Open skies and the MAS-AirAsia discord

[Seth K 3]

Malaysian gov. let AK fly, of course it's bad for MH, if gov. won't let AK, then it's AK lost. Opss, I meant win lose situation

[T Azahan 1]

no worries, let MH and AK fight. they will continue to fight, in the sky and on the ground. our job is just to snap pictures of their aircraft. hehehe but at least MH is a 5 star airlines and AK is a 5 star asian low cost airline.

[Andrew Yong 0]

no worries, let MH and AK fight. they will continue to fight, in the sky and on the ground. our job is just to snap pictures of their aircraft. hehehe but at least MH is a 5 star airlines and AK is a 5 star asian low cost airline.

[S V Choong 4]

no worries, let MH and AK fight. they will continue to fight, in the sky and on the ground. our job is just to snap pictures of their aircraft. hehehe but at least MH is a 5 star airlines and AK is a 5 star asian low cost airline.

 

Haha... Malaysia boleh, eh?

[Naim 6]

Try this story: MAS Buffeted By PMS Storm

 

Excerpts:

 

The acronym PMS refers to Malaysia Airlines’ Performance Management System – which is presently causing too much headache, depression, irritability, anger and restlessness among the majority of MAS’ employees. Over 90% of MAS’ employees are unhappy with the PMS.

...

Over 90% of MAS’ stalwart staff, i.e., those who have 10, 15, 20 and 25 years of service, have been bypassed by the PMS. They have not been paid bonuses this year and they have been completely cut off from the recent ESOS or Employee Share Option Scheme.

...

First, let’s see who did not get the ESOS. The entire population of MAS’ over 200 operating pilots, the most important part of the MAS family, were not offered the ESOS at all, including pilots with 20 years of flying service with MAS. Only two pilots who are now in management positions were given the ESOS.

...

Mr Idris Jala is also making plans for himself. Talk is his old employer, Shell, wants him back. But Idris is eyeing the top job in Petronas to replace soon to retire Tan Sri Hassan Merican. Idris certainly has the connections – in the person of the Finance Minister 2.

...

A simple example of the negative effects of the KPI is the case of Zulaifah, the RM80,000 per month Singaporean consultant who was brought into MAS by Mr Idris Jala and Tengku Azmil, the Deputy CEO of MAS. Zulaifah’s KPI was simple – sell some of the buildings and properties owned by MAS and do it by a certain date to ease up cash flow for the beleaguered airline.

...

MAS hired Mackenzie & Co to explore further this ‘throw in the towel’ option. Two Mat Sallehs from Mckenzie & Co are walking the corridors of MAS trying to identify potential merger partners. (You won’t believe this but keep reading). The two Mat Salleh consultants did not have a clue about what to do. So they organised a meeting with MAS’ middle managers and put the question to them ‘Who do you think can be the best merger partner for MAS?’

...

But the most likely merger partner on the horizon is Air Asia. It is most likely that within 24 months MAS will merge with Air Asia. In the Malaysian scheme of things, Air Asia will take over MAS. Maybe the new entity could then be called ‘Air Asia Truly Malaysia’.

...

MAS is the con-sultans paradise. If you are a sultan of con and you want to make easy money, go to MAS. From the time of Munir Majid, Mr Idris Jala and Tengku Azmil, the Deputy CEO, MAS hired a con-sultan to advise on their ‘support services’.

...

 

Message to Mr Idris Jala: You do not need these expensive consultants and RM40,000 a month Senior General Managers to turn around the company. There are thousands of loyal, experienced and clever employees in MAS who have 10, 15, 20 and 25 years service with MAS. They know the company and the airline industry inside out. From its engineers, its in-house IT people, its accountants, its sales and marketing people, the pilots and the administrators - they are all proven in many ways. There is enough ‘Internal Equity’ within MAS to make a success of the airline.

 

MAS’ seasoned staff, in particular the large number of middle-managers, are supremely confident that they can tackle any open sky policy come 2009, 2012 and 2015. It is time for MAS to undertake ‘Resource Mining’ - look into itself and promote its own proven and loyal staff who are very capable of running the airline well. Just leave them alone to do the job. Ever since the entry of Tajuddin Ramli in the 90s, MAS has not recovered. It is being passed from one set of stained and greasy hands to yet another. Each time MAS is passed around, money is lost by the bucketfuls.

