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Form group of experts to review MAS, says ex-boss

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KUALA LUMPUR: The government needs to set up a group of experts to review Malaysia Airlines Bhd's (MAB) current operations as the RM6 billion restructuring plan is deemed a failure, ex-Chief Executive Officer/Managing Director of Malaysian Airline Systems Bhd (MAS) Tan Sri Dr Abdul Aziz Abdul Rahman said.

 

MAB's sole shareholder, Khazanah Nasional Bhd had injected investments amounting RM6 billion to support the national airline's five-year turnaround plan launched in 2014

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Abdul Aziz said rather than making profit, the airline recorded losses for three consecutive years with RM1 billion financial loss in the first year of the restructuring plan.

 

“From 2015 to 2017, they had failed. The fourth year (2018) we don‘t know yet. We have to look at the end of this year to see the results."

 

https://www.thestar.com.my/business/business-news/2018/09/24/form-a-group-of-experts-to-review-malaysia-airlines-operations-mas-ex-boss/#U7I9g5mUjTuk6TQY.99

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What he means is that the government should call him to be the expert. The guy seems to not notice that the aviation industry is way different nowadays as compared to 27 years ago.

 

Why do we have to entertain doddering old fogies everywhere?

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During his time, there was no real internet to speak of and most travellers were not so savvy - they depended on travel agents.

 

There were no LCCs and no ME3 to compete against. Oil prices were more stable.

 

I don't think that it is easy nowadays, especially with social media so rampant. So he should just enjoy his retirement...

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During his time, there was no real internet to speak of and most travellers were not so savvy - they depended on travel agents.

 

There were no LCCs and no ME3 to compete against. Oil prices were more stable.

 

I don't think that it is easy nowadays, especially with social media so rampant. So he should just enjoy his retirement...

I wonder if he knows about CASK and yields and stuff like that

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I also like MH if they continue to offer RM1089 return BKI - NRT I will be their customer every month!

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MH have been making billions of losses every year and even last year 2017 its losses was still over rm800 million. All in all the govt have rescued MH in the order of at least rm20 billion through restructurings and even setting up companies to buy planes for MH.

As its has been making billions and still will be making losses for the years to come, its better for the govt now as its debt is so high that MH should be really sold off and not to any govt-owned companies or to govt investment companies like Khazanah. Perhaps the govt should approach air asia to take over MH as it have the experienc to run an airline and make money.

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MH have been making billions of losses every year and even last year 2017 its losses was still over rm800 million. All in all the govt have rescued MH in the order of at least rm20 billion through restructurings and even setting up companies to buy planes for MH.

As its has been making billions and still will be making losses for the years to come, its better for the govt now as its debt is so high that MH should be really sold off and not to any govt-owned companies or to govt investment companies like Khazanah. Perhaps the govt should approach air asia to take over MH as it have the experienc to run an airline and make money.

 

And have AirAsia monopolize the market? That's dumb.

 

All you're going to get is crappy service & sky high fares.

Edited by Mohd Suhaimi Fariz

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Perhaps the govt should approach air asia to take over MH as it have the experienc to run an airline and make money.

Airasia is not the solution to all of this country's problems in aviation!

 

MAB should be sold to the private sector - a lot of its problems also stem from it being a GLC. It is not run on a commercial basis, its staff are civil servants, its suppliers overcharge, it has no incentive to excel because it knows that the govt. will bail it out if it fails.

 

Selling MAB will enable it to benefit from the expertise of its new owners. They should allow foreign ownership too (perhaps, up to 49%) as foreign companies might be interested to take up the challenge.

 

Whatever happens, major changes are still needed at MAB. What happened the past few years is not enough to make it a sustainable operation.

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There ain't any sugar daddy out there who is willing to dish out few billions to buy a limping airline.

 

Every sane airline management to keep MH at the bay with yardstick.....

Edited by JuliusWong

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Well I thought Proton wasn't for sale, until Geely bought it over. So all eyes is on the new government on how to resolve the MH problem. So far I think the new transport minister has been kind to MH, with no ultimatum/pressure whatsoever to cut manpower or close it down entirely. However, I also don't see them entertaining any request to bail MH this time around.

