Home » Politics in general » Further thoughts on the MAS/AirAsia issues

Further thoughts on the MAS/AirAsia issues

We take a break from talking about Azman Mokhtar and Danny Yusof as well as the bungle they and MAS are involved in with Tony Fernandes, AirAsia and QPR. Right now, we can safely say that MAS’ advertising investment is swirling around in the sink and will go down the drain anytime soon.

The position of QPR in the Premier League is now untenable.

They are languishing at 18th place in the relegation zone. The football pundits’ prediction may just come true by the end of this season; that QPR will be relegated into the lower division.

And along with it, MAS’ RM18 million which Danny had given away just to prop up Tony Fernandes’ pitiful football team.

What kind of other excuses can Danny Yusof give to defend his dodgy decisions, misjudgments and his precarious position? It is already beyond redemption.

It is not helping that he remains arrogant into thinking that he is doing a great job and remains ignorant that he is secured as to where he is.

This applies to Azman Mokhtar too. Unlike what he said earlier, advertising in QPR is never a good deal to begin with. Even this share swap is never a good deal.

Eyes are watching, ears are listening. MAS staff have the impression that Tony Fernandes is calling the shots and making decisions for the national air carrier.

A presumption never before seen in the history of MAS; an outsider, worse, a competitor taking charge into dismantling the once proud giant bone by bone, and strip its pride and pound it to the ground.

Whatever MAS has done so far (cancelling routes, advertising with QPR – that’s all they did?),  do not require their shares to be swapped with Air Asia in the first place. One wonders why on earth did they do that? As the result, Danny Yusof is now in MAS and Tony Fernandes and Kamarudin Meranun are the directors of MAS!

In an interview with The Edge last Saturday, Danny gave us the reason on why the share swap is necessary. Here are the excerpts of his replies:

The Edge, 14 January 2012

The report stated that Danny was the main man that brokered the share swap between MAS and Air Asia. When asked why is it necessary for the share swap to happen when MAS could have fixed the problem without Air Asia getting in, he summarised it as the impetus “to access the top minds of the industry. The partnership will come useful when we buy planes, for instance.”

That was his main reason. I find it hard to fathom the intelligence level of this deputy group CEO. In the first place, MAS is not in the business to buy or own planes. That is Syarikat Penerbangan Malaysia Berhad’s (“PMB”) job so why on earth would MAS acquire planes?

Historically it was Danny Yusof and Azman Mokhtar who took away MAS’ power to buy and own planes through their WAU plan back in 2002 and now Danny is speaking as if PMB does not have the expertise to buy planes.

Danny said, “we can learn from Tony and Kamaruddin. After all they placed an order for 200 Airbus in one go and that in itself tells you how powerful their negotiation skills are.”

Is that the reason why the share swap is necessary? For Tony to act as negotiator? Might as well take him as consultant. We have so many other talents around the world that MAS can employ to lead the negotiations without getting its shares and its board of directors being infiltrated by competitor.

There were talks that Air Asia over buying the 200 airplanes to bet on the rising demands of the market in the next few years with the intention to re-sell the planes to other airlines at better price than the prevailing market prices in the near future.

Will MAS buy planes from Air Asia just to ‘help out’ Air Asia then?

It will be helpful for Air Asia to have a friendly party in the form of Danny Yusof controlling the operations.

Or, it can be said that it is easier for Air Asia to sell any unwanted planes to MAS when its owners are also the executive directors of MAS!

If top management of MAS can give money to a company belonged to one of its director without any regards to corporate governance, we will be sure to see another these kinds of things to happen in the near future.

To re-cap, whatever Danny Yusof and Ahmad Jauhari said to justify this share-swap is untenable. The deal should not have happened in the first place.

Their business turnaround plan is in shambles and many people are not happy. MAS lacks the pragmatism and aggression to really overhaul its ailing business precisely because its  own top management and its main shareholder have other interests running contradictory to the survival of MAS itself.

Nobody in its Board of Directors have the gumption to do what is right because no one has a clue on how to do it. They do not have a clue because they are merely consultants who are being conned by their competitor. Danny is smittened with Tony.

In my previous article I said that MAS cannot become successful if consultants like him is managing it.

True enough MAS businesss turnaround plan was scoffed by analysts as simplistic and severely lacking the necessary measures to rejuvenate the airline. Have they looked into renegotiating their highly expensive flight catering cost with LSG Skychef – Brahim Sdn Bhd?

They won’t. Why?

