MAS Privatisation

[Chris Tan 0]

4 hours ago, Kenny Sing said:

will like to see MH back to the old glory days.

Ah yes. The old glory days of RM800 tickets to East Malaysia. Good times.

[Waiping 12]

I have travelled on AK BKI - KUL for RM1200 return before. 

[Chris Tan 0]

16 minutes ago, Waiping said:

I have travelled on AK BKI - KUL for RM1200 return before. 

Are we really going to pretend that average domestic fares haven't dropped dramatically since the "old glory days" of MH's monopoly?

[Kenny Sing 0]

9 minutes ago, Chris Tan said:

Are we really going to pretend that average domestic fares haven't dropped dramatically since the "old glory days" of MH's monopoly?

did your salary going down on yearly basis?

[Kenny Sing 0]

29 minutes ago, Waiping said:

I have travelled on AK BKI - KUL for RM1200 return before. 

let me guess, festive season.

[flee 5]

Malaysia Airlines' parent cuts 10 pct salary of senior management team

KUALA LUMPUR: Malaysia Airlines Bhd parent Malaysia Aviation Group (MAG) will cut 10 per cent of its senior management salary as well as reduce their allowances, effective from this month.

Group chief executive officer Captain Izham Ismail said the cost-cutting was to cope with the impact of the Covid-19 outbreak.

Full report: https://www.nst.com.my/business/2020/03/573123/malaysia-airlines-parent-cuts-10-pct-salary-senior-management-team

[Kenny Sing 0]

looks like their senior management is well paid, imagine a 10% pay cut will able to cope with the covid19 impact. as compared to Malindo's up to 50% cut.

[kandiah k 0]

Yeah top management must be getting RM120K annually at least, so it will be a big blow to their lifestyles and maybe not low enough for them to feel the pinch 🤣🤣🤣🤣

[Pall 0]

1 hour ago, kandiah k said:

Yeah top management must be getting RM120K annually at least, so it will be a big blow to their lifestyles and maybe not low enough for them to feel the pinch 🤣🤣🤣🤣

Don't be surprised if some of them are getting 120k a mth. 

[Rabloo 0]

Yeah. RM120k annually is only middle management level. Some of the top management are getting more than RM100k per month

[jahur 0]

In big ict firms in kl the allowances can go up to myr4mil for upper management. 

[flee 5]

4 hours ago, Kenny Sing said:

looks like their senior management is well paid, imagine a 10% pay cut will able to cope with the covid19 impact. as compared to Malindo's up to 50% cut.

Don't worry - it will come soon. They just want to show that Management is taking the hit first.

[flee 5]

10 minutes ago, jahur said:

In big ict firms in kl the allowances can go up to myr4mil for upper management. 

Well, Director's fees are also sky high - even non-executive directors can get RM 250K in fees and allowances, just for attending the 7 to 10 board meetings each year.

[Kenny Sing 0]

if the company having good earnings and healthy balance sheet, it wasn't an issue paying high amount of allowance to senior management, when it is not, the senior management must lead by example before chopping the lower tier for cost cutting measures. too bad, MAS was chopping the lower tier as oppose to trimming the higher end ones.

[KK Lee 5]

55 minutes ago, Kenny Sing said:

if the company having good earnings and healthy balance sheet, it wasn't an issue paying high amount of allowance to senior management, when it is not, the senior management must lead by example before chopping the lower tier for cost cutting measures. too bad, MAS was chopping the lower tier as oppose to trimming the higher end ones.

Low hanging fruit is easiest to pick. EY pax is served RM4.50 meal box is by no accident.

 

Edited March 10, 2020 by KK Lee

[Mohd Suhaimi Fariz 2]

14 hours ago, Kenny Sing said:

if the company having good earnings and healthy balance sheet, it wasn't an issue paying high amount of allowance to senior management, when it is not, the senior management must lead by example before chopping the lower tier for cost cutting measures. too bad, MAS was chopping the lower tier as oppose to trimming the higher end ones.

Or maybe the senior management's pay is not a significant portion of the cost that the low hanging fruits can be let go...

[flee 5]

3 minutes ago, Mohd Suhaimi Fariz said:

Or maybe the senior management's pay is not a significant portion of the cost that the low hanging fruits can be let go...

That would depend on the size of the business - companies like Microsoft, Apple, GE, etc. have huge businesses - so top management pay is not a big proportion of their overheads. But if your company is small and still has a BoD that pays similarly, it may account for a bigger part of the company's expenses.

[Kenny Sing 0]

29 minutes ago, Mohd Suhaimi Fariz said:

Or maybe the senior management's pay is not a significant portion of the cost that the low hanging fruits can be let go...

then they should focus on the high expenditure item other than cutting 10% on senior management salary and tyield no result.

23 minutes ago, flee said:

That would depend on the size of the business - companies like Microsoft, Apple, GE, etc. have huge businesses - so top management pay is not a big proportion of their overheads. But if your company is small and still has a BoD that pays similarly, it may account for a bigger part of the company's expenses.

this is well agreed.

[Mohd Suhaimi Fariz 2]

29 minutes ago, Kenny Sing said:

then they should focus on the high expenditure item other than cutting 10% on senior management salary and tyield no result.

It's a matter of optics.

Besides, who's to say that they didn't do that already?

[Kenny Sing 0]

nobody can be certain other than their internal people

[jahur 0]

Covid-19 seems to be getting worse now. Gov restriction on whole South Korea now and next week Japan if situation doesn't improve. So much for D7 and MH expanding all capacity to oriental routes.

[Rabloo 0]

30 minutes ago, jahur said:

Covid-19 seems to be getting worse now. Gov restriction on whole South Korea now and next week Japan if situation doesn't improve. So much for D7 and MH expanding all capacity to oriental routes.

Luckily MH pulled out from many secondary chinese cities late last year, otherwise the impact could be worse. Nevertheless, was told that the financial impact is 3 times worse than MH370+MH17

[Pall 0]

In trying times like this, its a good time to let go of the more elderly staff. I.e approaching retirement, above 60 and contract staff. Give way to the younger ones to live through their commitments. Golden age staff are usually at the peak of their pay brackets. 

Was told Malindo and AirAsia group are resorting to this. Something MH Group can consider. 

Edited March 12, 2020 by Pall

[flee 5]

1 hour ago, jahur said:

Covid-19 seems to be getting worse now. Gov restriction on whole South Korea now and next week Japan if situation doesn't improve. So much for D7 and MH expanding all capacity to oriental routes.

Well, it is spreading - already US-Europe is banned. So American and European airlines will be affected. The whole industry is now adversely affected under this Covid-19 pandemic.

MH is now "lucky" that it only has one route to Europe!

D7 may wish to consider suspending operations altogether for 14 to 21 days. Upon resumption, there would be some residual demand to fill up their planes 

Edited March 12, 2020 by flee

[jahur 0]

12 minutes ago, flee said:

Well, it is spreading - already US-Europe is banned. So American and European airlines will be affected. The whole industry is now adversely affected under this Covid-19 pandemic.

MH is now "lucky" that it only has one route to Europe!

D7 may wish to consider suspending operations altogether for 14 to 21 days. Upon resumption, there would be some residual demand to fill up their planes 

That is the issue with airlines expanding capacity and frequency like mad. All it takes is one small bug to reset the entire industry. The same thing will repeat in another 10-15years if following the influenza cycle. Free market open sky they call it 🤣 dumb consumers are the one getting s#1t on in the end.

Edited March 12, 2020 by jahur