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Brahim's-MAS catering deal "remains intact"

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Same old story.....

 

Brahim's-MAS catering deal "remains intact"

 

Posted on 10 October 2012 - 10:40pm

 

sunbiz@thesundaily.com

 

PETALING JAYA (Oct 10, 2012): Malaysia Airlines (MAS) has backed out of plans to renegotiate its 25-year catering agreement with Brahim's Holdings Bhd, a move some quarters view as aimed at avoiding a possible financial penalty.

The airline is already bogged down by operating losses to the tune of RM408.8 million in the first half of this year.

A termination of the contract, which runs from 2003 to 2028, between Brahim's and MAS would have entitled Brahim's to a financial compensation from MAS.

In a statement today, Brahim's said its catering agreement with MAS "remains intact" following discussions with representatives from MAS, and will proceed to reconvene an EGM that was adjourned in September after MAS had indicated its intention to renegotiate the catering deal.

Shareholders were to have voted on Brahim's proposed acquisition of a 49% interest in Brahim's-LSG Sky Chefs Holdings Sdn Bhd from LSG Asia GmbH for RM130 million at the EGM, but had decided to adjourn the meeting until there was "greater clarity" on the status of its catering agreement with MAS.

About 92% of Brahim's revenue comes from its contract with MAS.

"We wish to inform that any operational issues will be reviewed and resolved progressively within the framework of the existing catering agreement. Brahim's will proceed with the needful to reconvene the EGM to relay its clarification with MAS to Brahim's Holdings' shareholders, that the catering agreement remains intact," the company said.

 

SOURCE: http://www.thesundaily.my/news/512599

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How much are they charging MAS for a typical hot meal (main course, appetizer, dessert, bread roll) in Y now ?

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There are just too many wrongs with this contract. A classic example of lack in internal control system fits for so many papers and case studies in ACCA, CIMA, ICAEW etc syllabuses.

 

If MH, as a public listed entity, is upholding its mission statement of creating shareholders' wealth, they should take stern legal action against those acting on behalf of them that caused them to sign this awful contract whether they are still within MH's management or not.

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There are just too many wrongs with this contract. A classic example of lack in internal control system fits for so many papers and case studies in ACCA, CIMA, ICAEW etc syllabuses.

 

If MH, as a public listed entity, is upholding its mission statement of creating shareholders' wealth, they should take stern legal action against those acting on behalf of them that caused them to sign this awful contract whether they are still within MH's management or not.

 

 

Totally agree.

 

Brahim is guaranteed minimum X profit every year hence no one can give accurate cost of meal until end of financial year.

 

What's with Malaysia?? Every thing mega is guaranteed a handsome (or not) profit yearly. In the airlines industry where jet-fuel price volatility determines an airline profit and loss, such a long term agreement could be signed? Best of all, if the article is correct, there's a clause where MAS would be heavily penalized if it backs out of the agreement. How much more? This beckons for more disclosure.

 

And what are the benefits to MAS from Brahims commercially? It should be a win-win arrangement.

With MAS giving a solid 25 years' catering service to Brahims, MAS should be entitled for a yearly cost reduction workable in percentage.

This is in the assumption that the initial start-up capital by Brahims needs to be paid up initially but as its CAPEX starts to have lesser residue, the gains obtained should be shared with MAS by giving it a workable yearly discounts.

In this arrangement, MAS would have a forecast savings (gain) at the end of its financial year, which could be interpreted as reduction in its operating cost.

 

Hope more information will be exposed later on this golden deal.

Edited by Cire

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50% chance the deal will be renegotiated after the general election? And it will depends on the voters.

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If MH, as a public listed entity, is upholding its mission statement of creating shareholders' wealth, they should take stern legal action against those acting on behalf of them that caused them to sign this awful contract whether they are still within MH's management or not.

 

 

How? Those that signed that contract got a promotion...

 

That's the catering contract.. wonder how's the other big ticket contracts.. e.g. aircraft leasing contracts that runs into billions??

