FAX: Let Firefly take over

[Seth K 3]

Shame on Firefly, just they found the routes are not profitable, the simply handover it to someone else, and they thing they're better than MH <_>

[H Azmal 0]

Shame on Firefly, just they found the routes are not profitable, the simply handover it to someone else, and they thing they're better than MH <_>

 

Shame on FAX, I'm sure you mean.

 

In any case, this rings Majulah Singapura (Airlines) in my head!

Edited April 26, 2007 by H Azmal

[Sri Ramani K. 0]

Rural services back to MAS

 

By SIM LEOI LEOI and PAUL CHOO

 

PUTRAJAYA: It has come a full circle – the rural air services will be taken from Fly Asian Xpress(FAX) and handed back to Malaysia Airlines(MAS).

 

Transport Minister Datuk Seri Chan Kong Choy, who announced this Cabinet decision yesterday, gave assurances that it would not affect MAS’ turnaround plan.

 

“We have gone through the proposal and recommended to the Cabinet that MAS via its subsidiary Firefly be appointed to take over the rural air services.

 

“We also agreed that the provision of such services is the Government’s responsibility and a type of social service so we will continue subsidising the cost of running these operations, which amount to RM60mil per year, to maintain the low-fare structure.

 

“Officers from both my ministry and the Finance Ministry will go through all the details of the subsidy,” Chan told reporters at his office.

 

It has been less than a year since MAS handed over the rural air services to AirAsia, which then subcontracted them to FAX.

 

Earlier this month, FAX shareholder Datuk Tony Fernandes proposed that Firefly take over the operations of all rural air services, citing it as the “logical thing to do”.

 

Fernandes said FAX would be launching AirAsia Long Haul operations soon, and that it would be too distracting to operate turbo-propeller aircraft as well.

 

On Tuesday, MAS managing director Idris Jala said it would consider taking back the service if it did not jeopardise the national carrier’s turnaround plan.

 

“To be fair to MAS, as a public listed company, the proposal will be brought to its board for consideration. However, I have already spoken to MAS’ top management and they are prepared to look into it.

 

“But this is the Government’s decision. The takeover of these services will be a separate exercise from its restructuring plan. The Government will be responsible for any profit and loss incurred by MAS for the provision of these services,” he said.

 

In response to this latest development, Idris replied in a statement that they had just been informed of the decision and would await details from the ministry.

 

“Once the details are received, we will need to study them before making a decision,” he said.

 

FAX chief operating officer Raja Mohd Azmi Raja Razali said they were pleased with the announcement, as it would enable them to work together with Firefly on a seamless handover.

 

“My main concern is with the staff in Sabah and Sarawak. They have my assurance that we will take care of them in the eventual transfer.

 

“All employees based in Miri and Kota Kinabalu will have the option of joining Firefly or AirAsia Long Haul,” he said in a statement.

 

He added that this resolution would allow AirAsia Long Haul to concentrate its efforts in making the company the world’s first long-haul low-cost airline.

 

According to Bernama, Sarawak Tourism Board chief executive officer Gracie Geikie said it would be a big help towards reinstating tourism destinations in the state’s rural areas on the global map.

 

“As it is 100% owned by MAS, Firefly is in the best position to take over the service,” she said.

 

She said tourism players in the state went through an “expensive experience” after FAX took over the service.

 

In Kota Kinabalu, acting Sabah Tourism, Environment and Culture Minister Datuk Karim Bujang said the step would not only greatly benefit the people living in rural areas but would also help boost tourism.

 

http://thestar.com.my/news/story.asp?file=...&sec=nation

 

**

it's confirmed, firefly is taking it over =)

[FK Wong 0]

http://thestar.com.my/news/story.asp?file=...&sec=nation

 

**

it's confirmed, firefly is taking it over =)

as we all can see it is not my point only to criticise the decision that has been made i'm just trying to create an awareness among all MWs members or if there is any other 3rd viewing my post over here that what has been happening all around since Airasia came into play from the domestic rationalisation plan.

 

Earlier this month, FAX shareholder Datuk Tony Fernandes proposed that Firefly take over the operations of all rural air services, citing it as the “logical thing to doâ€.

