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Mohd Suhaimi Fariz

MAS Privatisation

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Thai Airways lost a lot of money in 2020 - https://www.bloomberg.com/news/articles/2021-02-25/thai-airways-posts-record-4-7-billion-loss-as-debt-revamp-looms#:~:text=The net loss widened to,the Stock Exchange of Thailand.

MAG does not publish any numbers but a good guess is that 2020 losses will be more than RM 1bn. Airasia X lost RM 1.4bn, so billion RM losses should be the norm for 2020.

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13 hours ago, JuliusWong said:

Apart from that they took quite aggressive steps to reduce loss, raising capital.

  • Reduce total number of employees from 19,000- 21,000 to about 9,000-11,000 by the end of this year. However, they will start recruiting again to reach the target of 13,000-15,000 in 2025.
  • Travel privilege for current employees will be getting cut down. No more ticket offer for former employees and family member of deceased employees(!) (except those who participated in their MSS program)
  • Merging some divisions and downgrading management level for employees from 8 to 5 layers.
  • Reducing the number of executives from 740 to 500. This initiatives has been completed.
  • Selling off staff training center building and various office space including Headquarter to shore up capital.
  • Holding warehouse sales to sell off Dom Perignon, Veuve Cliquot, salt and pepper shakers, and every inflight amenities, past and present generations.
  • Reduction of pilot from 1,400 to 905. 495 pilots to be made redundant. All remaining 905 pilot will receive new contract with new salary and benefits schedule on 18th February 2021.
  • Leasing or buying another 13 new widebodies and 10 narrowbodies, if the plan is approved by restructuring governing board. This include 10 B787 aircraft, bringing total to 18. Another 3 B77W which are now fully built and ready for delivery. 10 A320neo narrowbodies would be for Thai Smile replace current older A320ceo. 
  • Selling off 42 surplus aircraft, as noted above: 
    • 10 x Boeing 747-400s
    • 2 x Airbus A380-800s
    • 12 x Boeing 777-200s
    • 6 x Boeing 777-300s
    • 3 x Airbus A340-500s
    • 6 x Airbus A340-600s
    • 1 x Airbus A300-600
    • 2 x Boeing 737-400s

While Thai Airways International Group has been quite upfront with their restructuring plan, Malaysia Airlines Group has been quiet..........like very quiet.

Thai Airways fleet looks like an aircraft museum!

On 2/26/2021 at 3:00 PM, Chris Tan said:

I can imagine the experts bashing MH in the not-so-distant future for its short sighted fleet renewal plans -- why didn't MH take advantage of lower rates to renew their fleet, the average age in 2021 was almost 9 years old, why wait till 2025, SQ/CX/VN/TG/GA/everyone else already have shiny new planes, how can they serve so many destinations with only 6 A350s, etc etc.

Anyway, I hope they'll keep the experts fully informed of their decision making. The experts are the ones who'll determine the direction of our beloved MH.

MAG can't really do fleet planning without a strategic long term plan. That is why they are so quiet on these matters. The Khazanah bailout is only enough to sustain current flying activities but leaves little for future development.

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19 hours ago, JuliusWong said:

Apart from that they took quite aggressive steps to reduce loss, raising capital.

  • Reduce total number of employees from 19,000- 21,000 to about 9,000-11,000 by the end of this year. However, they will start recruiting again to reach the target of 13,000-15,000 in 2025.
  • Travel privilege for current employees will be getting cut down. No more ticket offer for former employees and family member of deceased employees(!) (except those who participated in their MSS program)
  • Merging some divisions and downgrading management level for employees from 8 to 5 layers.
  • Reducing the number of executives from 740 to 500. This initiatives has been completed.
  • Selling off staff training center building and various office space including Headquarter to shore up capital.
  • Holding warehouse sales to sell off Dom Perignon, Veuve Cliquot, salt and pepper shakers, and every inflight amenities, past and present generations.
  • Reduction of pilot from 1,400 to 905. 495 pilots to be made redundant. All remaining 905 pilot will receive new contract with new salary and benefits schedule on 18th February 2021.
  • Leasing or buying another 13 new widebodies and 10 narrowbodies, if the plan is approved by restructuring governing board. This include 10 B787 aircraft, bringing total to 18. Another 3 B77W which are now fully built and ready for delivery. 10 A320neo narrowbodies would be for Thai Smile replace current older A320ceo. 
  • Selling off 42 surplus aircraft, as noted above: 
    • 10 x Boeing 747-400s
    • 2 x Airbus A380-800s
    • 12 x Boeing 777-200s
    • 6 x Boeing 777-300s
    • 3 x Airbus A340-500s
    • 6 x Airbus A340-600s
    • 1 x Airbus A300-600
    • 2 x Boeing 737-400s

While Thai Airways International Group has been quite upfront with their restructuring plan, Malaysia Airlines Group has been quiet..........like very quiet.

Knowing mab ill probably head to nowhere with no concrete plan and heading with just 3.5bil to operation to sustain operation to 2025.

Edited by jahur

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On 2/26/2021 at 3:00 PM, Chris Tan said:

I can imagine the experts bashing MH in the not-so-distant future for its short sighted fleet renewal plans -- why didn't MH take advantage of lower rates to renew their fleet, the average age in 2021 was almost 9 years old, why wait till 2025, SQ/CX/VN/TG/GA/everyone else already have shiny new planes, how can they serve so many destinations with only 6 A350s, etc etc.

Anyway, I hope they'll keep the experts fully informed of their decision making. The experts are the ones who'll determine the direction of our beloved MH.

I seem to recall MH already committing to a fleet renewal. Then and10t went and cancelled it all.

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