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Wednesday, December 10, 2014

Know-nuts Khazanah gave know-nuts "con-sultans" to stir more shit in MAS


When the 12 point recovery plan was announced in September, this blog's response was "Frankly, it's the same 'ol shit from Amokh". Not only that, it could be the same bunch of shit stirrer. 

Having read back this blog's old posting of December 2011 [read here], Tan Sri Tony Fernandez's Air Asia could return to take up stake in MAS when Khazanah exit on their investment? If not, another merger is possible should the Air Asia-X disease spread to other parts of Air Asia [read here and here].

In the meanwhile, Bigdog made another interesting revelation yesterday. Not only the same bunch of shit stirrers but more of them. The Khazanah know-nuts left it to know-nuts "con-sultans" to do day to day hand-on business and operational turnaroound.

It just shows something we've been telling for many years.


Khazanah know nuts about business and operations thus should not be expected to turnaround companies. They have failed many times. They are just screen watchers and most of the time, yak yak away with their reports, powerpoints and numbers.

One can read it in his blog here but let us try to highlight the main points.

Development in the restructuring is getting unnerving given Khazanah poor track record in turnaround.

MAS Bhd Administration Bil 2014 was tabled in Parliament. What's the details in the Bill? "...shall carry on other businesses as its board of directors sees fit."

Christophe Mueller announced as CEO for newco. Given Khazanah track record, maybe it is not a bad idea to bring in an airline turnaround specialist. But, what would be is his term of condition?


Is it to carry out as per consultant style plan as before?

Upon turning private, Khazanah went on a "typical ‘McKinsey’ plan of corporate recovery, which include slaughtering, skinning, deboning and eventually mincing the one time sacred cow in the skies of many Malaysians."

It was similar to Azman Mokhtar inspired WAU which ended costing more money to lease from PMB. Furthermore, the leasing company, PMB also lost money [read us here].

After Dato Idris Jala, new CEO Tengku Dato Azmil plan to rebuild fleet was scuttled by the 24 hours removal. Today MAS is saddled with old gas guzzlers.

Bigdog, the ardent defender of Tengku Azmil felt it was done to make way for the consultant model for the failed collaboration with Air Asia. That was for the "decapitating and systematic and structurally dismembering the national carrier".

In the meanwhile, Khazanah had appointed five or six "Con-sultans" in the "preparation for the “MAS Recovery Plan” as well as coming up with the ’12 point plan’."

But, "non amongst the partners, managers and worse of all, the young kuchirats" have the "relevant experience of working with and/for an airline before".

"They have established themselves almost permanently parked and calling the shots as part of the ‘Restructuring Management Office’ within the corporate HQ of Malaysia Airlines.

Their modus operandi is very funny. They understand very little of the operations of an airline, let alone Malaysia Airlines. However, they do not present themselves to each operating unit to understand or even do a technical audit of the work and the operation program.

Instead, they go around in other departments asking what they thought of the department or operational function that they intend to understand and restructure."

These "arm-chair" consultants practically "map out their New Co. on a large sheet of paper and brought some of the senior management and technical professionals for consultancy and interview."

"In one of these sessions, one senior technical professional made a damning simple comment after three hours of consultancy, “I don’t really care what you people are doing and what this ‘New Co.’ is all about. My question is, I don’t see any of you people mention the sentence ‘Application of an airline license'”."

That was a good one. 

"None of these consultants actually realised that they need to apply for an Airline Operation Certificate (AOC) from the DCA for a company to be allowed to operate as an airline and carry commercial goods and passengers."


Will the New Co. "be able to play  play the five role and expectations of Malaysia Airlines System (later Malaysia Airlines)? with these bunch of rats gnawing on the pumpkin?

Under "a team of Malaysian entrepreneurs, airline professionals and managers and proud workforce", it could be achieved. 

MAS's predicament in the late 1990s was not because of "poor planning, mad management or sloppy operation. It was the affect of the 1997-8 Asian Financial Crisis (AFC 978)."

Since the newco is the endgame for the long number of years to systematically kill MAS and have a Mat Salleh, then Government should consider having a Mat Salleh to replace the existing Managing Director of Khazanah.


For that matter, the mamak conman Deputy Chairman too.

After all, Khazanah had being transformed systematically into something different from it's original intended incorporation.

Make sure it is a Scottish with a McKinsey surname.

13 comments:

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

So the conksultans dont know what they are doing cos they dont know the airline business? Well, since they are going to determine who stays or go in Mas, the best thing for the mas staff is to not share the trade secrets! That will teach khazanah a big lesson not to simply hire bangang conksultants when they are also bangang too!

A Voice said...

12.55

Ketuanan mampus sounds like an insult than a sincere discourse.

Such comment can be redirected elsewhere

Anonymous said...

Blame everyone and everything else except yourselves eh? Why don't you keep your political bullshit to yourself and let the professionals work?

A Voice said...

Anon 9.07

I don't blame everyone but khazanah mgmt that kept failing since 2001.

i will blame myself if I am the mgmt team in Khazanah that kept failing since 2001.