 

Fernandes said FAX would be launching AirAsia Long Haul operations soon, and that it would be too distracting to operate turbo-propeller aircraft as well.

 

If it is a logical thing to do why did TF not consult to the ministry about companies like Berjaya Air to take to take over the RAS as far as i'm concern they are one of the turboprops operator around in m'sia based back in SZB.d)After launching AirasiaX and they saw a turboprop company was establish at the same time (time to get a scapegoat to eat our bones-that doesn't sound polite to hear or to sound a little more nicer- it is a logical thing to do in the idea of having only one turboprop operator )if he were to say that now i wouldn't be surprise that when he want his hands off from Airasia he'll start selling his company off to MAS in the idea to have

only one Jet operator in the country.

 

On the second statement from him (TF) like i mentioned earlier in the post if it is too distracting for him to manage an airline company to be frank, it is time for him to tell himself that he should quit from this airline business.If MAS can do it?(They are involve in long haul flights as well,and before this they were able to fulfill the needs to our fellow countrymen back in bario,limbang and etc).Why not them ?When it is mentioned to be that Airasia is always outperforming compared to MAS.

 

But think again ,did he ever mention that he have a plan that no one knows about which is launching the LCC for long haul flights at the first place when he proposed to the government about the rationalisation plan.Events like the Airasia X being launched isn't just an overnight plan,it takes out really alot from it especially on the idea "how am i going to obtain the clearance from the authority to operate long haul flights?"

Good answer he (TF) have.Proposal of domestic rationalisation plan -

a)Wiling to operate into areas that MAS is losing $$$ "in the aid to alleviate the pain that MAS is sufferring." Look at what happen to IPOH now,everyone is laughing their head off sitting down lying their heads low.IPOH used to be serviced by MAS and firefly was planning to operate into that area from PEN till i guess when they were proposed by the idea of taking RAS back nah....poor ipoh fellas...

b)Taking over the RAS which was held by MAS earlier but at the same time their biggest gain in this plan using FAX as an instrument to long haul.(no one knew about it ,does anyone?)

c)Gaining expansion of network(domestically) this is by the means of increasing their freq of flights as well and servicing areas that they can't get into(profitable ones i guess look at what happen to IPOH).

 

I still do remember something is when MAS wants to have control over the prices of their fares system during the rationalisation plan ,Airasia made a big hoohah about it.i wonder why?

 

In the reply to our Mw member Kevin Teh i think you got your answer to your ? in this news statement posted by Sri Ramani(Thank you brother)

 

But this is the Government’s decision. The takeover of these services will be a separate exercise from its restructuring plan. The Government will be responsible for any profit and loss incurred by MAS for the provision of these services,†he said.

 

“My main concern is with the staff in Sabah and Sarawak. They have my assurance that we will take care of them in the eventual transfer."

Haha.I really have to laugh about this and i sympathize those ppl that took the MSS back in sabah and sarawak.Those people working there must cursing TF why you want to make our life so hard?

 

He added that this resolution would allow AirAsia Long Haul to concentrate its efforts in making the company the world’s first long-haul low-cost airline.

 

-Maybe this is the "reason" why m'sian government is agreeing to accept TF ideas so fast. because we are always striving to be the first to achieve someone have not achieve.that is the sugarcoating part only i guess.=)

 

According to Bernama, Sarawak Tourism Board chief executive officer Gracie Geikie said it would be a big help towards reinstating tourism destinations in the state’s rural areas on the global map.

 

“As it is 100% owned by MAS, Firefly is in the best position to take over the service,†she said.

 

She said tourism players in the state went through an “expensive experience†after FAX took over the service.

 

- Free tickets didn't really help in this case=).Well let's hope and pray for the best of firefly operations over in the RAS and i'm sure that they can do a very good job like last time asides from losing money.

 

In Kota Kinabalu, acting Sabah Tourism, Environment and Culture Minister Datuk Karim Bujang said the step would not only greatly benefit the people living in rural areas but would also help boost tourism.

 

-hmmmmm,so much problems given by airasia why didn't the government urge them to do anything.

-i think the firefly thingy taking over gotta be something to do with this upcoming general election.lol.=P

 

And i think the case is close for now since Firefly aka MAS is taking over and i'm here wishing all the best to them and airasia as well in the idea of becoming the world first LCC longhaul operator.

