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


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#1 Chris Tan

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Posted 25 September 2018 - 11:00 AM

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....g5mUjTuk6TQY.99



#2 Kee Hooi Yen

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Posted 25 September 2018 - 11:05 AM

Perhaps members from MW ?  :P



#3 KK Lee

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Posted 25 September 2018 - 11:27 AM

MAB current business model is unsustainable.



#4 Chris Tan

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Posted 25 September 2018 - 11:36 AM

MAB current business model is unsustainable.

How so?

#5 KK Lee

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Posted 25 September 2018 - 11:54 AM

How so?

 

FY 2015 to 2018 profit and loss speak for itself.



#6 Suzanne Goh

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Posted 25 September 2018 - 12:19 PM

I like MH just the way it is now 😊 no need for experts and armchair CEOs

#7 Mohd Suhaimi Fariz

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Posted 26 September 2018 - 09:16 AM

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?



#8 flee

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Posted 26 September 2018 - 11:11 AM

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...



#9 Chris Tan

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Posted 26 September 2018 - 12:21 PM

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

#10 Waiping

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Posted 26 September 2018 - 01:18 PM

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

#11 leon t

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Posted 28 September 2018 - 10:55 AM

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.



#12 Mohd Suhaimi Fariz

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Posted 28 September 2018 - 11:10 AM

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, 28 September 2018 - 11:10 AM.


#13 flee

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Posted 28 September 2018 - 01:12 PM

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.



#14 JuliusWong

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Posted 28 September 2018 - 01:38 PM

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, 28 September 2018 - 01:38 PM.


#15 Waiping

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Posted 28 September 2018 - 02:42 PM

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.



#16 Chris Tan

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Posted 28 September 2018 - 02:54 PM

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 :)

#17 Mushrif A

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Posted 28 September 2018 - 04:37 PM

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.

#18 Chris Tan

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Posted 28 September 2018 - 04:49 PM

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.

#19 Waiping

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Posted 28 September 2018 - 06:27 PM

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

#20 JuliusWong

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Posted 28 September 2018 - 07:45 PM

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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