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Mohd Suhaimi Fariz

MAS Privatisation

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Aviation is capital intensive - even in the most capitalist nation there's no guarantee of success.

 

Except in protective environment and monopoly, there isn't guarantee of success in any business.

 

Believe if D7 or OD adapted some changes, it could take over existing MH network and be profitable.

Edited by KK Lee

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Except in protective environment and monopoly, there isn't guarantee of success in any business.

 

Believe if D7 or OD adapted some changes, it could take over existing MH network and be profitable.

I doubt it. You'd get MH fares for D7 products.

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I doubt it. You'd get MH fares for D7 products.

 

If D7 could fill their aircraft with MH fare, it is certainly profitable and saved tax payers billions RM. If the gomen open the sky at the same time, D7 competitors e.g. OD will keep high fare in check.

Edited by KK Lee

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Actually I would venture a lot of taxpayers money have been redeemed by the taxpayers themselves through fuel & food subsidies etc etc.

 

As for MH - sure you can close it down & let foreigners come in to take the slack, but the moment they found the market to be unprofitable they'll leave & you'll end up without any connections whatsoever.

 

im not sure i understand your first point.

 

However i disagree totally with your second thats not how markets work. If companies came in and couldnt make a profit it would mean there is no demand for the product they were providing or prices would rise to a equilibrium where both companies profited and consumers could afford the product/ service. Also with MAS cutting its route network what connectivity does the new co actually provide? I cant think of a major route left where they will be the only service provider. So for RM 6 billion we dont get jack really.

 

 

If there was a demand for connectivity between KUL and elsewhere private enterprise could start to meet that demand, the government doesnt need to operate and airline its not a public service except to very remote areas which could never sustain a commercial flight. There is a public good in that respect.

 

With the government interfering and keeping MAS going tax payers are not only subsidizing failure but they are distorting the market and Malaysian tax payers are essentially subsidizing, singaporeans, brits etc to fly around the world below cost at artificially low prices.

 

In-addition this market manipulation inhibits other competitors from either starting or increasing KUL service as the yields are artificially depressed.

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"I cannot tell you its name or symbol or colour scheme" @MAS CEO says there's a need to rebrand but details still sketchy

-@sumishanaidu

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"I cannot tell you its name or symbol or colour scheme" @MAS CEO says there's a need to rebrand but details still sketchy

-@sumishanaidu

 

How far could the brand name from Malaysia Airlines Bhd? MAS Airline? Coincidentally, the change from Malaysian Airline System to Malaysia Airline System was the start of decaying.

Edited by KK Lee

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A few Golden Lounges will be closed, whilst the x3 KUL lounges and LHR, MEL lounges will be refurbished and redeveloped to entice the premium passengers. MH plans to use fellow OW members and partner lounges where possible where they are closing Golden Lounges.

 

http://www.ausbt.com.au/malaysia-airlines-to-close-some-airport-lounges-update-others?utm_source=internal&utm_medium=promobox&utm_campaign=latestnews-articleleft

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How far could the brand name from Malaysia Airlines Bhd? MAS Airline? Coincidentally, the change from Malaysian Airline System to Malaysia Airline System was the start of decaying.

 

Now registered as Malaysia Airlines Berhad. Registered office at Level 33, Tower 2, KLCC. Some of crew just received their termination letter by OldCo and at the same time (those lucky one) received their offer letter by NewCo.

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As for MH - sure you can close it down & let foreigners come in to take the slack, but the moment they found the market to be unprofitable they'll leave & you'll end up without any connections whatsoever.

Perhaps you're focussing on KUL only ?

However, our nation is more than KUL alone, and I remember MH pulling out BKI-SEL and a few other 'connectivites' from BKI rather abruptly not too many years ago, ostensibly because the routes were "unprofitable" You may or not be aware of the hardship that befell the industry (tourism) here as a consequence. I doubt if there was much (if any) sympathy within MH for that

But you know what ? "Foreigners" did come in and took up the slack, we now have multiple Korean airlines plying multiple daily SEL-BKi vv flights. And other foreigners have improved connectivities to/fro BKI, I like to believe because they saw an opportunity to fill a gap in demand. Then we also have (local) red comrade at the ready to pounce on the next available opportunity too

So, at least for us here in the eastern half of the nation, maybe MH isn't all it's supposed to be and we really need help from 'others' - who knows when MH will find our market to be unprofitable and MH will leave and we'll end up without any connections whatsoever, again

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i hope they will engage with Futurebrand, the company behind wonderful rebranding of Fiji Airways and American to come out with innovative new designs for their logo and overall branding..maybe Landor is already drained with ideas and the design of the A380 is not impressive at all....it seems that Petronas had engaged Futurebrand for their branding as well...

Edited by Khalil Abd Halim

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i hope they will engage with Futurebrand, the company behind wonderful rebranding of Fiji Airways and American to come out with innovative new designs for their logo and overall branding..maybe Landor is already drained with ideas and the design of the A380 is not impressive at all....it seems that Petronas had engaged Futurebrand for their branding as well...

 

Petronas logo hasn't changed at all~!? Or are you hinting at a new branding in the pipeline.

 

Yeah Landor's A380 livery or supposed to be the blue livery for MH has left MH an airline in the deep blue abyss.... and it was pretty awful I must say.

 

 

Perhaps you're focussing on KUL only ?