 

God speed.

[Naim 6]

http://thestar.com.my/news/story.asp?file=...&sec=nation

Rural services back to MAS

 

By SIM LEOI LEOI and PAUL CHOO

 

PUTRAJAYA: It has come a full circle – the rural air services will be taken from Fly Asian Xpress(FAX) and handed back to Malaysia Airlines(MAS).

 

...

Fernandes said FAX would be launching AirAsia Long Haul operations soon, and that it would be too distracting to operate turbo-propeller aircraft as well.

...

FAX chief operating officer Raja Mohd Azmi Raja Razali said they were pleased with the announcement, as it would enable them to work together with Firefly on a seamless handover.

...

He added that this resolution would allow AirAsia Long Haul to concentrate its efforts in making the company the world’s first long-haul low-cost airline.

...

 

What happens to these jokers if the high-risk long-haul business fails? Coming back to momma for more handouts?

 

+++

 

[Kevin Teh 0]

What happens to these jokers if the high-risk long-haul business fails? Coming back to momma for more handouts?

 

+++

 

they'll just close it up.... and back to AirAsia........

 

[Naim 6]

I don't care, don't know and not interested to find out what they are doing behind our back, who is the snakes and how many snakes are there. The fact is because of AK everyone can fly with cheap fares and with those 1 millions/500k Free seats they are making lots of people (especially Malaysian) happy.

 

I guess you are just unable to appreciate the morality issue (or lack of it) in this matter. And it only takes one bad crash to bring any hi-flying snake down. Btw, where got 1mil/500k 'free seats'? All illusions lah.

 

+++

 

 

 

[Khaled 2]

What happens to these jokers if the high-risk long-haul business fails? Coming back to momma for more handouts?

 

+++

 

 

It's the 'most logical thing to do'! hehe...

 

(Seng Lim @ Apr 25 2007, 08:30 PM)

I don't care, don't know and not interested to find out what they are doing behind our back, who is the snakes and how many snakes are there. The fact is because of AK everyone can fly with cheap fares and with those 1 millions/500k Free seats they are making lots of people (especially Malaysian) happy.

 

1 million divided by 500k seats = 2 seats...Unfortunately occupied by the pilots...hehe

Edited April 26, 2007 by Khaled

[FK Wong 0]

What happens to these jokers if the high-risk long-haul business fails? Coming back to momma for more handouts?

 

+++

 

Can we hand our long haul flights to MAS as we prefer to have only one long haul flights operator in the country and it is a logical thing to do

[Azuan 0]

Thanks for sharing the news

 

that's good news for FAX....slowly but surely Air Asia is silently killing MAS. 1st they compete with MAS domestic flights, then they took the RAS make it worse and give back to Firefly a.k.a MAS Jr. Next they will compete in an area where TF said will never compete with MAS, the long haul.

 

It's good for MAS to have competition but looking at MAS financial condition, the company is in recovering stage so it will suffer.

 

In my opinion, i'm happy that TF and AA is raising the competition level but plz do it ethically. Its not always bout $$$. rural air service is about giving to community while making very low profit margin....guess its too low for Air A$ia.

 

Now Everyone Can Fly Xtra Long but Not Xtra Deep into some Rural Areas...Crap..

[Seth K 3]

Shame on FAX, I'm sure you mean.

Yes, that's what I meant :good:srry, typo.........

 

Cheap Long haul, can't work lah..................no way!

Edited April 26, 2007 by Seth K

[T Azahan 1]

maggi mee and karipap for 13 hrs journey.

[Azuan 0]

maggi mee and karipap for 13 hrs journey.

 

and bring your own in-flight entertainment...i'll bringing my Congkak, Batu Seremban and Konda-Kondi sticks... or bring my portable dvd with petaling street dvds...being a true malaysian

Edited April 26, 2007 by Azuan

[Khaled 2]

maggi mee and karipap for 13 hrs journey.

 

Ticket to Heathrow = 10cents

Karipap = 30cents

maggi = RM2.50

 

I used to get RM4 for pocket money to school...if Air Asia X exists back then, could have covered my returned flight to Heathrow...how nice...can ponteng skolah...hehe...

