Sunday, August 14, 2011

MAS-Air Asia swap: A shroud of mystery

Ihe opportunity for me to give the most current commentaries on the few development involving the latest development MAS has passed me. I was hospitalised since last Tuesday.

After undergoing fairly lengthy tests, it turns out I've been asthmatic for quite many months. Having undergone the treatment, I am feeling much better now. Not fully recovered, but physically better.

A word of advice: Never underestimate that common COUGH.

As much as I am yearning to comeback fighting on the MAS issues, I will have to pace myself. For one, I will have to analyse what was the meaning behind the meaning of Tun Dr Mahathir's supportive words for the swap excercise. He hoped MAS can learn how to reduce cost.

Thus I'll not start going Tora! Tora! Tora! to blast every other insider input I get but to compile and review the various views already expressed on the issue. A friendly, elderly and wiser advise told me to remain supportive of Dato Najib.

We'll start with Miriam Mokhtar's column on FMT here minus the caustic sarcasm part on Tan Sri Tajuddin Ramli. That issue will be covered differently. Remember that this blog was the one to debunk the RM8 billion slanderous claim on Tajuddin.

Not forgetting her terrible treatment of Pehin Seri Taib Mahmud leading to the Sarawak State Election in April 2011, the gist of Miriam's column provide a background view of this issue. She expressed the concern of opposition politicians like Dato Seri Anwar Ibrahim and Dr Dzulkifli Ahmad on matter of competitiveness, monopoly and business fairplay.

After all, the Government embarked on an Airline Rationalisation Plan in 2005 to promote competition within local aviation industry but not saved from being shrouded with intrigue.

Why is the MAS/AirAsia merger necessary? Was it to help MAS or AirAsia? No one really knows as this deal is shrouded in mystery.

The fly-by-night people in charge of MAS are no better than a posse of cowboys. Why do we continue to tolerate the wasteful antics of our politicians who indulge in a game of real-life Monopoly and who use taxpayers’ money to bail out ailing companies?

In a perverse reversal of the saying “King Midas and his golden touch”, it appears that whatever BN-Umno politicians “touch” will always turn to dust and ashes.

This deal that is struck with MAS and AirAsia is another smack in the face for the public. What sort of responsible government allows such a merger to take place? By agreeing to this merger, the government has neglected to address healthy competition which in essence should benefit the airline customers, companies and the Malaysian economy.

What about fair trading practices? Or conflict of interest? Or share prices? Maybe the Securities Commission should start probing both AirAsia and MAS about insider trading or any other irregularities. What about the jets each carrier uses, the agreements and maintenance contracts signed with Boeing and Airbus? Who honours what? ...

...With this latest defrauding of the public purse, how much of the taxpayers’ money has gone unaccounted for? This government is neither transparent nor accountable. It does not adhere to its own catch-phrase, “People First, Performance Now”. It doesn’t even match up to its own Key Performance Indicators.

In the late 1960s and 1970s, working for MAS was both a privilege and carried great prestige. Today, there is a different portrait of the MAS employees. Many are unhappy and morale is at an all-time low. Disaffection with MAS is felt by cabin, flight and ground crews including engineering and maintenance staff.

Jala’s forte

When Singapore Airlines (SIA) and MAS emerged from the ashes of the now-defunct Malaysia-Singapore Airlines (MSA), SIA went from strength to strength while MAS was left in the doldrums....

...In these days of rising fuel costs and tight profit margins, the airline industry is more competitive than ever. However, the Malaysian Cabinet denies putting government officials in charge of a global brand.

These officials are clueless about most things and have no experience of running an airline. The first thing to effect a turnaround should have been to disband the senior management, all of whom are mere government puppets.

If there was one brief moment of respite for MAS staff, it was when Idris Jala took over and was “praised” for turning the company around. But even simpletons realise that selling your best assets just to make the books look good, is not financial wizardry. Many in MAS are still angry with Jala.

Asset stripping was Jala’s forte. He also engaged in cost-cutting by reducing many of the privileges enjoyed by the staff without addressing the problems created by Umnoputras and BN politicians who treated the airline like it was their own private transport.

Jala, having collected his performance bonus, then entered the government’s bloated political élite club via the back door and became a senator and Minister in the Prime Minister’s Department.

So if Jala has turned MAS around, why is the MAS-AirAsia merger necessary? Was it to help MAS or AirAsia? No one really knows as this deal is shrouded in mystery.

Mahathir remarked that the MAS-AirAsia merger was a “very good idea” as “AirAsia can learn about the experience of MAS and MAS can learn how to reduce costs as done by AirAsia”....

...Being held accountable

When will we have a head of MAS who is brave enough to say “No” to the government? MAS was a fine airline decades ago and many Malaysians were proud to fly with it. These days, MAS is overpriced and uncompetitive.

AirAsia is nothing to shout about. Customer service is non-existent and it is not cheap flying AirAsia on some long-haul flights. The merger will be another nail in the coffin with regard to competition....


no voice said...

good to have u back.

just one question - how much is TR paying u and your friend?

choc-apple said...

saya rase tun m camdeq air asia kot.....

Anonymous said...

the best person to give you a clearer picture of the aviation industry ( MAS and Air Asia) in Malaysia are the travel agents.

90% of their advertised tour packages are using foreign airlines and not the MH or AA unless requested by their client.

MH used to get big support from the agents but they prefer to ignore them thinking that they are a premium airline.

As for AA, they are nowhere near to the real budget airline airfare
( compare it with Ryan Air and Easy jets operating in UK and Europe which have to compete with 20 other budget airlines ).

