Jump to content


Icon Important Announcement!

New registrations require administration validation. This may delay registration approvals.


Photo

Airasia Forced Out Of Sibu-KK Route: CEO


  • Please log in to reply
69 replies to this topic

#41 BC Tam

BC Tam
  • Platinum Member
  • 7,229 posts

Posted 12 August 2009 - 07:14 AM

But I wonder why is MH suddenly so concerned about loosing taxpayers' money when it has lost billions in the past without even mentioning any concern?

:rofl: :rofl:

#42 Naim

Naim

    ****

  • Platinum Member
  • 5,948 posts

Posted 12 August 2009 - 09:03 AM

Hello everyone,

...
Encik Mohd Salleh Tabrani
Managing Director
MASwings


Latest tweet from TF:

@tonyfernandes: Maswings ceo silly and emotional. We wanted to fly kk sibu. They have exclsuive so said no. So we withdraw. End of story. Fatcs are facts.

http://twitter.com/tonyfernandes
  • Norman likes this

#43 Norman

Norman
  • Moderator
  • 4,574 posts

Posted 12 August 2009 - 10:53 AM

Latest tweet from TF:

@tonyfernandes: Maswings ceo silly and emotional. We wanted to fly kk sibu. They have exclsuive so said no. So we withdraw. End of story. Fatcs are facts.

http://twitter.com/tonyfernandes

Hehehe.... we've a lot of emotional airline CEOs.... :lol:

#44 Waiping

Waiping

    Model Collector/Spotter

  • Platinum Member
  • 5,570 posts

Posted 12 August 2009 - 11:12 AM

I think TF should also know they can't fly just fly where ever they want because of T&C of RAS and also due to FAX's previous record. Facts?

#45 BC Tam

BC Tam
  • Platinum Member
  • 7,229 posts

Posted 12 August 2009 - 11:34 AM

Nowhere near as emotional as those people in Medan ! :lol:

#46 rayner

rayner
  • Silver Member
  • 287 posts

Posted 12 August 2009 - 12:27 PM

Unions object to AirAsia’s request for review of RAS routes

KUCHING: Airline workers unions in East Malaysia are furious the Transport Ministry would even consider reviewing the scrapping of AirAsia’s Sibu-Kota Kinabalu route after what they had gone through during the Fly Asian Express (FAX) episode.

In a strongly worded statement yesterday, Airlines Workers Union Sarawak (AWUS) and Air Transport Workers Union Sabah (ATWUS) told the ministry not to ‘kowtow’ to AirAsia.

The statement, signed by AWUS president Haswandy Morshidi and ATWUS president Mohd Alfreedo Mohd Yahya, objected to any plan by the ministry to go back on its decision to award the route to Malaysia Airlines’ (MAS) subsidiary, MASwings.

They recalled that when the government announced the new domestic aviation restructuring some three years ago, there were extensive negotiations between MAS and AirAsia, which took over the domestic flights including the Rural Air Service (RAS) through its subsidiary, FAX.


As a result of the route rationalisation, they said more than 2,600 MAS staff were affected, including about 700 from Sabah and Sarawak, who had to leave MAS on a mutual separation scheme (MSS).

At the same time, they said MAS had to close down a few of its stations and staff were either transferred or offered the MSS.

Lahad Datu was one of the stations affected when FAX commenced operation.

“AirAsia is quick to blame MAS and MASwings, but where were they when the public and passengers were complaining about FAX service and punctuality?

“If AirAsia cares so much for the public, why aren’t they flying to the unprofitable sectors such as to Labuan which they have abandoned and now serviced by MASwings only?” they asked.

They claimed that by demanding the Sibu-Kota Kinabalu route, AirAsia showed no regard for the agreement between the government and MAS or MASwings.


The unions said this not only had an impact on MASwings’ business, but also the staff and the public at large.

“If this is allowed, how are we the staff assured that there will not be another ‘route rationalisation’ for the sake of ‘kowtowing’ to AirAsia.

“Allowing AirAsia to fly this sector would also mean the government subsidising the profit of AirAsia because MASwings would not be able to optimise their seat capacity. Again this would mean creating profit for AirAsia from the tax payers’ coffers,” they stressed.

