MAS and AirAsia Shares Swap

[flee 5]

Soft Launch Of MAS' New Regional Airline In April

 

KUALA LUMPUR, March 5 (Bernama) -- The soft launch of the proposed new short-haul brand by national carrier, Malaysia Airlines, is expected to take place next month, its chief operating officer (Short Haul), Ignatius Ong said.

 

He said the new airline, which has yet to be named, is expected to be fully operational by the middle of this year.

 

"In April, we are looking to launch the name as well as its logo. However, we are still targeting it to be fully operational in middle of this year," he said during a media briefing here today.

 

The short-haul airline was introduced by the fresh management of Malaysia Airlines headed by group chief executive officer, Ahmad Jauhari Yahya, as part of the national carrier's business turnaround plan.

 

The new airline will be flying entirely on new Boeing 737-800 fleet of aircrafts and would be specifically targeted to meet the needs of Asia's premium travellers.

 

Malaysia Airlines' posted RM2.52 billion net loss for its financial year ended Dec 31, 2011, the biggest-ever in its corporate history, on the back of RM13.9 billion revenue.

[KK Lee 5]

Soft Launch Of MAS' New Regional Airline In April

 

 

 

To operate all business class 738 ex-KUL, believe decent load is limited to SIN, BKI and possibly CGK only. If the premium regional airline 738 is mixed class, not sure how it will compliment MH. May be they are planning to trim down MH regional routes to trunk routes like KUL-BKI, KCH and PEN only, and leave the rest to AK and the premium regional airline.

[Johan Z 0]

Maybe 'premium' regional means 40+" pitch in business and 32" in economy, as Garuda calls it normal configuration.

[flee 5]

MAS risks losing significant income with MASkargo spin-off

 

PETALING JAYA (March 7, 2012): Is MASkargo Sdn Bhd considered a core or non-core asset to Malaysia Airlines (MAS)? The ailing national carrier had earlier announced spinning off some of its ancillary businesses, including its air cargo unit, as part of a business plan to turn itself around.

 

However, a sell-off or a divestment of its stake in the cargo unit may see MAS at risk of losing an important long-term income-earner for short-term capital gains, said analysts and industry experts.

 

When contacted by SunBiz yesterday, MAS said in its business plan announced last December, it had stated that MAS has become a very complex business with a number of different operating entities – core full-service airline, MASholidays, MASkargo, MAS Aerospace Engineering (engineering and maintenance), training, catering, and ground handling.

 

"The business recovery requires the need to de-clutter to ensure proper focus on the core business: flying the customers. MAS also needs to give the ancillary businesses sufficient freedom to achieve their full potential.

 

"The plan is therefore to commence the process of having strategic partners to these ancillary businesses starting with ground handling, training and engineering and maintenance.

 

"However, at present MAS is now focused on the introduction of the Airbus A380 (superjumbo) into its fleet and the launch of the short-haul premium service carrier," it said in an email reply.

 

Nevertheless, at a news conference last week, MAS group CEO Ahmad Jauhari Yahya had said the airline was in the process of exploring options including joint ventures and/or strategic alliances for MASkargo amid the "stubbornly high fuel prices and weak global demand for cargo".

 

MASkargo is currently the airline's second-largest revenue contributor, accounting for some 15% of its total revenue after passenger operations.

 

The cargo unit has been profitable until last year (FY11) when it reported a pre-tax loss of RM18.78 million on revenue of RM2.05 billion, compared with a pre-tax profit of RM141.71 million on revenue of RM2.36 billion in the previous year.

 

MAS had said the cargo division suffered in line with an overall slowdown of the industry globally as well as due to higher fuel costs and impairment of its A330 freighter fleet.

 

"The (FY11) financial loss suffered by MASkargo was not isolated. Airlines such as SIA Cargo and Korean Air Cargo also saw deterioration in their cargo business last year," Standard & Poors aviation analyst Shukor Yusof told SunBiz.

 

"In our view, MASkargo is a core asset/business to MAS. We would define non-core assets as buildings, aerospace engineering and ground handling services.

 

"Thus, while it might make sense for MAS to divest its cargo asset given the current stage it is in and the global air cargo business expected to remain weak this year coupled with rising fuel costs, MAS has to weigh its decision carefully because once they sell MASkargo, then what?" he asked.

