MAS wants audit on planes - RAS aircraft repairs to cost up to RM40m

[Robin 0]

VANCOUVER: Malaysia Airlines (MAS) has asked for an independent audit on the 12 planes currently used by FAX to operate the Rural Air Services before it takes over the routes on Oct 1, its managing director Datuk Idris Jala said.

 

Idris said the audit was to ensure that the planes – seven Fokker F50s and five Twin Otters – were “in the same operational condition” as when MAS handed them over to FAX in August last year.

 

He pointed out that while MAS had already agreed to take over the rural air service routes, the national carrier had laid down two conditions to the Government.

 

Besides the independent audit, the other condition was that the Government pay fully the subsidies for operating the services, so that the operations would not affect the airline’s profit and loss accounts.

 

Speaking to reporters before the International Air Transporters Association's annual general meeting, Idris said it was important for the aircraft to be fully operational so that the routes could be fully serviced.

 

“When we handed the aircraft to FAX in August last year, we had to pay for the repairs to some of them to ensure the services were not disrupted. Now the people operating these planes must also do the same,” he added.

 

In April, FAX director Datuk Tony Fernandes announced that FAX wanted to give up the Rural Air Services to MAS because it wanted to concentrate on its budget airline business and the rollout of its proposed long-haul AirAsia X operations.

 

He made these comments soon after MAS launched its Firefly airline.

 

A month later, the Government agreed that MAS should take back the rural air service operations.

 

Idris revealed that the Rural Air Services would be operated by a new subsidiary – MASWings – and not Firefly.

 

“We decided to do this because it would be easier for us to show the profits and losses in our operations. This will also allow us to be very transparent about everything,” he added.

 

[Kevin Teh 0]

OT abit..will MASWings have callsign of MalaysianWings?

Edited June 5, 2007 by Kevin Teh

[FK Wong 0]

VANCOUVER: Malaysia Airlines (MAS) has asked for an independent audit on the 12 planes currently used by FAX to operate the Rural Air Services before it takes over the routes on Oct 1, its managing director Datuk Idris Jala said.

 

Idris said the audit was to ensure that the planes – seven Fokker F50s and five Twin Otters – were “in the same operational condition” as when MAS handed them over to FAX in August last year.

 

He pointed out that while MAS had already agreed to take over the rural air service routes, the national carrier had laid down two conditions to the Government.

 

Besides the independent audit, the other condition was that the Government pay fully the subsidies for operating the services, so that the operations would not affect the airline’s profit and loss accounts.

 

Speaking to reporters before the International Air Transporters Association's annual general meeting, Idris said it was important for the aircraft to be fully operational so that the routes could be fully serviced.

 

“When we handed the aircraft to FAX in August last year, we had to pay for the repairs to some of them to ensure the services were not disrupted. Now the people operating these planes must also do the same,” he added.

 

In April, FAX director Datuk Tony Fernandes announced that FAX wanted to give up the Rural Air Services to MAS because it wanted to concentrate on its budget airline business and the rollout of its proposed long-haul AirAsia X operations.

 

He made these comments soon after MAS launched its Firefly airline.

 

A month later, the Government agreed that MAS should take back the rural air service operations.

 

Idris revealed that the Rural Air Services would be operated by a new subsidiary – MASWings – and not Firefly.

 

“We decided to do this because it would be easier for us to show the profits and losses in our operations. This will also allow us to be very transparent about everything,” he added.

 

haha this is the part that we should actually laugh about.from what i heard there is alot of a/c under the RAS is deemed to be U/S there is even times that their pilot is off duty for two weeks....smart move by MAS.

 

[Sri Ramani K. 0]

maybe the idea was mooted after visiting MalaysianWings? this is a milestone for everyone

[Rozhan 0]

I thought MAS had some of its pilots seconded to FAX, and the planes were maintained by MAS?

 

If the planes have problems, DCA would have grounded them, regardless who the operator is.

 

MAS has no choice anyway by having these 'conditions'. When the gov says 'you take it', then MAS has to take it.

 

 

[Kenneth T 0]

smart decision though since FAX could have overutilised the planes without regular repairs and maintenance....MASWings? Interesting though and hope to see the liverly in BKI soon....

[Sung 0]

FAX using 7 F50, 1 has no both engines and used for spares for other 6 operating f50.

[Radzi 2]

FAX using 7 F50, 1 has no both engines and used for spares for other 6 operating f50.

 

MGB is in front of BKI hangar with right engine missing. MGA is nearby with left engine missing and in very poor condition.

 

Edited June 5, 2007 by Radzi

[KK Lee 5]

 

From influences demonstrated by AK recently, doubt MH can do anything but to absorb whatever is left cannibalised by FAX.

 

[Khaled 2]

Was told by engineer in Miri MGA has multiple defects. didn't know there were missing engine. Smart move by Dato' Idris Jala! BRAVO!

[Pieter C. 5]

in very poor condition.

