MAS Privatisation

[Craig 0]

It seems like MH released a hint for their new European route set to launch in 2025 on their social before deleting it. According to the teaser, it should be announced at Matta fair this week. Or maybe they are canceling that route now due to the mess they are in. MH intern is back!

Edited September 3 by Craig

[jahur 0]

20 minutes ago, Craig said:

It seems like MH released a hint for their new European route set to launch in 2025 on their social before deleting it. According to the teaser, it should be announced at Matta fair this week. Or maybe they are canceling that route now due to the mess they are in. MH intern is back!

That could be Da Nang's french like village though.

Dine 'in the clouds' with Mercure Da Nang and Ba Na Hills

[Craig 0]

2 minutes ago, jahur said:

That could be Da Nang's french like village though.

Dine 'in the clouds' with Mercure Da Nang and Ba Na Hills

Could be. But I remember seeing something along the lines of new destination announcement for 2025 at Matta Fair 2024. 
 

Don’t know if now is a good time for a new route announcement because a lot of people were affected by the recent cancelations. But from an airline’s perspective, now is the time to announce Summer 2025 expansion. Gives them time to promote it and also for forward booking. 

[BC Tam 2]

With manufacturer B failing woefully in keeping contracted deliveries of the Max's, one can imagine there should be some sort of monetary penalties due to MAG ? This perhaps (at least partially) contributed to the cash pile that they are supposedly sitting upon nowadays ? 😄

[jahur 0]

SQ, CA has opted to do precautionary inspection for the A350-9. So far SQ managed to do theirs without any cancelation while CA will be cancelling 4 flights a day for up to 2 weeks. Word is out that CI is also looking at how to schedule inspections. JL is scheduling checks but only for -1000 with no disruption expected.

Singapore Air Checks A350 Jets as Air China Scraps Flights

Meanwhile at MH it seems they're opting not to.

Loke: Business as usual for Malaysia Airlines’ A350 fleet

[flee 5]

Airlines have to weigh the costs of checking vs the costs of NOT checking... CX. CA and SQ has decided it is going to cost more for NOT checking - kudos to these airlines!

[flee 5]

 

[BC Tam 2]

3 hours ago, jahur said:

SQ, CA has opted to do precautionary inspection for the A350-9. So far SQ managed to do theirs without any cancelation while CA will be cancelling 4 flights a day for up to 2 weeks. Word is out that CI is also looking at how to schedule inspections. JL is scheduling checks but only for -1000 with no disruption expected.

Singapore Air Checks A350 Jets as Air China Scraps Flights

Meanwhile at MH it seems they're opting not to.

Loke: Business as usual for Malaysia Airlines’ A350 fleet

Dunno the technicalities behind all the considerations, but to me as Joe Public observing the situation now, it's glaringly obvious who is proactively responding to the issue and who will have to (hopefully not) react to consequences, if any

[flee 5]

https://www.nst.com.my/business/corporate/2024/09/1101409/malaysia-airlines-resume-europe-flights-2025-bttv

Edited September 5 by flee

[flee 5]

Who’s to blame for turbulence in Malaysia Airlines?

https://www.freemalaysiatoday.com/category/opinion/2024/09/05/whos-to-blame-for-turbulence-in-malaysia-airlines/

[KK Lee 5]

6 hours ago, flee said:

https://www.nst.com.my/business/corporate/2024/09/1101409/malaysia-airlines-resume-europe-flights-2025-bttv

If current network couldn't be sustained, it would be overstretched to expand.

 

[KK Lee 5]

6 hours ago, flee said:

https://www.nst.com.my/business/corporate/2024/09/1101409/malaysia-airlines-resume-europe-flights-2025-bttv

Mas and GLC failure could be blamed on cronyism and new economic policy.

[jahur 0]

Looks like it will be CDG has been quietly inserted. MH21 to be used by A350. 7x weekly from march 22nd onwards. 

[flee 5]

10 minutes ago, jahur said:

Looks like it will be CDG has been quietly inserted. MH21 to be used by A350. 7x weekly from march 22nd onwards. 

London and Paris will always be premier routes. Milan will be the next tier.

I think that when the A339s arrive, they will likely be used for regional routes and DOH. The A359s will be purely for >10 hr long haul flights.

Edited September 6 by flee

[jahur 0]

41 minutes ago, flee said:

London and Paris will always be premier routes. Milan will be the next tier.

I think that when the A339s arrive, they will likely be used for regional routes and DOH. The A359s will be purely for >10 hr long haul flights.

