorandum.

 

“As such, we need a bit more time to gather all statistics that we feel will be relevant.

 

“The federation’s Sibu office is especially worried about future developments since they are without a MAS Sibu-KL flight, ever since Firefly took over that route.”

 

STF honorary secretary-general Philip Yong said the memorandum’s points would be finalised at an emergency meeting tomorrow.

 

“We sort of know what is happening to the airlines, but we want a measured response. We want to know what the airlines’ solution will be and we are hoping for a positive response.”

 

MAS, including its subsidiaries Firefly and MASwings, and AirAsia are presently undergoing an extensive flight rationalisation exercise. This began after a share swap deal, which was announced in August.

 

Since then, rumours have persisted about Firefly’s soon-to-be downsized role in the national aviation industry. On Sept 15, Kuching-Johor was the first Firefly route axed nationally.

 

Since last week, it appeared Firefly flights from Sarawak to peninsula with too few ticket holders have begun to be cancelled. Passengers are either being put on later Firefly or MAS flights.

 

On Thursday, Sarawak Tourism Board held its quarterly board meeting and those present described the four-hour long meeting as a heated one, mainly on the topic of flight rationalisations.

 

Senior board members apparently told off the federation for not coming up with a media statement sooner to press the airlines to be forthcoming about their plans for Sarawak.

 

Insiders also said board members conceded the initial foreign arrivals target of four million for this year would be unachievable, given fewer affordable flights to Sarawak.

 

Meanwhile, ex-Tourism Minister Tan Sri Dr James Masing said the present confusion was “creating havoc”.

 

“Their actions will affect Sarawak’s tourism industry very badly,” Masing said, who was Tourism Minister in the late 1990s. He is now Land Minister.

 

“Without air connectivity continuity, we might as well kiss international tourism in Sarawak goodbye. MAS-AirAsia must stop looking at Sarawak as just another state.

 

“We are a huge region within Malaysia, which requires much more air links. “Unfortunately, air connectivity has been a problem since I was the minister. Fifteen years later, the problem persists.”

 

Brunei, Indonesia, Malaysia, the Philippines- East ASEAN Growth Area (Bimp-EAGA) Tourism Council chairman for Malaysia, Datuk Wee Hong Seng, said the airlines would have a lot work to do to regain consumer confidence.

 

“They are stuck in this mindset whereby they believe if there is only one airline for a particular route, then that one airline will definitely make money. I don’t think that is really the case. Even if there is just one airline, if people don’t like the airline, then they will not travel here. They will just go to another place. So who will lose out the most? Sarawak.”

 

http://thestar.com.my/news/story.asp?file=/2011/10/2/sarawak/9609741&sec=sarawak

 

No hike in AirAsia fares

 

KUALA LUMPUR: AirAsia yesterday assured the public that the airline would continue to remain a low-cost carrier and maintain the current fare structure despite its recent collaboration with Malaysia Airlines (MAS).

 

Group chief executive officer Tan Sri Tony Fernandes reiterated that there "is no way, as far as AirAsia is concerned, that fares will go up or that there will be less competition".

 

"AirAsia started as a low-cost carrier and we will stay a low-cost carrier.

 

 

"There will be no benefits to us if the fare is increased," he said after presenting a talk at Universiti Tunku Abdul Rahman here yesterday.

 

Fernandes was responding to claims that AirAsia would increase its fares which would reduce competition between the two aviation companies.

 

"AirAsia is about having low fares. We want to have more flights and in order to do so, we have to be cheaper.

 

 

"You have a choice. If you do not like our (AirAsia) fares, you can choose not to fly with us," he said, adding that even AirAsia had to compete for business.

 

Malaysians should place more faith in the collaboration (between MAS and AirAsia) which would not only benefit the industry but also the country, Fernandes said.

 

"Malaysians, by nature, will only be convinced after they see success.

 

 

"So, give us some time and we will prove to you that the deal will be profitable," Fernandes said, adding that he welcomed parties which criticised AirAsia, MAS or the share swap deal to sit down with the management and hear their side of the story.

 

Fernandes hoped Malaysia Airports would further realise the benefits of low-cost travel by granting the airline more low-cost terminals at Malaysian airports.

 

"We have one in Kota Kinabalu and we would love to have one in Penang and Kuching as we think low-cost travel is a separate entity than the premium version.

 

"We continue to record more routes and more frequencies in the last 12 months.

 

"Financially, our third quarter looks good, I hope the fourth quarter will also be good.

 

"In reality, it is now MAS and AirAsia's glorious moment as we can improve our business volume while other airlines are struggling."

 

Meanwhile in Petaling Jaya, the Malaysian Airlines System Employees Union (MASEU) had expressed its dissatisfaction over the explanation given by the airline's management on the company's collaboration with budget carrier, AirAsia Bhd.

 

Its president, Alias Aziz, said the explanation by MAS managing director Ahmad Jauhari Yahya on Friday of the share swap deal was not satisfactory.

 

"As such, we have decided to write to the prime minister. We want to meet Datuk Seri Najib Razak to convey our views and opposition to the MAS-AirAsia deal," he said at the MASEU office in Subang Jaya, near here.

 

Alias requested MAS to buy back its shares which had been sold to AirAsia and return the AirAsia shares it had bought. -- Bernama

 

Read more: No hike in AirAsia fares http://www.nst.com.my/nst/articles/19air-3/Article#ixzz1Zfx6ZqbV

 

 

http://www.nst.com.my/nst/articles/19air-3/Article

[Mushrif A 3]

"You have a choice. If you do not like our (AirAsia) fares, you can choose not to fly with us," he said, adding that even AirAsia had to compete for business."

 

Too bad we will no longer have FY as an option, thanks to you dear TF.

 

I'm wondering if TF was feeling the heat of FY and the potential threat to AK's domestic LCC monopoly. ANybody know how much is the cashflow contribution of AK's domestic ops to the group? Looked like it was a preemptive strike.

[KK Lee 5]

AK need not increase their most expensive or cheapest fare, however, they could allocate higher and lower proportion of seats to higher fare and lower fare class respectively to generate additional revenue.

[BC Tam 2]

"There will be no benefits to us if the fare is increased," he said after presenting a talk at Universiti Tunku Abdul Rahman here yesterday.

If not a case study for MBA students, then at least a phd thesis topic in philosophical studies

Possibly principles of money making will need to be rewritten somehow

[Mushrif A 3]

AK need not increase their most expensive or cheapest fare, however, they could allocate higher and lower proportion of seats to higher fare and lower fare class respectively to generate additional revenue.

 

Even if only one miserable seat per flight is made available at a RM1 fare, adverts can still shout..."from RM1"