MAS and AirAsia Shares Swap

[alberttky 0]

This is indeed possible with AK in the picture. Shutting down MAS for a week will only inconvenience Malaysia's air travel for a while as AK can probably cover 50% of MH needs.

Then restart MAS 'Baru' and reemploy ex-staff on new employment terms. Clean slate. Not easy, but more importantly, not impossible.

 

Better still... get rid of the unions!

[flee 5]

Huh ?!

That is like so contrary to everything we have been told so far

Capt Nik got it absolutely right - FY is heavily subsidised by MH.

 

So while FY may show profits, MH is making heavy losses and this is already reported in the Q3 results. I believe it is also the same story with MASWings.

 

FY may also not be charged market rates for MH services - just on a cost plus small percentage admin mark up transfer price. So their costs will be lower than a normal airline that does not have a big brother.

[flee 5]

MAS Appoints New Chief Operating Officer For Short-haul Operations

 

KUALA LUMPUR, Nov 23 (Bernama) -- Malaysia Airlines today announced the appointment of Ignatius Ong Ming Choy as chief operating officer of its short haul operations effective Dec 10, taking over from Datuk Eddy Leong Chin Tung.

 

Leong will remain in Malaysia Airlines Group until Dec 31, 2011, working with the group chief executive officer Ahmad Jauhari Yahya for seamless business continuity by ensuring a smooth handover to Ong, a statement from the airline company said Wednesday.

 

Leong will then join Destination Resorts and Hotels (DRH), a wholly-owned subsidiary of Khazanah Nasional Bhd incorporated as an investment holding company for the hotels and resorts industry, as the chief operating officer.

 

"On behalf of Malaysia Airlines, I congratulate Leong on his new appointment as chief operating officer at DRH where I was its chairman before joining Malaysia Airlines," Ahmad Jauhari said in the statement.

 

"Given his experience in both hotels and airline management, I am certain he will bring great value to Khazanah and will continue to work closely with the board and management team in Malaysia Airlines.

 

"I also welcome Ong on board Firefly to take it to further heights as Malaysia's truly community airline," he said.

 

A chartered accountant by training, Leong joined Malaysia Airlines in June 2003 as manager, project management department.

 

He then served in key positions before being appointed in 2007 as the first managing director of Firefly.

 

Subsequent to the group's restructuring effective Sept 30, 2011, Leong was made chief operating officer, Short Haul Operations.

 

As the first managing director of Firefly that commenced operations on April 3, 2007, Leong played a significant leadership role in galvanising the team to work hard to build the Firefly brand that began operating with two Fokker 50 aircraft and evolved into a highly successful and profitable airline business currently operating a fleet of twelve ATR72-500 aircraft.

 

Firefly now offers a niche product as a community airline, providing point-to-point connectivity for 18 destinations in Malaysia, Singapore, Indonesia and Thailand.

 

Meanwhile, Ong joined Malaysia Airlines in May 2004 as manager project Management Department.

 

He later served as manager in the Programme Management Office and assistant general manager in the Revenue Management Department before assuming his current appointment as Regional Senior Vice President Australia, New Zealand & South West Pacific.

[CH Teo 0]

You have already discounted MASWings Jet ?

 

Being a East Malaysian, this is much welcomed (But how high are the probability for them to operate Jets?). But the question is that if this is really the plans after receiving much rants from the states tourism players, might as well just repainted the planes in MASwings colours and offer full services directly...

[Nik H. 3]

MAS Appoints New Chief Operating Officer For Short-haul Operations

 

KUALA LUMPUR, Nov 23 (Bernama) -- Malaysia Airlines today announced the appointment of Ignatius Ong Ming Choy as chief operating officer of its short haul operations effective Dec 10, taking over from Datuk Eddy Leong Chin Tung.

 

Leong will remain in Malaysia Airlines Group until Dec 31, 2011, working with the group chief executive officer Ahmad Jauhari Yahya for seamless business continuity by ensuring a smooth handover to Ong, a statement from the airline company said Wednesday.