With the sloppy competitor they have in Asean countries plus the price gimmick and the hidden cost, they were seen as the only choice left for the budget conscious passenger.

But what I would like to see is how TF and his team deal with the 8 MAS staff Union as Air Asia does not permit any union to be formed in their organisation.

Or he and his master is more interested with the Khazanah bottomless coffer

flyer168 said...


What else is new?

From Tajuddin, PNB, etc & now MAS/AirAsia/Khazanah…they all share the same agenda...

"Competition is a sin".

"Own nothing. Control everything" - Rockefella.

"Give me the control of the credit of a nation, and I care not who makes the laws" - Nathaniel Meyer Rothschild

The famous boastful statement of Nathaniel Meyer Rothschild, speaking to a group of international bankers, 1912:

"The few who could understand the system (cheque, money, credits) will either be so interested in its profits,

or so dependent on its favours, that there will be no opposition from that class,

while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system,

will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests"

Just to share this...

Boustead takes a helicopter view -

MAS Willing To Look To AirAsia For Ways To Improve Performance
#FY/MH | Firefly/Malaysia Airlines/MASwings - Page 7 - SkyscraperCity
Next to share this about MAS...23 Pages of info...

Finally to share this...

File Format: PDF/Adobe Acrobat - Quick View

Whcn Tajudin Ramli took over Malaysian Airline System Bhd. (MAS) and .... Malaysian Airline System 1994 1993 1992 I991 I990 ...

You be the judge.


A Voice said...

no voice

If I wish to get paid, why would I defend Tajuddin Ramli?

I have been consistent on the issue of Forex trading lost debacle by BNM and national service to buy the shares of MAS and MISC from BNM.

I do not need money to convice me the real scrouge in this whole deal is Anwar's associate Nor Mohamad Yakcop.

I happen to know him in early part of my career.

By right I should just delete your immature comment, but I decide to answer you.

I wonder if you can ever prove your allegation.


PART 1 / 2

Dear Sir,

Thank you for your relentless effort. My heart is bleeding again.
We are ready to surface.

I have also read somewhere about the main issue that has been overlooked.

“The state-owned airline has already had two rights issues since Jala took over, raking in RM1.6 billion in 2007 and RM2.67 billion in 2010 to fund its operations and fleet purchases.
Industry experts said that a further injection of cash will not save MAS as “operational fixes” are required.”

“The past financial fixes haven’t helped MAS. Another round of money won’t either, an industry source told The Malaysian Insider despite a touted RM8.4 billion aircraft renewal programme.
“Most of the past solutions for MAS, either the WAU or Jala’s business transformation plan, were financial in nature to keep the airline in the black. But what is needed are operational fixes,” he added.”

Yes, this is what lacking in MAS leadership – an Operational person who is FIRM, FAIR and FULLY FUNCTIONAL (as in operational).

I have also written many analysis and some reports were given personally to Tan Sri Md Nor Yusof (when he was the MD) and Tan Sri Munir Majid (when he was the Chairman).
Being Finance persons, they somehow were not able to understand operational issues.

The observations below are extracted from my report titled “ENGINEERING AND MAINTENANCE DIVISION WORK CULTURE: A PRELIMINARY ANALYSIS” dated 11 December 2003


Based on a series of investigation, study and event that have unfolded, out of plain responsibility, I would like to raise my concerns on Engineering and possibly other MAS senior Management that we may be living in an unhealthy and disturbing culture whereby:

1. We take problems for granted.
2. We fail to analyze the real underlying issues and thus not able to provide professional solutions
3. We tend to defer important issues and failed to put first thing first preferring to continue prescribing quick fixes and fire fighting instead of fire prevention.
4. We tend to contain main issues, buying time, with the hope that the issues may miraculously go away or at the very least, the individual who raised it will be frustrated, fed up and eventually give up.


PART 2/2

5. We are slow to act and react, we tend to condone many malpractices especially among the management. We have been led to believe that if we expose these malpractices, we are backstabbing our own friends and colleagues. We failed to recognise the fact that if we do not correct and instead choose to ignore the issues, we are actually backstabbing and betrayed the trust given by the nation and the public (staff)
6. The true professionals and leaders were not given the due recognition and credit they deserve.
The non performers (yes man) are rewarded whereas the performers are sidelined simply because their superiors felt threatened by their able subordinates.
7. Many have been exposed albeit ineffectively on various course such as leadership, communication, financial, management etc. What really missing is the very basic skills of learning which is analytical, comprehension, expression, interpretation and research skills
8. We tend to tolerate our own incompetence, giving too many chances when what seriously lacking is a dose of proper lessons
9. We tend to penalize those who defy, those who had guts in exposing our own incompetence and malpractices.
10. We tend to be ignorant of the huge responsibilities that Engineering & Maintenance have to shoulder and our inaction could jeopardize many lives including our loved ones.
11. Engineering as the engine of growth and heart of MAS acutely lack professionals who can provide solutions to the needs and problems and leaders who solve problem others fear.
12. In summary, we do not seem to be doing the right things and quite evidently we do not know the right things to do.

Now, after nearly 8 years under wrapped, it is time for me to share with the public.

Thank you

My other report and the lame response here:

Webmarhaen said...

Hello tuan, saya telah dikaitkan web yang bagus anda, supaya anda boleh link blog saya?Saya berharap anda tidak keberatan ...
ini adalah blog saya

nasib baik

Anonymous said...

Nice article. This can hardly come as a surprise as it is just Part #2 of the initial swindle - - and the same suspects are back for more. When are Malaysians going to wake up. Hey, pleased to hear that you had your asthma diagnosed and hope it's now under control. Cheers.

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