MAS and AirAsia Shares Swap

[Cheng Long 0]

Do other states have their representatives on the board? I think it's a step in the wrong direction. Just get capable people regardless of race, where they are from and politic affiliation.. Most top management in MH is from one race, so something is very wrong there..

 

Idris Jala is just ok but he doesn't strike me as someone who is brave enough to tackle a problem head on. He just tows the line and does window dressing like what he is doing now with what transformation stuff. He doesn't go after the real problems but just skirts around them..

[KK Lee 5]

When MH first formed, Sabah Air and Hornbill discontinued pax service and in return both Sabah and Sarawak were represented in the board. Like many things else in the country, agreements were sidelined, reinterpreted or rewritten.

[BC Tam 2]

Under fire over AirAsia-MAS deal, Fernandes seen shifting ties

By Debra Chong

October 05, 2011

 

KUALA LUMPUR, Oct 5 — Aviation tycoon Tan Sri Tony Fernandes appears to be moving his allegiance from one former prime minister to another since coming under attack from influential Malay right-wingers over AirAsia’s controversial share swap deal with Malaysia Airlines System (MAS).

 

Having won the public backing of Tun Dr Mahathir Mohamad last month, the AirAsia boss has now distanced himself from former prime minister Tun Abdullah Ahmad Badawi and the latter’s circle, which was believed to once hold great influence over the government and included Abdullah’s son-in-law Khairy Jamaluddin and businessman Datuk Kalimullah Hassan.

 

The ambitious Fernandes has been hard-hit following allegations he is using the national carrier to further his personal aspirations — the latest being the acquisition of English Premier League football club, Queens Park Rangers.

 

The country’s flag 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.

 

In an exclusive interview with Malay-language news portal, Agenda Daily, earlier this week, Fernandes addressed head-on the questions that have cast a shadow on his involvement in the airline industry.

 

Football-mad Fernandes recounted how his problems started when Khairy, a fellow football lover, said he could bring “My Team” to Old Trafford, the home of Premier League champions Manchester United.

 

“I said ‘great idea’, because it was a dream... and from there the problem started,” said the businessman who managed to turn a RM1 company into Asia’s biggest budget carrier.

 

When quizzed, he rubbished the suggestion that he owed AirAsia’s dramatic success to Abdullah who approved the budget carrier to fly into Singapore.

 

“No, our first international route was during Dr Mahathir’s time. The route we got during Pak Lah’s time was the KL-Singapore (that became controversial),” Fernandes was reported as saying.

 

He also played down his close ties to Khairy, who was seen as having an influence on the fifth prime minister who governed from October 2003 to March 2009 — around the time when AirAsia took off.

 

“Actually, we didn’t get anything, what we got was mostly during Dr Mahathir’s and Datuk Seri Najib’s time. During Pak lah’s era, it was very little,” Fernandes said.

 

He also said it was Kalimullah, a shareholder in boutique merchant bank ECM-Libra, who approached him for a stake in AirAsia X and had put some money on the deal.

 

Fernandes insisted that the share swap deal between AirAsia and MAS involved great risks to both companies, and denied either party was being “bailed out”.

 

He also sought to portray the controversial decision to buy Queens Park Rangers as a publicity stunt that had benefitted the loss-making MAS.

 

“Do you realise that since a month ago, MAS has got so much publicity... before this, if you go to London and ask them to name an airline from Malaysia, they would say AirAsia,” Fernandes told Agenda Daily.

 

“And if you go to Australia, they would say AirAsia X. AirAsia X spends four times as much as MAS (in advertising). You have to spend. That’s promotion.”

 

from here

 

If there was any discretionary sense at all, any references to what was 'gotten' during whose era should have been, well, discreetly shielded from public consumption

Ah well, what do I know about these things anyway ?!

[flee 5]

Those in Sarawak are so naive aren't they? The main reason why the routes are cancelled is because they are the least profitable. For a company that is making losses, they have to cut where the loss that is the greatest.

