MAS and AirAsia Shares Swap

[alberttky 0]

I suppose instead of waiting, perhaps Sarawak Government may come out the proposal plan first since they have no intention to set up an own airlines but to utilise MasWings.

 

Very difficult, because Sarawak Government is good for complaining only. They can't really think long term. Just look at them b1tching about flight cuts. All they worry about is drop in visitor numbers. But they don't think about what they need to improve in order to attract visitors. Give up on them.

 

Sarawak tourism infrastructure may be poor and does not meet the standard requirement. But I won't rate it to an F, probably B or C.

 

Besides, please do not narrow down the Sarawak flight connectivity is just merely catering tourism. Don't forget about the business travelling, especially now Sarawak got the SCORE project. On top of that 70% load factor by FY between KUL - KCH is really a lot! The immediate and sudden cancellation does affect the passengers!

 

While we might rate the tourism infrastructure B or C, the government thinks that they've got an A rating.

 

Looking at the previous cries by the Sarawakian government, all they care about is tourism, and how it will be negatively impacted with the reduction in flights.

[Cheng Long 0]

How much does tourism actually play to Sarawak? It's not a hot tourist destinations.. I'm from sarawak and I don't see many tourists also.. Their tourism products and campaign are a mess..

[flee 5]

From my observation point, I think that the main reason why both MH and AK wants FY out is because it is sucking the yield out of their routes. For MH it is stupid because FY is not making much money (if any) from the Sarawak routes. Yet their own flights suffered. Same story for AK - they now need to lower their fares to a level where yield is unsatisfactory.

 

While checking the frequencies earlier, I note that now, both AK and MH fares are not crazy anymore - around the RM 120-200 mark depending on when you travel and whether the cheaper seats are sold out. Perhaps both MH and AK feel that they can make a reasonable return with fares set at this level. Earlier this year, I travelled on a base fare of RM 45 and total bottom line fare of RM 70+ from KUL-KCH.

 

It is one thing having so many flights to KCH and it is another to fill them. Time and again, airlines have tried offering different destinations, e.g. MFM. However they were not able to get much business and the planes were not full enough. Even the SIN-KCH route was cut by Tiger and JetStar due to poor demand. I think Silk Air is also gone. Correct me if I am wrong, but I think that now, only MH/AK operates the KCJ-SIN flights.

 

So before the state govt makes big noise, it should take a look at itself. Is there sufficient demand for flights to justify airlines coming to KCH? Airlines are not stupid - they will come if there is business and profits to be made!

[dean hizudy 0]

From my observation point, I think that the main reason why both MH and AK wants FY out is because it is sucking the yield out of their routes. For MH it is stupid because FY is not making much money (if any) from the Sarawak routes. Yet their own flights suffered. Same story for AK - they now need to lower their fares to a level where yield is unsatisfactory.

 

While checking the frequencies earlier, I note that now, both AK and MH fares are not crazy anymore - around the RM 120-200 mark depending on when you travel and whether the cheaper seats are sold out. Perhaps both MH and AK feel that they can make a reasonable return with fares set at this level. Earlier this year, I travelled on a base fare of RM 45 and total bottom line fare of RM 70+ from KUL-KCH.

 

It is one thing having so many flights to KCH and it is another to fill them. Time and again, airlines have tried offering different destinations, e.g. MFM. However they were not able to get much business and the planes were not full enough. Even the SIN-KCH route was cut by Tiger and JetStar due to poor demand. I think Silk Air is also gone. Correct me if I am wrong, but I think that now, only MH/AK operates the KCJ-SIN flights.

 

So before the state govt makes big noise, it should take a look at itself. Is there sufficient demand for flights to justify airlines coming to KCH? Airlines are not stupid - they will come if there is business and profits to be made!

both MI & TR still flying the SIN-KCH route

[alberttky 0]

From my observation point, I think that the main reason why both MH and AK wants FY out is because it is sucking the yield out of their routes. For MH it is stupid because FY is not making much money (if any) from the Sarawak routes. Yet their own flights suffered. Same story for AK - they now need to lower their fares to a level where yield is unsatisfactory.