 

Thanks for sharing, captain: my heart is bleeding seeing this amputated "Dutch Lady" suffering so much in the tropical heat

 

[Kenneth T 0]

FAX should be penalised for the mismanagement of the Fokker 50s....what a shame for them , btw i wonder when this bird can flies again.....sigh

[Adrian M 0]

Damn furious beyond words~! A bunch of selfish evil fool abusers...

 

This is why the rationalization crap should not even happen in the first place!

 

PS: Sorry for the furious bragging coz this is a very horrifying picture of ex-MH F50

[BC Tam 2]

Looks like someone read the local dailies here too !!

[Chan CS 0]

Omg... This really doubt me lots as I'm going to fly them soon this month. Should I really continue flying them or not? Looks like they are very dangerous to fly with! I was happy trying out them but now...

Edited June 6, 2007 by Chan CS

[BC Tam 2]

Is this 'audit' thing being played up, intentionally or otherwise ?

 

I can only imagine that at the end of a lease period, it's only logical for all parties involved to come to some agreement that the piece of equipment (could also be a piece of real estate) is in more or less the same condition as at the beginning of the lease period. Excepting, as they say, fair wear and tear allowable. If there are damages or deficiencies, then compensation and/or repairs would be necessary before being passed on to the next lessor.

 

Edited June 6, 2007 by BC Tam

[FK Wong 0]

As far as to what we know FAX already have the intention on returning the RAS to MAS by not maintaining the a/c properly and end up causing unforseen circumstances such as above one a/c without both engine?Asides from that as well there has several cases where the a/c burst their tyres during landing on short field sectors? speaking of maintainence with the least amount of maintainence done the more less cost is incurred to them and it leads to being more "efficient" and cost effective and allowing them to offer tickets as low as .50cents per way...hehe i don't know whether am i making any sense here or not, but no offense there is always a part where the mentality of our consumer these days to concentrate more on the price of a product rather than its quality.when i meant quality it isn't only in terms of service but safety as well...Well like i said these "guys" are playing real dirty man....well lets see what happens there and then after MAS takes over RAS..=).. cheers to everyone.

 

[EddieDaniel 0]

Damn furious beyond words~! A bunch of selfish evil fool abusers...

 

This is why the rationalization crap should not even happen in the first place!

 

PS: Sorry for the furious bragging coz this is a very horrifying picture of ex-MH F50

 

 

Adrian......The rationalization could be mooted by party with vested interest in AK....It is actually to get FAX to take off so they can operate Air Asia X which is what they are doing now.....

[FK Wong 0]

Adrian......The rationalization could be mooted by party with vested interest in AK....It is actually to get FAX to take off so they can operate Air Asia X which is what they are doing now.....

 

this was all mentioned in the topic of "Let firefly takeover"...no surprise on that..

[FK Wong 0]

The saga of rural air services

 

COMMENT BY B.K.SIDHU from THE STAR 07-06-07

 

The operation of rural air services (RAS) has been passed around and is finally going back where it belongs - with Malaysia Airlines (MAS). Now that the issue is settled, which party is going to have the last laugh - Fly Asian Xpress Sdn Bhd (FAX), MAS or the users of the service?

 

RAS forms an integral part of transportation for connectivity to the rural areas that are not easily accessible in Sabah and Sarawak.

 

For decades, MAS, being predominantly government-owned, had provided RAS, which was one of the factors contributing to the red ink in its books. At the turn of the decade, under a widespread asset unbundling exercise, the Government took over RAS and contracted it out to MAS for a fee so that the national carrier need not bear the losses of operating RAS.

 

Years later, AirAsia Bhd claimed it could bring costs down in serving the domestic sector, including RAS, if given a chance, by adopting the low-cost carrier (LCC) model.

 

On Aug 1, 2006, the Government handed over 96 domestic routes and a fee to AirAsia to operate RAS. FAX, which shares common shareholders with AirAsia, managed RAS and got a fleet of seven Fokker 50 and five Twin Otters from the Government to service 22 routes with 104 flights daily within Sabah and Sarawak.

 

At that point, some experts had wondered if FAX had done the right thing by taking on RAS as operating it was different from running a LCC. The quick turnaround model was not feasible, FAX was not able to provide the interlining needed for international connectivity, and lacked accessibility to a global distribution system for global booking.

 

The experts were certain RAS would one day return to MAS. And it only took FAX eight months before declaring it was ready to hand the baby back to MAS. Come Oct 1, MAS will, via MAS Wings Sdn Bhd, take on RAS.

 

Of the 12 operating planes, a third needs to be fixed. MAS has requested an audit on the planes before it takes them back.

 

The aircraft are more than 20 years old and getting the spares takes time, which could explain why they are grounded. But that should not be used as an excuse for the flight delays and cancellations that politicians from Sabah and Sarawak often complain about.

 

In any business, economic viability is key. Decision makers should not be so gullible as to hand down contracts without checking the capability of companies or persons to deliver. Moreover a gentleman’s agreement on domestic rationalisation should be honoured as MAS and AirAsia got what they wanted then.