 

Leong will then join Destination Resorts and Hotels (DRH), a wholly-owned subsidiary of Khazanah Nasional Bhd incorporated as an investment holding company for the hotels and resorts industry, as the chief operating officer.

 

"On behalf of Malaysia Airlines, I congratulate Leong on his new appointment as chief operating officer at DRH where I was its chairman before joining Malaysia Airlines," Ahmad Jauhari said in the statement.

 

"Given his experience in both hotels and airline management, I am certain he will bring great value to Khazanah and will continue to work closely with the board and management team in Malaysia Airlines.

 

"I also welcome Ong on board Firefly to take it to further heights as Malaysia's truly community airline," he said.

 

A chartered accountant by training, Leong joined Malaysia Airlines in June 2003 as manager, project management department.

 

He then served in key positions before being appointed in 2007 as the first managing director of Firefly.

 

Subsequent to the group's restructuring effective Sept 30, 2011, Leong was made chief operating officer, Short Haul Operations.

 

As the first managing director of Firefly that commenced operations on April 3, 2007, Leong played a significant leadership role in galvanising the team to work hard to build the Firefly brand that began operating with two Fokker 50 aircraft and evolved into a highly successful and profitable airline business currently operating a fleet of twelve ATR72-500 aircraft.

 

Firefly now offers a niche product as a community airline, providing point-to-point connectivity for 18 destinations in Malaysia, Singapore, Indonesia and Thailand.

 

Meanwhile, Ong joined Malaysia Airlines in May 2004 as manager project Management Department.

 

He later served as manager in the Programme Management Office and assistant general manager in the Revenue Management Department before assuming his current appointment as Regional Senior Vice President Australia, New Zealand & South West Pacific.

oh my god

[Naim 6]

oh my god

 

i saw your jaw drop? ong?

Edited November 23, 2011 by Naim

[Izanee 0]

BC, depends on how you report profits.

 

When you set up an airline that rides on big brother's sunken costs, or pay resources only when you use avoiding setup and holding costs, an airline can make money with anyone heading it.

 

 

 

This is indeed possible with AK in the picture. Shutting down MAS for a week will only inconvenience Malaysia's air travel for a while as AK can probably cover 50% of MH needs.

Then restart MAS 'Baru' and reemploy ex-staff on new employment terms. Clean slate. Not easy, but more importantly, not impossible.

 

 

I agree with Capt Nik. MAS Baru sounds like a what should have been done years ago. AK can pick up some of the slack, but there are 50 other airlines that fly to malaysia that will be happy to help out!

Looking at MAS, so far every lifeline thrown to MAS has not made a ounce of difference...cash bailouts worth billions, massaging the figures, flying kites (WAU), selling off assets/aircraft, etc etc.

 

The government has to bite the bullet - Do what JAL did. They suffered before but now are making a huge profit. That's what I call lean and mean. Not cutting off a few routes here and there. THAT is not the problem. Its the bloated government style bureaucracy with high overheads (including deals with crony owned catering companies which only benefit the cronies). I know there are many MAS workers who are dedicated, enthusiastic and pull their weight, but there are others who do not.

 

However, with the GE coming soon, the PM will not want to 'rock the boat' and affect BN's chances of gaining more votes. I guess that will not be an option.

 

No one has mentioned anything about oneworld --> why can't they collaborate more with the member airlines in anticipation of joining?? that might help increase passenger numbers including business travellers.

 

Oh well, who am I to say these things? Good luck MAS. Very sad to see the current state of affairs

Edited November 23, 2011 by Izanee

[Y. J. Foo 0]

Now The Sun is reporting that FY may cease to exist...