[adrianqcs 0]

hehe.....maybe maggi mee in £3

and the cabin crew will have budget games for us....like Tony once

said that cabin crew could entertain us by having interactive games

with passengers, have stand up comedy, drama, and fashion shows by the sexy

cabin crews hehe.....

 

[M. Sofian H. 0]

In my opinion, i see Mr Tony more 'powerful' than Transport Minister?

Government always 'angguk' what the Tony Says!!!!

I will talk this issue to the Prime Minister in UMNO Kepala Batas General Meeting on coming July!

[Fitri Shukri 0]

In my opinion, i see Mr Tony more 'powerful' than Transport Minister?

Government always 'angguk' what the Tony Says!!!!

I will talk this issue to the Prime Minister in UMNO Kepala Batas General Meeting on coming July!

 

No point talking to the PM. It is the 4th floor boys that you should talk to, if they are wiling to listen. I believe they are the real guys calling all the shots.

Things may have started going fishey since Pahamin Rajab was 'booted out nicely' of AK board of director and chairmanship.

Edited April 27, 2007 by Fitri Shukri

[Radzi 2]

Maybe Pahamin has outlived his usefulness?

 

This whole thing should not have gone this way. If only nothing was done to the RAS last year, if Tony wants an AOC for a long-range LCCT, he should have got one. But by playing out the RAS and MAS, as well as the lives of hundreds of people from MAS and FAX, as well as the lifehood of the people of the interior dependent on the RAS, it makes the mockery of the "rationalization"

 

Too bad, our Government is a WIMP. Get played out by Tony.

[M. Sofian H. 0]

I agree with Radzi!!!

Mr Tony just use this boy (the 4th floor boys)...

Did u believe me? see the board of director tune hotel, u can see Kalimullah (Avenue)...

 

Conclusion

4th floor boys power than PM!!

[Yusoff 1]

- Firefly may no longer be unique to PEN anymore... but may opt for multiple hub: PEN for what it is now. for RAS, set another say KCH or where ever... hopefully..

 

- I seconded what you're saying Kapitan. Sorry to say,our govt is a wimp when comes to Tony, as well as in most cases... too bad..

 

- Firefly may not be so competitive as it was going to be since RAS might holding it down in terms of profit... sad..

 

- Hope to see Firefly survive this turmoil in the long term, which what i am seeing now, it tends to become a 'mati tak mau mati' (direct translation: want to die, dont want to die) business. only time, strategy and LUCK (yes) will tell... so sad..

 

- When things involved politics, everything could happened, and normally, unfavorable to most... i'm crying now..

 

just my 2 cent

[Leo 0]

Btw this is what other rumor that I hear from insider of the airline industry.

 

The fact that FAX can easily pass on the RAS service to Fireflyz is because the hidden agreements that both FAX and government have agree when FAX take over last year.

Some of the agreement might be something like:

1. The lost will be cover by government in a form of monetary or facility discount or other that both agree.

2. FAX have the abilities to cancel any flight that can't make the profit enough to fly like 2 person flight in those early morning flight. Thus we see a lot of cancel at last minute.

3. FAX can evaluate and make and decision on either to continue or to let other operator to service the RAS base on certain period.

4. Other that we can't think of.....

 

So this as what I so call try and error is a period that FAX and government is like employer give 6 month of try period to see if the employee can work or not which depend on the end result. If situation come worse either one side can hand over.

But this kind of move as you guys say can involve a lot of people like airline employee, state government or tourist and so on which I can say they have poor decision making.

 

[Naim 6]

Why bother, Mr Jala? Decision already been made for you.

 

.ny

 

+++

 

April 27, 2007 15:12 PM

 

Firefly Rural Air Services To Start 'As Soon As Possible'

 

KUCHING, April 27 (Bernama) -- The federal government has given an assurance that Malaysia Airlines' (MAS) no-frills carrier, Firefly, will start its rural air services (RAS) operations in Sarawak and Sabah "as soon as possible'.

 

Sarawak's Urban Development and Tourism Minister Datuk Seri Wong Soon Koh said this was conveyed to him by Transport Minister Datuk Seri Chan Kong Choy recently.

