MAS and AirAsia Shares Swap

[alberttky 0]

You're right.

 

Have a pleasant evening.

[Isaac 0]

probably 10 years ago, even people from Peninsular would accuse Sarawakians staying on top of the trees. That was an insult to many Sarawakians. But good that Sarawakians are proud to say they rode lifts to reach on top of the trees.

This lame joke wasn't just directed to Sarawak but to the whole East Malaysia.

[Waiping 12]

This lame joke wasn't just directed to Sarawak but to the whole East Malaysia.

 

Yes, but West also stay up in the "trees" of the concrete jungle...

 

At least we get landed properties here...easier.

[Edmund Yung 0]

Visitors from Brunei made up to more than 50% of the total foreign visitors, and I'm guessing most of them only do day trip to Miri or Limbang for dining, shopping... golf?

[flee 5]

MH may have OneWorld partner Qantas help revive its fortunes:

 

Qantas Asia plan under threat

 

Qantas Airways is poised to walk away from its controversial plan to establish a new premium airline in Asia as the economic turmoil spreading from Europe shakes management confidence in the project.

 

The Australian Financial Review can reveal that after spending a year developing plans for a multimillion-dollar investment in the subsidiary airline in both Singapore and Kuala Lumpur, Qantas executives now favour shelving the capital-intensive project to focus on the low-risk option of an alliance with Malaysia Airlines.

 

The plan to establish a full-service subsidiary carrier in Asia sparked a fierce backlash from unions in ­Australia and divided politicians in Canberra. The bitter dispute culminated in the airline grounding its entire fleet to quell strike action, a move that has ended in the parties being sent to arbitration before Fair Work Australia.

 

Unions have argued that the Asia tie-up would result in Qantas moving a big part of its operations overseas at the expense of local jobs and have demanded that job security be included in industrial agreements.

 

Qantas told The Australian Financial Review last night that whatever the outcome of its Asia strategy, the airline would not be changing its stance on the job security claims at the centre of the industrial dispute.

 

Qantas and Malaysia Airlines are understood to be working towards a letter of intent in coming weeks for the new Asia tie-up, with a code-sharing alliance that would also allow joint pricing, marketing and scheduling to begin about six to nine months after that agreement is struck.

 

Qantas chief executive Alan Joyce flew to Singapore last week for discussions with Tony Fernandes, the chief executive of low-cost giant AirAsia, which also holds a 20 per cent stake in Malaysia Airlines. He then flew on to Kuala Lumpur to nut out details of the proposed alliance with executives at the Asian flag carrier, senior sources on both sides of the deal say.

 

Project Darwin, as the plan for the premium subsidiary Asian airline was known within Qantas ranks, would have required capital investment of between $400 million and $500 million in its first two years, a move unlikely to sit well with ratings ­agencies already twitchy about the airline’s investment grade credit rating.

 

Qantas is the only airline in the world with an investment grade rating, and Mr Joyce and chief financial officer Gareth Evans have repeatedly said the company would not do anything that would jeopardise that.

 

The airline has said it will spend $2.5 billion this financial year, almost all of it on new aircraft, and with a worsening global economic outlook, particularly in Europe, management has been scrambling to cut back capital expenditure.

 

While the unions may welcome the development, it is understood that Mr Joyce and the team behind Project Darwin are committed to establishing a new base in Asia when economic conditions improve.

 

AirAsia’s chief is understood to be a willing investor in the new airline once economic conditions improve, and unlike Singapore – where Qantas faced stiff opposition to its plans from flag carrier Singapore Airlines – the two Malaysian carriers and government officials have rolled out the welcome mat as they seek to boost Kuala Lumpur’s prominence in the region.

 

Some within Qantas management are understood to favour waiting for the arrival of the super efficient Boeing Dreamliner before revisiting the new airline, which the company had said would fly single-aisle Airbus A320 aircraft.

 

In the meantime, a joint venture with Malaysia Airlines that would mirror Qantas’s joint venture relationship with British Airways on the ­Kangaroo route will be sold as a short-term solution to the Australian ­airline’s diminished network in Asia.