 

Firefly's future still in limbo

Posted on 24 November 2011 - 05:37am

KANG SIEW LI

sunbiz@thesundaily.com

 

PETALING JAYA (Nov 24, 2011): The abrupt resignation of Firefly managing director Datuk Eddy Leong Chin Tung has left questions swirling on the future of the community airline, a unit of Malaysia Airlines (MAS).

 

Speculation is rife that Firefly could cease to exist by April next year.

 

Sources said Leong's resignation has fuelled rumours that MAS could phase out the Firefly brand to focus on being a full-service premium carrier. Firefly's current fleet of turboprops could be deployed to MAS' other unit, MASWings.

 

They added that Firefly's current air services licence (ASL), which allows an airline to operate scheduled air services, could possibly be transferred to the new super-premium full-service carrier that AirAsia group CEO Tan Sri Tony Fernandes is looking to set up.

 

"The situation would be similar to how AirAsia X got its ASL from FlyAsianXpress (FAX)," said a source.

 

FAX was an airline set up by Fernandes to operate several domestic services following MAS' withdrawal of MAS from rural routes in Sabah and Sarawak in 2006.

 

"When FAX's rural air services were taken over by MASWings, the corporate name was changed to AirAsia X, which switched its focus to a new market, namely low-cost long-haul flights," the source said.

 

In a statement yesterday, MAS group CEO Ahmad Jauhari Yahya confirmed Leong's resignation, saying the latter will be replaced by Ignatius Ong Ming Choy as COO of its short-haul operations, effective Dec 10.

 

Leong will remain in MAS Group until Dec 31, and will be joining Destination Resorts and Hotels (DRH), a unit of Khazanah Nasional Bhd, as COO.

 

The statement made no mention of whether the Firefly operations and brand name will be retained.

 

This is not the first time the future of Firefly has been in question. The unprecedented tie-up between MAS and rivals AirAsia and AirAsia X last August had raised questions over the role the community airline will play.

 

Last month, Firefly's jet services operated by four Boeing 737-800s and one 737-400 between the KL International Airport (KLIA) and Sabah and Sarawak were taken over by MAS. It is understood that passenger traffic in Subang's Sultan Abdul Aziz Shah Airport, which is one of Firefly's bases, fell by some 30% in September from July, following the move.

 

Sources said the move was unsurprising as Firefly's jet services had posed a direct threat to AirAsia's business.

 

"For MAS it didn't matter because Firefly was still part of the group, but not for AirAsia. That's why, following the MAS-AirAsia share-swap deal, the first thing that was cut was Firefly's jet services," said a source.

 

Still, some quarters are questioning MAS' decision to let Leong go when he has been instrumental in the success of Firefly and turning a profit. Last year, Firefly reported double-digit growth in net profit, carrying 1.35 million passengers.

 

"It (also) does not make sense to turn Firefly into a premium full-service airline when it is solely operating turboprops. As it is, the perception of turboprop is that it is second class to jet, so why would people pay premium for second-class travel?" said a source.

 

Sad if this turns out to be true... and it's mind-boggling that people automatically associate turboprops as "second-class" just because they do not have turbofans...

Edited November 23, 2011 by Y. J. Foo

[Izanee 0]

its amazing how things like this just go on in our country and no one bats an eyelid. what was khazanah thinking?

[BC Tam 2]

They added that Firefly's current air services licence (ASL), which allows an airline to operate scheduled air services, could possibly be transferred to the new super-premium full-service carrier that AirAsia group CEO Tan Sri Tony Fernandes is looking to set up.

Tried and tested formula

(to be fair, it's just speculation at the moment )

 

 

 

its amazing how things like this just go on in our country and no one bats an eyelid. what was khazanah thinking?

I think you are assuming Khazanah (or at least the people in the know within) is not party to drafting out the script being played out now ?

Edited November 24, 2011 by BC Tam

[flee 5]

The Sun's report, although unconfirmed, makes sense. No point starting so many new airlines if restructuring existing ones is a better option. However, I am not sure if Subang Skypark will like it as it will mean taking volume away from Subang. However, if it is supposed to be a premium airline, then the airport can go upmarket too.