 

Wong, however, said the exact time frame has not been decided yet.

 

Speaking to reporters after launching "Titian Seni Sabah dan Sarawak" arts exhibition here today, Wong hoped that when Firefly took over the RAS, the problem of interlining of air services, which have been a major problem in the tourism sector in rural areas in Sarawak would be solved.

 

"The interlining of air services is the key area of the tourism sector that allows international tour operators and travel agents to offer a full package to various destination in Sarawak," he said.

 

Wong said RAS should not be treated as a "dollar and cents" issue but rather the federal government's social obligation.

 

On April 25, Chan announced that the Cabinet has approved Firefly's takeover of RAS in Sabah and Sarawak now being operated by Fly Asian Xpress (FAX).

 

Miri-based FAX has been operating 22 routes and 104 flights daily in Sabah and Sarawak since last August.

 

MAS operated the services previously but gave them up last year as part of its business turnaround plan aimed at returning the national carrier to profitability.

 

-- BERNAMA

 

 

And as usual our ministers are always out-of-kilter with each other.

 

April 27, 2007 16:30 PM

 

Abdullah: MAS Studying RAS Proposal, Not Turning It Down

 

KUALA LUMPUR, April 27 (Bernama) -- Malaysia Airlines' (MAS) response that it will study the proposal on taking over the rural air services (RAS) from Fly Asian Xpress is only natural and does not indicate they will turn it down, says Prime Minister Datuk Seri Abdullah Ahmad Badawi.

 

Miri-based FAX, owned by some directors of AirAsia Bhd, has been operating 22 routes and 104 flights daily in Sabah and Sarawak since last August.

 

"Where did you hear this? (MAS reluctant to take over rural air services). The understanding is that MAS is willing to take over (the services), Firefly will manage it and AirAsia is willing to let it go," he told reporters after launching the National Intellectual Property Day 2007 here Friday.

 

Firefly is MAS's new no-frills carrier.

 

He said this when asked to comment on MAS statement it was studying the proposal had made it appeared as if the national airline was reluctant to take over the services from FAX.

 

"In terms of details of the operation and what the cost (to take over the services) is going to be, naturally (MAS managing director) Idris Jala would say that they have to study them.

 

"But that doesn't mean they are contemplating turning it down," he said, adding that there is an understanding between the two local carriers.

 

Previously, MAS had operated the services but gave them up last year as part of its business turnaround plan aimed at returning the national carrier to profitability.

 

FAX's offer for Firefly to take over its RAS was reportedly due to the airline wanting to focus on its planned long-haul low-cost AirAsia X operations.

 

-- BERNAMA

Edited April 27, 2007 by Naim

[Naim 6]

Yup, at the end of the day, taxpayers are the real suckers.

 

+++

 

April 27, 2007 23:47 PM

 

Govt Willing To Give MAS Full Compensation On Sabah, Sarawak Air

 

PETALING JAYA, April 27 (bernama) -- The government has indicated that it is willing to give full compensation to Malaysia Airlines (MAS) to take over the rural air services in Sabah and Sarawak.

 

However, the mode of the compensation has yet to be worked out, MAS managing director Idris Jala said tonight.

 

He said the profit and loss aspects of the operation must be the responsibility of the government explicitly, based on the proposal from MAS.

 

"We have to look at the profit and loss, and at the same time provide the rural services in a proper manner," he said.

 

He said there is a need to find a way for a win-win situation for MAS and the rural communities in Sabah and Sarawak.

 

Jala said the services will not necessarily be taken over by MAS' newly established no-frills carrier, Firefly.

 

"It is not necessarily Firefly... it could be MAS or an entirely new subsidiary," he told a press conference after the presentation of MASkargo Megatonners Awards here.

 

"The fact that Sabah and Sarawak are keen for MAS to take back the services is proof that MAS has given better quality of services," he said.

 

On Wednesday, the Cabinet directed MAS to take back the rural air services in Sabah and Sarawak from low-cost carrier Fly Asian Xpress (FAX).

 

On the procedure for takeover of the services, Jala said the details need to be worked out clearly.

 

"Once this is established, it will have to go through corporate governance including approval from MAS' shareholders through an extraordinary general meeting," he said, adding that there is a need to go through the whole process.