 

"Cargo has proven to be a profitable business for MAS, with Malaysia recognised as a manufacturing base for many companies. As such, divesting MASkargo is easy way to raise money, but more importantly is whether it make sense for MAS in the long term," said Shukor.

 

Rather, he pointed to the need for MAS to address the 15% increase in non-fuel expenses to RM10.43 billion last year from RM9.03 billion in FY10, which he said is "worrying". MAS had attributed the increase in non-fuel expenses to provisions totalling RM1.09 billion made in the fourth quarter of 2011 for stock obsolescence, redelivery of aircraft and impairment of its new A330-200 freighters.

 

This year, MASkargo will operate a fleet of six dedicated wide-body freighters comprising the two 747-400Fs that it already owns and four new A330-200Fs, which will lift its freighter tonnage capacity by 5%. The cargo unit is expecting the arrival of its fourth and final Airbus freighter next month.

 

"In view of the losses at MASkargo and the recent announcement by Airbus to develop the A330 passenger-to-freighter conversion programme, which will depress the value of new freighters, MAS has decided to make a provision of RM314 million for impairment of freighter aircraft value," Ahmad Jauhari had said at the news conference.

 

"Already, MASkargo is incurring impairment charges for its new A330-200Fs. Wouldn't that indicate that its management could have ordered the wrong aircraft?" asked an industry player.

 

An airline player said it doesn't make sense for MAS to divest its stake in MASkargo as the cargo unit is a significant contributor to the group's revenue.

 

"Passenger and cargo services go hand in hand. Besides the cargo-only freighters, an airline can also sell the bellyhold space of its passenger aircraft," the airline player said.

 

MASkargo derives some 60% of its revenue from the belly space on MAS' passenger flights, while its freighters make up the rest.

 

Source: http://www.thesundaily.my/news/314958

[GeO 0]

All thanks to TF.

 

[KC Sim 2]

And what makes you think the Australians will stomach that ?!

Notice that everyone has shied away from making any binding commitment thus far ?

 

The Australians are so in love with TF, AirAsia, AirAsia X and Malaysia Airlines that they may not see it coming. During courtship, I don't think they are able to see things objectively ...

 

That is what makes this entire episode between MH/QF/oneworld so interesting.

 

KC Sim

[flee 5]

What ties TF and AJ together?

 

Connor McCarthy, rite?

[Romeo B 0]

 

 

 

all linked... they are all TF men.

 

And there is also and Australian element in all this... MAS, Qantas. Air Asia and Jeststar - can you see the link?

 

Shane Nolan works for PlaneConsult.

 

Conor McCharty is the MD of PlaneConsult http://www.planeconsult.com/ , and a non exec director at AirAsia

 

http://investing.bus...e=AIRASIA%20BHD

 

Apparently Mr McCharty is the brain behind Air Asia (?) and has strong links to Jetstar

 

http://www.smh.com.a...0113-1pzgm.html

 

In fact another PlaneConsult consultant is in a senior positioin at Jetstar in Singapore

 

http://www.linkedin....n/stevendickson

 

McCharty is also a good buddy of Joyce at Qantas (apparently they gave each other jobs at some point in the past) and was involved in the 2003 set up of Jetstar

 

http://www.theage.co...91009-gqvv.html

 

Some say he is the man that drove the Jetstarisation of Qantas

 

... so PlaneConsult are behind the much criticised Jestarisation of Qantas (ask AUS unions and the travelling public abt that) - are they now attempting an Airasiation of MAS?

What ties TF and AJ together?

 

Connor McCarthy, rite?

 

Yep... Got it right

[Mohd Suhaimi Fariz 2]

JAL didn't sell their freighter division - they basically shut it down & they're still doing well.

 

Besides, just because they've sold MASkargo doesn't mean they have to give up carrying belly cargo - perhaps an arrangement can be made for MASkargo to purchase belly space onboard at a price.

[BC Tam 2]

The Australians are so in love with TF, AirAsia, AirAsia X and Malaysia Airlines that they may not see it coming

One down, three to go

[Naim 6]

Oh dear!

 

“Datuk Seri Najib Razak is not happy with MAS’s performance which he was told would improve after the share swap."

 

---

 

 

 

Putrajaya mulls MAS-AirAsia break-up, unhappy with results

 

By Jahabar Sadiq

Editor

March 09, 2012

 

KUALA LUMPUR, March 9 — Putrajaya is reviewing the eight-month-old Malaysia Airlines-AirAsia alliance as it has failed to show any promised improvement or lift the morale of the 20,000-strong staff in the flag carrier that lost RM2.52 billion in 2011.

