Jump to content
MalaysianWings - Malaysia's Premier Aviation Portal
Sign in to follow this  
Guest Fendy

fuaad dahalan resisgns as MH MD

Recommended Posts

Guest Fendy

due to "personal reasons", apparently

 

THE winds of change have swept into the airline government-linked company (GLC). 

 

Malaysia Airlines (MAS) managing director Datuk Ahmad Fuaad Dahalan yesterday quit from his job due to personal reasons. 

 

 

Following that, MAS chairman Datuk Dr Munir Majid assumed Fuaad’s responsibilities while Penerbangan Malaysia Bhd MD/CEO Tengku Azmil Zaharuddin Raja Abdul Aziz was appointed executive director of MAS, also from yesterday.

 

A five-member executive committee, or exco, led by Munir has been set up at MAS to drive change at the national carrier and Munir, in briefing the media yesterday, unveiled a five-year “driving change†programme that “aims to improve profitability by up to RM1bilâ€.

 

A few hours after Fuaad’s resignation was announced, Khazanah Nasional Bhd said it had appointed Fuaad as a non-executive director of Malaysia Airports Holdings Bhd (MAHB).

 

Khazanah is the Government’s investment arm and has a 69.3% stake, via PMB, in MAS and 72.7% in MAHB. PMB is a wholly-owned unit of Khazanah.

 

Khazanah added that Nasution Mohamed has been nominated MD/CEO of PMB to replace Azmil today. Nasution relinquished his post as executive director at UDA Holdings Bhd on the same day. Khazanah said it had appointed Dr Iskandar Ismail as a director of UDA.

 

These were the changes announced in one day. But it was no surprise to the market which had anticipated changes at the GLC. It was only two weeks ago that Prime Minister Datuk Seri Abdullah Ahmad Badawi himself hinted of some changes at GLCs when he launched the GLC transformation manual.

 

While there had been talk that Fuaad would be leaving, many staffers in MAS did not believe that this man, who has been with MAS for the past 32 years and as MD since April last year, would quit. So when Munir revealed this to a group of MAS employees yesterday, there was surprise.

 

Fuaad put forth his resignation letter last week and an emergency board meeting was called on Saturday morning to deliberate on the strategies and direction of MAS without Fuaad.

 

 

Meanwhile, Munir in his briefing yesterday, said the five-year drive change would be implemented to conserve fuel, carry more passengers and cargo, cut costs, improve yields and boost profit by RM1bil after five years.

 

As part of the plan, the airline would restructure management along clear lines of business-commercial, operations and business services. 

 

Besides Munir, the other members of the exco are Azmil, Datuk Rashid Khan (senior general manager – sales, distribution and marketing), Tajuden Abu Bakar (senior general manager – technical and ground services) and Marzida Mohd Noor (senior general manager – IT planning and services).

 

Azmil as executive director is responsible for strategic matters at corporate level and driving the change programme across the organisation. Azmil is a chartered accountant by profession.

 

â€This is a reality check. The company has not been making operating profits ever since the Widespread Asset Unbundling (WAU). 

 

“The profits that have been reported are an accounting profit, attributable to gains from one-off benefits, not from sustainable operating performance,†Munir said as to the rationale for the drive change plan.

 

Asked why the airline took so long to address the issue, Munir said following the WAU exercise, there were a lot of changes and movement of people but the awareness of the issue was there and that was why a systematic approach had been planned.

 

“More importantly, we are committed to meeting these challenges and we will take the necessary steps to improve on performance,†he said, adding that it was about enhancing value for the consumers and employees.

 

The five-year plan comprises three phases. Phase 1 covers the current financial year with the promise of “rapid profit improvement†as the focus is on yield and load improvement, and immediate cost-reduction which covers procurement and fuel.

 

Munir said the hedging policy would be reviewed and ways to reduce fuel cost would be scrutinised. On fuel conservation, Munir added that MAS would aim to achieve 10% cost savings. 