However, our nation is more than KUL alone, and I remember MH pulling out BKI-SEL and a few other 'connectivites' from BKI rather abruptly not too many years ago, ostensibly because the routes were "unprofitable" You may or not be aware of the hardship that befell the industry (tourism) here as a consequence. I doubt if there was much (if any) sympathy within MH for that

But you know what ? "Foreigners" did come in and took up the slack, we now have multiple Korean airlines plying multiple daily SEL-BKi vv flights. And other foreigners have improved connectivities to/fro BKI, I like to believe because they saw an opportunity to fill a gap in demand. Then we also have (local) red comrade at the ready to pounce on the next available opportunity too

So, at least for us here in the eastern half of the nation, maybe MH isn't all it's supposed to be and we really need help from 'others' - who knows when MH will find our market to be unprofitable and MH will leave and we'll end up without any connections whatsoever, again

 

Has the big earthquake at MH today affected subsidiaries like MASWings and Firefly at all?

 

May be the East needs their own airline that is based on our side, rather than being dictated by the west as it has been for the past decades?

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Petronas logo hasn't changed at all~!? Or are you hinting at a new branding in the pipeline.

 

Yeah Landor's A380 livery or supposed to be the blue livery for MH has left MH an airline in the deep blue abyss.... and it was pretty awful I must say.

 

 

 

Has the big earthquake at MH today affected subsidiaries like MASWings and Firefly at all?

 

May be the East needs their own airline that is based on our side, rather than being dictated by the west as it has been for the past decades?

 

The East already have Maswings. Sabah and Sarawak gomen are certainly rich enough to expand its wing; may be CM would be more than happy to let it goes if Sabah and Sarawak gomen ask.

Edited by KK Lee

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..... and I remember MH pulling out BKI-SEL and ...

sorry, should be BKI-ICN

 

 

Has the big earthquake at MH today affected subsidiaries like MASWings ..... at all?

Read somewhere about assurances domestic network will remain intact as is - big pinch of salt necessary I guess :)

 

 

The East already have Maswings. Sabah and Sarawak gomen are certainly rich enough to expand its wing; may be CM would be more than happy to let it goes if Sabah and Sarawak gomen ask.

Remember there were already talks about Maswings acquiring 'jets' to start flying regionally from a BKI base ?

Maybe with a KCH base the Sarawakians will pump in the money that they have. Sabahans do not have the money for this sort of bottomless-pit ventures !!

Spot on about CM being eager ! :)

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Here's some notes so far:

- New brand from September 1
- LHR staying x2 daily A380
- x4 A380's to stay, x2 for sale
- New Business Class for A330, 777
- KUL(3), LHR, MEL Lounges to be refurbished
- Selected Golden Lounges will close
- Route/frequency cuts to be announced end of June
- MH code to stay
- MH will continue to participate in OW
- All expansion is halted until 2017

The new J is described as "a world-class leading lie-flat seat" with "very large dimensions, and be positioned above the industry standard for business class."

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Here's some notes so far:

 

- New brand from September 1

- LHR staying x2 daily A380

- x4 A380's to stay, x2 for sale

- New Business Class for A330, 777

- KUL(3), LHR, MEL Lounges to be refurbished

- Selected Golden Lounges will close

- Route/frequency cuts to be announced end of June

- MH code to stay

- MH will continue to participate in OW

- All expansion is halted until 2017

 

The new J is described as "a world-class leading lie-flat seat" with "very large dimensions, and be positioned above the industry standard for business class."

 

On corporate structure wise:

  1. MAB will have a holding company
  2. 12 different subsidiaries categorised into three groups –
  • Operations: MAS, Firefly, MAS Wings, MASKargo
  • Support Functions: MRO, ground handling, MAS Holiday and Enrich
  • Learning and Development: MAS Academy, Engineering, Flight and Operations training.

Fleet wise:

  • 2 x A380 for sale
  • 4 x A330-200F for sale
  • 4 x B777 for sale

Should MAS go into property development: REIT is hot nowadays!

 

........As at end 2013, MAS earned RM170mil in rental income from its land and buildings and the net book value of its buildings stood at RM522mil.
It has a huge leasehold land of 10,972 acres in Subang, the book value of which is a meagre of RM14mil. It also has office lots in Singapore and a 7-storey office building in London worth RM22mil.

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The KUL lounges were only recently done up no ? More money down the drain ?

This refurbishment exercise to project new branding I suppose

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On corporate structure wise:

  1. MAB will have a holding company
  2. 12 different subsidiaries categorised into three groups –
  • Operations: MAS, Firefly, MAS Wings, MASKargo
  • Support Functions: MRO, ground handling, MAS Holiday and Enrich
  • Learning and Development: MAS Academy, Engineering, Flight and Operations training.

Fleet wise:

  • 2 x A380 for sale
  • 4 x A330-200F for sale
  • 4 x B777 for sale

Should MAS go into property development: REIT is hot nowadays!

 

........As at end 2013, MAS earned RM170mil in rental income from its land and buildings and the net book value of its buildings stood at RM522mil.
It has a huge leasehold land of 10,972 acres in Subang, the book value of which is a meagre of RM14mil. It also has office lots in Singapore and a 7-storey office building in London worth RM22mil.

 

SVP incharge of each division will be under pressure to perform.

 

MH land at SZB is very valuable, believe those walk in the corridor of power and their friends already have plan for it.

 

 

Sensible and overdue.

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