 

As part of the deal, Qantas was likely to recommence flights to Kuala Lumpur and gradually shift its central hub in Asia to the Malaysian capital from Singapore, with partner British Airways also reorienting its focus in the region to Kuala Lumpur.

 

Qantas spokeswoman Olivia Wirth said the company was still looking at different options for establishing a hub in either Singapore or Kuala Lumpur, while indicating management’s preference may have shifted to the latter. “Obviously any investment will take into consideration the shifting global economic conditions,” Ms Wirth said.

 

“A cornerstone of this strategy is tapping into the forecast growth in the intra-Asia travel sector – not just at the low cost end, but premium traffic.

 

“With the recent changes at Malaysia Airlines, combined with their joining of oneworld, as well as our longstanding relationship with Tony Fernandes, this now presents a genuine option for Qantas to tap into Asia.”

 

A source said Qantas will cease talks with the Singaporean government and a local investor who would have taken a 51 per cent share in the airline, once the letter of intent is signed with Malaysia ­Airlines.

 

Qantas isn’t the only airline to take a step backwards in Asia right now – many of the region’s biggest players are feeling the brunt of weaker passenger loads at a time when high fuel prices are stretching operating costs.

 

Singapore Airlines reported a 49 per cent slump in second quarter earnings recently, while net income at Emirates dropped by 76 per cent in the six months ended September 30 after a $US1 billion surge in fuel costs.

 

The International Air Transport Association (IATA) has forecast a 40 per cent drop in global airline earnings next year as slowing economic growth hurts bookings.

 

According to one source, adding new routes from Kuala Lumpur in to China and India would be a top priority for the new alliance, with both airlines feeding in passengers to the Malaysian carrier’s aircraft. Having a bigger pool of passengers to draw on will also open the possibility of adding more routes to Europe and the Middle East out of Kuala Lumpur, one source said.

 

Malaysia Airlines will take delivery of five Airbus A380 superjumbos next year and 10 of the smaller twin-aisle A330 aircraft, raising its product standard at the same time as Qantas looks to begin code share flights.

 

One area of focus for the talks between the airlines has been the integration of their in-flight product, with Qantas keen to ensure passengers do not perceive a downgrade in service or comfort when switching from its aircraft to its partner’s, one source said.

 

Malaysia Airlines is already revamping the interiors of its Boeing 737 fleet into a more business-oriented configuration, and aircraft entering the fleet next year will arrive with a product comparable to that of the Australian carrier’s A380s.

 

While negotiations are mainly between Qantas and Malaysia Airlines, Mr Fernandes is understood to be playing a key role, with AirAsia driving many of the strategic changes at the flag carrier since a share swap between the two airlines in August.

 

For now, the talks only encompass an alliance between Qantas and Malaysia Airlines (a tie-up that would require approval from competition authorities in both countries), but could be a precursor to co-operation between AirAsia X and Jetstar.

 

Qantas and the unions are subject to arbitration before Fair Work Australia that may take several months.

 

Source

[Mike P 0]

Oh well, what did I say and think. QF won't simply sponsor MH to join OW. With MH joining OW, won't BA and QF reconsider their operation from SIN to KUL? After all, SIN is Star Alliance Hub, OneWorld needs to do something to compete with Star Alliance and I don't think OneWorld would just sit there and watch BA and QF continues their operation in SIN and ignores MH in KUL after MH joining OneWorld.

 

I was thinking QF planning to shift its operation to KUL and set up RedQ in SIN.

[flee 5]

MAS communications head resigns

 

PETALING JAYA (Nov 30, 2011): Malaysia Airlines (MAS) has announced the resignation of Raja Zamilia Raja Datuk Seri Mansur as its executive vice-president and head of communications from Dec 1 2011.

 

In the interim, MAS vice-president of communications, Eda Ahmad, will oversee the administration of the communications division.

 

Raja Zamilia joined the national carrier on Nov 1 2010.