 

To help the airline achieve the yields of its peers in the region, a consulting firm, Bain & Co, has also been appointed. MAS reported yields of 18.5 sen per revenue-passenger-kilometre (rpk) while that of its regional rivals is 22-23 sen rpk.

 

Phase 2 covers a period of one to three years and Phase 3 the remaining two years with focus on profit growth and value enhancement.

 

Analysts contacted felt that any change would be good for the airline so long as there was emphasis on cost reduction and value creation.

 

Munir added that the search for an MD was on and that MAS had some idea of who it wanted to appoint.

 

Azmil, when approached for comments as to how he feels about his appointment, said: â€It was not something that I had set out to do but it is a good challenge.â€

 

http://biz.thestar.com.my/news/story.asp?f...67&sec=business

Share this post


Link to post
Share on other sites

I know Tengku Azmil from my primary school and he was my brother's classmate. Strange to get someone in my age group running an airline... maybe I should just admit that I am old. I don't know how he is now - have not seen him for 20 years.

 

Anyway, the dude's been living a long time in England and also Hong Kong, and he loves to travel. So he is one of the people who has seen how things work overseas, the good the bad and the ugly. Let's see how he does.

 

 

Share this post


Link to post
Share on other sites

Hey guys,

 

I must say that this resignation is a shock to me. I was under the impression that Fuaad Dahalan was to be at the helm for some time, but personal reasons I suppose cannot be avoided, and I wish him the best with whatever he does next.

 

Is it true he is now a non-executive director of MAHB? Because that sure would be 'interesting'.

 

The severe loss that MAS has incurred in this quarter is detriment to the restructuring of the airline, and I can't help but compare with SIA Group, Qantas group and Cathay Pacific. These carriers have all recorded some very large profits for the first quarter.

 

Munir Majid has indirectly said that over the next five years MAS will embark on cost-cutting measures and improve fiscal performance - wasn't that the aim of the first restructuring exercise?

 

Could it also be said that the Wide Asset Unbundling (WAU) restructuring exercise over the last few years could be the reason for MAS profits last year?? Shouldn't MH enjoy lower costs than the other big players in the region like SQ, QF and CX?

 

Munir Majid also said that whilst oil has dampened the profitability of the airline it is not the major cause of the RM290 million loss this quarter, as that is attributable to apparent poor fiscal management. Hedging operations are frequently put into question it would seem.

 

The new management line-up? What's their experience with the airlines? Anyone know? I've seen Datuk Rashid Khan on an interview on Bloomberg. I must say, he was very repetitive and didn't really answer the questions asked by the reporter. Let's hope that was just an off-day for him and in reality he has a good corporate mind for the airline industry - That's all MAS needs! Munir seems to be doing a good job in appeasing investors with talk of lowering costs and increasing value, but at what cost to the airline? Rapid decisions need to be made, or MAS will just continue to suffer financially.

 

The talk that we can't compare MH with SQ or CX I feel is pointless. They are airlines, so are we. KL may not be as big a regional business hub as Singapore or Hong Kong that's very true - but its not THAT small either! And on the other hand, CX and SQ have more competition from major international carriers at their homebase than MH does!! So how??

 

Maybe thats what MH needs, more competition so that it is more stringent with management control and such results would not be so severe.

 

Just my 2 cents. Still love MH, and want to seem them as the greatest airline in the region! MH has what it takes - it just needs to 'start taking'!

Share this post


Link to post
Share on other sites

MAS Heads ---> Now you see !!!!

 

 

Now you don't!!!!

 

 

 

I think something has to be done as soon as possible about this or else, they will loose the battle they have begun to fight!!!!!!

 

 

dry.gif

Share this post


Link to post
Share on other sites
MAS Heads ---> Now you see !!!!

                        Now you don't!!!!

I think something has to be done as soon as possible about this or else, they will loose the battle they have begun to fight!!!!!!

dry.gif

5851[/snapback]

 

hehe more like they will loose the battle they SAY they are going to fight. Early bird catches the worm!