 

The Malaysian Insider understands that the Najib administration is also considering taking MAS private by directing state asset manager Khazanah Nasional Berhad buy back a 20.5 per cent stake exchanged with Tune Air Sdn Bhd, the majority owner of AirAsia, for 10 per cent stake in Southeast Asia’s largest budget carrier.

 

...

http://www.themalaysianinsider.com/malaysia/article/putrajaya-mulls-mas-airasia-break-up-unhappy-with-results/

[Isaac 0]

Oh dear!

 

“Datuk Seri Najib Razak is not happy with MAS’s performance which he was told would improve after the share swap."

 

---

 

 

 

Putrajaya mulls MAS-AirAsia break-up, unhappy with results

 

By Jahabar Sadiq

Editor

March 09, 2012

 

KUALA LUMPUR, March 9 — Putrajaya is reviewing the eight-month-old Malaysia Airlines-AirAsia alliance as it has failed to show any promised improvement or lift the morale of the 20,000-strong staff in the flag carrier that lost RM2.52 billion in 2011.

 

The Malaysian Insider understands that the Najib administration is also considering taking MAS private by directing state asset manager Khazanah Nasional Berhad buy back a 20.5 per cent stake exchanged with Tune Air Sdn Bhd, the majority owner of AirAsia, for 10 per cent stake in Southeast Asia’s largest budget carrier.

 

...

http://www.themalays...y-with-results/

They shouldn't have gone through with it in the first place. But i guess cronies already made some handsome profits from the share-swap deal. So everything can now go back to how it was

[kandiah k 0]

Typical!

[flee 5]

Malaysian govt. famous for its flip flop acts...

 

Yesterday, it was the civil servant pay scheme, today it is the MH-AK share swap. Tomorrow?

[kandiah k 0]

Oh the elections are nearby, it seems

[BC Tam 2]

No wonder Tan Sri announced he is buzzing off to Jakarta

[Izanee 0]

Hahaha, good ol' Tony .. got his money and shares - now time to piss off to Jakarta. Despite the rubbish he told us, it looks like all the important Air Asia staff are relocating from KL to Jakarta. These people think they can lie to the public because our media is government owned. Unfortunately for them, in this day and age, we get our info from elsewhere. I only read the star online for the ridiculous stories they have - especially about incest, pimping your own children and trains hitting cows.

[BC Tam 2]

The Malaysian Insider understands that the Najib administration is also considering taking MAS private by directing state asset manager Khazanah Nasional Berhad buy back a 20.5 per cent stake exchanged with Tune Air Sdn Bhd .....

deja vu ?

Mr Tune Talk following in footsteps of Mr Celcom ?

[Naim 6]

deja vu ?

Mr Tune Talk following in footsteps of Mr Celcom ?

 

CIMB broker again, for sure.

[ragar 0]

how's the load factor from KUL-BWN ? will AA stop the route ?

[Mohd Suhaimi Fariz 2]

deja vu ?

Mr Tune Talk following in footsteps of Mr Celcom ?

Tune Talk is 38% owned by Celcom, so is this Mr. Celcom mk. 2?

[KK Lee 5]

According to 'Business Traveller'; 69% of travellers from Malaysia likely to fly with a budget carrier instead of a full service airline.

[Josh T 0]

According to 'Business Traveller'; 69% of travellers from Malaysia likely to fly with a budget carrier instead of a full service airline.

That's because the average income is so much lower in Malaysia compared to places like Singapore and Hong Kong. Even Bangkok has a more significant corporate market. It's this kind of clientelle that provide the most profit for SQ and CX. MH doesn't have the luxury of that.

[BC Tam 2]

The number of travellers travelling out of Malaysia with budget carriers to connect unto legacy/premium carriers at places like SIN, BKK, HKG very significant too

[S V Choong 4]

That's because the average income is so much lower in Malaysia compared to places like Singapore and Hong Kong. Even Bangkok has a more significant corporate market. It's this kind of clientelle that provide the most profit for SQ and CX. MH doesn't have the luxury of that.

Yes, because of this lower average income and exchange rate. Many full service airlines have to lower their fares to match what Malaysian would pay for. Compare CX's return fare out of KUL to HKG and try and book a return fare from HKG to KUL as if live in HK. There is quite a gap there albeit not signifcant but gives you an idea though!