Jump to content
MalaysianWings - Malaysia's Premier Aviation Portal
Mohd Suhaimi Fariz

MAS Privatisation

Recommended Posts

Who would want to buy MAS??

It was reported some time ago that a crony was trying to buy up MAS at a very cheap price. I believe this is a continuation of that story...

Share this post


Link to post
Share on other sites

Looks like Jala's comments were took out of context. He has clarified his statements.

I do agree that in order for MAS to perform, the Management team need to be given a chance to do what best for the airline without interference from greedy politicians. If needed, it has to shed off chrony suppliers that are not able to reduce cost and improve on supplies/services.

 

 

excerpt from MI:-

 

Dato’ Sri Idris said, "I wish to clarify that currently the Government does not have any plans to sell MAS. Under the New Economic Model, we are currently implementing the recommendation to rationalise the Government's role in business. As part of this SRI initiative, 33 companies have been identified but MAS is not one of them." – August 13, 2013

 

 

* SRI - strategic reform initiative..of the Economic Transformation Program

Share this post


Link to post
Share on other sites

Even after 40 years, the same issues affect MAS as they did when MSA was split in two to become MAS and SIA. In those days, the Singapore govt. was concerned that MSA be run as a proper business and making profits. Hence it wanted to expand high yield international routes while Malaysia wanted to do more domestic (and loss making, at that time) routes.

 

Now that AirAsia has proved that domestic routes can be profitable if run on a commercial basis and that MAS is losing money because of politicians interfering in its management, the govt. has no choice but to let it operate on a proper commercial basis. If not, it is best to close it down and not drain govt. coffers with more bailouts from time to time.

Share this post


Link to post
Share on other sites

Who would want to buy MAS??

 

by buying MAS they will also will reap the benefit of quite liberal agreement that malaysia have with ASEAN/India/China/Korea and even Australia which some of the middle eastern carriers have limitation with.

Share this post


Link to post
Share on other sites

Unless there are big ticket items to be purchased in the near future, doubt anyone connected is interested to take over an ailing airline with strong union.

Share this post


Link to post
Share on other sites

Even after 40 years, the same issues affect MAS as they did when MSA was split in two to become MAS and SIA. In those days, the Singapore govt. was concerned that MSA be run as a proper business and making profits. Hence it wanted to expand high yield international routes while Malaysia wanted to do more domestic (and loss making, at that time) routes.

 

Now that AirAsia has proved that domestic routes can be profitable if run on a commercial basis and that MAS is losing money because of politicians interfering in its management, the govt. has no choice but to let it operate on a proper commercial basis. If not, it is best to close it down and not drain govt. coffers with more bailouts from time to time.

 

Before AK; beside RAS, domestic route e.g. KUL-SIN, KUL-BKI, KUL-KCH was MH cash cow to subsidize loss making international routes.

Share this post


Link to post
Share on other sites

Who would want to buy MAS??

 

Hopefully not some other local airlines that just want to cannibalize the airline, take away the good routes and leave the remainder to rot, such as what happened a couple years back.

Edited by Radzi

Share this post


Link to post
Share on other sites

Hopefully not some other local airlines that just want to cannibalize the airline, take away the good routes and leave the remainder to rot, such as what happened a couple years back.

Hmmm... I wonder who you're referring to...

Share this post


Link to post
Share on other sites

AK/D7?

MH was a billion RM losing (and still bleeding) company then - the govt panicked and they don't have any capable civil servant or GLC leader to turn to.

 

I think that AK/D7 were roped into that share swap deal by the PMO. They cannot say no to the PM, can they?

Share this post


Link to post
Share on other sites

MH was a billion RM losing (and still bleeding) company then - the govt panicked and they don't have any capable civil servant or GLC leader to turn to.

 

I think that AK/D7 were roped into that share swap deal by the PMO. They cannot say no to the PM, can they?

 

AK is a champion on running low cost airlines, but are they champion on running a premium airlines? Why not try to study and adopt how JL turnaround their business.

Share this post


Link to post
Share on other sites

MH will never be able to swallow the bitter pills swallowed by JL. I was among those who advocated JL like measures for MH during that time - like cutting staff, cutting routes that bleed, scrapping non-core businesses, etc. Those measures turned JL around and now they are expanding again and making profits too.

Share this post


Link to post
Share on other sites

MH was a billion RM losing (and still bleeding) company then - the govt panicked and they don't have any capable civil servant or GLC leader to turn to.

 

I think that AK/D7 were roped into that share swap deal by the PMO. They cannot say no to the PM, can they?

 

People keep on forgetting history. Rewind back to 2006, RAS, Fly Asian Xpress. Those who remember that part of history will never agree to 2011 share swap.

Share this post


Link to post
Share on other sites

Will the MH CEO take the public bus to work and eat at staff canteen??

 

There is no need for him to take bus to work or eat at staff canteen... He is paid for strategy and leadership..

 

So I think MH leadership should be given the free handle how to steer the airline.

 

People keep on forgetting history. Rewind back to 2006, RAS, Fly Asian Xpress. Those who remember that part of history will never agree to 2011 share swap.

 

Yes, Firefly jet too gone.. Now semipremium, semibudget segment is filled by Malindo...

Share this post


Link to post
Share on other sites

People keep on forgetting history. Rewind back to 2006, RAS, Fly Asian Xpress. Those who remember that part of history will never agree to 2011 share swap.

