Jump to content
MalaysianWings - Malaysia's Premier Aviation Portal
Mohd Suhaimi Fariz

MAS Privatisation

Recommended Posts

Nothing new, just another bail out. Using public money. When will these people will learn. Government got no balls to let MAS in current form just die of natural death. Sure its bitter pill to swallow but i'm not convinced by the prospect of having another bailout in 5-7 years time. Each time it will costs more than before.

Share this post


Link to post
Share on other sites

Yes think the govt and politicians have their own agenda for keeping MAS afloat even with billion dollars bailout yearly for the next 10 years.

Just imagine what all these billions could have been betterspend by the govt on the people. We are talking about billions and not just millions here.

Share this post


Link to post
Share on other sites

It is a huge moo-moo cow to be drained, milked and milked till last drop of milk..........MAS is beyond help as much as I want to be jaguh kampung, supporting Buatan Malaysia products.

 

The government should and must realise that MAS has or had a lot of good talented to be capitalised. MAS can easily be a aggressive competitor to TG, SQ or CX. Sadly due to its political meddling, many of these had left for other airlines or industry. Our domestic market is enough to support so many connections from flight originated from America, Australia and Europe, barring of course AirAsia, however if you have the correct products at correct price, Malaysian pax won't mind to pay for it. Somehow the EU 'pay-for-frills' concept with basic food and beverages might work in Malaysia domestic market.

 

You can only milk so much 'sympathy' from the public due to MH370 and MH17 for a period of time. Once the 'kesian' effect is over, I dare to say MAS will be hantam kao kao again by the flying public.

Edited by JuliusWong

Share this post


Link to post
Share on other sites

Air Asia and Air Asia X will stand to gain from MAS restructuring again and again as its reduces its destinations and flights.

Somehow, I think Airasia and Airasia X may not benefit at all. They may even suffer at the hands of the Aviation Commission - I anticipate that this commission might protect MAS in the same manner as Proton is protected from its competitors.

Share this post


Link to post
Share on other sites

CAPA analyses:

 

Malaysia Airlines 2Q loss widens. Restructuring is imminent but outlook remains bleak

http://centreforaviation.com/analysis/malaysia-airlines-2q-loss-widens-restructuring-is-imminent-but-outlook-remains-bleak-184380

 

Malaysia Airlines restructure will need partners - perhaps Etihad, BA, Finnair or Qatar Airways

http://centreforaviation.com/analysis/malaysia-airlines-restructure-will-need-partners---perhaps--etihad-ba-finnair-or-qatar-airways-184576

 

Malaysia Airlines restructuring: cost cuts must be deep to improve short-haul competitiveness

http://centreforaviation.com/analysis/malaysia-airlines-restructuring-cost-cuts-must-be-deep-to-improve-short-haul-competitiveness-184815

Share this post


Link to post
Share on other sites

Is this MAS Act for real ?!!

If so, it could well be that what we've been moaning about and making fun of all this while, will become law of the land :shok:

