MAS Privatisation

[Cire 0]

Malaysia is never lack of talent. Only lacking is our politicians' narrow view and poor professionalism that hinders the progress of our nation and human capital.

 

So far, we have yet to know the framework on how MAS would be turned around. Much criticism on the hiring of Mueller is premature at the moment as we have yet to see what he can and cannot do. The very success of this foreigner depends very much on how much both Khazanah and the government is willing to give way to make the airline turn profitable. There are several facts that we know for sure that is quite sensitive to touch on ..eg.. MAS's human resources, and its supporting industry (catering, ground supports etc). It would be a tough job to take on if Mueller is not able to circumvent these issues in his quest to turn around the airline.

[Mike P 0]

Rather than keep targeting AK, they should compare and compete with SQ and CX or even TG for that matter, by having more transit passengers in Malaysia before heading to other destinations.

 

MH as a GLC was always political and because of this, the turnaround could be tough, though I could not fathom in details. Hope without intervention from the Government in the critical decision making, it would make the airlines business more focus and hence able to achieve the turnaround target.

[Ja Singh 2]

Rather than keep targeting AK, they should compare and compete with SQ and CX or even TG for that matter, by having more transit passengers in Malaysia before heading to other destinations.

 

MH as a GLC was always political and because of this, the turnaround could be tough, though I could not fathom in details. Hope without intervention from the Government in the critical decision making, it would make the airlines business more focus and hence able to achieve the turnaround target.

Yes they are barking at the wrong tree. Since Mh cant compete with F class,they should introduce Premium Y that is similiar to QF or BA or even ahead a few generations. That will bring us inline with these 2 carriers on product offering, Jetstars Bussiness class (More akin Premium Y as far as the seat is concerned) always full on Sin Mel route.

[Christopher C 0]

MH needs to be more like KLM. They do not need F other than the A380 to High Yield Destinations i.e London and Paris. Business should be lie-flat but doesn't need to have direct access. KUL is not a hi yield destination. They could also look at AC and do what they are doing. The Y passenger will always look for the cheapest seat. Whilst I suggest not D7 standards, a Y which is maybe 31-32 inch to seprate itself from D7 to get the high yield Y pax. Y Plus would be good. I wonder is MH should change their name to Malayan Airways and repaint all their 777 straight away (SQ 6 precedent) .

[BC Tam 2]

I wonder is MH should change their name to Malayan Airways .....

Can you even begin to imagine the ruckus forthcoming from the two eastern S-states

[Mushrif A 3]

Hornbill International Airlines, Sabah Air...anyone?

[KK Lee 5]

MH needs to be more like KLM. They do not need F other than the A380 to High Yield Destinations i.e London and Paris. Business should be lie-flat but doesn't need to have direct access. KUL is not a hi yield destination. They could also look at AC and do what they are doing. The Y passenger will always look for the cheapest seat. Whilst I suggest not D7 standards, a Y which is maybe 31-32 inch to seprate itself from D7 to get the high yield Y pax. Y Plus would be good. I wonder is MH should change their name to Malayan Airways and repaint all their 777 straight away (SQ 6 precedent) .

About 70% of QR, EK, EY, SQ pax are transit. KUL need not be a high yield destination but MH need to attract high yield pax. Few of MH senior management had exposure outside MH, they are not aware for what customers (except GLC) want.

[Cire 0]

About 70% of QR, EK, EY, SQ pax are transit. KUL need not be a high yield destination but MH need to attract high yield pax. Few of MH senior management had exposure outside MH, they are not aware for what customers (except GLC) want.

 

Spot on. MH boards and seniors mgmt.does not have the right business acumen to run the airline. They are at their wits on how to turn the airline around. Their preference to consult internally where references are limited within the consultation group leads them to nowhere and instead generated failures one after another eg. the embarrassing ads recently (bucket list, and no where to go).

[BC Tam 2]

Little-known firm makes RM8.75 billion bid to rescue MAS
See more at: http://www.themalaysianinsider.com/malaysia/article/little-known-firm-makes-rm8.75-billion-bid-to-rescue-mas#sthash.o61tEnyb.dpuf

 

Ah yes, there must be one it seem

[flee 5]

Little-known firm makes RM8.75 billion bid to rescue MAS

See more at: http://www.themalaysianinsider.com/malaysia/article/little-known-firm-makes-rm8.75-billion-bid-to-rescue-mas#sthash.o61tEnyb.dpuf

 

Ah yes, there must be one it seem

If this bid is allowed, then it will be a fraud on the minority shareholders.

 

Khazanah paid only 27 sen a share to them and then sold it for RM 8.75b?