Lack of aggression and curtailed by ulterior motives and interests. In other words, rightly put by analysts – they don’t have any traces of significant entrepreneurial spirit.

RHB disappointed by preview of ‘simplistic’ MAS turnaround plan

By Lee Wei Lian

KUALA LUMPUR, Nov 22 – Malaysia Airlines (MAS) lacks a plan for deep structural reforms said RHB Research Institute following a briefing by airline management ahead of the official unveiling of the national carrier’s turnaround strategy.

The research house said in a report today that the plan lacked cost cutting measures, revamps to the procurement systems or recapitalisation of its balance sheet.

RHB also said that it didn’t detect any evidence that the new collaboration with AirAsia has rejuvenated the airline.

“We did not find any significant ‘traces of entrepreneurial spirit’, if this is supposed to come with the entrance of Tune Air (controlled by AirAsia’s Tan Sri Tony Fernandes) as a 20.5 per cent shareholder of MAS,” said the report.

The report revealed that in the MAS briefing the management had said that they would cut unprofitable routes, improve fuel burn, negotiate better terms with aircraft manufacturers and redeploy capacity based on yield.

“We have to admit that we came out of MAS’ analysts’ tele-conference this morning feeling a little disappointed,” said RHB.

“Dubbed a preview to MAS’ grand turnaround plan scheduled to be officially unveiled next month, we did not find indications of any bold and dramatic moves that will turn things around, but just some logical things an airline will do in its normal course of business.

RHB said that MAS’ key structural issues include a mature and saturated full-service segment and its main hub Kuala Lumpur not being a natural market for higher-yielding full-service business travelers unlike Singapore and Hong Kong.

It added that it hoped MAS would rope in a leading international airline as equity partner to help strengthening processes, revitalise work culture, broaden market reach and presence, and effect more constructive branding or co-branding exercises.

MAS reported a third quarter loss of RM477.6 million today, bringing total losses so far this year to RM962 million.

The airlines’ lacklustre financial performance in recent quarters had resulted in the share swap between MAS and AirAsia on August 9.

It saw state investment arm Khazanah taking a 10 per cent stake in Asia’s top budget carrier in exchange for a 20.5 per cent stake in the flag carrier.

This paved the way for AirAsia boss Tan Sri Tony Fernandes to sit on the MAS board, ostensibly to help turn the ailing airline around.

The share swap and accompanying collaboration framework agreement raised public concerns that it would give rise to an industry cartel.

Firefly’s budget jet operations were shuttered last month.

The Finance Ministry revealed on November 3, however, that the share swap between MAS and AirAsia is being probed by Bursa Malaysia and the Securities Commission (SC) for insider trading. Source here.

People, passengers and voters are angry. My suggestion is for directors from AirAsia to resign from MAS’ board and replace MAS’ top leadership with people who are serious about MAS. People who has MAS’ interests solely in their hearts.

But I digress.

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27 Comments

  1. hsisiew says:

    damn.. this is serious.. danny is in deep trouble.. not to mention MAS

  2. Abd. Rahman says:

    Bring Idris Jala back he knows how to turn MAS around.

  3. Abd. Rahman says:

    Tan Sri Abd. Aziz Rahman should come and joint with Idris Jala.

  4. JMD,

    “we can learn from Tony and Kamaruddin. After all they placed an order for 200 Airbus in one go and that in itself tells you how powerful their negotiation skills are.”

    Ali: Ini berapa satu?

    Ah Beng: satu dua linggit, tiga lima linggit

    Ali: Saya beli tiga puluh, empat puluh ringgit lah

    Ah Beng: Mana boleh untong sikit saja loh.

    Ali: Okay lah, empat puluh lima…

    Ah Beng: Okay lah, okay lah kawan baik punya pasal. Oi lu jangan kasi olang tahu ah. Nanti susah niaga loh.

    Best regards
    satD

  5. JMD
    Terima kasih kerana berkongsi YouTube video..The Paradox of our Time in History..suka sangat.
    Ok..kembali kepada topik tampalan JMD pasal AA-MAS… yang kali keberapa dah ni?

    Sebenarnya rakyat hanya nampak Azman Khazanah+Tony+Kamarudin+Dany+AhmadJ main wayang kulit. Ini adalah kenyataan luaran. Apa yang rakyat tidak nampak dan tidak tahu adalah kenyataan dalaman.Apakah cerita sebenar disebalik pintu tertutup atau apa yang diperbincangkan nun jauh puluh ribu kilometer dari Malaysia sejak +/- 2 tahun yang lepas?

