Monday, December 07, 2015
New MAS report better revenue but no P&L mentioned
TMI posted a news report of MAS (or now referred to as MAB) last week on December 3rd. Not to be confused with MAHB for Malaysia Airport.
The headlines reads as New Malaysian Airlines records better revenue, performance. Thinking it is an MAB quarterly profit announcement, we click on to read. Have been eagerly wanting to know how well the new MAS under the new Mat Salleh led management is doing.
But no profit and loss mentioned. What is the point?
Is this another of that highest profit ever recorded media blitz Dato Idris Jala did many years ago but it turned out to be an operating loss for the quarter? Or could it be another Dato Fuad Dahlan charade of going for revenue without consideration for profitability?
No point of reporting on revenue and operational performance but it's profitability is not known. We damn well doubt MAB is making money.
Few last flights taken saw quite a lot of empty spaces. Food is just lousy. Service still have some touch of it's glorious past.
Then we realised it is no more a PLC, so no obligation to do so. It was only from MAS Recovery Plan Quaterly Update press release.
No mention of P&L but only operational issues - new crew bases, new product to be rolled out in next 18 months, RASK decline stopped and reversing, cost saving and vendor renegotiation, and new several appointment.
The media blitz for the press release is the announcement of MAB-Emirates partnership. In another word, it is code sharing. MAB will go to fewer long haul destinations and the passengers will be boarded on Emirates. Maybank IB called it a "masterstroke".
Biar betul budak ni ... its nothing, no big deal. Blast from the past. Eventually passengers will stop taking MAB but go to airlines that will take them right to the destination.
The Edge reported CIMB Research view that it is MAHB that will benefit and not MAB. How will that be? Does it make Sepang a hub for passengers to go to other destinations? So what with the masterstroke about it?
It is downsizing or some efficiency enhancement new terminology.
If RASK decline just stopped, maybe for the first time, then our hunch that it is still bleeding and not profitable is right. The turnaround in profit has not begin. Otherwise, they would have gloat about it.
It's been some time since we write about MAS. We hold the pessimistic view that MAS cannot be turnaround. Not with the human resource it has.
Zaharah Zaid has left and not part of the new MAS. However, her human resource legacy is damaging enough. Not enough capable and experienced staff to run things.
Union issues still remain. By right the new MAS was to rid off the pesky and corrupt union heads.
The feedback from some of the staff is new MAS will not be able to turnaround and will close shop within two to three years. These are the veteran ones talking and not the over eager new Managers that many undeservedly got themselves promoted.
Stories are abound of double promotions to young staff just for the sake of getting young blood but without the aptitude and attitude. Many good people have left the company though they wanted to serve and help the turnaround.
Pity those that stayed and promised bonus at later years equivalent to the package of those that left. They are not likely to get.
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