[Naim 6]

its amazing how things like this just go on in our country and no one bats an eyelid. what was khazanah thinking?

 

depressing state of affairs we have now in the country. no wonder i need to go out frequently to reboot myself!

[flee 5]

depressing state of affairs we have now in the country. no wonder i need to go out frequently to reboot myself!

Agree - there is far too much politicking in this country. When you visit other countries they have more important and interesting items on their local TV news. But having said that, it would appear that the US is emulating Malaysia! But then they are running up to their presidential elections. So it may be excusable...

[dean hizudy 0]

i do not FY to cease as they operating the secondary routes such as PEN-KUA, PEN-KBR,etc....the new premium airlines of course wouldnt operating this kind of routes

[CH Teo 0]

Title: Sabah, Sarawak to be major shareholders of MASwings

 

PETALING JAYA (Nov 23, 2011): Sabah and Sarawak state governments will be the major shareholders of MasWings when the airline becomes a regional airline.

 

Aviation industry sources told theSun yesterday that the several prominent businessmen from both states have also agreed to buy stakes in the airline which was expected to be relaunched by the middle of next year.

 

The sources however said that the both state governments will continue to hold a major share of the new airline to ensure that the service would not suffer to 'whims and fancies of the owners".

 

The sources said negotiations were being conducted and were expected to be made public soon.

 

It was learnt that the plans for the new airline was put in motion after Malaysia Airlines took over the jet service of its subsidiary, Firefly, last month.

 

The takeover meant Firefly no longer services Sabah and Sarawak, handing back the low fare sector to Air Asia.

 

Sources told theSun, the decision to end the Firefly service was taken poorly by the people in Sabah and Sarawak, prompting both state governments to lobby Prime Minister Datuk Seri Najib Abdul Razak to acquire MasWings.

 

It was learnt that negotiations were being carried to wet-lease at four narrow body jets so the airline could start servicing the Sabah/Sarawak to peninsula route soon. (The wet lease of an aircraft is an arrangement whereby the lessor provides at least some crew, maintenance and fuel.)

 

Initially it was planned that the airline was to make two daily flights from both Kuching and Kota Kinabalu to Kuala Lumpur.

 

Other routes for the airline may include KK to Tawau, Kuching to Bintulu/Miri and Kuching to KK.

 

The airline may also lease turbo-props planes to add to the six ATR-72s turbo-props already operated by MASWings for flights in both states.

 

Meanwhile, in Kuching, Sarawak Tourism Minister Datuk Amar Abang Johari Openg confirmed that the state may become the major shareholder of the airline.

 

"At this moment, it is still too premature to say much, but definitely, we will have something in mind," he told reporters when launching the Sarawak Tourism Calender for 2012 at the Media Room of the State Legislative Assembly.

 

He said with more shares, the State would have better say in the running of MasWings in its operations.

 

Abang Johari said if all goes according to plan, MasWings will start operating as a regional airline next year.

 

"But first, it must acquire at least four jetliners before it can start operating at a regional airline," he said, adding that currently MASWings is operating a fleet of ATR turbo-prop aircraft.

 

"As a regional airline, MASWings will have to fly to Singapore, Kuala Lumpur, Bangkok and Hong Kong. These are important hubs in the region," he added when asked to elaborate on his statement when winding up the debate in the State Legislative Assembly today.

 

On the Sarawak Tourism Calender, Abang Johari said that his ministry will organise a series of events next year as a prelude to the state's 50th anniversary in the formation of Malaysia.

 

"We have declared the year 2013 as a special year to mark the 50th anniversary," he said.

 

"Events and festivals will be our major attraction to entice immediate arrivals into the state," he added.

 

 

Looks like they are really cooking up something for an interesting future, let's see what are the "dishes" that came out finally...Nicely drawn from the above I must say...