[flee 5]

Malaysia Airlines 1H2015 outlook: more losses as capacity levels are maintained prior to transition

 

Malaysia Airlines (MAS) continues to incur large losses as the flag carrier tries to rebuild confidence in the aftermath of the MH370 and MH17 incidences. Yields remain at unsustainable levels due to the combination of challenging market conditions and the lingering impact of MH370 and MH17.

MAS has not yet cut capacity and is instead focusing on trying to woo passengers through promotional fares. While the flag carrier has completed several initial milestones from the recovery plan initially outlined in late Aug-2014 it will take several more months for the main components of the plan to be implemented.

Bigger changes are inevitable starting in 2H2015. But adjustments to capacity levels and the carrier’s fleet could be smaller than anticipated.

Malaysia Airlines reports after-tax loss of about USD180 million for 3Q2014

MAS reported at the end of Nov-2014 an after tax loss of MYR576 million (USD181 million) for the three months ending 30-Sep-2014 compared to a loss of MRY373 million (USD115 million) for 3Q2013. The group incurred an operating loss (EBITA) of MYR170 million (USD53 million) in 3Q2014 compared to an operating profit of MYR62 million (USD19 million) in 3Q2013.

The MH17 incident, which occurred on 17-Jul-2014, impacted bookings and set back the airline just as it was starting to recover from the MH370 incident, which occurred on 8-Mar-2014. MAS incurred a smaller (although still very large) loss in 2Q2014 of MYR307 million (USD95 million).

Through the first nine months of the year MAS racked up MYR1.324 billion in after tax losses (USD409 million) compared to losses of MYR827 million (USD265 million) in 9M2013. A slight improvement is expected in 4Q2014, driven partially by lower fuel prices. But MAS is likely to end 2014 with losses exceeding USD500 million. MAS has incurred annual losses every year since 2011, including a loss of about USD370 million in 2013.

Malaysia Airlines begins new chapter as private company on 15-Dec-2014-

Read more here: http://centreforaviation.com/analysis/malaysia-airlines-1h2015-outlook-more-losses-as-capacity-levels-are-maintained-prior-to-transition-201123

[Mohd Azizul Ramli 2]

And therefore, we should not be expecting anymore statistics and data from MH now that it is a Sendirian Berhad company.

[flee 5]

And therefore, we should not be expecting anymore statistics and data from MH now that it is a Sendirian Berhad company.

It is a statutory company - a Berhad at that too. But it will not be governed by the Companies Act. It has its own Act of Parliament!

 

Khazanah did say that they will issue quarterly progress reports - whatever that means!

[V Wong 0]

Today's "Deals of the day" for domestic flights all erroneously advertised in AUD instead of MYR. KUL-AOR quoted as 60 without currency code in the frontpage. Camne tak rugi weyyy!!!

[Jeffery Lim 0]

Today's "Deals of the day" for domestic flights all erroneously advertised in AUD instead of MYR. KUL-AOR quoted as 60 without currency code in the frontpage. Camne tak rugi weyyy!!!

 

I got this email....Return Business Fare stated in the email, where it should be Return Economy..

 

 

FROM KUALA LUMPUR Economy Class

(One-way) From MYR Business Class

(Return) From MYR ALOR SETAR,

KUALA TERENGGANU 60 120 KUANTAN, LANGKAWI,

KOTA BHARU 60 120 KUCHING 130 260 KOTA KINABALU 160 320 PHUKET 177 300 KRABI 203 300

Edited December 16, 2014 by Jeffery Lim

[flee 5]

ANALYSIS: Mueller scrubs up for the MAS emergency room

 

Christoph Mueller will assume the toughest job in the airline business when he takes over as chief executive of Malaysia Airlines (MAS) later this year.

 

Taking the reins of a troubled carrier is familiar territory for the German executive, who engineered the turnaround of Ireland’s Aer Lingus. In a 2011 Airline Business interview, Mueller said that when he took charge of the Irish flag carrier in 2009, it resembled a patient in an emergency room, haemorrhaging cash. He may well feel a sense of déjà vu when he formally steps into the MAS role, likely during April or May this year.

Mueller will not have to contend with public shareholders and stock analysts following MAS’s de-listing on the last day of 2014, but this is arguably the only problem not on his plate. Even before Mueller’s appointment was announced in December, his mission was clear, as codified in August 2014 when Malaysia sovereign wealth fund Khazanah Nasional outlined its 12-point restructuring plan for MAS.

At the core of the plan was de-listing MAS and the creation of a new company (MAS NewCo) with a competitive operational structure and workforce. The de-listing has been dispensed with, and it is up to Mueller to deliver the rest. He will get some help from cash infusions that will see the majority shareholder inject MYR6 billion ($976.7 million) over three years.