 

In a statement today, MAS said Raja Zamilia has decided to pursue other interests and embark on the next phase of her career.

 

“Given her experience and vast knowledge in government-linked companies, multinational companies and the hospitality industry, she has led the team in a challenging business environment. I wish to take this opportunity to thank Raja Zamilia for her undivided commitment and contribution to the company," MAS group CEO Ahmad Jauhari Yahya said.

 

Source

[JuliusWong 0]

MAS communications head resigns

 

PETALING JAYA (Nov 30, 2011): Malaysia Airlines (MAS) has announced the resignation of Raja Zamilia Raja Datuk Seri Mansur as its executive vice-president and head of communications from Dec 1 2011.

 

In the interim, MAS vice-president of communications, Eda Ahmad, will oversee the administration of the communications division.

 

Raja Zamilia joined the national carrier on Nov 1 2010.

 

In a statement today, MAS said Raja Zamilia has decided to pursue other interests and embark on the next phase of her career.

 

Source

Another bite the dust.....

[Nik H. 3]

MAS communications head resigns

 

PETALING JAYA (Nov 30, 2011): Malaysia Airlines (MAS) has announced the resignation of Raja Zamilia Raja Datuk Seri Mansur as its executive vice-president and head of communications from Dec 1 2011.

 

In the interim, MAS vice-president of communications, Eda Ahmad, will oversee the administration of the communications division.

 

Raja Zamilia joined the national carrier on Nov 1 2010.

 

In a statement today, MAS said Raja Zamilia has decided to pursue other interests and embark on the next phase of her career.

 

“Given her experience and vast knowledge in government-linked companies, multinational companies and the hospitality industry, she has led the team in a challenging business environment. I wish to take this opportunity to thank Raja Zamilia for her undivided commitment and contribution to the company," MAS group CEO Ahmad Jauhari Yahya said.

 

Source

 

Oh God AJ, is there a need to say that? She was invited, parachuted in, landed in the combat zone, don't know what to do, got shot once and died straight away. Didn't last a day.....

 

Not worth a mention really.

[Arthur Van Straten 0]

In first instance, one would tend to agree with Nik H. "(Not worth a mention really)"

However, on second thought, if senior management positions with the airline are filled

and subsequently emptied as Nik H. describes, then one would need a more brutal turnaround

plan than the one most probably being envisaged now by the top.

 

There is nothing left for MAS to spin doctor around and the first thing they need is a hard

and good look into the mirror to conclude that what you see is what you get.

Then, show this image to a real aviation doctor and if he advises to operate using a scalpel and

knife, then so be it.

One does not need a 300 page turnaround plan to conclude and execute the obvious. And once

you'r at it, use your in house talent to help you out.

 

As for the sceptics, look West. Even the almighty AA/AMR is on it's knees and freely translated

that means that the Legacy Carriers have found themselves being in the combat zone.

No government can save you if you only can fight with paintball guns and smoke grenades.

And don't expect help from the TF brigade, they have their own agenda.

 

It may be evident now that the undersigned is/was not a proponent of the win/win share swap.

 

Best regards

Art

[Mike P 0]

In first instance, one would tend to agree with Nik H. "(Not worth a mention really)"

However, on second thought, if senior management positions with the airline are filled

and subsequently emptied as Nik H. describes, then one would need a more brutal turnaround

plan than the one most probably being envisaged now by the top.

 

There is nothing left for MAS to spin doctor around and the first thing they need is a hard

and good look into the mirror to conclude that what you see is what you get.

Then, show this image to a real aviation doctor and if he advises to operate using a scalpel and

knife, then so be it.

One does not need a 300 page turnaround plan to conclude and execute the obvious. And once

you'r at it, use your in house talent to help you out.

 

As for the sceptics, look West. Even the almighty AA/AMR is on it's knees and freely translated

that means that the Legacy Carriers have found themselves being in the combat zone.

No government can save you if you only can fight with paintball guns and smoke grenades.

And don't expect help from the TF brigade, they have their own agenda.

 

It may be evident now that the undersigned is/was not a proponent of the win/win share swap.

