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MAS and AirAsia Shares Swap

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Let me get this right.

 

D7 sold seats for several long haul destinations that now has to be cancelled as they are not making money.

Those passengers are transferred to MH flights with D7 only paying for airpor tax/fuel, but keeping the rest of the money.

 

If that's true, screw D7. They are the worst bunch!

 

D7 only paying for airport tax? Are they paying? I heard previously AirAsia still owe debts to MAHB and no settle yet.

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D7 only paying for airport tax? Are they paying? I heard previously AirAsia still owe debts to MAHB and no settle yet.

I think you have the wrong information. D7 has never owed MAHB any airport tax.

 

It was AK that was disputing airport tax with MAHB as they claimed MAHB overcharged them. So they witheld the overcharged portion of the taxes from MAHB.

 

Subsequent negotiations with MAHB resolved the issues at hand. The airport tax "issue" is old, stale, and fermented "news" and has since been politicised by some elected representatives to further their personal agendas...

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I think you have the wrong information. D7 has never owed MAHB any airport tax.

 

It was AK that was disputing airport tax with MAHB as they claimed MAHB overcharged them. So they witheld the overcharged portion of the taxes from MAHB.

 

Subsequent negotiations with MAHB resolved the issues at hand. The airport tax "issue" is old, stale, and fermented "news" and has since been politicised by some elected representatives to further their personal agendas...

 

Yup, as I wrote AirAsia not AirAsia X. If AirAsia X paying as schedule so no matter, at least AirAsia X didn't follow AirAsia to hold the payment to MAHB. :D

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Might be a little old and unrelated. My recent trip with MH's Firefly B738 BKI-KUL. Standard Business Class seats have been added. However Economy feels the same. Going Places magazine is nowhere to be seen. Catering is also slightly different. Also met the same cabin crew.

 

9M-FFE

DSCF7262.jpg

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Aren't the FFx series operated by Firefly? I think that MH has decided not to switch it back to the MLx reggos as they might later be transferred to the new premium airline and may be registered differently again. All that extra paperwork will look very silly, won't it?

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All that extra paperwork will look very silly, won't it?

The state the parent is in and all things considered, does it really matter anymore ? :p

In fact, a bit of humour could be welcomed relief instead :)

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PM sparked MAS-AirAsia deal, not the cuts, says Maseu chief

By Lee Wei Lian

March 21, 2012

 

KUALA LUMPUR, March 21 — The idea for the share swap between the national flag carrier and AirAsia came from Datuk Seri Najib Razak but the prime minister did not want the deal to cause friction with employees, a Malaysia Airlines union leader has revealed.

 

The Malaysian Insider learnt the plan was to have two national champions when the Asean open skies policy takes effect in 2015. But Malaysia Airlines (MAS) unions and employee associations lobbied to have the deal unravelled over what they say were proposed cuts in salaries and benefits and a bulk staff transfer to a new regional premium carrier.

 

MAS Employees Union (Maseu) secretary-general Abdul Malek Ariff told The Malaysian Insider that during the union’s meeting with Najib last month, the prime minister said that the idea to link the two airlines was his but he assured them that he did not intend for the subsequent industrial relations complications to arise.

 

“Najib said it was his idea to have the share swap and collaboration but he didn’t ask them (the new management) to do all this (actions that caused unhappiness),” said Abdul Malek.

 

The union leader said that some staff had been asked to resign from MAS before being transferred to the new yet unnamed subsidiary airline that would takeover the regional routes, a proposal he found unacceptable.

 

The share swap and accompanying collaboration framework with AirAsia unveiled last August was supposed to help put MAS, which recently posted its biggest ever annual loss, back on firmer footing amidst an increasingly challenging aviation environment.

 

The idea was to have some of the business acumen that took AirAsia from a two plane outfit to Asia’s largest budget airline in just ten years, rub off on the national carrier.