 

Furthermore, Sarawak's govt. has failed to develop tourism products that will attract large numbers of people there. Why is it so difficult to reach places like the Mulu Caves? Why can't they make it more accessible by normal low cost land transport?

 

Sabah has more to offer to tourists - that is why we have more flights to Sabah and not to Sarawak. So develop your product first before you ask for flights lah!

 

Do other states have their representatives on the board? I think it's a step in the wrong direction. Just get capable people regardless of race, where they are from and politic affiliation.. Most top management in MH is from one race, so something is very wrong there..

 

Idris Jala is just ok but he doesn't strike me as someone who is brave enough to tackle a problem head on. He just tows the line and does window dressing like what he is doing now with what transformation stuff. He doesn't go after the real problems but just skirts around them..

Idris Jala is a yes man for the govt. He is only a technician, not a real entreprenuer. His job at MH is done. If he stays there longer, it will lead to his downfall. If the Sarawak politicians want to be represented in the board, the have to acquire shares in AirAsia and MAS. That is the only way you can get directors on the board...

[BC Tam 2]

Why is it so difficult to reach places like the Mulu Caves? Why can't they make it more accessible by normal low cost land transport?

The terrain ?

As God instructed mother nature to sculpture it ?

 

Incidentally, those roads and other infrastructure privileges are supposed to be funded from federal coffers, not from state's budget

 

Idris Jala is a yes man for the govt. He is only a technician (technocrat ?), not a real entreprenuer. His job at MH is done .....

Which is why I'm impressed some people still sing his praises

He was, as many have observed before me, just merely 'window dressing' - wholesale asset disposal, cost slashing without a thought about the consequences, etc - and at the opportune moment, passed the buck unto the next in line

 

A luxury, I hasten to add, is not as yet quite available to T/S TF at Air Asia

[Naim 6]

 

 

If there was any discretionary sense at all, any references to what was 'gotten' during whose era should have been, well, discreetly shielded from public consumption

Ah well, what do I know about these things anyway ?!

 

He surely knows which side of the bread is buttered.

[alberttky 0]

Those in Sarawak are so naive aren't they? The main reason why the routes are cancelled is because they are the least profitable. For a company that is making losses, they have to cut where the loss that is the greatest.

 

Furthermore, Sarawak's govt. has failed to develop tourism products that will attract large numbers of people there. Why is it so difficult to reach places like the Mulu Caves? Why can't they make it more accessible by normal low cost land transport?

 

Sabah has more to offer to tourists - that is why we have more flights to Sabah and not to Sarawak. So develop your product first before you ask for flights lah!

 

 

The Sarawak government is only good for moaning and groaning about reduced flights. The other side of their brains never look at the need to improve their product offerings. They don't realize that if their tourism products are superior, airlines will ask for landing slots! Look at what Phuket and Bali has done. It's not like the state has no land and no money. I think what it lacks are creativity and determination.

 

I look at Damai Beach and I'm embarrassed to tell people we have a beach resort there. The water is murkier than my teh tarik I drank this morning. When I had a look at Google Maps, I fail to find a stretch of beach that is actually clean with clear water.

 

Anyway it'll be a long long way before someone actually wakes up and realize that it's time to do something different.

[Nik H. 3]

The Unions can picket all they like but what will happen will happen. The Company will prevail. The National Agenda for MH to succeed will override all concerns that the Unions stands for. If the employees are adversely affected, it will only be considered as collateral damage.

 

The new MH CEO is a sharp person. And TF is even sharper. They have a good plan because all other plans are lousy. And TF dares to fail. I admire his panache. MH needs downsizing to operate as a small but insignificantly profitable premium airline that will carry the flag of Malaysia.

 

AK will do the lower end but a much bigger slice of the market.

 

In essence, MH needs to be Rolls Royce, selling 1000 cars making small profits. AK will sell Zillions of Toyotas making big profits.

 

Both AJ and TF would have met their promises. A small MH turning small profits, and a huge AK turning huge profits. The demands of the travelling public will then be served. The country's agenda of having a profitable airline will be met.