 

However, he did not provide details on when the EGM will be convened.

 

"Soon... may be... a little longer," was all he would say.

 

On the issue of compensation for MAS from Airbus following the delay in the delivery of the Airbus 380 planes, he said discussions are still ongoing.

 

-- BERNAMA

[Rozhan 0]

On Wednesday, the Cabinet directed MAS to take back the rural air services in Sabah and Sarawak from low-cost carrier Fly Asian Xpress (FAX).

 

Maybe the Board of Directors should step down and hand over their seats to the Cabinet.

Edited April 27, 2007 by Rozhan

[Sandeep G 1]

who knows that those operating company under the state "govt. is operating from our money?=)

i think it made a very clear sense in every single person eye that they are in for the benefits only and ditch it whenever they have the chance.i gotta say one thing they (Airasia) is playing dirty in the "legal" way.I have nothing against Airasia.It is just that can people always get things in the way how they want it to be and always on the part to humiliate the others.

 

I hear you loud and clear sir - and agree with you that this form of business activity is still legal.... the law is funny - every good/profitable business looks for loopholes to gain competitive advantage. Unfortunately in Malaysia, Competition & Consumer commissions and regulators are not capable of handling these issues to protect and represent the interests of the public (in this case our rural folk) as well as perhaps partake in arbitration to resolve this - although - a long and very winding/costly (also bourne by the good ol' taxpayer) road...

 

but I just can't help feeling that the somewhat 'knee-jerk' reaction over the whole issue has been exactly that and 'rationality' has gone out the door. Yes, it is somewhat perplexing that during the rationalisation exercise TF claimed he will make the rural routes profitable... but even WE knew from the start that his hands would be tied....... It's not an easy operation... To fly an empty aircraft for the sake of maintaining a schedule is ludicrous... and unfortunately, I dare say that the F50 are perhaps still too large and too old an A/C for this kind of operation.. How to make money?? No wonder MAS was losing money.. To compound issues further, there is probably thrid-party meddling from the likes of our friends on the 4th floor!!

 

Radzi, I understand that as a part of the rationalisation exercise many MAS employees went under the hammer and were forced into leaving via the MSS... and it may SEEM sickening that now AirAsia has reaped the benefit it is going back on its word and that these people have suffered the raw end of the deal.. BUT!!! Let's look at it from a different rationale:

 

1. Before AirAsia, mismanagement at MAS was sending the national carrier down the loo... it faced a serious cash crisis and nearly went under! - The present restructuring exercise underway at MAS is largely due to the "wake-up call" felt by the executive board of that company to respond to the threat of AirAsia and has resulted in healthy competiton and the carrier recording potentially one of the worlds greatest corporate turnarounds.

 

2. Lots of lost jobs over at MAS due to the BTP:MSS.. however, with the expansion of AirAsia, don't you think that there will be more jobs available for these individuals if not now but in the future? Not only that, now that MAS is getting better, they too may re-open their doors to employees. It's difficult to cope for the employees no doubt - in fact life tormenting - but it may have been worse for far more people should MAS have collapsed and AirAsia have never started in the first place...

 

Malaysia with AirAsia and a revitalised MAS will be a force to reckon with in the Aviation world - more so in this region. Let's also look at the future prospects as a result of AirAsia's expansion and MAS' turnaround.

 

With regard to the rural air routes - it's a tough cookie... rural ops are usually that way and are profitable as feeders for mainline carriers..

 

Look at Australia - these kind of rural ops are generally operated by small charter/ad hoc carriers.. with Baron 58 equipment or even Pilatus-12 in some instances or Metro-23s.. I would think that such an operation would probably be more profitable and economically viable than asking MAS or even FAX/AirAsia to handle such operations... Perhaps we haven't seen this kind of investment because Malaysians don't see it as profitable or as glamourous as flying the 'big jets'.. But it's completely viable - Just not for the big boys!.. In fact I dare say that if ever such a venture ever took off, it could be combined with a host of other services such as mail/freight/flying doctor services to these remote interior locations.. A few companies could in fact compete on these routes with smaller equipment and still be profitable I think. It seems plausible.. anyway..

 

Here's to a bright future for the Malaysian aviation scene!