    Keadaan MAS umpama bisul mengangkut nanah. Jika bisul itu tidak dibedah dan dibuang nanahnya maka MAS akan tetap berbisul.Menukar saham antara AA dengan MAS bukan penyelesaian untuk MAS tetapi penyelesaian bagi masalah Air Asia. Budak tingkatan 5 pun faham ini. Sebenarnya Air Asia yang lebih bermasalah sebab syarikat ini tiada pertalian dengan kerajaan (non-GLC) tetapi pemegang sahamnya tak tahulah.

    MAS perlukan seorang Ketua Eksekutif yang berperibadi mulia dan amanah. Perlu mempunyai latar belakang industri minyak dan pandai mengimbang bekalan minyak. Kita berniaga mestilah bermotifkan keuntungan bukan buat kerja amal. Sebagai Ketua Eksekutif kita harus fokus dan tegas. Bukan jadi patong (puppet) orang atasan. Tetapi era sekarang ini adakah hamba Allah yang berperibadi sebegitu?
    Kalau ada pun kita tidak tahu jika masih terdapat tangan halimunan menggangu belakang setiap Ketua Eksekutif syarikat kerajaan didalam menjalankan tugasnya. Kalaulah begitu keadaannya, Ketua Eksekutif datang dari langit pun tidak boleh melakukan tugas yang diamanahkan kepadanya dengan baik.
    Terima kasih.

    JMD : Terima kasih dan saya setuju.

  6. aircraft trader says:

    Danny was one of the people who crafted the failure that was WAU, and then brought back in by management to “arbitrate” the mess they created – which removed the aircraft assets (and any purchases from then on) to PMB. Now he says TF is useful to negotiate aircraft purchases?

    MAS has very experienced people who can also drive hard bargains with aircraft manufacturers. Furthermore, rumor has it that TF is already looking at arm twisting MH to take up their surplus aircraft ordered. It’s very easy to order 200 aircraft in one shot. Give me one manufacturer who would not accept such magnitude of orders in one shot. Its not like you have to make one lump sum payment! Order dulu, then find financing. And Airbus has aircraft financing as part of its business model. No worries one! And the purchaser can even make money selling the “slots” for aircraft to another airline desperate to buy. It’s a derivative market there la JMD.

    TF is certainly smart. Thing is, next to Rashdan, he makes Rashdan look stupider. And its the latter who’s the DCEO of MH.

  7. malaysian says:

    Malangnya tak ada seorang pun dalam Kabinet yang mendengar semua keluhan rakyat mahupun pekerja MAS. Saya penumpang yang setiap minggu naik MAS memang sedih melihat MAS hilang seri. Cuba tengok krew Garuda sekarang — mereka berjalan dengan penuh ‘spring in their steps’. They look extremely proud and confident.

    Dengan MAS krew mereka berkongsi kepedihan dan kekecewaan dengan tetamu di awan!

    Sayangmalaysia

  8. Economist Kampong says:

    LET US TALK PROBABILITY
    Ahmad Jauhari has not spent 1 day in MAS or any other airline. If he has — this is not public knowledge. Meaning he has ZERO industry experience, let alone having top or higher management experience in air transport industry.

    He may have some text book knowledge about the airline industry. Millions do!. BUT he has spent many years in industry, other than the air transport industry. And he is also an engineer by qualification. Meaning – this man is not uniquely qualified to be selected as the CEO of MAS. Meaning there are about 100,000 Malaysians who could have the same profile as top management in Malaysia. Anyone of the 100,000 senior executives in Malaysia therefore could be selected to be CEO of MAS, if we accept the premise that Ahmad Jauhari could do the job as CEO of MAS. Yes??

    Let us assume that 50% of the 100,000 are non-bumi. So we are left with 50,000 candidates that could have been selected to be the CEO of MAS. SO what is the probability that the selection Ahmad Jauahari os the CORRECT one — 1 in 50,000. What is the probability that it was the wrong choice 50,000 to 1. Not very encouraging is it??

    Anyone care to analyze the probability of a correct or wrong selection of Danny as a top executive of MAS??

    Ekonomis Kampong

    • kkn says:

      IT SHOULD NOT MATTER WHETHER A BUMI OR NON BUMI BECOMES THE CEO OF MAS. WHAT MATTERS IS THE FACT THAT MAS IS BECOMING COAL AND HAS TO BE REVAMPED AND MANAGED BY QUALIFIED PEOPLE IF YOU WANT TO SEE IT PROFITABLE,

      • orangair says:

        Bro, there are many qualified bumis as well who could reasonably quickly turn MAS around but since MAS is a GLC, they become shy.

