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Mohd Suhaimi Fariz

MAS Privatisation

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JAL will be most welcome, especially if KUL becomes one of their hubs. 
 

air Asia not so much. We’ve been there and failed. Not again.

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1 hour ago, Chris Tan said:

What sort of hub would KUL be?

Perhaps 🤔 if MAB JV JAL. Maybe MAB can nego further to have some sweet Haneda slots? Or hey, maybe a base there. 

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More details of AK's bid emerging

1) A380 is gone, and Khazanah to bear the cost of the debt. Leased A332 also gone. 737MAX will not be taken up. 

2) Khazanah to bear retrenchment costs

3) No golden shares, AK to call the shots fully

4) FY not included in deal, MASwings sold.

5) MH branding is gone. 

All in all, Khazanah will have to bear RM 8 billion in costs... 

https://focusmalaysia.my/mainstream/airasias-takeover-of-malaysia-airlines-may-cost-khazanah-over-rm8-bil/?fbclid=IwAR3IUZGY-7eep-5v6XElQFQBK3pQ8doiGALQ0RjNKLjHh7yEyfCRcDKS7ws

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Don't understand why report said A332s have different engines. They all use the same P&W engines. Report also did not mention what will become of the MASkargo and MRO units.

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8 minutes ago, flee said:

Don't understand why report said A332s have different engines. They all use the same P&W engines. Report also did not mention what will become of the MASkargo and MRO units.

Probably misquoted on equipment onboard and location of cabin galley design. Cause all 6 are very different from each other not very streamlined not sure how Air Berlin ordered their planes. Also heard the pw a333 are to go as well for rr powered 333 and 339neo but its all internal speculation at the moment.

The only fleet aagb will leave untouched are the a350s. They will also closed down the Haj and charter operations by stages as it is too seasonal.

Edited by jahur

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15 minutes ago, jahur said:

Probably misquoted on equipment onboard and location of cabin galley design. Cause all 6 are very different from each other not very streamlined not sure how Air Berlin ordered their planes. Also heard the pw a333 are to go as well for rr powered 333 and 339neo but its all internal speculation at the moment.

The only fleet aagb will leave untouched are the a350s. They will also closed down the Haj and charter operations by stages as it is too seasonal.

Yes, A333 leases will begin to expire and they can leave without penalties. A339s can take over the AKL route that A332s will leave behind.

Project Amal are still awaiting their own AOC - so maybe Khazanah can set it up as a standalone charter operation as it is unlikely to be able to sell off the A380s.

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13 hours ago, Izanee said:

JAL will be most welcome, especially if KUL becomes one of their hubs. 

air Asia not so much. We’ve been there and failed. Not again.

I was giving a lot of thought to the JAL involvement - it looks like a slight extension to their JV with MH. So, I don't think we can expect too much from this except that JAL has greater control of the JV.

AAG should have learnt their lesson from the previous merger but they are a sucker for punishment, aren't they? However, we have seen how a basket case like Proton can be turned around given the new owner's commitment to make things work. For AAG, it looks like a defensive move - it is better they take command of MH than let someone else do it and make MH a fierce competitor to AK.

At the end of the day, I do wonder how all these moves will affect consumer choice and consumer protection. An enlarged AAG is potentially not good for the consumer.

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5 hours ago, flee said:

 

Project Amal are still awaiting their own AOC - so maybe Khazanah can set it up as a standalone charter operation as it is unlikely to be able to sell off the A380s.

Project Amal will be reabsorbed back into Mas charter this year end. Saudi gov restricting new operators from applying haj slots. Saudi restriction is basically to apply haj it has to be an established airline operator that has been operating for a minimum of 5 years and beyond. So getting a brand new AOC is pretty much useless for haj umrah now.

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4 hours ago, kandiah k said:

Does anyone have the details of AF-KL proposal? 

According to this report, AF-KL wants to buy a 49% stake in MH and would like to setup KUL as an MRO hub. Would the term be like DL's purchase of VS?

JL meanwhile only wants 25% 

https://www.reuters.com/article/us-malaysia-airlines-m-a/air-france-klm-proposes-buying-49-of-malaysia-airlines-jal-seeks-smaller-stake-sources-idUSKBN1ZK0DX

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JL's proposal involves revamping MH's revenue management, assist in turning around the airline, and working to make KUL a hub worthy of competition with BKK & SIN.

But Khazanah feels it's not that great because "believed AAGB would fetch the fund RM1.4 bil a year in synergies but did not outline how they would accrue. There were no hard figures on valuations."

https://focusmalaysia.my/mainstream/how-jal-proposes-to-turn-around-malaysia-airlines/?fbclid=IwAR3111GyY7BNhkDMe-7nnDPegCPqYt4l748qvvejSRDoxPLmhShKiUdGqy4

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7 minutes ago, Mohd Suhaimi Fariz said:

JL's proposal involves revamping MH's revenue management, assist in turning around the airline, and working to make KUL a hub worthy of competition with BKK & SIN.