 

Just leave the staff alone and let them run the airline. They know what to do. Don’t waste money, don’t waste time.

 

READ MORE: MAS Buffeted By PMS Storm

 

+++

[Rozhan 0]

Read about it in the website yesterday . I know for a fact that Enrich membership services are outsourced to con-sultants too. Saw a Mat Salleh at former MAS building while shopping at GB some time ago, and asked the staff there who he was. And they said he was one of the con-sultants MAS appointed to handle all Enrich-related services.

 

Can't Malaysians do it?! Why is it that, to borrow DrM's famous phrase, we always have a situation where brown men running to the white men to solve the brown men's problems.

Edited July 29, 2007 by Rozhan

[S V Choong 4]

Can't Malaysians do it?! Why is it that, to borrow DrM's famous phrase, we always have a situation where brown men running to the white men to solve the brown men's problems.

 

Exactly Rozhan, something I don't understand too. Also, it's not like they are ready to engage non-Malays or non-bumis to do it either.

[Keith T 2]

Since this PMS thingy is causing so much angst... they ought to do it the fun way, inspired by Big Brother...

 

Put all existing employees in a big house for 13 weeks. And broadcast their lives in the house on national tv. And those deemed too 'fake' would be voted off every week. The longer you stay... the more salary bonus you get....

 

Surely it can't be worse than what they already have, less stressful too...

Edited July 30, 2007 by Keith T

[S V Choong 4]

Good idea there Keith. Hope there isn't any fataliies within that period

[Naim 6]

The Star

Tuesday July 31, 2007

 

Let Idris Jala finish his mission at MAS

 

COMMENT BY WONG CHUN WAI

 

Malaysia Airlines flew into turbulence recently after a series of flight delays and cancellations. But its CEO is trying hard to steer the airline back on track.

 

IT’S always easy to point fingers at someone for a screw up. In this case, it’s Senator Tajulurus Mohd Zain of the Merbok Umno division who demanded the sacking of Malaysia Airlines managing director Datuk Idris Jala for a series of flight delays and cancellations recently.

 

Some politicians, who assumed they are very important, are fuming because they have been affected by these delays and the person they hold responsible is the MAS chief executive officer.

 

There is no question there are internal problems in the national airline, probably much more than what has been admitted by Idris himself but the man must be credited for doing his job – to cut losses, make profits for MAS and retain the airline’s brand name.

 

He has introduced the private sector’s culture into the once ailing airline including having the appraisal system for its 19,500 staff, which has never been done since the airline was set up but it is a common, if not mandatory practice, in private companies.

 

There has to be some yardstick to measure a worker’s productivity and performance but word is that there is resistant. Needless to say, an automatic increment or promotion will affect the operating costs of the airline.

 

Last week, Tajulurus, who is a member of the Senators’ Club, called for the Idris’ dismissal to prevent a further “sliding of services” by the national carrier.

 

MAS, he said, was fast losing its credibility and its services was regressing from “bad to worse,” adding that Idris should leave and MAS was bogged down with internal problems.

 

Tajulurus has chosen to overlook some basic facts – Idris has only been on the helm for a little over one-and-a-half years ago, taking a job which nobody wanted as the balance sheet of the company read like a horror book.

 

Inheriting a mountain of problems, he has slowly built up the airline. The task has been difficult, particularly from interfering politicians but to his credit, he has chosen to be forward-looking, refusing to answer questions from reporters who often attempt to dig for information about the company’s scandalous past.

 

From flying to unprofitable destinations, in the name of South-South co-operation to overpriced nasi lemak to some members of the royalty who refused to pay for their tickets and overweight baggage, Idris has tried to reduce the obstacles one by one, fully aware that he is stepping on sensitive areas.

 

In just a year after Idris took over, MAS returned a first-quarter 2007 profit of RM133mil. It’s a feat, really.

 

Tajulurus may be unhappy but OSK Investment Research, for example, retained its “buy” call for MAS on July 17 despite the bad press involving delays blamed on technical glitches, bad weather and problems with a new computer system.

 

In short, Idris has tried to avoid political and commercial turbulences, which Malaysians are familiar with, and at the same time, show other CEOs he can make MAS fly again, yielding positive results.