In this respect, the unions urged the Transport Ministry not to take up the interest of AirAsia alone, but also the interest of the current workforce of MAS and MASwings.



http://www.theborneopost.com/?p=56396

#47 Izhar Z

Izhar Z
  • Members
  • 212 posts

Posted 12 August 2009 - 01:29 PM

Latest tweet from TF:

@tonyfernandes: Maswings ceo silly and emotional. We wanted to fly kk sibu. They have exclsuive so said no. So we withdraw. End of story. Fatcs are facts.

http://twitter.com/tonyfernandes


Hehe.... Pot calling the kettle...
Like he never did something like that before. Maybe he's afraid the truth has came out. I mean the facts.......

#48 Tamizi Hj Tamby

Tamizi Hj Tamby
  • Platinum Member
  • 5,738 posts

Posted 12 August 2009 - 02:34 PM

The fight is now begin.

MASwings, AirAsia in dogfight
By Ting Tieng Hee

National carrier’s subsidiary denies forcing budget airline out of Sibu-Kota Kinabalu route

KUCHING: MASwings yesterday broke its silence over the claim that it was forcing AirAsia out of the Sibu-Kota Kinabalu route, bringing in a new twist to the airline saga.

Not only did MASwings vehemently deny the claim, it also said AirAsia was more heavily subsidised by the government when its subsidiary, Fly Asian Express (FAX), was operating the Rural Air Service (RAS) in 2006 compared to MASwings.

“There is absolutely no truth to AirAsia’s allegation that we forced them out of the Kota Kinabalu-Sibu route,” said MASwings managing director Mohd Salleh Tabrani in a statement.

He said the route was exclusive to the operator of the RAS because AirAsia had requested for route exclusivity when FAX operated the RAS.

“We are merely following the RAS agreement that is in place. For AirAsia to fly on the route is a breach of the agreement, the same privilege enjoyed by FAX,” he said.

AirAsia chief operating officer Datuk Tony Fernandes in a report front-paged in The Borneo Post on Aug 1 confirmed that the budget airline would terminate the route on Oct 25 this year, indicating that MASwings had forced his company out.

When asked why the low-cost airline was stopping the operation of the route, he said: “Because MAS protested. Only MASwings can do it.”

Salleh yesterday pointed out that the RAS agreement covered exclusivity of the routes in Sabah and Sarawak whereby the airline operating the routes was given the first right of refusal in the event the government wanted to open up additional routes in East Malaysia.

“AirAsia was given the choice to operate in 2006; they got more subsidy than MASwings for the same scope of service, but they quickly surrendered the RAS back to MAS when they realised how unprofitable the routes were and have now decided they want to cherry pick and operate only on profitable routes.

“This is not acceptable as taxpayers’ money is involved. We cross-subsidise profitable routes such as the KK-Sibu route with other unprofitable routes. By doing so, we save the taxpayers’ money as MASwings’ profit and loss is borne by the government,” Salleh added.

Salleh said in the event that changes were made to the agreement, MASwings would need to review the commitment it had given to the government.

“The current commitment is an annual subsidy of well below 50 per cent of what was paid to FAX. In the event of the removal of selected routes from RAS agreement, a higher subsidy may have to be paid to MASwings,” he said.

He said AirAsia, through FAX, took over RAS from MAS in 2006.

Just 13 months later, MAS was asked to take back RAS operations and has since been operating these routes under MASwings.

Salleh said initially, RAS in the context of MAS was designated for air services using Twin Otter aircraft.

He said when the government gave RAS to AirAsia, it was with an expanded scope and covered all ‘propeller operated services’.

The separation was done on Aug 1, 2006.

As a result, MAS had to retrench hundreds of long-serving staff in Sabah and Sarawak under a mutual separation scheme.

Salleh said MAS handed over seven Fokker 50 and five Twin Otter aircraft to FAX in excellent flying conditions.

“When MASwings resumed the RAS operations in October 2007, 50 per cent of the seven Fokker 50 and six Twin Otter aircraft were not airworthy.