 

Best regards

Art

 

Every airlines is doing badly now. It just that MH seems to be one of the worst among all because they are still losing money.

[flee 5]

Every airlines is doing badly now. It just that MH seems to be one of the worst among all because they are still losing money.

The main reason for that is that MH has never resolved its cost and leakage issues of the past. It is still bleeding but during good times, it is masked. But when bad times come, the old wound is uncovered again. So while other airlines like SQ and AK show reduced profits, MH reports massive billion RM losses...

[Sandeep G 1]

The main reason for that is that MH has never resolved its cost and leakage issues of the past. It is still bleeding but during good times, it is masked. But when bad times come, the old wound is uncovered again. So while other airlines like SQ and AK show reduced profits, MH reports massive billion RM losses...

 

Thats because they have probably resuced operational costs to the 'minimum permissible' level to ensure handouts can still be made to outsiders left, right and centre.... THIS has GOT to stop..

[Ikman Ikreza 0]

Nice article to read and evaluate.

 

http://malaysiaairlinesfamilies.wordpress.com/2011/11/29/masair-asia-comprehensive-collaboration-framework-is-a-bureaucratic-conspiracy/

[Ikman Ikreza 0]

Tony Fernandez is a well-known “asshole”

 

Nov 30 Posted by malaysiaairlinesfamilies

 

Early this month, the new MAS CEO/MD has held his first town-hall session with MAS workers and 2 of its new MAS Board of Directors who are also the current BODs and CEOs for Air Asia and Air Asia ‘x’ that were Tony Fernandez and Kamarudin Meranun.

 

During the town-hall session, Tony Fernandez and Kamarudin Meranun were invited to the Q&A segment and questions were raised to AJ whether MAS would merge with Air Asia but Tony Fernandez answered it to the audience with the statement below.

 

“We are very against the merger. We think shareholder and employees’ value would be destroyed. What I see in SIA is making a very big mistake, Long Haul, Short Haul and premium airlines. If you look at our history, we started Air Asia and years later with Air Asia X. We also talked about whether we merge it or keep it separate. In fact, we separated them completely. The best scenario to raise capital and finance the game is to focus and less complexity. If you put AAX and AA and MAS there, it will be a terrific recipe and in the end, it will bear result.

 

In terms of revising lots of routes – whereas people would like to fly MAS to LHR etcetera but we never interlined. We never collaborate at that end and we keep it separate and keeping our measurement voice focus on doing the job, it becomes easier. So the only way we could do this so that not one shareholder from the other is benefiting. So let’s do the shares swap! If we don’t do the shares swap, there will a merger. By doing the shares swap, the economic interest is aligned in terms of both parties benefited. If MAS does well, AA does well and so are both the shareholders. So that’s the idea. So we the shareholders are very against the merger and we think that will be wrong. Airlines are very destroyed of its capital because of doing so many things not using the equity wisely.

 

Before the collaboration, we were competing. Obviously, we were the ambitious LCC but we were thinking about doing full service carrier and if we keep competing with each other, we both end up losing money.

 

The collaboration is where we can cost save and buying things together and collaborating in certain areas in terms of interlining etcetera. And we can focus on our specialty, which are 5 star and 3 star.”

 

The statement above made by Tony Fernandez proved his ability going against the antitrust regulations reducing the competition between MAS and Air Asia within the framework of CCF.

 

The statement above also proves Tony Fernandez and gang is leading the transformation in Malaysia Airlines through CCF. Under CCF, MAS Chairman and CEO/MD are puppets that are being paid to carrying out the planning designed by Air Asia CEOs converting Malaysia Airlines into a holding company without staff and assets.

 

Malaysia Airlines’ workers must NOW stand up and start calling off the CCF immediately before your staff benefits are signed off by Tony Fernandez to the similar package that has been in practice for Air Asia’s workers.

 

We have reason to believe MAS unions are collaborating to cease CCF at all levels including meeting with Prime Minister to stop the collaboration. We believe MAS workers shall unite together and act in fraternity supporting MAS unions especially MASEU the main union.