 

Malaysians are also looking forward to its low-cost subsidiary, Firefly, which is expected to begin operate flights from Subang and Senai to Ipoh.

 

OSK also reported that “we maintain our buy call on expectations of a code-sharing agreement with a Chinese airline which will help bolster connectivity starting in 2008,” it said.

 

There are challenges ahead for MAS – by Jan 1, 2009, Asean would have opened up its skies, making the airline industry highly deregulated – that means more traffic rights to airlines with the possibility of supply outstripping demand.

 

Already, there are 400 new planes this year and another 500 new ones next year from Middle East and India, based on Boeing and Airbus’ order bookings.

 

Idris has no choice except to drive towards a more performance-based culture, as he said in a recent interview. He has been given the mandate and he should use it well, never mind what the politicians want to say.

 

But Idris also need to manage its switch-over to the new IT system better as no passenger would want to stand at the check-in counter for 30 minutes to get a boarding pass and then wait for another two hours before flying off because of a delay.

 

Worse, there have been cases of passengers being stranded for days.

 

More importantly, he must take seriously the talk of an “unofficial go-slow” involving alleged discontent over its shares option and bonuses. His hands are clearly full as he has 14 unions to deal with, a nightmare no CEO has to tackle.

 

Clearly, MAS cannot afford flight delays, irrespective of the causes, or purported cases of over-booking, which can be regarded as an economic sabotage to the Government’s Visit Malaysia 2007.

 

Still, it is no surprise that MAS won the “World’s Best Cabin Staff” award at the World Airlines Award 2007, which involved an 11-month survey.

 

The smiles of our MAS crew and the nasi lemak that awaits Malaysians after being away from home have long made the national carrier a winner.

 

For Jala and his staff, it also means keeping the company profitable and more important, to fly on time.

 

===

[Rozhan 0]

Change will often invite resistance. To minimise that, the least that they could do is to get the staff to buy in the appraisal system program i.e. get them involved / understand what it is all about. Wonder if the staff got the opportunity to do so.

 

In a gov agency like Bank Negara, the immediate supervisor of a staff being appraised will get the opportunity to talk and discuss with each other why the staff (being appraised) is getting so and so scores. In that way the staff will know where he or she has excelled, and which parts of his job scope could be improved further. In the end, there will be a mutual agreement between supervisor and the person appraised of the scores achieved.

 

 

[Norhisham K 0]

"Please follow the timeline (to open up). Wait till (Jan.) 2009 when Malaysia Airlines is strong enough to meet liberalization of open skies," added Kernail Singh, representing the managerial staff association.

 

Strong enough..excuses..excuses...don't dare to face the reality and the challenges. what type of liberalization they are waiting for ? that is why MAS is forever losing money.

 

How sure r u MAS is always losing money?

[Isaac 0]

How sure r u MAS is always losing money?

Speaking of this ... any idea how is PMB doing financially ?

 

[BC Tam 2]

How sure r u MAS is always losing money?

Can I offer a different perspective (speculative) ?

Since inception of MAS : total amount of losses reported - total amount of profit posted = sufficient money to set up one, possibly more, different airlines

Could well prove an exercise in futility, but if anyone is willing to dig up the data, I'll volunteer to do the summing up's !

[Norhisham K 0]

Can I offer a different perspective (speculative) ?

Since inception of MAS : total amount of losses reported - total amount of profit posted = sufficient money to set up one, possibly more, different airlines

Could well prove an exercise in futility, but if anyone is willing to dig up the data, I'll volunteer to do the summing up's !

 

you've got a point there. From other perspective, accounting figures and data are easily doctored for whatever reason.

 

MAS started in 1972 after the split from MSA. MAS may not profit as much as SIA, but the airline still survive till today. At least 20000 families have benefitted from salaries given out by MAS every month. Those people may be our families, friends, neighbours etc etc. Some may have retired too.

 

Open skies or close skies is not the concern of most MAS staff for now. For some, they dont even understand what open skies really means to them. The real issue is staff morale is low. It is sad.......

[KK Lee 5]

Mas charter permit unprofitable operation and is seen as a job provider by the government, profitability is not a priority. However, Mas is a listed public company, some how the government has to make it profitable including grant to firefly and RAS.

 

Most if not all of us have high expectation on Mas, but don’t expect it to be realised.