There were talks that the a339 could do those euro destinations. But last heard mh did not fit them with crew bunk and the standard galley fitting is smaller than the a333 which either results in not being able to serve 2 full meals with options or to reduce available options on both meals or to downgrade the 2nd meal to just pie pastry like 9M-MAH.

No crew bunk also means the airline has to block 13 seats for team 2. Then there's the issue of range, to trim commercial payload by 5-9 tonnes in exchange for more fuel without penalizing the max take off weight. Recently ITA airways flew the Pope from Rome all the way to Jakarta on the A339 but with only 90 something people onboard.

[jahur 0]

Malaysia Airlines says ‘potential issue’ found on one A350-900 engine

Quote

KUALA LUMPUR – Malaysia Airlines said on Sept 6 it found a “potential issue” with the engine of an Airbus A350-900 aircraft in its fleet but added that it had been resolved.

“Malaysia Airlines confirms that its A350-900, Trent XWB-84 fleet recently underwent a precautionary inspection, during which a potential issue with high-pressure fuel hoses on one aircraft was identified,” the carrier said in a statement. AFP

 

[flee 5]

10 hours ago, jahur said:

Looks like it will be CDG has been quietly inserted. MH21 to be used by A350. 7x weekly from march 22nd onwards. 

Official announcement: https://theedgemalaysia.com/node/725790

[jahur 0]

MAG’s problems a microcosm of what’s wrong with Malaysia

Quote

On closer examination, the issues surrounding MAG’s operations, which operate in the aviation sector, represents a microcosm on what is wrong with the nation as a whole. We have made unimaginative and politically expedient decisions when at the crossroads.

Our neighbours appear to have gained a foothold, both in the region and global economy, ironically emulating Malaysia as a success model in addressing economic development.

Firstly, there is the issue of brain drain given meritocracy issues and the decline of the value of the ringgit. It has continued to depreciate due to high debt levels, fiscal and monetary policy and political stability. This notwithstanding relatively high prices for crude oil.

Secondly, the education system is all over the place producing university graduates who are unemployable and lack interest in the pure sciences. Only now, is there emphasis on technical and vocational education and training (TVET) courses to elevate technical competencies and upskill the workforce.

Hence, there is, for example, a dearth of technicians be it in aircraft maintenance and other technical fields. Obviously, we did not have the foresight to place TVET on a higher platform and market it as a viable alternative. Talent has been lost as they serve as despatch riders.

Thirdly, allowing new (MRO) industry competitors, both local and international to set up shop and poach trained local technical personnel is most disturbing. MAG, for example, is experiencing an attrition of its skilled workforce.

Such loss could have been mitigated as practised in the banking industry many years back when there was a penalty to pay for staff poaching especially by new foreign banks.

Lastly, what is most unappealing and disastrous from a reputational risk perspective is that the Civil Aviation Authority of Malaysia (CAAM) has put the carrier on notice – air operator certificate renewal is cut to one year.

While this writer has some points there's just not enough LAE and aircraft technicians graduates and the lack of of focus on science based career.  Wonder why he, every minister and bosses in the corporate field are calling for an anti poaching initiative. Its very apparent Malaysian companies have not match up wages competitively in response to inflation. If that Singapore MRO setup didnt come also locals would underpaid and now there's a drive to at least move the wages when that foreign company moves in.

A still guaranteed profit contract but bosses try to skiddle out by hiring less staff and supplying low quality meals to client. While entirely unrelated, I think maybe vaguely a bit of what is shown in the video here can be described maybe 1/4 of whats happening in MAG.

[flee 5]

Yes, Malaysian companies are addicted to low wages. That is why I feel that the increase in civil servant salaries is a good step to help upgrade salary levels in this country. Although I do not think civil servants deserve it due to their low performance, it creates competition for staff with the private sector. Salaries have not kept pace with inflation for a long time and that means economic growth stagnates as consumers can't afford to spend so much. Worse still, workers leave the country and their wealth creation abilities are lost.

[KK Lee 5]

10 hours ago, jahur said:

MAG’s problems a microcosm of what’s wrong with Malaysia

While this writer has some points there's just not enough LAE and aircraft technicians graduates and the lack of of focus on science based career.  Wonder why he, every minister and bosses in the corporate field are calling for an anti poaching initiative. Its very apparent Malaysian companies have not match up wages competitively in response to inflation. If that Singapore MRO setup didnt come also locals would underpaid and now there's a drive to at least move the wages when that foreign company moves in.

A still guaranteed profit contract but bosses try to skiddle out by hiring less staff and supplying low quality meals to client. While entirely unrelated, I think maybe vaguely a bit of what is shown in the video here can be described maybe 1/4 of whats happening in MAG.