 

Isn’t that Tony Fernandez really an asshole?

 

The people who have acquainted with Tony Fernandez are branding him “an asshole”. His statement about “cost saving and buying things together” sounded a mere interest in dumping his large order of Airbus aircrafts into Malaysia Airlines via the joint purchases deals under CCF new business planning; probably to increase his commission earning as Airbus part-time salesman. We only see a “shopping spree” for MAS in this collaboration with Air Asia.

 

American Airlines has gone into bankruptcy due to its accumulative huge debts and we believe the similar trend is affecting Air Asia very soon. Malaysia Airlines is very safe because it has no accumulative debts but loads of cash flows accumulating from its daily sales.

 

Nowadays, the trend is to spend frivolously before declaring bankruptcy. Is this happening in Air Asia now?

 

Whatever Tony Fernandez is involved, we bet there’s always an ulterior motive and whatever he does is only for his pocket to grow fatter. He uses MAS advertising fund to sponsor his QPR club for two years because he has no more money to spend on QPR after he and Kamarudin Meranun spent 1 billion ringgit invested in MAS shares. The people know he has large borrowings and debts around the world including huge fine imposes by Airbus Company for deferring aircraft deliveries.

 

Stay tune for more insight news.

 

Source : http://malaysiaairlinesfamilies.wordpress.com/2011/11/30/tony-fernandez-is-a-well-known-asshole/

[flee 5]

Yes, this is a very typical anti Tony Fernandes view from many MAS employees. They behave like typical civil servants and think that MAS owes them a living.

 

I think one of the reasons why the CCF has still to be made public yet is because they need to ensure that it does not breach anti trust laws. On the one hand these guys are crying foul that the CCF is breaking anti trust rules but on the other they are criticising MAS/AirAsia for not giving details of the CCF. I think that the CCF will be announced in detail once all the legal clearance has been obtained.

 

Still it is good to have some opposition within MAS so as to keep the management on their feet. MAS is a very sick baby and need some tough love.

 

As for AirAsia, I think the management are well aware of their contingent liabilities coming up. Hence they postponed aircraft deliveries because they lack the capacity at LCCT. Route approvals are also a problem. But now that they have AirAsia Japan/AirAsia Philippines coming up, they have somewhere to send the planes and can look forward to good earnings from that market too.

 

Once they have the routes and the approvals, getting finance and paying for the planes will not be that difficult. People like the Wangsa Maju MP only look at the debt side in isolation - they forget to look at the potential revenue that these aircraft assets can bring to the business (provided airports like KLIA2 are delivered on time and on cost).

[Mohd Suhaimi Fariz 2]

Yes, this is a very typical anti Tony Fernandes view from many MAS employees. They behave like typical civil servants and think that MAS owes them a living.

 

I think one of the reasons why the CCF has still to be made public yet is because they need to ensure that it does not breach anti trust laws. On the one hand these guys are crying foul that the CCF is breaking anti trust rules but on the other they are criticising MAS/AirAsia for not giving details of the CCF. I think that the CCF will be announced in detail once all the legal clearance has been obtained.

 

Still it is good to have some opposition within MAS so as to keep the management on their feet. MAS is a very sick baby and need some tough love.

 

As for AirAsia, I think the management are well aware of their contingent liabilities coming up. Hence they postponed aircraft deliveries because they lack the capacity at LCCT. Route approvals are also a problem. But now that they have AirAsia Japan/AirAsia Philippines coming up, they have somewhere to send the planes and can look forward to good earnings from that market too.

 

Once they have the routes and the approvals, getting finance and paying for the planes will not be that difficult. People like the Wangsa Maju MP only look at the debt side in isolation - they forget to look at the potential revenue that these aircraft assets can bring to the business (provided airports like KLIA2 are delivered on time and on cost).

 

Who's to say that they're not right? There's always three side to a story.

[flee 5]

Who's to say that they're not right? There's always three side to a story.

More like 28m!

[Izanee 0]

I would like to repeat what I have mentioned previously.