Salient elements of Khazanah’s plan include cutting the workforce by 30% from 20,000 staff in August (a process that is already underway), moving the company’s headquarters, and focusing more on regional routes. Profitability is to be achieved within three years - no small feat given that MAS’s fiscal third quarter results, released on 28 November, saw net losses widen to MYR576 million ($163 million).

MAS’s 2014 results were partially weighed down by the disappearance of MH370 in March and the shooting down of MH17 over the Ukraine in July, resulting in the loss of 537 lives.

All of the changes need to happen in a cutthroat market. On domestic and regional routes, MAS faces its traditional nemesis AirAsia and (to a lesser degree) Lion Air’s Malindo unit. Both rivals tout better cost structures, and have no qualms about competing on price.

Full article: https://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB4QFjAA&url=http%3A%2F%2Fwww.flightglobal.com%2Fnews%2Farticles%2Fanalysis-mueller-scrubs-up-for-the-mas-emergency-room-407590%2F&ei=lZawVNSjFNLJuATpp4LgDA&usg=AFQjCNG6mPUssNWkF0mCaPxgMAMdK_Bj5A&sig2=Fz327LXfjJJW4IfBYRL0qg&bvm=bv.83339334,d.c2E

[BC Tam 2]

MAS unions to stage mass protest against restructuring plan

http://www.themalaysianinsider.com/malaysia/article/foreign-students-not-an-indicator-of-education-quality-says-dap-lawmaker

 

Sort of like a final showdown before ........

[flee 5]

MAS NewCo to rationalise 2015 aggregate capacity by over 10%

 

See more at: http://www.themalaysianinsider.com/business/article/mas-newco-to-rationalise-2015-aggregate-capacity-by-over-10

Khazanah to disburse up to RM1.6bil within three months to MAS

 

http://www.thestar.com.my/Business/Business-News/2015/03/02/Khazanah-Nasional-scheduled-to-disburse-up-to-RM1-bil-within-3-months/?style=biz

[leon t 0]

As have anticipated one of MAS Unions - Nufam representing the cabin crew have already given notice that they will stage a picket soon and that will ground all of MH flights over the sacking of 6,000 staff. And am sure there will be other unions joining in the fray - and Khazanah will most likely have to give in and reduce signifcantly its planned reduction of staff or if Khanazah have the guts to let staff go on picket strike and ground MAS for a few days to weeks.

[JuliusWong 0]

Sure, let NUFAM, MASEU whatever MAS related union picket.

 

I hope Chris Mueller can do a Alan Joyce's tactic. Ground the whole airline for few days, make all passengers angry and share tumbled to ground level...In the end everyone lost. MAS image will forever be battered...not that it is any good now.

 

On a side note, QF is starting to show profit now after series of painful cuts.

[Waiping 12]

Time to take part time crew members. Airline staff picket is nothing uncommon. LH did that before, so did AF. So, what's the big deal?

[Suzanne Goh 0]

As have anticipated one of MAS Unions - Nufam representing the cabin crew have already given notice that they will stage a picket soon and that will ground all of MH flights over the sacking of 6,000 staff. And am sure there will be other unions joining in the fray - and Khazanah will most likely have to give in and reduce signifcantly its planned reduction of staff or if Khanazah have the guts to let staff go on picket strike and ground MAS for a few days to weeks.

 

This union can picket all it wants. If they don't have public opinion on their side (and I doubt they ever will), very soon they'll become public enemy number 1.

 

The public knows that if this restructuring is hijacked by unions and fails, it is the rakyat who will end up footing the bill (via EPF or some taxpayer funded scheme)

 

I'm not really in the mood to fund inefficiency. Are you?

[S V Choong 4]

 

This union can picket all it wants. If they don't have public opinion on their side (and I doubt they ever will), very soon they'll become public enemy number 1.

 

The public knows that if this restructuring is hijacked by unions and fails, it is the rakyat who will end up footing the bill (via EPF or some taxpayer funded scheme)

 

I'm not really in the mood to fund inefficiency. Are you?

 

From the perspective of those unions, they probably don't give a d@mn as they are probably quite used to the bail outs...

[Mohd Azizul Ramli 2]

MH Route Cut begins.

 

The following cut has been exposed exclusively to MalaysianWings by my spy at the MH Rumour Department:

 

Last MH flight to:

Kunming - 29 April

Krabi - 4 May

Kochi - 1 June

 

More to come. Welcome to the new MH.

[Mr.Bandit 0]

MH Route Cut begins.

 

The following cut has been exposed exclusively to MalaysianWings by my spy at the MH Rumour Department:

 

It's sad to hear that Krabi is going to cut. As i believe, the route is still few years since its introduction.