I will keep my bullshit to myself if these so-called professionals are truly professionals.

As far as I know Khazanah failed to understand the problem, institute the right measures and deliver the results.

It now proof again and again that they know nuts and this it gets worse as they rely on kucirat know nuts consultants

The samurai rule of meritocrasy demand them to commit harakiri or sapaku, but they are still comfortable in their multimillion dollar job.

kampong lad said...

how bout landing rights?

kampong lad said...

how bout landing rights?

Anonymous said...

The "AirAsia X" disease?

Really?

Why not talk about the chronic MAS "disease" that has been around since when?

Oh, yes - before AirAsia was set up.

A fact conveniently forgotten by many because, hey, it's a "national flag carrier" with a unique "agenda" and "socioeconomic responsibility".

It's a shame that other competitor airlines don't see it that way.

So, while MAS is fulfilling the agenda and socioeconomic responsibilities, other airlines are cutting costs, rightsizing workforces and making profits.

While renewing and upgrading their fleets.

I don't suppose that those peddling nationalist nostrums have any idea of what it takes to compete effectively and profitably in the aviation industry today.

Because, to them, a benevolent government will always be there to bail out MAS, again and again.

Anonymous said...

Itula bila dah lama sangat kat khazanah, yg cerdik pun jadi kurang cerdik........

Anonymous said...

Anon 9:07,

"let the professionals do their work"

So in MAS workforce got no aviation professionals, all are just bunch of mediocre. (in that case Ettihad and Emirates Airline are taking mediocre personnel from MAS)

Who made up these mess?

Why in hurry to put MAS act?

Why bring Gwailo to run MAS when in those good old days was run by good Malaysian MAS management and many gwailo prefer MAS.


Anonymous said...

"Let the professionals work"..

Therein lies the problem.

These people are NOT the professionals needed for the industry. These are mere bean counters. Period.

The proverbial hammer. Any problem becomes a nail to be hammered down.

You have a broken picture frame ? Lets hammer it back.

You overcooked your rice ? Lets hammer it down.

Your car has a puncture ? Lets hammer it down too.

The MAS issue looks like a financial problem. And it is tempting to ask a bean counter to solve it.

But we think it HIDES lots of other issues. Bean counters will not be able to see it.

And throwing more bean counters into it...itu...what's that word ?.. bahalol namanya !

Anonymous said...

I just read a front-page report "IATA forecasts record profits for airlines as fuel costs dive" (Singapore Business Times (www.businesstimes.com.sg) December 11, 2014).

Key points:

- the world's airlines are expected to chalk up a record net profit of US$19.9 billion this year (lifted by slumping oil prices and stronger global GDP growth)

- revenues this year will total US$751 billion, translating to a still-slim net profit margin of 2.7 per cent, according to Iata chief Tony Tyler

- following a period of consolidation, US airlines are by far expected to turn in the strongest performance this year, with a net profit of US$11.9 billion. Asia-Pacific airlines will be the second-best performers by region, with US$3.5 billion

- oil prices have come down about 20 per cent from last year. Brent crude is expected to fall to about US$85 per barrel next year; this year's average was US$101.40 per barrel

- jet fuel prices are expected to average US$99.90 per barrel in 2015, down from this year's average of US$116.60 per barrel

- the airline industrywide jet fuel bill for 2015 is expected to be US$192 billion (about 26 per cent of total costs)

- fuel hedging means that it will take some time for lower jet fuel prices to filter down to the bottom line, which means that travellers will have to wait for lower air fares.

- some Asian airlines could find themselves getting burnt by the lower jet fuel prices because of wrong-way hedging. SIA, for instance, has hedged 65.3 per cent of its fuel needs at about US$116 per barrel for the six months to March 2015

- the good news for the airline industry's investors is the return on invested capital will rise to 6.1 per cent this year and 7 per cent in 2015

- according to Mr Tyler's remarks at the recent Iata Global Media Day: "The industry's story is largely positive, but there are a number of risks in today's global environment - political unrest, conflicts and some weak regional economies among them. A 3.2 per cent net profit margin does not leave much room for a deterioration in the external environment before profits are hit."

- North American airlines will remain the strongest performers next year with expected profits of US$13.2 billion

- Asia-Pacific airlines will net about US$5 billion in profits next year, driven by a pick-up in the cargo market and easing fuel expenses

Anonymous said...

How did the US airlines manage to rack up such a strong performance this year, with an estimated net profit of US$11.9 billion, according to Iata?

The magic phrase is "a period of consolidation".

Meaning what?

Simply this: an unwavering focus on costs. Rightsizing (or downsizing) their workforces. Axing marginal and unprofitable routes and destinations. Taking on the unions and forcing pilots, cabin crew and tech staff to accept lower pay and reduced benefits. Cutting back on inflight "frills", while spending big money to upgrade their premium cabins and service.

It needed the "bean counters" and seasoned industry professionals to be able to do this.

Not half-past-six politicians, bureaucrats and wannabe nationalists!

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