Share this post


Link to post
Share on other sites

NOw...the red mark on their report reminds me of something.... i remember getting some info last year about all the directors of MAS who were previously given PERDANA V6 company cars..which were only 1-2 yrs old...yes the facelift model.....having the board's approval to change all the cars to BMWs......now..thts a major..major waste of money..and if you make a visit to the TRANSPORT workshop at SZB...you can see the perdanas parked there...collecting dust on it.and it juz looks perfect to me..why did they have to change it??? And even some AUDI cars are there...these cars were replaced with brand new BMWs....how would u expect them to record profits?? Now we know what the chairman, MUNIR meant when he said...the loss is not only attributed to high fuel prices...QF and SQ could do well..why couldnt we..yeah because QF and SQ directors dont change their cars every year..especially when they are trying to make profits...the earlier profits MH had..wasnt operational profits..they were due to the WAU exercise...so why waste money for no reason...i dont understand them sometimes..

Share this post


Link to post
Share on other sites

Heard that the "vehicle allocation" for the "bimmer" was originally for new vans

to replace the aging Toyotas that being used for crew transport... sad.gif

Correct or not... MAS ppl??

Share this post


Link to post
Share on other sites

I dont think tht is 100% true...coz...the crew transport is now being outsourced and they are using new Kia Pregio vans...i wonder how is tht helping cut costs...but anyhow..new BMWs are definitely psychotic..

Share this post


Link to post
Share on other sites

Hey guys,

 

There is a similar thread running over at AeroMy on the same subject - big issue I guess !

 

Anyone here remember fully the arrangement of a few years back how PMB is supposed to assume all domestic services and MH will be paid for doing the flying ?

 

280M for the quarter - that is about 3.1M per day or 11k for the time it took to tap this message ; staggering !

Share this post


Link to post
Share on other sites

 

280M for the quarter - that is about 3.1M per day or 11k for the time it took to tap this message ; staggering !

5949[/snapback]

 

Nice job with the calculations..now i wonder if anyone is gonna prepare a letter to the STAR or NST regarding this matter too??

Share this post


Link to post
Share on other sites
I dont think tht is 100% true...coz...the crew transport is now being outsourced and they are using new Kia Pregio vans...i wonder how is tht helping cut costs...but anyhow..new BMWs are definitely psychotic..

5920[/snapback]

 

After they bought the bimmers or before?? huh.gif

Share this post


Link to post
Share on other sites

hhehe Sanjay, is that a hint?

 

Might be worthwhile in doing so.. double whammy for MAHB & MAS, with love from MW.com

Share this post


Link to post
Share on other sites

Haha..this time i wouldnt mind preparing the letter...with love..and COMPLIMENTs for MW.com..and its founder of coz..gavin..so what would we have after that...MAHB and MAS teams up to sue MW.com founder Gavin for being a smart ass in the headlines?? LOL!

Share this post


Link to post
Share on other sites
The talk that we can't compare MH with SQ or CX I feel is pointless. 

5830[/snapback]

 

Well said, just 2 words, BAD MANAGEMENT. Don't blame everything on oil rolleyes.gif .

 

Share this post


Link to post
Share on other sites
Haha..this time i wouldnt mind preparing the letter...with love..and COMPLIMENTs for MW.com..and its founder of coz..gavin..so what would we have after that...MAHB and MAS teams up to sue MW.com founder Gavin for being a smart ass in the headlines?? LOL!

6043[/snapback]

 

 

looking forward to lawyer's letter sanjay

 

laugh.gif

Share this post


Link to post
Share on other sites

An insider news (from a friend working with MH): during Fuaad's time at the helm, he approved a Jaguar for the Chairman.

 

Also, according to this source, MD and Chairman were not really in good terms. Hence that's why Fuaad left.

Share this post


Link to post
Share on other sites
Sign in to follow this  

×
×
  • Create New...