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Mohd Suhaimi Fariz

MAS Privatisation

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Personally i think that MAS and Khazanah do not have six to twelve months time to come up with a solution.

Market developments in the aviation industry require a much shorter response time.

I'm guessing TS TF must have popped a few bottles of the bubbly stuff when Khazanah made that '6-12 months' announcement - what sort of message does that send out to your competitors when said competitors are able to react to market conditions at blink of an eye or fanciful whim ? :)

Sheesh, 12 months from now the solution to the problem you face now will probably be the handicap/new problem to be resolved henceforth :D

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Khazanah thinks they have 12 months based on the cash pile and burn rate that MAS has - a rather stupid assumption, I would think. Why do we pay so much for such idiotic custodians of our sovereign wealth?

 

In this time, we could see the Middle East (Syria/Iraq/Turkey) and also Ukraine/Russia at war. Oil prices will be at US$200 or more per barrel. Travel and tourism collapses. Too much airline capacity, etc. etc. MAS will be history....

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Me Neither. The 20,000 votes will be a eensy weensy teeny weeny inconvenience compared to the several million votes you risk when people realise you're taking public money to keep it afloat.

Thing is there are so many million more votes from people who are not aware where public money is being channelled to, plus those who are aware but also recognize fact their livelihood depends on this channelling method :(

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Breathe people, breathe................This topic makes most of us so stressed up. Not worth it, just like MH shares....hahas!!

 

We need bomoh to cleanse MH.........two coconuts, a mat and a basket.......or we can try Nepal Airlines' method: slaughter two goats in front of all planes.......

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While the powers that be figure out the best course of action, MAS can't afford to put its fleet renewal exercise on hold. If anything, it should be very much be at the core of this restructuring exercise.

 

This has been mentioned before, but here goes again. The right fit for MAS would be the B737NG/MAX for the narrow body fleet and A350s for the wide body fleet.

 

MAS needs to do it's sums with regards to the A380. At just 6 pieces, it's difficult to achieve the scale that would bring it's unit costs down. But to order more would represent a significant gamble.

 

Even SQ is showing signs of struggling to fill up her A380s. London continues to see some service reductions and/or downgrades to the 777. A380 introductions to India, China and New Zealand will come at the expense of cancellation of frequencies resulting in net seat capacity reductions to these markets. Hong Kong will also see one of two daily A380 services cut. Horrible yields in Australia have resulted in a complete exit out of Melbourne for the A380s. Sydney now sees only one daily A380 service.

 

MAS should strongly consider doing away with First Class service. This would negate the need for A380s. A fleet of just two types would bring huge operational savings and improvements in fleet efficiency.

 

First Class service doesn't generate much yield these days for Southeast Asian carriers, especially for a relatively low-yield market such as Malaysia. Airlines continue to do it out of legacy reasons and as a product differentiator for their branding.

 

In the case of MAS, with only 2 destinations getting First Class service, perhaps the time is right to consider doing away with it altogether and concentrate on where the bulk of the money is.

 

Granted, some prestige - ego for some - may be lost. But hardly important when one considers the greater gains.

 

So selling off the A380s might be a wise idea. And for that matter, even the B777X wouldn't be viable for MAS.

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Here is another interesting story or rumours on MAS bankruptcy and compensation amount required for Datuk Ibrahim Ahmad Badawi as the main caterer for MAS for a 25 years contract. (Translation required)

 

http://www.beritasemasa.com.my/malaysia-airlines-rugi-lagi-2014-bankrap

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Here is another interesting story or rumours on MAS bankruptcy and compensation amount required for Datuk Ibrahim Ahmad Badawi as the main caterer for MAS for a 25 years contract. (Translation required)

 

http://www.beritasemasa.com.my/malaysia-airlines-rugi-lagi-2014-bankrap

 

 

i just cant stand with the "gaji tinggi" thing...basic SPM can be considered as "gaji tinggi" ke? unless if the writer were referring to the management positions :nea:

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Here is another interesting story or rumours on MAS bankruptcy and compensation amount required for Datuk Ibrahim Ahmad Badawi as the main caterer for MAS for a 25 years contract. (Translation required)

 

http://www.beritasemasa.com.my/malaysia-airlines-rugi-lagi-2014-bankrap

The comparison is too simplistic - eg: SQ has 4 daily departure to LHR because their market can support it whereas Malaysian market probably wouldn't be able to support it.

 

And I had a chuckle about "gaji tinggi" - if only it was true!