Remembering is one thing - learning from history is another.

 

As far as I know, neither the state nor the Federal govt. has done much to improve the transport infrastructure in Sarawak. I was told in this thread, http://www.malaysianwings.net/forum/index.php?showtopic=19119&p=332014 that Sarawak is the third most prosperous state in Malaysia. So where is all the prosperity going to when basic development of the sate is not done? MH even has problem sustaining flights in and out of KCH.

 

Yes, the RAS fiasco is something we should not be proud of. But we should learn our lessons from it.

Share this post


Link to post
Share on other sites

Why not try to study and adopt how JL turnaround their business.

The world’s biggest turnaround story Japan Airlines relists in huge IPO:

http://skift.com/2012/09/18/the-worlds-biggest-turnaround-story-japan-airlines-relists-in-huge-ipo/

 

And something from Mr Turnaround:

 

Mr. Inamori introduced a cost-conscious culture at the once profligate national airline. JAL applied his business approach, coined "amoeba management," to control costs more precisely. It divided the whole company into small organized units, and made each accountable for its own budget.
Under Mr. Inamori the carrier also produced a 125-page book, titled "JAL Philosophy," that's carried by all 32,000 remaining employees and was aimed at changing their mindset on how to serve customers.
Mr. Inamori said Tuesday that in a farewell address to about 200 managers Monday, he'd warned employees not to get swept up in today's success, but instead to focus on longevity.
"Anyone can talk a fine business philosophy," he said. "But few can see it through for the long haul."

 

From bloated to floated:

http://www.economist.com/node/21562941

Edited by flee

Share this post


Link to post
Share on other sites

Remembering is one thing - learning from history is another.

 

As far as I know, neither the state nor the Federal govt. has done much to improve the transport infrastructure in Sarawak. I was told in this thread, http://www.malaysianwings.net/forum/index.php?showtopic=19119&p=332014 that Sarawak is the third most prosperous state in Malaysia. So where is all the prosperity going to when basic development of the sate is not done? MH even has problem sustaining flights in and out of KCH.

 

Yes, the RAS fiasco is something we should not be proud of. But we should learn our lessons from it.

 

We all know all the prosperity went to just one guy and his family

Share this post


Link to post
Share on other sites
MAS union wants new team at the helm



THE Malaysian Airline System Bhd Employees Union (Maseu) wants a new management team in place, rather than an outright privatisation of the national carrier.


The union does not believe that the current management can return the airline back to profitability.


In its first quarter financial results this year, MAS posted a wider net loss of RM278.83 million, compared with RM171.79 million in the same period last year.


“In 2011, the management promised that MAS will be profitable in two years. Based on the current performance, we do not expect it to materialise.



If Singapore Airlines and AirAsia Bhd can profit, why is MAS not doing the same?” Maseu president Alias Aziz told Business Times in a telephone interview yesterday.


With this in mind, the union is pushing for candidates from inside the company to be given a shot at running the airline.


“We have sent a letter to the Prime Minister’s Office recently, outlining our proposal,” he said.


Alias said should an internal candidate be given the responsibility to helm MAS, the national carrier will be profitable within six months.


He said for MAS to return and remain in the black, there should be a comprehensive review of all the agreements with third parties, namely MAS Catering Sdn Bhd, Penerbangan Malaysia Bhd and AirAsia Bhd.


“Too many agreements between MAS and other parties were done at the expense of the national carrier. For example, we have RM1 billion worth of aircraft spare parts that are not used. So why did MAS buy it in the first place?” Alias asked.


He said the rationale behind getting internal candidates to run the company is because they are knowledgeable in the aviation industry.


“What the union wants is for someone who understands the airline business to head MAS.


Why not give a chance to a MAS senior staff to run the airline?” Alias said.


He said that Maseu had identified potential candidates for the new management team, but declined to reveal names.


Talk of privatisation of the national carrier gained traction after a former MAS chief executive officer (CEO) said Malaysia should sell the national carrier if the offer price was right.


Datuk Seri Idris Jala, who is now Minister in the Prime Minister’s Department and CEO of Performance Management Delivery Unit (Pemandu), reportedly said this at the third Global Malaysia Series on Tuesday.


Pemandu recently stated that it had identified 33 government-linked companies that the government will have to pare down its stake in or exit completely from.


Khazanah Nasional Bhd currently owns 69.37 of MAS while in June this year, the Employees Provident Fund created a record of sorts when it ceased to be the carrier’s key shareholder.


Source: Business TImes



Share this post


Link to post
Share on other sites

MAS union wants new team at the helm

 

If Singapore Airlines and AirAsia Bhd can profit, why is MAS not doing the same?” Maseu president Alias Aziz told Business Times in a telephone interview yesterday.

 

 

 

Obviously this chap doesn't understand the difference between MAS and SQ/AK.

Share this post


Link to post
Share on other sites

Obviously this chap doesn't understand the difference between MAS and SQ/AK.

Well, we've seen/read many instances on this forum here of same "..... if SQ/AK can make a profit, why not MH ..... ?"

It's obvious many of us here are equally oblivious :lol:

Share this post


Link to post
Share on other sites

Does this union only benefit certain levels at the organisation? Why must someone outside be given a chance now? They were all given one too many opportunities and we can see the mess created.

Edited by kandiah k

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...