 

[Chan CS 0]

No KL-Singapore open skies till 2009

 

By B.K. SIDHU

 

PETALING JAYA: Hopes of an early opening of the Kuala Lumpur-Singapore air sector to competition seems dashed with the Singapore government issuing an exclusion order yesterday.

 

Low-cost carriers, such as AirAsia Bhd and Tiger Airways, were hoping for an earlier opening of the sector but now may have to wait for the official timeline of December 2008 when the floodgates will automatically open.

 

Under the Asean Open Skies policy, unlimited air access between Asean capital cities will be allowed by end-2008.

 

With the situation remaining “status quo”, the two national carriers – Malaysia Airlines (MAS) and Singapore Airlines (SIA) – will continue to enjoy the duopoly on the KL-Singapore route till end-2008.

 

The Singapore Minister for Trade and Industry, in a statement issued yesterday, said the Air Shuttle Service Operation Agreement between MAS and SIA on the KL-Singapore air sector would be left out of Section 34 of the Competition Act.

 

Under the Act, business agreements that prevent, restrict or distort competition are not allowed. With that, the earlier 1982 arrangement reached between Singapore and Malaysia would be preserved whereby the route be plied by MAS and SIA.

 

MAS managing director Datuk Idris Jala, who is in New York on a roadshow, said: “This is a positive step for MAS. We have always maintained that we welcome competition and, with this in mind, we developed our business turnaround plan around the Asean Open Skies taking place in 2009.

 

“With this exemption, it means the liberalisation of this route remains on track as per the original agreement and we are grateful that both governments recognise this need.”

 

AirAsia group chief executive officer Datuk Tony Fernandes, when contacted, declined to comment. AirAsia had earlier said it would like two daily flights to Singapore if it were given an opportunity.

 

The opening of the sector is inevitable in 2009 but, for now, analysts are of the view that the two players, SIA and MAS, need more time to protect their turf. In any case, the sector has been a good revenue contributor for both airlines.

 

However, one analyst is of the view that the delay could be due to the fact that “AirAsiaX is almost ready to fly long haul and it would certainly attract price-conscious customers.”

 

“The KL-Singapore route may be able to attract people from all over the region to fly AirAsiaX and we believe the two carriers see AirAsiaX as a threat,” said the analyst.

 

The statement from Singapore added that separating the Singapore-KL shuttle agreement without a corresponding liberalisation of the air services agreement might actually result in the reduction of the number of flights between Singapore and KL and this would not benefit the travelling public.

 

“As such, the exclusion order is used to maintain the status quo, while negotiations between the governments of Malaysia and Singapore to further liberalise the Singapore-KL air route continue,” the statement said.

 

It said the Singapore government remained committed to the objective of seeking maximum liberalisation of air services wherever possible and supported the initiative by Asean to work towards allowing unlimited air access between member states.

 

Source: TheStar

[M. Sofian H. 0]

erm... i read this article from utusan malaysia

 

Lindungi sektor KL-Singapura milik MAS

 

Pendapat

AIRASIA yang berfahaman bahawa sesebuah syarikat penerbangan mesti dibenarkan terbang ke mana sahaja ia suka sedang mendesak kerajaan Malaysia (dan Singapura) agar membenarkannya masuk ke sektor Kuala Lumpur-Singapura seberapa segera walaupun satu perjanjian ASEAN hanya akan membolehkannya berbuat demikian mulai 1 Januari 2009.

 

MAS mahu kerajaan jangan mengubah keadaan ini kerana sektor Kuala Lumpur-Singapura yang menguntungkan ini amat diperlukan untuk memulihkan kedudukan MAS yang mengalami kerugian besar dan terpaksa membuang ribuan pekerja.

 

Semua pihak terutama ahli-ahli Parlimen patut meminta kerajaan agar terus melindungi hak MAS dalam sektor Kuala Lumpur-Singapura ini dan jangan sekali-kali melayan kehendak AirAsia.

 

Sebaliknya sebagai hukuman ke atas AirAsia kerana enggan menjalankan sedikit ‘khidmat negara’ iaitu menyerah balik perkhidmatan luar bandar di Sabah dan Sarawak kepada MAS setelah menjalankannya dua tiga bulan. Kerajaan patut menarik balik penerbangan AirAsia ke ibu-ibu negeri seperti Pulau Pinang, Johor Bahru, Kuantan, Kuala Terengganu dan Kota Bharu dan diserahkan kepada Firefly, syarikat penerbangan tambah murah yang baru kepunyaan MAS.