        • kkn says:

          Bro,with this kind of attitude,all our GLC’S will never be profitable as they should and will obviously go Bankrupt if there is an economic melt down. In the end, Malaysia Boleh will become Malaysia memang Tak Boleh and the rakyat suffers. God bless our beloved Country.

  9. DrPotong says:

    Correct me if I am wrong…was it RM18 or £18 milllion??
    Even RM18 m it was still a shitty decision.

    Someone bought 200 mercedes to run a rent a car biz and got a good deal,doesnt qualify him to be a genius Dany!!! neither does it show it has a profittable taxi business or a fat bank account to start with.

    It only show that the TF had a bag of hot potatoes in his hand and got to get rid of it quickly.He got billions dollarworth of loans and for all the money he has(his grandpa,grandma,papa and mama included) he wont be able to pay it.

    He needed a very big guarantor and he needed it ASAP.Placing a GLC as one of the share holder of AirTonyAsia solved all of his problem .He got it by acting macho to avery impressionable boy by the name of Dany..he got Dany hook,line and sinker and he is still in daze.Now every Malaysian is a guarantor to TF gallibanting shopping spree!!!

    You dont need to go to Cambridge to see that con job…you see it everyday at pasarmalam lo!!!

    DrPotong

    • jebatmustdie says:

      It is RM18 million. Total worth of the deal is RM30 million where the other RM12 million is forked out by Air Asia with their logos imprinted on QPR away and third jerseys.

      Thank you.

    • orangair says:

      This one, “He needed a very big guarantor and he needed it ASAP” is likeliest possibility ! Kita tunggu.

  10. You think highlighting the obvious evil and corruption you can help avoid the Gadaffi Fate on UMNO and their cronies?? and thus getting your daily ration of 2 nasi lemak + coloured water while your UMNO Demi Gods eat out daily with their inside circle on $3000-6000 per table??

    First bertaubat…… by acknowledging Tun Dr. M Bukan Melayu macam hang tuah, hang jebat….etc. Simple steps first…otherwise keep working on bertaubat!!

  11. kkn says:

    THIS IS WHAT HAPPENS WHEN POLITICS CREEPS INTO BUSINESS. MAS WAS A GOLDEN AIRLINE FOR A VERY LONG TIME AND WON MANY AWARDS BUT AFTER OUR SMARTY PANTS PM GAVE THE AIRLINE TO A TELECOMMUNICATIONS BOSS, THE AIRLINE WENT DOWN AND HAS NOT COME OUT OF ITS DOWN SYNDROME. WE HAD A GREAT MAN IN PETRONAS AS THE PRESIDENT/CEO (TAN SERI HASSAN MERICAN) BUT POLITICS CREPT IN AND HE LEFT FOR A TOP JOB IN SINGAPORE. IF ALL GLC’S HAVE TO BE HEADED BY A BUMI,THAN GET THE RIGHT BUMI. 1MALAYSIA,MY ASS.

  12. Benci Munafik says:

    Well the PM must have okayed this share swap. He is to be blamed for all this mess.

    • kkn says:

      Apa nak bikin? These jokers should not mix politics with business,unless they want to go Bankrupt but than again they will use EPF and TAXPAYERS money to do a bailout. God bless us all.

  13. adam says:

    Why is it that some people (looking at you bumi non malay) over here think you’re getting compensation from UMNO for running this blog JMD? I don’t think you do.

    On another note, what bumi non malay talks about makes no sense. What does bertaubat have to do with not acknowledging Dr.M as a Malay? How is it connected?

    Some people need to go to a class called ‘sticktothefuckingissue 101′.

    Adam

  14. samkl says:

    TF gila talak cari duit 76billion to pay its 200 airbus….mana mau cari – dia gasak MAS [MAS kan anak syarikat kerajaan – sure kerajaan Najib tolong]; dia gasak MAHB sebab kompeni ni banyak duit; sapa lagi dia gasak? sapa lagi kalau bukan kita yg kena bail-out AA kalau dia dinaiktaraf jadi kompeni kerajaan. PANDAI NAJIB.

    Tapi TF memang penipu

  15. dny says:

    Only believed in true facts…if LGE lies..then i might as well farted at what he said.

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