Thereafter, those moanings and jibes will be contempt of law ...... :D

Share this post


Link to post
Share on other sites

The mother of corporate restructurings

Azman Ujang
IT is aptly billed as the mother of all restructurings in the sense that corporate Malaysia has not seen anything quite like it.
The five-year plan to return Malaysia Airlines (MAS) to profitability and sustainability comes with a price tag of RM6 billion which Khazanah Nasional Bhd will pump in under a 12-point recovery plan unveiled on Friday.
This massive and absolutely challenging exercise has been keenly anticipated by the market as well as the public and in a sense to bring some relief or a closure of its own to the bad news that has been plaguing the national airline for most of this year.
Basically it entails the creation of a new company (NewCo) to accommodate a revamped MAS, cutting the workforce by 30% or about 6,000 employees so that it will end up with the right size of 14,000 and for the airline to revisit its work practices and contracts.
For the downsizing, two companies have agreed with Khazanah, the government's strategic investment fund which owns almost 70% of MAS, to absorb over half of the 6,000 employees to be laid off and who will be retrained and reskilled.
Under the plan that will be keenly watched, MAS will be delisted by the year-end but is expected to be relisted within three to five years to enable Khazanah to recover its capital injection, which its managing director Tan Sri Azman Mokhtar insists is not a bailout but an investment that comes with strict conditions.
And concerns among many that the airline might change its name were put to rest as the new company will retain the iconic Malaysia Airlines that's so recognisable globally.
There has been tremendous cheer and applause greeting the MAS overhaul plan as well as the political will at the highest level, something that cannot always be taken for granted but this time around, it's very obvious.
Prime Minister Datuk Seri Najib Abdul Razak is more than confident that Khazanah which is in charge of the revamping will recover "in full and more" its investment but expects the targets to take longer than the three years set by Khazanah.
"God willing, in that three years, we will see a positive turnaround from MAS," he said while reassuring the workers to be laid off that their welfare will be considered a priority and the rightsizing will be done in a humane and compassionate manner.
What I consider as one of the best news is the support expressed this time around by the powerful MAS Employees Union (Maseu), the biggest of the airline's unions and which has been seen in the past as bent on blocking or stalling previous turnaround plans.
For example, it was Maseu's strong opposition to the share swap between MAS and AirAsia in 2011 that led to the mega deal to be aborted just eight months later without being given time to prove its worth.
I must add here that there wasn't a strong political will to back up this particular deal then as Maseu president Alias Aziz was reported to have met Najib three times to tell him that the share swap was bad for MAS before it unravelled.
Alias told me over the weekend that the union is all for the plan and will play its role in ensuring its successful implementation.
Its only concern is to ensure that the 6,000 employees expected to leave MAS will be gainfully rehired at their new companies and "not out of jobs after just two or three years".
"We are giving our support to the plan because we have confidence in the leadership of the prime minister in this regard and we see him as having a genuine interest in our welfare," said Alias, who has been heading Maseu for over 20 years.
As for the many contracts that MAS had entered into and which will be reviewed, Alias said the union had voiced its strong views on some of them in the past but such views had been largely ignored. He cited the 25-year catering contract which many in the market have described as bloated. He said Maseu wanted it to be majority-owned by MAS but which ended up in the airline having only a 30% stake.
To add value to the Khazanah turnaround plan, I spoke to an internationally-acclaimed top airline industry executive for his views for some tips moving forward for MAS.
His views are exclusive for readers of this column and wherever doable, let's hope it will help our corporate surgeons who will operate on MAS and nurse it out of its sickbed.
On top of his tips-list is: "We must know the market. Don't do all. Will die."
He said many airlines lose so much money because they try to do everything.
"MAS is premium, hence sell and price to that market and have only planes or number of planes for the market. For example, the Ritz Carlton hotel chain doesn't have budget rooms."
He also said airlines cannot have too many business plans or plane types adding that "If I were MAS, I would only have B737 and Airbus 330 and 380 aircraft.
And it's equally important for MAS to get out of Europe, except flying only to London and Paris while using its global connectivity via MAS' Oneworld Alliance and other code-share partners to fly the other European routes.
The executive also suggested that MAS use the 737 planes to operate a great business class and premium economy service but to destinations of only up to six hours as well as to get out of the leisure routes.
And he said it's also more viable for MAS to get out of the engineering and cargo business.
Time will tell if these and other plans laid out by Khazanah will bring MAS out of its prolonged air turbulence and see the light at the end of a long tunnel especially given the past year having been made more traumatic by the MH370 and MH17 tragedies.
Azman Ujang is a former editor-in-chief of Bernama. Comments: letters@thesundaily.com

Share this post


Link to post
Share on other sites

 

The mother of corporate restructurings

Azman Ujang

 

I must add here that there wasn't a strong political will to back up this particular deal then as Maseu president Alias Aziz was reported to have met Najib three times to tell him that the share swap was bad for MAS before it unravelled.

 

Alias told me over the weekend that the union is all for the plan and will play its role in ensuring its successful implementation.

 

Its only concern is to ensure that the 6,000 employees expected to leave MAS will be gainfully rehired at their new companies and "not out of jobs after just two or three years".

 

"We are giving our support to the plan because we have confidence in the leadership of the prime minister in this regard and we see him as having a genuine interest in our welfare," said Alias, who has been heading Maseu for over 20 years.