Edited by Mohd Suhaimi Fariz

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The comparison is too simplistic - eg: SQ has 4 daily departure to LHR because their market can support it whereas Malaysian market probably wouldn't be able to support it.

 

And I had a chuckle about "gaji tinggi" - if only it was true!

Why must mh limited to mys market only? Thought a large proportion of pax to/from lhr are transit to aus.

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@ KAH

 

I have read th article you referred to.

 

My advise to Tansri Aziz woud be, "ok, we hear what you are saying, it makes sense. But to follow your initiiative, you need money, and lots of it.

If you have a backer on your plans, by all means, go for it."

 

But, in all practicallity, Tansri, even if you have access to funding, can you pull this off against the mighty vested interests?

What i mean is, Malaysian Families, it is easy to let someone with genuine concerns speak out on the issue, but, you,the good people of the Malaysian Airlines Family would better be advised to not only let a very senior ex MD gives his opinion but also give him a platform to step up to and not let his advise be in vain.

Talk is cheap, Malaysian Families, and if you want to have a Tansri Aziz as your saviour, you better place him in the right context.If you can.

If not, as it seems now, you are no better than Star Busiiness.or Utusan,.

 

As for Tansri Aziz, I have the highest regards. He should be more carefull on whom his friends are.

 

Cheers

Art

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Some of his views are relevant: unprofitable routes, poor choice of aircraft purchase, flawed business strategies, questionable contracts, etc. Having said that, anyone with a decent amount of knowledge on the aviation industry would already know that about MAS.

 

But with all due respect, many of his views are from an old school textbook.

 

He thinks that MAS should be defended at all costs. He still thinks that a "national carrier" in the form of yesteryears is still the way to go. There is a strong hint in the interview that AirAsia is the source of MAS' problems. Rather baffling is also the thought that MAS should have kept it's non-core real estates; someone forgot to tell him that this was an industry wide practice and most major airlines have sold off their premium city centre real estates.

 

He also thinks that MAS should have a dual brand strategy to compete in the low-cost segment; history (e.g. BA flopping with Go!) and current trends (e.g. SQ struggling with Tigerair and Scoot) tells you it doesn't work.

 

The government needs a team of the likes of Tim Clarks, Tony Fernandeses and Willie Walshes to advise them.

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Can MAS CEO and other employees take the same measures as SIA CEO during hard times that happened to SIA in 2009?

 

http://www.ibtimes.com/singapore-airlines-ceo-takes-20-pct-pay-cut-283134


And how about interesting story about the President and CEO of Japan Airlines that cut his pay to help his employees remain stable ... (watch the video on the CNN interview with him).

 

http://therealsingapore.com/content/ceo-japan-airlines-cut-his-own-pay-help-his-employees-remain-stable

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Salary cuts and resignations are not in Malaysian GLC cultures. Integrity is a foreign word. So we have to stop dreaming about the things those foreign companies did above. It simply will not happen here.

 

MAS has an even more terrible precedent where the CEO was never made accountable for the mess he created. On the contrary he was well rewarded! His name - TR.

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Salary cuts and resignations are not in Malaysian GLC cultures. Integrity is a foreign word. So we have to stop dreaming about the things those foreign companies did above. It simply will not happen here.

 

MAS has an even more terrible precedent where the CEO was never made accountable for the mess he created. On the contrary he was well rewarded! His name - TR.

Also, the MD that signed the 25 year contract with Brahim's... He got promoted to become chairman!

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One thing which is out of MH's control is the image of Malaysia (as a country) abroad. The public general perception towards Malaysia especially in developed countries definately doesnt help MH in getting more pax, particular premium pax. I believe this has worsen post 1998 due to the political situation in Malaysia. I have friends still believe Malaysia is in dictatorship state (this is their perception of Malaysia thru media although they have not been to Malaysia).

 

Without knowing MH well, joe public may think MH's service and safety is sub-par with other legacy carriers.

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Malaysia Airlines considers tie-up with Etihad Airways as restructuring process slowly begins

 

Source: http://centreforaviation.com/analysis/malaysia-airlines-considers-tie-up-with-etihad-as-restructuring-process-slowly-begins-172934

 

In summary: The possibility of further extending code shares, plus, an equity stake, subject to regulatory approval.

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It would be good if no more taxpayers' money was spent on MAS since the govt. is rationalising subsidies. So MAS should also cease to be subsidised. It would be good to see if Etihad and MAS can work out something that will be a win-win for all parties concerned.

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Etihad appears to be on a path to acquire distressed aviation assets : Alitalia and now MAS.

 

Will Etihad do to MAS what Emirates did to Qantas?

KC Sim

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