[Rashdan Radzi 0]

The Unions can picket all they like but what will happen will happen. The Company will prevail. The National Agenda for MH to succeed will override all concerns that the Unions stands for. If the employees are adversely affected, it will only be considered as collateral damage.

 

The new MH CEO is a sharp person. And TF is even sharper. They have a good plan because all other plans are lousy. And TF dares to fail. I admire his panache. MH needs downsizing to operate as a small but insignificantly profitable premium airline that will carry the flag of Malaysia.

 

AK will do the lower end but a much bigger slice of the market.

 

In essence, MH needs to be Rolls Royce, selling 1000 cars making small profits. AK will sell Zillions of Toyotas making big profits.

 

Both AJ and TF would have met their promises. A small MH turning small profits, and a huge AK turning huge profits. The demands of the travelling public will then be served. The country's agenda of having a profitable airline will be met.

 

 

Hear, hear......

 

(Capt., always a pleasure to read your wise words.)

Edited October 5, 2011 by Rashdan Radzi

[Mike P 0]

Hmmm.. I think TF is a guy who would never put on the tie...

[alberttky 0]

Hoteliers want airlines to go public with their rationalisation plans

 

BINTULU: The Malaysian Association of Hotel (MAH) Sarawak Chapter wants the country’s airlines to make public its flight rationalisation plan because industry players and the public in general are anxious about the changes.

 

Its chairman Keith Pointer said there was now much uncertainty in Sarawak about the air services, which could result in economic losses for the people.

 

“Corporate people are worried. Travel agents say they are incur- ring extra costs due to flight cancellation.

 

“The manufacturers in Samalaju are worried that they could not get people in or out of Bintulu. So the soonest we know what the airlines’ plans are, the better we can cope and plan how to overcome the problems,” he said.

 

Pointer felt that the various industries, which had been very vocal about the flight rationalisation plan, had not been over-reacting but had been making fair requests as stakeholders.

 

“They cannot keep silent on the issue as that could further exacerbate the problem,” he insis-ted.

 

Furthermore, he said air connectivity was of utmost importance to the hospitality industry in Sarawak as it was the safest, easiest and quickest way for people to move around this vast state.

 

Asked if the air connectivity had caused losses for the hospitality industry, hotels in particular, Pointer said: “As it is now, I can’t give facts and figures. MAH is still working on the details, getting feedback from the industry players.”

 

Nonetheless, Pointer believed that the impact on the hotel industry would be enormous if air travel to Sarawak was disrupted.

 

He revealed that it had already affected New World Suites Hotel’s budget and plans for next year. Pointer is the chief executive officer of the hotel.

 

“We couldn’t reliably anticipate the number of tourist like before and although there are no revenue losses yet, we are already seeing a decline in business travellers,” he said.

 

Pointer also said MAH Sarawak fully supported Sarawak Tourism Federation’s (STF) call for a Sarawakian to be appointed into the boards of directors of Malaysia Airlines (MAS) and AirAsia.

 

The call is one of the points in STF’s memorandum to MAS and the government in reaction to the flight rationalisation plan. STF believed that the lack of a Sarawakian in the airlines’ boards was one of the reasons why routes to Sarawak were the first to be cancelled nationally in the flight rationalisation exercise.

 

http://thestar.com.my/news/story.asp?file=/2011/10/6/sarawak/9639395&sec=sarawak

 

[KK Lee 5]

Hmmm.. I think TF is a guy who would never put on the tie...

 

He was even spotted on morning coat at a race.

 

http://uk.eurosport.yahoo.com/football/early-doors/article/346271/

 

http://www.f1plus.com/en/news/item/114-tony-fernandes-awarded-with-qthe-commander-of-the-order-of-the-british-empireq-

[Mike P 0]

He was even spotted on morning coat at a race.