 

As for the many contracts that MAS had entered into and which will be reviewed, Alias said the union had voiced its strong views on some of them in the past but such views had been largely ignored. He cited the 25-year catering contract which many in the market have described as bloated. He said Maseu wanted it to be majority-owned by MAS but which ended up in the airline having only a 30% stake.

 

To add value to the Khazanah turnaround plan, I spoke to an internationally-acclaimed top airline industry executive for his views for some tips moving forward for MAS.

 

His views are exclusive for readers of this column and wherever doable, let's hope it will help our corporate surgeons who will operate on MAS and nurse it out of its sickbed.

 

On top of his tips-list is: "We must know the market. Don't do all. Will die."

 

He said many airlines lose so much money because they try to do everything.

 

"MAS is premium, hence sell and price to that market and have only planes or number of planes for the market. For example, the Ritz Carlton hotel chain doesn't have budget rooms."

 

He also said airlines cannot have too many business plans or plane types adding that "If I were MAS, I would only have B737 and Airbus 330 and 380 aircraft.

 

And it's equally important for MAS to get out of Europe, except flying only to London and Paris while using its global connectivity via MAS' Oneworld Alliance and other code-share partners to fly the other European routes.

 

The executive also suggested that MAS use the 737 planes to operate a great business class and premium economy service but to destinations of only up to six hours as well as to get out of the leisure routes.

 

And he said it's also more viable for MAS to get out of the engineering and cargo business.

 

Time will tell if these and other plans laid out by Khazanah will bring MAS out of its prolonged air turbulence and see the light at the end of a long tunnel especially given the past year having been made more traumatic by the MH370 and MH17 tragedies.

 

Azman Ujang is a former editor-in-chief of Bernama. Comments: letters@thesundaily.com

 

Source: http://www.thesundaily.my/node/270423

Basically still 1990's mind set and business model, old wine in new bottle.

Share this post


Link to post
Share on other sites

Yes, if they can't find someone internally, they should try to get someone from SQ or CX.

 

The other thing is that why must the govt. allow Khazanah to continue owning MAS? If they want to restructure MAS by passing the MAS Act, they can also create a SPV to oversee the whole thing and take over the project from Khazanah. Even Dr M is not confident that Khazanah can do the job as it has failed a few times already.

Edited by flee

Share this post


Link to post
Share on other sites

Their pride will never, ever, let them seek the help of a Singaporean ex-Malaysian.

 

Those who are working in MH for decades are no doubt familiar with its operation but few are exposed to outside world, how other legacy airlines are operating and countering ME3 and LCC. Believe the whole MH top management and the board need to spend sometime in Europe (i.e. at LH, AF, KL and BA) or Middle East (at EK, EY and QR) to understand the current business model.

 

MH results in last decade has proved its current business model is out dated and a failure, no matter how much one try to twit it.

Share this post


Link to post
Share on other sites

 

Those who are working in MH for decades are no doubt familiar with its operation but few are exposed to outside world, how other legacy airlines are operating and countering ME3 and LCC. Believe the whole MH top management and the board need to spend sometime in Europe (i.e. at LH, AF, KL and BA) or Middle East (at EK, EY and QR) to understand the current business model.

 

MH results in last decade has proved its current business model is out dated and a failure, no matter how much one try to twit it.

Don't give them that suggestion. Later they will organise a "study tour" for almost the whole cabinet to Europe and Middle East!

Share this post


Link to post
Share on other sites

Don't give them that suggestion. Later they will organise a "study tour" for almost the whole cabinet to Europe and Middle East!

 

Can't be that expensive for 8,500 people on this study tour no?

 

I think everyone from the Director General to the

 

senior timbalan DG to the

junior timbalan DG to the

penolong DG to the

assistant penolong DG to the

senior penolong penolong DG to the

junior penolong penolong DG should go

 

along with the cabinet

Edited by Suzanne Goh

Share this post


Link to post
Share on other sites

along with the cabinet

You mean those pieces of deadwood ? :p

Surely they can find pieces of furniture in those foreign land ?! :)

Share this post


Link to post
Share on other sites
Tourism Malaysia Concerned Over Rumour Of MAS Service Discontinuation To Frankfurt


By Manik Mehta


FRANKFURT, Sept 7 (Bernama) -- The Tourism Malaysia office here is deeply concerned over a rumour that Malaysia Airline (MAS) might discontinue its five-weekly flights to Frankfurt.