“As a result, we had to spend about RM36 million to restore these aircraft back to operational condition,” he said. When contacted via telephone yesterday, Fernandes said he could not understand why Salleh would react that way.

“What are they talking about? We are saving government’s money. MASwings is a fully subsidised service,” he said, when asked for his reaction to Salleh’s claim that he was ‘cherry picking’.

On Sunday, Bernama quoted Transport Minister Datuk Seri Ong Tee Keat as saying his ministry would review the decision to scrap AirAsia’s Kota Kinabalu-Sibu route.

He said two groups - the Foochow Association in Kota Kinabalu and the Chinese Chamber of Commerce from Sibu - had personally met him on the matter.

He had promised them that he would come up with an announcement soon.

“I told them that it involved an agreement between the government and MASwings and that it came into being before I took over the (transport minister) portfolio. So I have to look into the delicate points contained in the agreement because that might involve perhaps, not just one sector, but we must always bear in mind, ‘people first’,” said Ong.


From The Borneo Post Online.

Edited by Tamizi Hj Tamby, 12 August 2009 - 02:34 PM.


#49 ksauyong

ksauyong
  • Members
  • 5 posts

Posted 12 August 2009 - 02:45 PM

Air Asia has in the past, started and stopped quite a number of routes because they were unprofitable.
Strange that no associations protested then. Why now, when clearly Airasia has no right to fly the Kota Kinabalu-Sibu route.
For Airasia, it is all about profit, and nothing about serving the people. How the people in Sabah and Sarawak suffered during their FAX period with all the delays and cancellations.
So Fernandez, do not lay the blame on MAS.

#50 Waiping

Waiping

    Model Collector/Spotter

  • Platinum Member
  • 5,570 posts

Posted 12 August 2009 - 03:23 PM

Almost forgotten that AK scrapped the Labuan - BKI flight unprofessionally. No notice whatsoever. :angry:
  • Isaac and rayner like this

#51 prosibu1

prosibu1
  • Members
  • 132 posts

Posted 12 August 2009 - 06:45 PM

Almost forgotten that AK scrapped the Labuan - BKI flight unprofessionally. No notice whatsoever. :angry:

So, KK LBU route is due to load factor or MAS? :mellow:

#52 KK Lee

KK Lee
  • Platinum Member
  • 4,931 posts

Posted 12 August 2009 - 07:52 PM

If BKI/SBW is profitable, tax will be paid to the gomen. With competition, ticket will be lower, benefiting the people/taxpayer. History has proved, monopoly will only increase unproductively, inefficiency and higher fare. Since domestic routes is liberalized, why not permit AK to serve BKI/SBW to benefit the gomen and the people?

#53 Cheng Long

Cheng Long
  • Gold Member
  • 600 posts

Posted 12 August 2009 - 08:17 PM

To call someone emotional is kinda ok.. but for Tony Fernandez to call another fellow airline CEO "silly", that's very disrespectful.
  • Isaac and rayner like this

#54 Cheng Long

Cheng Long
  • Gold Member
  • 600 posts

Posted 12 August 2009 - 08:33 PM

If BKI/SBW is profitable, tax will be paid to the gomen. With competition, ticket will be lower, benefiting the people/taxpayer. History has proved, monopoly will only increase unproductively, inefficiency and higher fare. Since domestic routes is liberalized, why not permit AK to serve BKI/SBW to benefit the gomen and the people?


The profit from BKI/SBW is used to cross-subsidize other unprofitable routes in the RAS. That's because the government is so stingy that they halved the subsidy they give to MASwing as compared to ones for FAX. Even though East Malaysians literally kept them in power, guess they don't give a hoot for Sabah and Sarawak.

If you just look at BKI/SBW route by itself, it's reasonable to wonder how come AK not allowed the route. But looking at the overall scheme of things (as have been mentioned previously in this thread), you can just see how AK is manipulating people, bending laws and agreement to get its own ways. Very unethical.

#55 flee

flee
  • Platinum Member
  • 10,880 posts

Posted 12 August 2009 - 09:04 PM

So crying foul and running to the government for more protection is ethical?