 

While checking the frequencies earlier, I note that now, both AK and MH fares are not crazy anymore - around the RM 120-200 mark depending on when you travel and whether the cheaper seats are sold out. Perhaps both MH and AK feel that they can make a reasonable return with fares set at this level. Earlier this year, I travelled on a base fare of RM 45 and total bottom line fare of RM 70+ from KUL-KCH.

 

It is one thing having so many flights to KCH and it is another to fill them. Time and again, airlines have tried offering different destinations, e.g. MFM. However they were not able to get much business and the planes were not full enough. Even the SIN-KCH route was cut by Tiger and JetStar due to poor demand. I think Silk Air is also gone. Correct me if I am wrong, but I think that now, only MH/AK operates the KCJ-SIN flights.

 

So before the state govt makes big noise, it should take a look at itself. Is there sufficient demand for flights to justify airlines coming to KCH? Airlines are not stupid - they will come if there is business and profits to be made!

 

So far either no one has got the balls to tell the Sarawak Government that their tourism offering SUCKS, or they just being ignorant.

[Mike P 0]

So far either no one has got the balls to tell the Sarawak Government that their tourism offering SUCKS, or they just being ignorant.

 

I think probably the marketing. Sarawak is more like offering flora and fauna and nature tourism. Sarawak does not have sandy beaches and blue sea which play the vital role to attract tourists. Unlike Sabah & Langkawi, which geographically and naturally available. Still, I symphatise Sarawak, being the richest state by natural resources and yet they got only 5% of the earnings and revenues.

[Waiping 12]

My 2 cents.

 

The government all will probably act and behave the same. Sabah is lucky because those nice tourist attractions are all nearby the city and Mount Kinabalu is just 2 hours drive from KK. Last time I went to Kuching and we stayed at the Damai beach. It's pretty run down and quite far from the city.

 

I don't recall any significant tourism promotion activities, except recently we had some pretty grand cultural shows. But we all know election is just around the corner.

[KK Lee 5]

I think probably the marketing. Sarawak is more like offering flora and fauna and nature tourism. Sarawak does not have sandy beaches and blue sea which play the vital role to attract tourists. Unlike Sabah & Langkawi, which geographically and naturally available. Still, I symphatise Sarawak, being the richest state by natural resources and yet they got only 5% of the earnings and revenues.

 

How much of virgin jungle still remain in Sarawak?

[Mike P 0]

How much of virgin jungle still remain in Sarawak?

 

I suppose 50 to 60%.

[BC Tam 2]

How much of virgin jungle still remain in Sarawak?

Virgins (or whatever is left) should be left unexplored - the jungle variety I meant

Gives the natural ecosystem better chance of survival, in form and manner that God and mother nature intended

If want to exploit for tourism USD, GBP, RMB, YEN, MYR - better to redo/mask those areas that have already been raped bare to perceived pristine jungle standard and market accordingly. Let's face it, most tourism products are 'sanitized' for max returns anyway

It's a bit like processed food really

[Cheng Long 0]

How much of virgin jungle still remain in Sarawak?

 

5-10% maybe.. Different people will tell you different figure.. the gov will probably tell you it's 90% as they are protecting the rainforest.. But when you fly around in twin otter, you see everywhere is oil palm plantation and bald spots thanks to logging..

[alberttky 0]

MAS to unveil business plan soon

 

PETALING JAYA: Malaysia Airlines (MAS) said it is actively finalising a business plan which it intends to unveil soon.

 

However, it did not specify what it meant by soon, although sources said the airline planned to release its third-quarter financial results before the end of this month and perhaps it would unveil the business plans after a board meeting scheduled for Nov 30.

 

In a statement yesterday, MAS said it had been actively finalising the business plan blueprint from the day Ahmad Jauhari Yahya, its group chief executive officer, took office on Sept 19.

 

“The airline is also taking great care to avoid hasty decisions that may hamper the execution of the plan. This involves a comprehensive review of all the business processes for a decisive action plan with radical changes that really work.

 

“It is not the intention of the airline to delay in this aspect as we recognise the urgent need to execute a carefully sequenced business plan to move the national carrier back to profitability,'' the airlines said.

 

MAS was responding to a StarBiz article on Friday which said that “investors and analysts are basically growing tired, having waited for nearly three months now for the new team at MAS to announce some definitive execution plans to turn the ailing airline around.''