 

Perhaps MH should look at what happened to SABENA and maybe work towards that. SABENA was closed down in 2006 and Brussels Airlines was born from this. No point in harping on having 2 or more airlines if clearly there is 1 monopoly. We need a strong contender to fight AK and MH is not the one. Imagine for every promo seat you try to match your competitor and you lose money.

 

I have also noticed that AK seems to be the airline of choice for the new government.

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Selling MAB will enable it to benefit from the expertise of its new owners. They should allow foreign ownership too (perhaps, up to 49%) as foreign companies might be interested to take up the challenge.

 

Whatever happens, major changes are still needed at MAB. What happened the past few years is not enough to make it a sustainable operation.

Clearly, the expertise exists in Malaysia. No need to look beyond our borders for talented people to save MAS :)

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Well I thought Proton wasn't for sale, until Geely bought it over. So all eyes is on the new government on how to resolve the MH problem. So far I think the new transport minister has been kind to MH, with no ultimatum/pressure whatsoever to cut manpower or close it down entirely. However, I also don't see them entertaining any request to bail MH this time around.

 

Perhaps MH should look at what happened to SABENA and maybe work towards that. SABENA was closed down in 2006 and Brussels Airlines was born from this. No point in harping on having 2 or more airlines if clearly there is 1 monopoly. We need a strong contender to fight AK and MH is not the one. Imagine for every promo seat you try to match your competitor and you lose money.

 

I have also noticed that AK seems to be the airline of choice for the new government.

I dont know why some people continuously expect MH to fight AK. To a non insignificant portion of the market, AK is not even an option.

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I dont know why some people continuously expect MH to fight AK. To a non insignificant portion of the market, AK is not even an option.

Indeed. There is a lot more to the market than just RM99 O fares.

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We can get philosophical about the situation, but it does change the fact that whatever they are doing is not working.

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Asians are thrifty, they go for airline or arrive providers which can give them biggest bang for their bucks. The rate at MH going, it doesn't differentiate themselves much from a LCcc, maybe except the fee luggage.

 

Airasia has much larger network and flight frequency TP cities and smaller costds in Asia Pacific compared to MH

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I dont know why some people continuously expect MH to fight AK. To a non insignificant portion of the market, AK is not even an option.

MH has to be realistic - there is not enough premium passengers to fill all their flights all the time. So they still need the peasants to fly in the back of the plane.

 

For many years, SQ also struggled with the LCC competition and CX is still suffering. However, SQ appears to have begun solving the problem by streamlining into two groups - an LCC group and a FSC group. Now, they have distinct brands playing in the different markets.

 

MAB does not have the financial resources to start another LCC. I am not sure if it can restore MH to its premium 5-star status either. So lets wait and see what the current management can do...

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MH has to be realistic - there is not enough premium passengers to fill all their flights all the time. So they still need the peasants to fly in the back of the plane.

 

For many years, SQ also struggled with the LCC competition and CX is still suffering. However, SQ appears to have begun solving the problem by streamlining into two groups - an LCC group and a FSC group. Now, they have distinct brands playing in the different markets.

 

MAB does not have the financial resources to start another LCC. I am not sure if it can restore MH to its premium 5-star status either. So lets wait and see what the current management can do...

MAB do not need a LCC, their current state already look like an LCC anyway, the non-BSI is still there for passengers "lucky draw", those BSI birds are not really being kept up to standard as well (IFE is lagging, the BSI interior can sense "black dot"). Even those miscellaneous adds on while booking making one feels I am buying an LCC ticket. The high economy promo fares currently also a drawback.

 

Just derail a bit, can someone tell why despite overcapacity and bleeding; SZB fares cannot go down back to 2 digit fares (below 50 per way) instead? RM 189 - RM 200 per way is way too much.