 

1. JNB, EZE, CPT, etc etc will be discontinued by MH cos D7 wants to take over.

2. Tony deferred aircraft deliveries NOT because there is no space (bull s#1t --> KLIA has a lot of apron space, especially around MTB/Satellite) BUT because HE cannot afford the bloody A320s.

3. MAS was forced to sponsor TF's club, QPR.

4. TF is taking the piss. Most people can see right through him. There are 'higher powers' involved in this.

 

I am really speechless. This is just blatant corruption/cronyism.

Edited December 2, 2011 by Izanee

[Sri Ramani K. 0]

2. Tony deferred aircraft deliveries NOT because there is no space (bull s#1t --> KLIA has a lot of apron space, especially around MTB/Satellite) BUT because HE cannot afford the bloody A320s.

 

Just head over to the LCCT at night, when all the A320s are back for nightstop. You have an average of 9 to 10 of them arriving per hour from 10pm onwards. So much so that now there are parking bays on a taxiway (Lima to be exact). That is after positioning 3-4 a/cs in the hangar. It is no easy job repositioning 20-30 a/cs every night bro. You have to be working there to feel the pinch of not having enough parking bays.

[Walter Sim 1]

I feel your pain Ramani!

[Mushrif A 3]

Just head over to the LCCT at night, when all the A320s are back for nightstop. You have an average of 9 to 10 of them arriving per hour from 10pm onwards. So much so that now there are parking bays on a taxiway (Lima to be exact). That is after positioning 3-4 a/cs in the hangar. It is no easy job repositioning 20-30 a/cs every night bro. You have to be working there to feel the pinch of not having enough parking bays.

 

 

Not unlike what MH experienced at the tail end of Subang days, with all those 737s parked all over the place.

[KK Lee 5]

Not unlike what MH experienced at the tail end of Subang days, with all those 737s parked all over the place.

 

At that time, MH was the biggest 734 operator outside U.S.A but too many than network needed, had to disperse surplus/idle 734 over the whole country e.g. LGK, TGG to avoid query from the grand oldman

[Izanee 0]

yeah, there are other places to park too around the satellite terminal plus other airports. or is that too difficult? may have to do nightstop for some flights to PEN, BKI etc etc.

[flee 5]

yeah, there are other places to park too around the satellite terminal plus other airports. or is that too difficult? may have to do nightstop for some flights to PEN, BKI etc etc.

AK's LCC model cannot afford to have that kind of luxury. It tries to keep things as simple as possible to reduce costs, e.g. operating only 1 aircraft type throughout the whole network.

 

While it is possible to park your planes elsewhere, will its first morning flight be the normal 80% full flight or will it carry only 20 pax? What about the cost of having tech crews at the airport? AK does not have that many fully crewed hubs around the country.

 

AK and MH use different operating models and AK watches its costs carefully so that it does not bleed unnecessary. This is one of the measures that the new MH may need to adopt so as to reduce and stop the billion RM losses.

 

2. Tony deferred aircraft deliveries NOT because there is no space (bull s#1t --> KLIA has a lot of apron space, especially around MTB/Satellite) BUT because HE cannot afford the bloody A320s.

Not true - AirAsia Group has recently accelerated the delivery of Airbus A320, MSN 4793, 4917, 4969 and 4979 that were earmarked for Yemenia:

 

MSN 4793- 9M-AQC

MSN 4917- 9M-AQJ originally for Air Berlin

MSN 4969- 9M-AQ? originally designated 9M-AQE

MSN 4979- 9M-AQ? originally designated 9M-AQF

 

All are A320-216 except MSN 4917 which is an A320-214.

 

It looks like AK is now trying to work around the delays in the completion of the KLIA2. Otherwise, its growth will be compromised even more.

 

I also suspect that both AK amd Khazanah know about the KLIA2 delays long ago and are now managing the release of info in stages. The MH/AK share swap and CCF may also be something to allow AirAsia some breathing room to "compensate" for the poor handling of the KLIA2 project by Khazanah's MAHB.