 

http://uk.eurosport.yahoo.com/football/early-doors/article/346271/

 

http://www.f1plus.com/en/news/item/114-tony-fernandes-awarded-with-qthe-commander-of-the-order-of-the-british-empireq-

 

In rare occasion, haha, he did not put on tie on most of his portraits and profiles. So.. a non-government entity has received such honourable award for HRM The Queen Elizabeth II? That's really not easy and shame on Malaysian Government.

[Sri Ramani K. 0]

He was even spotted on morning coat at a race.

 

http://uk.eurosport.yahoo.com/football/early-doors/article/346271/

 

http://www.f1plus.com/en/news/item/114-tony-fernandes-awarded-with-qthe-commander-of-the-order-of-the-british-empireq-

 

http://a5.sphotos.ak.fbcdn.net/hphotos-ak-snc7/299995_281934148484033_100000023517958_1137183_429727842_n.jpg

[KK Lee 5]

In rare occasion, haha, he did not put on tie on most of his portraits and profiles. So.. a non-government entity has received such honourable award for HRM The Queen Elizabeth II? That's really not easy and shame on Malaysian Government.

 

TF is well trained in public relation, he dressed for occasion.

 

TF awarded CBE by HM and Tan Sri by GoM, why shame on GoM?

Edited October 6, 2011 by KK Lee

[Mike P 0]

TF is well trained in public relation, he dressed for occasion.

 

TF awarded CBE by HM and Tan Sri by GoM, why shame on GoM?

 

He contributed to both nations' commercial and cultural ties while posing as a non-government related entity, yet Malaysian Government failed to do much about it.

[KK Lee 5]

The Unions can picket all they like but what will happen will happen. The Company will prevail. The National Agenda for MH to succeed will override all concerns that the Unions stands for. If the employees are adversely affected, it will only be considered as collateral damage.

 

The new MH CEO is a sharp person. And TF is even sharper. They have a good plan because all other plans are lousy. And TF dares to fail. I admire his panache. MH needs downsizing to operate as a small but insignificantly profitable premium airline that will carry the flag of Malaysia.

 

AK will do the lower end but a much bigger slice of the market.

 

In essence, MH needs to be Rolls Royce, selling 1000 cars making small profits. AK will sell Zillions of Toyotas making big profits.

 

Both AJ and TF would have met their promises. A small MH turning small profits, and a huge AK turning huge profits. The demands of the travelling public will then be served. The country's agenda of having a profitable airline will be met.

 

MH can become the Rolls Royce of airlines. However, can the current overhead and headcount shrink with the fleet and network size to be profitable?

[Nik H. 3]

MH can become the Rolls Royce of airlines. However, can the current overhead and headcount shrink with the fleet and network size to be profitable?

 

The basic ingredients are all there; competent technical crew, best cabin crew, and now the smartest Aviation Czar....the headcount issue can be easily solved using 'bulldozer strategy' and the overheads can be easily rationalised in time. Not easy, but not difficult.

 

I don't know exactly how, which is why I chose early retirement, eat popcorn and watch from the ringside seat.

[Cheng Long 0]

Thought it's hard to be small, premium and profitable.. Unlike the autombile industry, if you have a good product, people will buy from you.. Basically the story stops there..

 

With airlines, wide network, good frequency and excellent/value for money products are reasons people choose an airline over another..

 

MH already has very patchy network and poor frequency to many places.. can't imagine they downsize further.. it's a recipe for disaster.. You need to expand to survive..

[KK Lee 5]

Thought it's hard to be small, premium and profitable.. Unlike the autombile industry, if you have a good product, people will buy from you.. Basically the story stops there..

 

With airlines, wide network, good frequency and excellent/value for money products are reasons people choose an airline over another..

 

MH already has very patchy network and poor frequency to many places.. can't imagine they downsize further.. it's a recipe for disaster.. You need to expand to survive..

 

Without political mandate, MH CEO doesn’t have the authority to downside the company. Given GE is only months away, vested interest in the supply chain and connection of MH employees (e.g. family member is head of party division, etc), current gomen is unlikely to permit the CEO to bulldoze MH anytime soon.