Many failed to realize, rise of minimum wages increased production cost and inflation rate. Many poorer quality of life could be traced to rise in minimum wages.

 

4 hours ago, flee said:

Yes, Malaysian companies are addicted to low wages. That is why I feel that the increase in civil servant salaries is a good step to help upgrade salary levels in this country. Although I do not think civil servants deserve it due to their low performance, it creates competition for staff with the private sector. Salaries have not kept pace with inflation for a long time and that means economic growth stagnates as consumers can't afford to spend so much. Worse still, workers leave the country and their wealth creation abilities are lost.

For companies to pay high salary, companies need to make good profit first. With so many indirect taxes, red tapes, etc, most companies don't make decent profit. After considering of low productivity, wages in this country is expensive. For reasons, why most manufactured products are not competitive internationally. Until more business friendly policies is introduced, wages is unlikely to rise much higher.

Gomen servants salary rise mean higher tax collection, more MGS or money supply. unless GDP growth could outpace gomen budget is unsustainable. 

Edited September 7 by KK Lee

[Craig 0]

11 hours ago, KK Lee said:

For companies to pay high salary, companies need to make good profit first[...] After considering of low productivity, wages in this country is expensive. 

You sound like one of those Chinaman bosses another poster was talking about. 

[KK Lee 5]

7 minutes ago, Craig said:

You sound like one of those Chinaman bosses another poster was talking about. 

Whether I am a Chinaman, Japanese or Jewish, having a healthy bottom line and reserve is my responsibility. Most startup paid high salary but without profit or reserve is unsustainable, and over 90% of them kaput.

 

[flee 5]

13 hours ago, KK Lee said:

For companies to pay high salary, companies need to make good profit first. With so many indirect taxes, red tapes, etc, most companies don't make decent profit. After considering of low productivity, wages in this country is expensive. For reasons, why most manufactured products are not competitive internationally. Until more business friendly policies is introduced, wages is unlikely to rise much higher.

Malaysian companies addicted to low salary - so they do everything manually. They do not invest in technology and automation, productivity is low. They are pampered by subsidised fuel, electricity, water and other charges. Rents are lower than competing countries. Red tape and corruption is needed when dealing with government to expedite matters is probably a big roadblock for them. However, the many favourable conditions should enable them to overcome the disadvantages.

[KK Lee 5]

10 hours ago, flee said:

Malaysian companies addicted to low salary - so they do everything manually. They do not invest in technology and automation, productivity is low. They are pampered by subsidised fuel, electricity, water and other charges. Rents are lower than competing countries. Red tape and corruption is needed when dealing with government to expedite matters is probably a big roadblock for them. However, the many favourable conditions should enable them to overcome the disadvantages.

If automation is the solution, MNC need not outsource or set up shops in low cost labour countries. Besides, most local companies lack the market size or scale for automation. Investment need money, if company don't make decent profit, where to find money to invest in new technology.

Japan, Korea, PRC, Taiwan, Vietnam, Thailand, etc are all without fuel subsidy and are more competitive than here. Personally, I believe gomen should remove all form of subsidy.

Everyone engaged with local authority know, it takes many months if not over a year to obtain planning approval that is before building plan approval. For the same period of time in Thailand, would have completed the factory. For reasons, MNC preferred to set up shops in Thailand.

 

[Alif A. F. 0]

15 hours ago, KK Lee said:

If automation is the solution, MNC need not outsource or set up shops in low cost labour countries. Besides, most local companies lack the market size or scale for automation. Investment need money, if company don't make decent profit, where to find money to invest in new technology.

Japan, Korea, PRC, Taiwan, Vietnam, Thailand, etc are all without fuel subsidy and are more competitive than here. Personally, I believe gomen should remove all form of subsidy.

Everyone engaged with local authority know, it takes many months if not over a year to obtain planning approval that is before building plan approval. For the same period of time in Thailand, would have completed the factory. For reasons, MNC preferred to set up shops in Thailand.

 

That depends on the government agencies involved in the technical compliance. Local authorities depend a lot on other technical departments for compliance. Six months approval are norm while one year is too long, while three months is considered quick already by Malaysian standards.

And local authorities in Malaysia are governed by four separate laws, if I remember correctly. So, rules and procedures do not quite aligned. In Sabah for example, planning approval still needs to go through state government level, even for projects on small plots of land. This is because none of the district land use master plans (the basis of planning approval) in the state have ever been approved by state level to be used by local authorities.

And technical agencies have differential bureaucracies - most of them work in silo with minimal interaction with each other. Hence, local authorities have no actual power or 'teeth' to implement real changes. And I argue there is no meaningful investment made to make local authorities more competent. 

Edited September 9 by Alif A. F.