Seek help from AirAsia on saving MAS, DAP tells Putrajaya

[alberttky 0]

 

Transport Minister Datuk Seri Hishammuddin Hussein should "put aside egos" and seek AirAsia founder Tan Sri Tony Fernandes's expertise to help save ailing national carrier Malaysia Airlines (MAS), DAP secretary-general Lim Guan Eng said today.

 

Lim said MAS's more than RM4.1 billion in losses in the past three years should prompt its owners, Khazanah Nasional, to seek solutions by coming to terms with the fact that its current cost structure is just not viable.

"Khazanah must come up with a concrete plan to rescue MAS, which must include the adoption of international practices of open competitive tenders and performance-based assessment for all workers, including top management," said Lim, who lamented the absence of any "turnaround plan" for MAS.

"MAS may think that the losses are sustainable because it still has a cash balance of RM3.9 billion at the end of last year but it is irresponsible, if not suicidal, to continue with the 'business as usual' attitude," he said in a statement.

Hishammuddin and Fernandes recently engaged each other on Twitter after the latter complained about the delay and cost of the new budget carrier airport.

Lim, who is the Penang chief minister, also warned of competition from new budget carrier Malindo Air.

Saying his party does not agree with a suggestion by Singapore Business Times that MAS should declare bankruptcy to revive itself, Lim, however, drew attention to "overstaffing and lopsided procurement contracts from maintenance to catering".

"No one is surprised that cronyism and hanky-panky are two of the main causes of MAS' continued decline," he added, while saying that MAS still could not compete with AirAsia despite tens of billions of ringgit from taxpayers.

In contrast, Lim said AirAsia was a success story despite not getting public funds.

He said the cost overruns in the klia2 project showed that the Transport Ministry was clueless.

The project has come under scrutiny from the opposition after its initial cost of RM1.6 billion was revised to RM4 billion, as well as delays.

"Fernandes had pointedly said the Low-Cost Carrier Terminal (LCCT) in Sepang only costs RM250 million, a pittance compared with klia2's RM4 billion price tag.

"If the ministry does not accept his expertise, it is at MAS' loss," added Lim.

Last week, MAS reported its fourth straight quarterly loss for 2013 and chalked up RM1.17 billion in losses for the year – three times as much as in 2012. – February 25, 2014.

http://www.themalaysianinsider.com/malaysia/article/seek-help-from-airasia-on-saving-mas-dap-tells-putrajaya

Think it'll happen??

[Cire 0]

It won't happen when especially MAS aka Gov's ego is as big as the globe. It was also demonstrated the in recent failed share share swap where members on both side of the teams sit both boards.

For as long as the government both injecting funds into it and at the same time also putting in untried ideas and political influence, MAS will remained in the airpocket.

Fuel uncertainties causes more losses? Petron aka Mahatrism air fuel should also do charity to the national carrier... or is it all milk-you-dry business only?

 

MAS = Proton ; all too similar. All about taking care of the cronies whilst sacrificing efficiency, and protecting pilferage at the same time.

[flee 5]

TF has already ruled out helping MAS again. Once bitten, twice shy.

 

As many of us here have agreed, the best way to help MAS is to close it down.

Note that TF closed Airasia Japan when it failed to perform.

He is now planning Airasia Japan v2.0. That is the way a real businessman do things. No one can afford the perpetual bleeding that MAS suffers from.

[Isaac 0]

Seek help from Air Asia ? OMG! Not this again! Tony Fernandes himself is not exactly a saint too! Besides, he's taken enough from MAS from the last "collaboration". Nobody can help MAS unless they address all the issues that are no longer a secret! MAS can hire the CEO of Cathay Pacific and i bet even he won't be able to save MAS as long as our beloved government is involved!

[J. Suri 0]

Oh for GOD SAKE! No more JV with AirAsia, please! FSC and LCC are different like day and night! Can I suggest something? Go down south and please find Mr. Cheong Choong Kong (ex-SQ CEO) and ask for his help. We need people who knows how to run a FSC properly and turn it into premium carrier WITH UNBROKEN PROFIT RECORD! He is still a Malaysian btw....

Edited February 25, 2014 by J. Suri

[KC Sim 2]

The last time AirAsia "helped" MAS ... it helped itself to the right to operate the Kuala Lumpur-Sydney route.

 

It is one thing running an LCC but quite another running a full service carrier with all the warts and legacy problems. Over-staffing and financial management are just two of the airline's problems ... trying to compete with the more modern and fuel efficient planes of competitors using fuel-guzzling planes that have become obsolete is suicidal. Up to this point, MAS has not yet properly addressed this problem. What's said in the past was "we did not order this plane because there aren't delivery slots in the time frame we need" ... but if you do not begin to order, you will never have any delivery slots.

 

Even airlines such as Pakistan International Airlines and Biman Bangladesh Airlines have been better at fleet renewal. They have been operating the B777-300ER for some time ... many will agree that this would have made a far better replacement for the B744s than the ego-boosting and much-too-big Airbus A380.

 

The only way for MAS to turn-around is to set aside its chest-thumping ego, to stop worrying about prestige and 5-star billing, to swallow the bitter pill and do what Japan Airlines has done. Perhaps it should engage fellow oneworld partner JAL as a consultant and advisor in the quest to restore MAS to better health.

 

Once and for all cure this over-staffing problem ... it is no use defending this situation by saying that labour is cheap ... this over-staffing situation has not led to better service. How many times have I seen more check-in staff at the counter than is necessary ... how many times have I gone to the gate one hour before the flight when the gate should be opened ... only to see the staff inside the gate holdroom chatting, munching tidbits or just doing nothing. In most cases, the gate holdroom is opened between 45-50 minutes before departure.

 

Has MAS sold off those expensive London properties (for which I am certain high property taxes are paid each year) and those Botero art pieces in the head office?

 

And while it tries to turn around one more time ... how about deciding on one corporate identity and stick to it. Right now, there must be at least four variants.

 

KC Sim

[V Wong 0]

Once and for all cure this over-staffing problem ... it is no use defending this situation by saying that labour is cheap ... this over-staffing situation has not led to better service. How many times have I seen more check-in staff at the counter than is necessary ... how many times have I gone to the gate one hour before the flight when the gate should be opened ... only to see the staff inside the gate holdroom chatting, munching tidbits or just doing nothing. In most cases, the gate holdroom is opened between 45-50 minutes before departure.

 

 

 

KC Sim

 

The situation is pretty hopeless during peak travel times in KLIA. International economy baggage drop queue and international economy check in queue snaking all the way till infinity, both fighting it out to neck to neck .... very frustrating indeed. I had once switched from baggage drop q to airport check in q.. and guess what, was faster in getting luggage checked in. MH oh MH!

[alberttky 0]

 

The only way for MAS to turn-around is to set aside its chest-thumping ego, to stop worrying about prestige and 5-star billing, to swallow the bitter pill and do what Japan Airlines has done. Perhaps it should engage fellow oneworld partner JAL as a consultant and advisor in the quest to restore MAS to better health.

 

The problem with us Malaysian is that there's too many cooks spoiling the soup. Everyone wants to get involved and offer their opinions. The Japan Airlines (and similarly Nissan) example is ideal. But I think the resistance to change is going to be too much to overcome. In the end it's gonna be business as usual and the airline continues to bleed at our expense.