 

Current gomen is popular with untested business model and don’t learned from failure. Until there is a change of gomen and another change of management, MH is unlikely to be better.

[Mohd Suhaimi Fariz 2]

Current gomen is popular with untested business model and don’t learned from failure. Until there is a change of gomen and another change of management, MH is unlikely to be better.

 

I doubt a change in gomens will have any effect other than a change in the vested parties from the current cronies to cronies from the other side.

 

To be honest, I think rather than downsizing the workforce per se, what they could do is to redeploy & retrain some of the workers for other departments. There are many departments who are in need of manpower and can't do so due to a hiring freeze.

 

If downsizing is the set plan, then rather than slicing from the bottom, slice it from the top to reduce the number of contacts from the workers below to upper management which allows for reduces bureaucracy. Plus, I don't think cutting down below is that beneficial in terms of savings because contrary to common opinion salary levels in MAS ain't that high really, compared to other GLCs.

Edited October 7, 2011 by Mohd Suhaimi Fariz

[KK Lee 5]

I doubt a change in gomens will have any effect other than a change in the vested parties from the current cronies to cronies from the other side.

 

To be honest, I think rather than downsizing the workforce per se, what they could do is to redeploy & retrain some of the workers for other departments. There are many departments who are in need of manpower and can't do so due to a hiring freeze.

 

If downsizing is the set plan, then rather than slicing from the bottom, slice it from the top to reduce the number of contacts from the workers below to upper management which allows for reduces bureaucracy. Plus, I don't think cutting down below is that beneficial in terms of savings because contrary to common opinion salary levels in MAS ain't that high really, compared to other GLCs.

 

What about multitasking?

 

Salary level at MH may be low but many employees find ways to work overtime. Hence, overall wages is not low.

[Ikman Ikreza 0]

While MAS Unions planning to picket, TF comment on his blog regarding Unions.

 

Unions

Oct 06, 2011

Categories: Brands, Marketing, Employees, Others

 

Recently, there has been a lot of talk about unions. AirAsia has 9,000 staff and no unions. Why? Because we look after our staff. You only need unions if management doesn’t take care of the staff.

 

AirAsia staff are paid well, they get an annual bonus and are provided with opportunities for career advancement. The company does well, and so do they.

 

I’m not sure what some unions do. Are unions democratic, do they represent all the staff? Some union leaders have been in office for years. Are they benefitting themselves or the staff?

 

Yes, worker’s rights are important but I still feel dialogue is the best way forward. We should all win together.

 

Source : http://www.tonyfernandesblog.com/main.php/2011/10/06/unions

[zamim 0]

What about multitasking?

 

Salary level at MH may be low but many employees find ways to work overtime. Hence, overall wages is not low.

Not all Unions and Assocs agreed to

picket (threatening and action are 2 different things). Do we need Unions/Assocs? In MAS, it is not the Unions/Assocs that causing the problem but it is the Human Capital dept that not sensitive and honoring the terms and conditions as agreed in the CA.

[CH Teo 0]

AirAsia, MAS To Unveil Tie-up Details This Month: OSK

 

KUALA LUMPUR, Oct 7 (Bernama) -- AirAsia and Malaysia Airlines (MAS) will unveil more details on their strategic collaboration this month, OSK Research Sdn Bhd said.

 

"We see both airlines benefiting in the areas of maintenance, as we gather that at least 55 of AirAsia's planes will soon need to go through required C and D checks.

 

"We see MAS making more capacity cuts, notably on the domestic and Asean routes, given the potentially lower demand for full service travel," OSK said in a statement today.

 

Amid shrinking demand for domestic full service travel, OSK said, MAS could reallocate its narrow-bodied planes to international routes, with a possible partnership with Qantas' OneAsia, which is awaiting delivery of new planes.

 

"Should this materialise, MAS would be able to further lower its costs while Malaysia Airports Holdings Bhd would be able to rake in more revenue," OSK said, adding that it maintains its overweight call on the aviation sector.

 

Sources: http://www.bernama.com.my/bernama/v5/newsbusiness.php?id=618315