 

The StarBiz report quoted a Maybank Investment Bank research report as saying that: “The first impression we get is that the new management is busy learning the ropes and dealing with internal matters first before unveiling their grand plan.''

 

The research house expects MAS to report a net loss of RM242mil for the third quarter. It said the fourth quarter, which is traditionally a good period for airlines, would be equally challenging for the national carrier.

 

“It has been more than three months since the announcement of the MAS-AirAsia tie-up. Unfortunately, not much progress has been made in terms of operational matters,'' the research house said.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/11/19/business/9937430&sec=business

[sweekee 0]

Here a news!!!

MH 3rd quarter net loss RM480mil

[Jim Liu 0]

MAS to unveil business plan soon

 

PETALING JAYA: Malaysia Airlines (MAS) said it is actively finalising a business plan which it intends to unveil soon.

 

So MH will finally announce cancelling those destinations mentioned nearly 2 weeks ago, coinciding with the new business plan announcement?

[Mohd Azizul Ramli 2]

MH 3rd quarter net loss RM480mil

Wow, if proves true MH's cumulative 9 months net loss for 2011 will be more than RM 1.2 billion! RM 480 million net loss for Q3 is double than what the analysts predicted.

 

So MH will finally announce cancelling those destinations mentioned nearly 2 weeks ago, coinciding with the new business plan announcement?

Any movement in the booking system regarding this matter?

 

Uncle Tony ranted of wasting 6 hours on MH's Board meeting. So the destruction must be substantial.

 

Tony Fernandes

Back to board meeting. Thats dedication 6 hr board meeting for malaysia airlines . Could have flown shanghai.

[jit 0]

Wow, if proves true MH's cumulative 9 months net loss for 2011 will be more than RM 1.2 billion! RM 480 million net loss for Q3 is double than what the analysts predicted.

 

Whenever there is a management takeover the first FY losses will be inflated.. the new team will try to dump as much cost allocation to this FY, whereas revenue

is transfered to the next FY as much as possible. Hence the new team will be able to show a steeper turn around next FY which is credited to them. Those in the financial circles will know how to do this..

Yes, MH is losing money, but not as much as it is seen to be. And you'll see a steep turn around next FY.

Let us ask ourselves... the airline was running largely status quo the past 2 years with no major disasters.. why the sudden steep drop? Unless there was some corporate

fraud ala olympus where the past few year's financial figures where manipulated.

[Mohd Azizul Ramli 2]

Creative accounting like that is hard to pull post Enron. Dumping cost/revenue reallocation like you mentioned may sounds doable on paper or in small scale but in reality it won't pass the auditor (I believe MH's auditor is Ernst & Young - arguably the world's most prestigious firm) and the analysts especially given the size and the nature of MH, a high profile GLC. MH has been blaming the fuel cost as primary contributor to its losses in the past 2 quarters, not some extra ordinary write-off or provisions, which even if there is some elements like that, it will be captured, reflected and reported accordingly by the analysts in their reports.

 

Tengku Azmil's management did quite poorly on the financial side. His team reported a net profit of RM 500 million in FY2009 but since he took office in late August that year, much of the credit should goes to the previous Management - Idris Jala's team. In FY 2010, his team reported a net loss of RM 240 million.

[alberttky 0]

MAS posts Q3 net loss of RM477.6mil on higher fuel cost

 

PETALING JAYA: Malaysia Airlines (MAS) posted a worse-than-expected net loss of RM477.59mil for the third quarter ended Sept 30, on higher fuel cost, derivative loss and unrealised foreign exchange loss.

 

This compared with a net profit of RM233.23mil for the corresponding period last year, and market's expectations of a less than RM300mil net loss for the third quarter.

 

Operating loss for the national carrier stood at RM156mil for the third quarter compared with an operating profit of RM35mil a year earlier.

 

During the period under review, MAS saw its revenue grew to RM3.57bil compared with RM3.4bil in the year-earlier period. The company attributed its revenue growth to a 3% growth in passenger load on the back of a 6% capacity growth, reduced seat factor by a 2.7 percentage point to 76%; and a 6% improvement in passenger yield.

 

Loss per share stood at 14.29 sen for the third quarter compared with an earnings per share of 6.98 sen for the corresponding period last year.