 

Jika tidak pun kerajaan patut menguatkuasakan code sharing antara Firefly dengan AirAsia untuk destinasidestinasi ini.

 

Apatah lagi AirAsia sekarang hendak menjelajah dunia dengan FAX iaitu syarikat penerbangan tambang murah antarabangsa yang akan bermula tak lama lagi.

 

Setelah ‘memberi muka’ begitu lama kepada AirAsia, kita harap kerajaan akan memfokuskan semula perhatiannya kepada MAS dan melindunginya kerana ia syarikat penerbangan nasional. Perkara ini dilakukan oleh kerajaan Singapura dalam melindungi syarikat penerbangan nasionalnya.

 

Malah kerajaan Britain melalui British Airways (BA) dan Virgin Atlantic (VA) serta syarikat-syarikat penerbangan Amerika Syarikat (AS) tidak akan membuka sektor London – New York yang amat menguntungkan itu kepada syarikat penerbangan lain.

 

MAS, SIA atau mana-mana syarikat lain tidak akan dibenarkan singgah di London dan kemudian mengambil penumpang ke New York dan kemudian mengambil penumpang di New York, balik ke London, turunkan penumpang dan kemudian ambil pula penumpang balik ke Singapura atau Kuala Lumpur.

 

Sebab itu sampai hari ini pun kerajaan Australia tidak membenarkan SIA turun di Sydney atau Melbourne, ambil penumpang ke Los Angeles atau San Francisco dan sebaliknya.

 

Tony Fernandez tentu tahu bahawa mentornya Richard Branson tuan punya Virgin Atlantic sendiri akan bermuafakat dengan ‘seterunya’ British Airways untuk menyekat sesiapa sahaja yang hendak masuk ke sektor London-New York.

 

Begitu juga Washington masih tidak membenarkan BA terbang ke semua bandar besar AS dan mengambil penumpang demi kepentingan dan pekerja syarikat penerbangan domestiknya.

 

Perniagaan penerbangan adalah sebahagian dagangan antarabangsa sesebuah negara dan Tony Fernandez mesti tahu dalam soal ini tiap negara perlu melindungi industri nasionalnya.

 

Di samping perniagaan penerbangan yang amat mencabar sekarang ini, MAS sentiasa menanggung beban nasional, AirAsia hanya sebuah syarikat perniagaan.

 

Kalau MAS terpaksa buang pekerja ia pasti menjadi persoalan politik kerana ia melibatkan maruah Malaysia manakala kalau AirAsia buang pekerja ia samalah dengan kilang TV buang pekerja, tidak jadi persoalan nasional.

 

Apa perasaan kita kalau satu hari nanti AirAsia pula menggantikan MAS sebagai syarikat penerbangan utama Malaysia atau mahukah kita lihat MAS gulung tikar seperti Phillipines Airlines (PAL), Air Lanka, Sabena (Belgium), Swissair (Switzerland), TWA, Pan Am dan lain-lain (di Amerika Syarikat) atau rugi selalu seperti Garuda (Indonesia), Qantas (Australia), Olympic Airways (Greece) dan lain-lain lagi.

 

Kerajaan Malaysia tentu sedar bahawa KLIA susah hendak menggantikan Singapura atau Bangkok sebagai hab Asia Tenggara kerana kedua-duanya mempunyai tarikan-tarikan yang susah disaingi.

 

Jadi MAS dan pekerja-pekerjanya perlu dilindungi samalah dengan kita melindungi beras keluaran tanah air walaupun AS sendiri mendesak kita membuka pasaran beras.

 

– SAAD HASHIM,

 

Ampang, Selangor.

 

 

I aggree with Mr Saad, government should reduce or stop the AK route to every state capital...

 

[Sing Yew 1]

Hmmm....Qantas 'selalu rugi' (continuously making losses) ?

 

[Isaac 0]

Setelah ‘memberi muka’ begitu lama kepada AirAsia, kita harap kerajaan akan memfokuskan semula perhatiannya kepada MAS dan melindunginya kerana ia syarikat penerbangan nasional. Perkara ini dilakukan oleh kerajaan Singapura dalam melindungi syarikat penerbangan nasionalnya.