Edited by CH Teo

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Driving revenue is key focus: MAB

 

KUALA LUMPUR: The key focus for national carrier Malaysia Airlines Bhd (MAB) is drive revenue growth, with the expectation to halve its 2017 loss of RM812 million this year.
Group chief executive officer Captain Izham Ismail, in its first interview with NST Business, said the airline had shown improved performance in the first half this year.

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MAB do not need a LCC, their current state already look like an LCC anyway, the non-BSI is still there for passengers "lucky draw", those BSI birds are not really being kept up to standard as well (IFE is lagging, the BSI interior can sense "black dot"). Even those miscellaneous adds on while booking making one feels I am buying an LCC ticket. The high economy promo fares currently also a drawback.

 

Just derail a bit, can someone tell why despite overcapacity and bleeding; SZB fares cannot go down back to 2 digit fares (below 50 per way) instead? RM 189 - RM 200 per way is way too much.

 

In its current state do you think MAB really want (or need) to increase budget on revamping cabin and IFE?

 

There's very limited competition ex-Subang. If one carrier raises fares yet impact on passenger volume is minimal, it won't take long for the other to follow suit and increase fares too. Who wouldn't want a boost in revenue from higher yields, especially when your neighbour is enjoying it and breaking even with an easier to achieve load factor.

 

Driving revenue is key focus: MAB

 

KUALA LUMPUR: The key focus for national carrier Malaysia Airlines Bhd (MAB) is drive revenue growth, with the expectation to halve its 2017 loss of RM812 million this year.
Group chief executive officer Captain Izham Ismail, in its first interview with NST Business, said the airline had shown improved performance in the first half this year.

 

 

Looks like the CEO is in a loss-mitigating mode. Wonder if he's got a clue what direction to take. There is a need to fix the base business, and strings of promos isn't a healthy way to do it like what we've seen this year.

 

Perhaps Khazanah should look East at JAL, or just let go of MAB and let it operate like a business. The A350 really shouldn't have that coffin-style space-wasting First class and it is one of the wasted opportunity for more revenue.

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MH has to be realistic - there is not enough premium passengers to fill all their flights all the time. So they still need the peasants to fly in the back of the plane.

 

For many years, SQ also struggled with the LCC competition and CX is still suffering. However, SQ appears to have begun solving the problem by streamlining into two groups - an LCC group and a FSC group. Now, they have distinct brands playing in the different markets.

 

MAB does not have the financial resources to start another LCC. I am not sure if it can restore MH to its premium 5-star status either. So lets wait and see what the current management can do...

Why would MH want to regain the incredibly meaningless 5-star status? The people who spend good money on MH don't buy tickets based on some hollow rating. And neither do these "peasants" you mentioned.

 

MAB do not need a LCC, their current state already look like an LCC anyway, the non-BSI is still there for passengers "lucky draw", those BSI birds are not really being kept up to standard as well (IFE is lagging, the BSI interior can sense "black dot"). Even those miscellaneous adds on while booking making one feels I am buying an LCC ticket. The high economy promo fares currently also a drawback.

So, what's the consensus here? Do we bash MH for having LCC-like interiors on a handful of planes with LCC-like fares? Or bash MH for not being more like SQ with sky-high yields and then complain about the high airfares?

 

Perhaps Khazanah should look East at JAL, or just let go of MAB and let it operate like a business.

A gloriously super-low density 788 with almost as few seats as MH's 738s sounds nice doesn't it? If that happens you can kiss goodbye those O/Z fares. Then we'll be back to square 1 complaining about how MH doesn't have what it takes to compete with AK/D7.

 

The A350 really shouldn't have that coffin-style space-wasting First class and it is one of the wasted opportunity for more revenue.

Take away that one row of F to LHR and the VVIPs will now have a legitimate reason to fly another airline. THAT's a wasted opportunity. You'll be surprised by how much revenue F brings in. Many of us don't pay top dollar to fly in F but there are people who do.

 

The F seat isn't as bad as what some people say after looking at pictures. Sure, it's not SQ Suites or EY Residence, but an airline like MH should be more focused on competing against D7 Flatbed anyway ;)

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