 

MAS said its total expenditure for the quarter in review rose 10% or RM357mil to RM3.72bil, mainly to the increase in fuel cost by RM396mil, while non-fuel cost was lower by 2% or RM39mil over the same quarter last year.

 

MAS' net loss was inclusive of a derivative loss of RM70mil and unrealised foreign exchange loss of RM195mil, compared with a derivative gain of RM156mil and unrealised foreign exchange gain of RM88mil.

 

For the nine-month period, MAS net loss stood at RM1.25bil, with a loss per share of 37.30 sen, compared with a net profit of RM8.55mil and an earnings per share of 0.27 sen for the nine months to September 2010.

 

Revenue grew to RM10.24bil for the first nine months of 2011, compared with RM9.91bil for the corresponding period last year.

 

In a statement, MAS said the operating environment remained challenging for the remaining three months of 2011. It expected the fourth quarter operational results to be weaker than the current quarter.

 

“Not only is jet fuel price staying high, the worsening economic situation in Europe is being translated into weak forward booking profiles for our long-haul routes,” it said.

 

MAS said its management was undertaking immediate counter-measures to address the situation via heightened revenue management activities and other commercial initiatives.

 

The company said it was embarking on a significant network rationalisation exercise to withdraw structurally weak, loss-making routes and to possibly embark on new higher yielding routes focusing on Asia.

 

“With the adoption of a leaner network, the management shall also be accelerating the return of ageing aircraft and in so doing, improve the fuel efficiency of our fleet,” MAS said.

 

“We expect the full impact of these initiatives to begin bearing fruit in 2012,” it added.

 

MAS shares closed at RM1.36, down four sen yesterday.

 

http://biz.thestar.com.my/news/story.asp?file=/2011/11/22/business/9951484&sec=business

[flee 5]

Bursa Malaysia Q3 Results Announcement

 

Fact remains that MH needs to control costs, increase revenue. It will be very challenging for the management as fuel prices have remained high in Q4. Looks like 2011 will go down as a year of BIG losses for MH.

[Izanee 0]

yeah, here we go. exactly what tony wants. give up your routes to AAX, then fly to Batam and Palembang 3x weekly. return to the glory days of MSA (with only regional routes from KUL).

good ol' uncle tony will sort the rest out. don't fret your pretty little heads.

[Mohd Suhaimi Fariz 2]

I wonder how much of the loss stemmed from the abrupt cancellation of FY Jet - pax compensation & penalties due to lease cancellations?

[flee 5]

I wonder how much of the loss stemmed from the abrupt cancellation of FY Jet - pax compensation & penalties due to lease cancellations?

We will probably never be able to find out as FY is a private company. You can only get some information if you do a company search - even then, you have to wait till they file their annual return!

 

However, I think that with FY jet gone, MH should enjoy better bookngs to East Malaysia as AK fares are no longer cheap like earlier this year.

[flee 5]

So MH will finally announce cancelling those destinations mentioned nearly 2 weeks ago, coinciding with the new business plan announcement?

 

This is from Bloomberg:

 

Malaysian Airline System Bhd, which posted a third-quarter loss, expects fourth-quarter earnings to be weaker and said it will cut unprofitable routes and focus on higher-yielding destinations in Asia.

 

“With the adoption of a leaner network, management shall also be accelerating the return of ageing aircraft, and in so doing improve the fuel efficiency of our fleet,” the carrier said in a statement to the Kuala Lumpur stock exchange.

 

The stock fell to a six-week low in Kuala Lumpur trading after reporting a third-quarter loss of RM477.6 million.

 

Its shares dropped 1.5 percent to RM1.34 at 9:11 a.m local time, set for their lowest close since Oct. 10.

 

The stock has lost 36 percent this year.

[Mohd Azizul Ramli 2]

Dia cakap apa aku tak faham.

 

Tony Fernandes

Off to airasia board results this evening happy . MAS results much better operating loss down to 136 million last quarter 400 million by 1st quarter next year quite a different airline confident.

Like · · Share · 148 · 10 minutes ago via mobile

[BC Tam 2]

yeah, here we go. exactly what tony wants. give up your routes to AAX, .....

good ol' uncle tony will sort the rest out. don't fret your pretty little heads.

Script being played out nicely eh ?!