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50% chance the deal will be renegotiated after the general election? And it will depends on the voters.

Yes, probably MH has been asked to "cool it" as election time is near. Disclosures of this unfair contract will make the current govt. look very bad.

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Read in the news today MAS disagree with the article.. They insists still reviewing the deal..

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I just hope that something drastic will happen in the next GE so all these hanky-panky that has been plaguing the airline and the nation can be revealed and corrected. And hopefully the perpetrators can be punished as well.

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Its about time, but don't just stop there. Search the suppliers' list for more contractors to be eliminated.

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Search the suppliers' list for more contractors to be eliminated.

The flip side being that if they search and dig deep enough, there could be areas that warrant 'augmentation" instead :)

Case of one step forward, two backwards ?! :D

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MH does have sub par product, especially when compared with their regional competitors.

 

7th Feb: KUL->HKG (MH 448)

16275261499_48cabd4765_b.jpg

 

The nasi lemak was had just a spicy taste, whereas the ginger chicken on CX was pretty damn good. Apart from that, the service was a world of difference. I felt like the CX crew's performance was at the level of any business class, at least I felt so. The difference was even more obvious when you can compare them side by side like this.

 

 

It seems MH/brahim catering no longer use premium jasmine rice to cook nasi lemak, hence, quality has deteriorated.

Edited by KK Lee

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16275261499_48cabd4765_b.jpg

 

 

 

 

It seem MH/brahim catering no longer use premium flour mix for dinner roll/bun, the taste and flavour of dinner roll/bun is uninteresting.

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But your training should help you overcome the emotional outbursts and keep your composure under the most severe provocation.

In reality, all that goes out of the window when faced with uncertainty of one's future with the company - essentially, experiencing absolute constipation :)

 

 

 

It seem MH/brahim catering no longer use premium flour mix for dinner roll/bun, the taste and flavour of dinner roll/bun is uninteresting.

Brahim’s, MAS extend new catering agreement to May 10

http://www.themalaysianinsider.com/business/article/brahims-mas-extend-new-catering-agreement-to-may-10#sthash.OJIsap7j.dpuf

 

So we have only a couple days left to savour their delicacies ?! :D

Edited by BC Tam

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Brahim’s, MAS extend new catering agreement to May 10

http://www.themalaysianinsider.com/business/article/brahims-mas-extend-new-catering-agreement-to-may-10#sthash.OJIsap7j.dpuf

 

So we have only a couple days left to savour their delicacies ?! :D

 

This dateline is believed to be negotiation dateline. In the event MH/brahim catering couldn't come to an agreement, new supplier will need about 18 months to build a new catering facility to supply to MH.

 

Rumour said brahim BOD kept rejecting negotiated proposals, hence negotiation was extended a number of times. Believe CM will take another approach to this negotiation.

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Brahims signs a new 5 year contract that promises to be 25% cheaper

 

"Overall, the NCAs provide for a strict service level agreement and key performance indicators (KPIs) to be adhered to, considerably improved pricing, non-exclusivity and a shortened tenure, compared with the previous catering agreement, the statement added."

 

http://www.thestar.com.my/Business/Business-News/2015/05/11/MAS-to-cut-catering-cost-by-25-pct-under-new-agreements-with-Brahims/?style=biz

Edited by Mohd Suhaimi Fariz

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Brahims signs a new 5 year contract that promises to be 25% cheaper

 

"Overall, the NCAs provide for a strict service level agreement and key performance indicators (KPIs) to be adhered to, considerably improved pricing, non-exclusivity and a shortened tenure, compared with the previous catering agreement, the statement added."

 

http://www.thestar.com.my/Business/Business-News/2015/05/11/MAS-to-cut-catering-cost-by-25-pct-under-new-agreements-with-Brahims/?style=biz

 

oh my..

bland sandwiches come to my mind.. :shok:

Edited by Yang Zulhilmi

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