Anyway, it looks like the case is closed. AK has withdrawn and they are moving on. No point wasting time fighting for a daily frequency. Use the time to engage in more profitable activities! If AK makes profit, govt. also gains as they have to pay tax.

#56 Tamizi Hj Tamby

Tamizi Hj Tamby
  • Platinum Member
  • 5,738 posts

Posted 13 August 2009 - 11:57 AM

Related news:

MTUC S’wak objects to review of scrapping
By Raynore Mering

KUCHING: The Malaysian Trades Union Congress (MTUC) Sarawak has come to the aid of their brothers in the airline workers unions to protest against a review of the scrapping of AirAsia’s Sibu-Kota Kinabalu route.

Its secretary, Andrew Lo, said in a press statement yesterday: “… AirAsia cannot simply pick and choose profitable routes after leaving Sarawakians high and dry; and taxpayers to pick up the pieces of the Fly Asian Express (FAX) fiasco.”

The Airlines Workers Union Sarawak (Awus) and the Air Transport Workers Union Sabah (Atwus) had protested the Transport Ministry’s plan to review the route, which AirAsia will surrender to MASwings on Oct 25 this year.

The unions said in a press statement on Tuesday that the ministry should not ‘kowtow’ to AirAsia, pointing out that when the low-cost carrier ran the rural air service (RAS) routes through FAX some three years ago, many Malaysia Airlines (MAS) workers were affected.

AirAsia claims that MAS is forcing it out of the Sibu-Kota Kinabalu route, although the route is under RAS, which was now serviced by MASwings.

Lo felt that AirAsia, instead of playing to the gallery, should keep to its plan to develop Kuching as a low-cost travel hub.

He also said the public should not only be concerned with getting the cheapest deals.

“While we always welcome competition and cheaper airfares, Sarawakians must not be simply swayed.

“Just because supermarkets offer two crates of soft drinks at RM3 during festive occasions does not mean that everything in the supermarket is a good deal,” he said.


Edited by Tamizi Hj Tamby, 13 August 2009 - 11:58 AM.


#57 flee

flee
  • Platinum Member
  • 10,880 posts

Posted 13 August 2009 - 12:13 PM

It is actually interesting that they want AirAsia to develop a low cost travel hub in Kuching. I do wonder how viable it is because the Kuching-Macau route did not really generate a lot of passengers. Now, AK has Penang to Macau flights and I wonder how good is the response there.

Somehow, I do think that hubs need a certain level of population to sustain them. Right now, only KUL seems to be viable because of the huge population and they also use it to balik kampung during festive periods. I seriously doubt if Kuching has enough travellers to sustain a hub.

#58 Waiping

Waiping

    Model Collector/Spotter

  • Platinum Member
  • 5,570 posts

Posted 13 August 2009 - 03:03 PM

It is actually interesting that they want AirAsia to develop a low cost travel hub in Kuching. I do wonder how viable it is because the Kuching-Macau route did not really generate a lot of passengers. Now, AK has Penang to Macau flights and I wonder how good is the response there.

Somehow, I do think that hubs need a certain level of population to sustain them. Right now, only KUL seems to be viable because of the huge population and they also use it to balik kampung during festive periods. I seriously doubt if Kuching has enough travellers to sustain a hub.


I thought BKI is doing quite well considering it is now the second busiest airport after KLIA, no?

#59 flee

flee
  • Platinum Member
  • 10,880 posts

Posted 13 August 2009 - 03:34 PM

Well I would think that BKI is a hub for East Malaysia. I think that is why AK wanted to link up Sibu with BKI. To get low cost, they need economies of scale. Too many hubs and too few pax is not ideal.

Edited by flee, 13 August 2009 - 03:36 PM.


#60 H C Chai

H C Chai
  • Platinum Member
  • 1,011 posts

Posted 13 August 2009 - 03:49 PM

So crying foul and running to the government for more protection is ethical?


There is no more protection here, the protection is already there and MASwing is only trying to make sure the government enforce it.

I am glad that I never experienced FAX myself, but what they did to the rural folks of Sabah and Sarawak should not be forgotten.
  • H C Chai, rayner, W Goh and 1 other like this




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users