 

Sources: http://www.thesundaily.my/news/218586

Edited November 24, 2011 by CH Teo

[alberttky 0]

Without the right expertise running the show I think they'll either run the airline to the ground or the airline will get bailed out by taxpayers' money one day.

[reezal 0]

I must say this is definitely an interesting move by the Sarawakian/Sabahan governments. I hope they will retain the name (MASWings) and the livery (Love it). I think the livery would definitely look good on a narrow body jet, say B737-400/800.

 

This, as well as the rumours that Firefly Turbo prop operations going to shut down, MAS cutting down lots of long-standing routes, Firefly Jet's shutting down and the new MAS premium carrier as well as Tony's new Caterham Jet in motion, I have never imagined the MAS-AirAsia share swap would create so much kacau bilau and have this kind of Big chain reaction effect on the Malaysian Aviation industry.

 

2011 is definitely an interesting yet volatile year for the Malaysian Aviation Industry.

Edited November 25, 2011 by Jonathan Kong

[BC Tam 2]

"As a regional airline, MASWings will have to fly to Singapore, Kuala Lumpur, Bangkok and Hong Kong. These are important hubs in the region," he added when asked .....

Sigh !

I guess 'they' will not be happy until money is flushed down the drain (not their 'own' money btw)

[Nik H. 3]

Sigh !

I guess 'they' will not be happy until money is flushed down the drain (not their 'own' money btw)

 

Can you blame TF for being where he is. He cannot help it, being surrounded by clowns, for him its like taking candy from kids.....

 

[BC Tam 2]

He cannot help it, being surrounded by clowns, for him its like taking candy from kids.....

At the rate they are going, those kids can probably by comparison to be likened to scrooges instead

[flee 5]

The minute these politicians and so called "businessmen" get their grubby hands on MASWings and start interfering with the professional running of the airline, that will be the end of MASWings as an airline.

 

I really hope that good sense will prevail and that no more good money is wasted on emotional and unprofitable routes and ventures...

[Waiping 12]

The minute these politicians and so called "businessmen" get their grubby hands on MASWings and start interfering with the professional running of the airline, that will be the end of MASWings as an airline.

 

I really hope that good sense will prevail and that no more good money is wasted on emotional and unprofitable routes and ventures...

 

That is why it is very important to deny them in the next GE! The other option seems to know how to do business when the chips are down.

[CH Teo 0]

The minute these politicians and so called "businessmen" get their grubby hands on MASWings and start interfering with the professional running of the airline, that will be the end of MASWings as an airline.

 

I really hope that good sense will prevail and that no more good money is wasted on emotional and unprofitable routes and ventures...

 

We can only hope for good dishes from them, definitely got some forces from politicians and others already since they planned to change the stakeholders...Pray for upwards and not downwards...

 

I must say this is definitely an interesting move by the Sarawakian/Sabahan governments. I hope they will retain the name (MASWings) and the livery (Love it). I think the livery would definitely look good on a narrow body jet, say B737-400/800.

 

This, as well as the rumours that Firefly Turbo prop operations going to shut down, MAS cutting down lots of long-standing routes, Firefly Jet's shutting down and the new MAS premium carrier as well as Tony's new Caterham Jet in motion, I have never imagined the MAS-AirAsia share swap would create so much kacau bilau and have this kind of Big chain reaction effect on the Malaysian Aviation industry.

 

2011 is definitely an interesting yet volatile year for the Malaysian Aviation Industry.

 

Seconded.

[KK Lee 5]

its amazing how things like this just go on in our country and no one bats an eyelid. what was khazanah thinking?

 

National Aviation Policy duopoly is in the making, modeled after National Automobile Policy where MH and AK to emulate proton and perodua respectively. As domestic routes will still be protected in 2015, expect to be high price yield.

Edited November 24, 2011 by KK Lee

[dean hizudy 0]

for me,the maswings livery will look good in Airbus A319/20/21 aircrafts