But Khazanah feels it's not that great because "believed AAGB would fetch the fund RM1.4 bil a year in synergies but did not outline how they would accrue. There were no hard figures on valuations."

https://focusmalaysia.my/mainstream/how-jal-proposes-to-turn-around-malaysia-airlines/?fbclid=IwAR3111GyY7BNhkDMe-7nnDPegCPqYt4l748qvvejSRDoxPLmhShKiUdGqy4

Isn't that RM 1.4bn what Khazanah needs to fork out to keep MH operational? Does it mean that if there is a merger, MH will no longer come with a begging bowl every year?

 

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57 minutes ago, flee said:

Isn't that RM 1.4bn what Khazanah needs to fork out to keep MH operational? Does it mean that if there is a merger, MH will no longer come with a begging bowl every year?

 

Of course, because MH would cease to exist if D7 took over. 

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Such rubbish from Khazanah. Air Asia, as you have all mentioned, will be interested to take MH out of the equation. They are in it for themselves only. Just like what Mueller did with EK and MH’s European ops. 
 

they need to think long term - and if JL or AF/KLM can not only invest in MH but also make KUL a more competitive hub... that will be much better for both.  Remember Lee Kuan Yew said that if given the choice, he would prefer for SIN to continue being an international air hub rather than protect SIA. 
 

this is why SIN and SQ are where they are now... 

Edited by Izanee

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10 minutes ago, Izanee said:

Such rubbish from Khazanah. Air Asia, as you have all mentioned, will be interested to take MH out of the equation. They are in it for themselves only. Just like what Mueller did with EK and MH’s European ops. 

they need to think long term - and if JL or AF/KLM can not only invest in MH but also make KUL a more competitive hub... that will be much better for both.  Remember Lee Kuan Yew said that if given the choice, he would prefer for SIN to continue being an international air hub rather than protect SIA. 

this is why SIN and SQ are where they are now... 

I agree that Khazanah are rubbish - they don't have the kind of commitment to change MH as and owner using their own money. Accountability is not a strong point. That is why the old man did not have much confidence in the body he chairs!

I think JAL is the PM's preferred route but he forgets he needs another behemoth, MAHB, to work properly to build that too. CAG has been exceptional in building SIN as a regional hub and the best airport in the world. Can MAHB step up to that level? Can it work with its airline customers to achieve that vision? So even with JAL, there are still risks because they do not intend to be part of the core management of MAG. Khazanah (whom we don't have much faith in) will still be a 75% shareholder.

As a plane spotter, I like the idea of AF/KLM restoring KUL as an MRO hub. Those good old days of MAS Engineering at Subang were very nice for plane spotters! With this proposal, the PM will get what he always championed for - to put engineering skills in the forefront of Malaysians. Together with Airbus' Sepang Aircraft Engineering, KUL can really become a major MRO hub. However, where does that leave MH? We don't know much about AF/KLM's plans for the airline.

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23 minutes ago, Mohd Suhaimi Fariz said:

Of course, because MH would cease to exist if D7 took over. 

According to one of the reports you linked, MH will become MY and will be a premium carrier with its branding in blue. AK will remain as red. D7 would be no more.

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3 hours ago, flee said:

According to one of the reports you linked, MH will become MY and will be a premium carrier with its branding in blue .....

Didn't D7 at one time try out a rebranding in blue (for all of one day) ..... ?! 😁

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15 minutes ago, Kee Hooi Yen said:

25% Khazanah + 25% Air Asia + 25% AF/KL + 25% JAL. Happy days :)

Hahaha,  then you will have boardroom quarrel everyday. 

Ps: MY code used to belong to US's MaxJet Airways, which went belly up in 2007. Tak ong la

Edited by JuliusWong

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Makes me wonder how credible Focus Malaysia source is. I mean like JAL has denied having any thoughts of bidding for MAB back in November and we know Khazanah themselves have shot down the idea of the last few takeover bids due to unattractive offers. 

https://www.nst.com.my/business/2019/11/535351/qatar-airways-and-japan-airlines-deny-bidding-mas-stake

I'm not surprised though about D7-MH as TF have long been looking for a way to save D7. 2012 dejavu?

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What strikes me most about all the above proposals is how much they are designed to only benefit the proposers. Nothing much has been proposed on how to make MAS the golden airline that it once was again. The plans all deal with what they want to do with parts of MAS, not the whole entity.

Edited by flee

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