Singaporean Government is very generous when it comes to granting a fifth freedom rights to foreign carriers.

 

 

Malah kerajaan Britain melalui British Airways (BA) dan Virgin Atlantic (VA) serta syarikat-syarikat penerbangan Amerika Syarikat (AS) tidak akan membuka sektor London – New York yang amat menguntungkan itu kepada syarikat penerbangan lain.

 

MAS, SIA atau mana-mana syarikat lain tidak akan dibenarkan singgah di London dan kemudian mengambil penumpang ke New York dan kemudian mengambil penumpang di New York, balik ke London, turunkan penumpang dan kemudian ambil pula penumpang balik ke Singapura atau Kuala Lumpur.

This is different. This guy "SAAD HASHIM" is comparing Apples and Oranges.

 

BA/VS/AA etc don't want foreign carriers to fly the prestigious route. AK is a Malaysian carrier, so is MAS while SQ is a Singaporean carrier. No foreign carrier is involved and there is no need to grant fifth freedoom rights either.

 

 

Sebab itu sampai hari ini pun kerajaan Australia tidak membenarkan SIA turun di Sydney atau Melbourne, ambil penumpang ke Los Angeles atau San Francisco dan sebaliknya.

Again. Comparing apples and oranges.

 

 

Begitu juga Washington masih tidak membenarkan BA terbang ke semua bandar besar AS dan mengambil penumpang demi kepentingan dan pekerja syarikat penerbangan domestiknya.

This is not true !! The British and US carriers are trapped in the Bermuda agreement. But of course all this will change starting late March next year. They can fly to any cities they want as long as slots permitted.

 

 

Apa perasaan kita kalau satu hari nanti AirAsia pula menggantikan MAS sebagai syarikat penerbangan utama Malaysia atau mahukah kita lihat MAS gulung tikar seperti Phillipines Airlines (PAL), Air Lanka, Sabena (Belgium), Swissair (Switzerland), TWA, Pan Am dan lain-lain (di Amerika Syarikat) atau rugi selalu seperti Garuda (Indonesia), Qantas (Australia), Olympic Airways (Greece) dan lain-lain lagi.

I didn't know QF always lose money ?? And Philipines Airlines never went branckrupt

 

And Air Lanka ?? Air Lanka never went brankrupt. It changed its name to Sri Lankan Airlines.

 

 

Di samping perniagaan penerbangan yang amat mencabar sekarang ini, MAS sentiasa menanggung beban nasional, AirAsia hanya sebuah syarikat perniagaan.

Kalau MAS terpaksa buang pekerja ia pasti menjadi persoalan politik kerana ia melibatkan maruah Malaysia manakala kalau AirAsia buang pekerja ia samalah dengan kilang TV buang pekerja, tidak jadi persoalan nasional.

But he's got a point here.

Edited September 26, 2007 by Isaac

[Radzi 2]

The article is from Utusan Malaysia, so the mentality is different.

[Ganesh.r 0]

AirAsia ke ibu-ibu negeri seperti Pulau Pinang, Johor Bahru, Kuantan, Kuala Terengganu dan Kota Bharu dan diserahkan kepada Firefly, syarikat penerbangan tambah murah yang baru kepunyaan.

 

Kuantan... get the Facts right

[Rozhan 0]

What makes 'Saad Hashim' think AK does not have the right to exist? And what makes he think only MH and FY have the right to exist?

[Izanee 0]

look...i was reading Lee Kuan Yew's memoirs - what an eye opener that was.

utusan was the voice of the malay extremism at that time - implicated in the racial riots of singapore and malaya in the 60s.

 

 

[Louis L. 2]

oo come on ...the article made by 'SAAD HASHIM" for me is just a lame excuse just to defend our flag carrier....

 

of course we love mh..but fact is fact...

 

seems like someone is just "envy" on the achievement that ak made over the short period...some more he mentioned that ak thru FAX want to conquer the world aviation industry ..but in my opinion..the wat he "mentioned" the statement is just like ak have done something really bad by introducing XFA....

 

of course he made a point my stating about the major "sacking" of worker is an national issue...i do agree on this point..but other than that...i cannot agree more on the point that he made...

 

 

my 2 cent...no offence to anyone...

 

 

PEACE