Although the rumour has circulated since several years ago, it has gained intensity since two mishaps hit the airline - the disappearance of MH370 en route to Beijing on March 8 and the downing of MH17 while flying over Ukraine on July 17.


Tourism Malaysia Frankfurt director Maizan Ahmad said discontinuing direct non-stop Frankfurt-Kuala Lumpur flights would be a major setback to the Visit Malaysia Year 2014 which has been successful following the double-digit growth in tourist arrivals from Germany to Malaysia since 2010.


"Frankfurt has traditionally enjoyed a good load factor. An average German tourist spends about 10 nights in Malaysia, spending less than RM3,000 per trip per person," he told Bernama.


The number of tourist arrivals from Germany rose by 16.6 per cent to 70,456 from the corresponding period last year with Langkawi beaches and Sarawak rainforests being top destinations.


Germany flag carrier, Lufthansa, like MAS, also operates five-weekly flights to Malaysia, but other airlines that provide connectivity to Malaysia must first fly to their home base before flying to Malaysia.


They include Cathay Pacific, Asiana, Singapore Airline and Thai Air.


Maizan said MAS is a boon for German travellers heading to Malaysia like Thai Air, which flies twice weekly from Frankfurt and once a week from Dusseldorf to Bangkok, to cater to increasing number of German travellers visiting Thailand.


On tourism promotion, Maizan said apart from banking on social media, Tourism Malaysia Frankfurt has sent 50 representatives from German tour and travel agents and 29 Cologne Business School students majoring in tourism management to visit Malaysia.


Tourism Malaysia will appear in a talk show on the Antenna Mainz Radio on Sept 21 besides holding a series of roadshows to promote Malaysia in partnership with MAS in Frankfurt, Hanover and Berlin in November.


Other events in the pipeline are "Travel Days Malaysia" jointly with Ikarus Travel near Tubbingen, "Malaysia at the Shopping Mall" in Hamburg, and sponsoring the Meier's Far East Life Seminar.


In March, MAS Frankfurt office director David Raj denied the rumours that MAS would discontinue its five-weekly flights to Frankfurt.

Share this post


Link to post
Share on other sites

web.jpg

State support for job cuts boosts prospects of latest Malaysia Airlines plan

 

The plan to save Malaysia Airlines (MAS) (MASM.KL) could succeed where past endeavours have failed because the government has finally put politics aside by agreeing to sweeping job cuts, people briefed on the restructuring told Reuters.

 

Full report: http://www.reuters.com/article/2014/09/07/us-malaysia-airline-restructuring-idUSKBN0H20UB20140907

Edited by flee

Share this post


Link to post
Share on other sites

Its all very well for analysts to just look at the numbers. In reality, there is little or no market for used A380s right now. So even if MH wants to sell these aircraft, there might be no buyers. So maybe the best solution is to store them, since every ticket sold nowadays results in a loss. Cutting flights will definitely cut losses.

Share this post


Link to post
Share on other sites

Its all very well for analysts to just look at the numbers. In reality, there is little or no market for used A380s right now. So even if MH wants to sell these aircraft, there might be no buyers. So maybe the best solution is to store them, since every ticket sold nowadays results in a loss. Cutting flights will definitely cut losses.

 

CASK on A380 is probably the lowest, if A380 is unprofitable, all other aircraft will be worst. Don't think the issue is with A380 but MH.

Share this post


Link to post
Share on other sites

CASK on A380 is probably the lowest, if A380 is unprofitable, all other aircraft will be worst. Don't think the issue is with A380 but MH.

We don't know which routes are really bleeding because we are not privy to that kind of information. CASK and RASK numbers reported are system wide and is an average number.

 

We may get some guidance from comparing fares on KUL-LHR and KUL-CDG. MH may be making money if they sell their tickets at their normal fares. But if they start to dump tickets to fill up the plane (as the analysts are suggesting), then even the A380 services may be making losses.

 

However, armchair airline execs like us might want to think that if we are running the airline, it would make good sense to retain your assets with the lowest CASKs and dispose of those that have higher CASKs. But then, we don't know what is really going on inside MH....

Share this post


Link to post
Share on other sites

×
×
  • Create New...