 

Following the share swap, the management team led by new managing director Ahmad Jauhari Yahya put together a business turnaround plan last December to help propel MAS back to profitability.

 

The management’s efforts to restructure the airline and put it a more competitive position however caused friction with the unions and employee associations.

 

The Malaysian Insider reported on March 16 that Putrajaya is considering a special entity to take MAS off the hands of its main shareholders, Khazanah Nasional Berhad and Tune Air Sdn Bhd, if the Najib administration caves in to demands from the flag carrier’s worker unions to unravel the eight-month-old share swap.

 

It was learnt that that the plan could potentially be for Khazanah to divest its stake in MAS first before a general offer is made for the remaining shares from other shareholders, including Tune Air, the holding company of AirAsia co-founder Tan Sri Tony Fernandes, which now owns a 20.5 per cent stake in the national airline, following the share swap last August.

 

The same day, MAS chairman Tan Sri Md Nor Yusof issued a statement backing Ahmad Jauhari and his management team, saying that the pact with AirAsia was workable but required more time to show results.

 

Md Nor said that the share swap did not cause the unprecedented RM2.5 billion annual loss posted last month but was instead part of the recovery plan.

 

He added that the distractions from opposition to the business plan could threaten the airline’s financial recovery, “I would like to be very clear in stating that the share swap is not part of the acute financial problems at Malaysia Airlines; it is part of the solution,” said the corporate chief who had a stint as MAS managing director after the government bought it back from tycoon Tan Sri Tajudin Ramli.

 

He is also chairman of CIMB Bhd, the advisors for the share swap.

 

MAS had attributed its highest-ever annual net loss to fuel price increases and also one-off provisions like redelivery of aircraft, impairment of freighters and stock obsolescence.

 

The loss had prompted Ahmad Jauhari to say that MAS was now in “crisis”.

 

The airline is one a few prominent GLCs to have been either fully or partially divested by Khazanah to private sector entities.

 

The state asset manager also sold its stakes in Proton and Pos Malaysia to Tan Sri Syed Mokhtar Al-Bukhary’s DRB-Hicom group.

 

The Najib Administration’s New Economic Model stated that the government needed to rationalise its involvement in GLCs to avoid crowding out the private sector, boost liquidity in the capital markets and improve its own fiscal position.

 

The government however will still have to be involved in strategic areas however such as businesses dealing with national security, national infrastructure and projects requiring the government to play a catalytic role.

 

http://www.themalaysianinsider.com/malaysia/article/pm-sparked-mas-airasia-deal-not-the-cuts-says-maseu-chief/

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All this could have been easily avoided if the management exercise proper & constant communications with the people down below. When you keep mum - rumours will spread & when facts are scarce, rumours will turn into facts even if it's not true.

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The signs are not good, looks like everyone has screwed up in one way or another. So don't expect a JAL type of recovery from MAS! :(

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MH have easily had at least 3 major revamps - but nothing changed as its still been bleeding and even more so as last yr itsrm2.5BILLION LOSS.

It will never achieved the type of recovery like JAL; maybe some ways and if MH can evenachieve half of JL's then it be good already. And with MH going ahead with its A380s into service, it doesnt seem that MH can recover but only hope it losses less n less.

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MAS drops short haul premium carrier plan. See here :

 

http://www.themalays...m-carrier-plan/

 

In flip flop kingdom, anything goes

 

If story is true, one up for the union.. but it remains to be seen if MH will be able to stem the record breaking loss

Edited by V Wong

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The short haul premium airline does not make much sense. MH is already supposed to be premium, why create another premium airline? Just improve on existing products. I'm still hoping that they will increase the legroom of their sky interior 737.

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I never understand why MH (or other airlines) have to launch a new airline for domestic/regional. Just keep what they have and make it better. Wouldn't it be more costly for new branding, advertising etc? I'm glad this plan doesn't go forward.

