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MAS Privatisation

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Malaysia Airlines chairman says privatisation of MAS possible

By LEONG HUNG YEE

hungyee@thestar.com.my

 

 

PETALING JAYA: Malaysia Airlines (MAS) does not rule out the possibility of taking the company private or spin off its other divisions,

according to chairman Tan Sri Dr Munir Majid.

 

“No options are off the table. It's the shareholders' call. We can put the option on the table but it is still the shareholders call,”

he said after the company AGM that lasted for three hours yesterday.

 

On Monday, StarBiz reported that Maybank Investment Bank suggested that MAS be privatised but list Firefly Sdn Bhd, MAS Engineering,

MasKargo and even its terminal services.

 

Source

 

Personally, if they were to spin off subsidiaries, the best has got to be MASkargo. They've managed to gain a profit throughout Q1 & Q2 (albeit reduced) and have the strength of having few competitors to worry about.

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Personally, if they were to spin off subsidiaries, the best has got to be MASkargo. They've managed to gain a profit throughout Q1 & Q2 (albeit reduced) and have the strength of having few competitors to worry about.

 

The last time MAS was privatised, MAS almost went bankrupt. Don't think it will be privatised anytime soon. MAS Kargo can be spin off as a separate subsidiary. However, MH is quite a small player in cargo market compared to SQ, CX and KE Cargo. KE Cargo remains the world's largest with 36 B744F and more B777F to come. O.O

 

Spinning of non core activities can allow MH concentrate on its main activity which its competitive advantage is. Its p/l won't look so bloated as well. :)

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MH will never be privatised, simply because it cant survive in the adverse market it's in with competition from AK/D7. MH is simply in a league of its own as it calls itself a "5-star value carrier". It probably won't survive as a full-fledged 5-star carrier like CX, SQ, TG, QR and now the threat from GA, without getting loads of g'ment subsidies. Furthermore, M'sia isn't a premium traveler destination yet. KL is not a world-financial hub like S'pore, HK or even Bangkok for that matter. Then again, MH could attract premium transit travelers thru the Kangaroo route, but again, it's saturated with other carriers. The asian market is simply saturated with such airlines. Truth is, the real competition is from AK. Unfortunately, MH has been unable to break that premium oligopoly from other carriers in the asia-pacific market and in some ways has missed the opportunity to do so, and again, it's rather saturated making it even more difficult. Even SQ feels the AK threat and is trying to grab those LCC travelers, but can still cling on to its solid premium market. Then again, MH adopt a low-cost no frills model, which is quite far-fetched.

 

To make myself clearer, MH survives because it can offer cheaper rates than its 5-star competitors, which come from its g'ment subsidies. This will always be the case unless it breaks itself into the 5-star stratosphere, which is quite a bleak prospect.

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Does it mean privatisation is not good after all for a carrier like MH? (Sorry, I'm not really good in business management)

But will it at least reduce government intervention into their operations?

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Personally, MAS should not be privatise for the second times. MAS should be belongs to government as one of social responsebility medium for Malaysian. The last time during ex CEO Tan Sri Dato (Dr.) Abdul Aziz lead, MAS very strong but when MAS was privatised for the first time MAS almost went bankrupt.

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But will it at least reduce government intervention into their operations?

 

 

True, though MH seems to be making decisions by itself, independent of g'ment. It's clinging on to g'ment to get a hold of its goodiees (subsidy, etc.) Correct me if I'm wrong.

 

Pardon me for the failed quote

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If MH is delisted and taken private, there will be less public scrutiny and even lesser accountability.

 

Where is the $$$ coming from to buy back the shares in the open market??? If it is taken private, looks like another bail out! :angry:

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Remember, MAS will NEVER be allowed to fail (not my words, just echoing a sentiment expressed here in yet another MH bashing thread)

So, if anyone with money (and with the necessary clout obviously ;) ) deem it viable to sink in money to take her private, it's a rather sa