 

So why is FAX giving up RAS when it was getting paid by the Government? It has to do with the emergence of Firefly that MAS created recently. Simply put, MAS is no longer just a full service carrier but would be competing head-on with AirAsia in the LCC arena. By giving up RAS, could AirAsia be retaliating against the emergence of Firefly?

 

The question now is: who will have the last laugh?

 

MAS, for getting RAS back, more domestic routes than it bargained for under the domestic air services rationalisation plan and for getting a toehold in the LCC world? Or AirAsia and FAX, for unloading the seemingly cumbersome RAS to focus on long haul flights. Or the politicians in Sabah and Sarawak for having their wish come true with MAS taking back RAS, which has served them for decades?

 

---------------

 

haha....looks like everyone is wondering what is happening now?....

[Pieter C. 5]

Congrats to MAS for their 1st quarter outperformance; RAS made a loss, though:

 

MAS see further improvements as profitability returns

 

Thursday June 7, 2007

Soaring on the wings of a MYR133 million ($39 million) first-quarter profit that exceeded the carrier's full-year earnings target of MYR50 million, Malaysia Airlines CEO Idris Jala said MAS will continue to focus on building both yield and network.

 

"We are working on improving our customer value proposition, looking at every aspect of our work, at every touch point," Jala told media in Vancouver at this week's IATA AGM.

 

Commenting on the first-quarter performance, he said CASM increased just 5% despite the additional MYR632 million in expenses resulting from taking over profit-and-loss responsibility for the domestic network. One contributing factor to revenue growth was the decision last January to "open its storefronts" by permitting any IATA-approved and registered travel agent to sell MAS tickets, eliminating the exclusive agreements it had with a select number of them. Under its Project Omega it aims to achieve full e-ticketing and interline e-ticketing by December.

 

Additionally, it is growing its third-party maintenance business. "When I started with Malaysia we were making around MYR100 million from third-party maintenance. Last year we increased it to MYR200 million. This year we are challenging our team to deliver MYR300 million," Jala said.

 

Although it is not a member of one of the major global alliances, he said MAS is in discussions with two airlines--one Indian, one Chinese--about bilateral partnerships. It already has crafted codeshare relationships with Gulf Air, Alitalia, Virgin Blue and South African Airways over the past 18 months.

 

The airline reduced its workforce from 22,700 to 19,700 in 2006 and will lose another 500-700 this year as retirees are not replaced and contracts expire, he noted. As previously reported, it has an RFP out for up to 55 narrowbodies and expects to issue a widebody RFP for an undetermined number of aircraft in a few months.

 

 

[Naim 6]

June 08, 2007 18:17 PM

 

MASWings To Take Over Rural Air Services In Stages From Oct 1

 

KUALA LUMPUR, June 8 (Bernama) -- The new fully-owned subsidiary of Malaysia Airlines (MAS), MASWings Sdn Bhd, will take over the Rural Air Services (RAS) in Sabah and Sarawak from its current operator, Fly Asian Xpress (FAX), in stages from Oct 1, Transport Minister Datuk Seri Chan Kong Choy said today.

 

He said MASWings will use the existing turboprop or propeller-driven aircraft currently operated by FAX - seven Fokker F-50s and five Twin Otters - to service the RAS routes.

 

"The aircraft will be fully serviced to ensure they are fit for operation before being handed over to MASWings. Later, it will look for new aircraft but in the beginning, it will use the existing ones," he told Bernama here.

 

Chan was responding to concerns over whether the 12 planes currently used by FAX are fit to fly due to frequent breakdowns and technical problems.

 

The latest was yesterday, when the only Fokker F-50 plane still in operation was grounded for repairs, causing flights cancellations within Sabah and between Sabah and Sarawak.

 

Six other Fokker F-50s had been grounded earlier for repairs and are only expected to be ready for operation next week.

 

FAX had operated the RAS since August last year under the government's domestic air services rationalisation exercise but last March it asked to be relieved of the service as it wants to focus on long-haul low-cost services.

 

In May MAS agreed to take back the RAS from FAX. Before FAX came into the picture, the national airline had been operating the RAS.

 

MAS has asked for the planes to be audited to ensure that they are in "the same operational condition" as when MAS had handed them over to FAX in August last year.

 

-- BERNAMA

[BC Tam 2]

There must be something not quite right desparately wrong when the whole fleet (7 out of 7 F-50's) is "grounded for repairs" - fuyoh, markah penuh, as they say !

Edited June 8, 2007 by BC Tam

[BC Tam 2]

Seems they have managed to get (at least) one of the seven back in the air already - saw it coming in on runway 20 this afternoon whilst I was shopping. Didn't get the regn, but it was one already in FAX colours

[Radzi 2]

Seems they have managed to get (at least) one of the seven back in the air already - saw it coming in on runway 20 this afternoon whilst I was shopping. Didn't get the regn, but it was one already in FAX colours

Must be MGG. MGB was missing an engine just last week; unlikely for it to be operational so soon.