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I never understand why MH (or other airlines) have to launch a new airline for domestic/regional. Just keep what they have and make it better. Wouldn't it be more costly for new branding, advertising etc? I'm glad this plan doesn't go forward.

I think that it is more to have a separate entity to operate narrow body aircraft. These require different marketing messages since the product is not going to be the same as those on the wide bodies.

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So project Sapphire is no more...

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MAS drops short haul premium carrier plan. See here :

 

http://www.themalays...m-carrier-plan/

 

In flip flop kingdom, anything goes

 

If story is true, one up for the union.. but it remains to be seen if MH will be able to stem the record breaking loss

 

To be honest... i dont think a flip flop decision is bad... at least they acknowledge it in advance and if they continue they might get more troublesome. In this case, it was still a plan and not yet implement. Besides, it give us more substance to discuss and speculate.. :D Btw, I kinda of like the idea of separating the short haul and long haul. With short haul they can start with new plane and have a fresh balancesheet. Besides, it will be good to see two different livery for MAS. I thought the short haul will have the swooshes livery while the long haul as what A380 will have. Well.., its all gone now. :)

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It is all because of the upcoming general election. There are 21,000 precious votes to take care of (although obviously not all 21,000 MAS employees will vote for BN regardless of whether there is a share swap or not).

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MAS Now Focusing On Long, Short Haul Flights Under Different Brand Names - Najib

 

KUALA LUMPUR, April 5 (Bernama) -- Datuk Seri Najib Tun Razak said Malaysia Airlines (MAS) is now focusing more on long and short haul flights under different brand names.

 

The prime minister said the original MAS brand was being maintained for the long haul flights while for the latter, it is operated under the brand name of Firefly.

 

He said as MAS' rebranding exercise was still at the early stages, it was too soon to determine the overall cost involved.

 

"Under this rebranding, short haul flights will use smaller planes like the Boeing 737-800 to enable MAS to provide a wider premium network with better frequencies to enhance cost and operation efficiency," he said in his written reply to Wee Choo Keong (Ind-Wangsa Maju) in the Dewan Rakyat Thursday.

 

Wee had wanted to know the cost entailed for MAS' rebranding following a share swap between MAS and Air Asia under the Comprehensive Collaborative Framework (CCF) agreement between the two airlines.

 

Najib added that MAS would also be introducing a new image for the Airbus A380 superliner which is scheduled to start operations in July this year, and in the process increase passenger load through continuous marketing strategies to return to profitability.

 

-- BERNAMA

 

Source : http://bernama.com/bernama/v6/newsgeneral.php?id=657324

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Everything should stay under one name. It will cause branding confusion amongst passengers.

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MAS Now Focusing On Long, Short Haul Flights Under Different Brand Names - Najib

 

KUALA LUMPUR, April 5 (Bernama) -- Datuk Seri Najib Tun Razak said Malaysia Airlines (MAS) is now focusing more on long and short haul flights under different brand names.

 

The prime minister said the original MAS brand was being maintained for the long haul flights while for the latter, it is operated under the brand name of Firefly.

 

He said as MAS' rebranding exercise was still at the early stages, it was too soon to determine the overall cost involved.

 

"Under this rebranding, short haul flights will use smaller planes like the Boeing 737-800 to enable MAS to provide a wider premium network with better frequencies to enhance cost and operation efficiency," he said in his written reply to Wee Choo Keong (Ind-Wangsa Maju) in the Dewan Rakyat Thursday.

 

Wee had wanted to know the cost entailed for MAS' rebranding following a share swap between MAS and Air Asia under the Comprehensive Collaborative Framework (CCF) agreement between the two airlines.

 

Najib added that MAS would also be introducing a new image for the Airbus A380 superliner which is scheduled to start operations in July this year, and in the process increase passenger load through continuous marketing strategies to return to profitability.

 

-- BERNAMA

 

Source : http://bernama.com/b...l.php?id=657324

im confused right now..so, thats meant FY will operate jet aircraft back??

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