Politics in general

Taxpayers’ money used to enrich AirAsia?

Update 9 August 2011:

1) Tan Sri Azman Mokhtar: Have you read the AirAsia’s financial statements?

2) KHAZANAH Stop “ANAKTIRIKAN” MAS! How about LSG Sky Chef Brahim?

3)  A Sting job in the air?

4) MAS and Air Asia

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JMD August 7, 2011 Below are the collection of tweets that has been going around since the news of MAS – AirAsia share swap hit the public this morning.

JMD I read this tweet this morning about the potential swap shares between Air Asia and MAS and also the blog post by YB Wee Choo Keong of Wangsa Maju. So far as at the time of this post being published, he is a lone ranger in this issue. But his blog post is an interesting read nevertheless. YB Wee wrote his article based on The Star’s front page report which in turn, took it from The Malaysian Insider’s report published some 22 hours ago.

JMD What doesn’t jive with logic are the points made in YB Wee’s blog post above. After reading both articles, I too have several contention which hopefully can be resolved in the near future…

JMD Around noon, Khazanah issued a statement which confirmed the share swap. Therefore, taxpayers money will indeed be transfered into the coffers of a private company. As expected, some of the public outcries can be heard in twitter timelines…

JMD Question is also asked on the direction of Firefly (subsidiary of MAS). The Khazanah press statement indicated that Firefly will only operate the turbo prop planes in East Malaysia although they had just bought bigger planes for other longer destinations.

  • JebatMustDie Twitter

    No words yet by d politicians on d MAS/AA swap. Still under gag orders ka?! :p just need to know d reaction n positive actions. Tq

JMD Yes, since the deal will be signed next week, it is surely hoped that all the pertinent questions above can be answered real soon. Obviously, Khazanah, MAS and AirAsia must provide us with the answers.

33 thoughts on “Taxpayers’ money used to enrich AirAsia?

  1. Ahhhh — now we know why Khazanah put in a new Chairman to sit in MAS. Not an airline expert — but one of their own directors.

    This was what Idrius Jala hald told us earlier — 30 GLC to be sold off. MAS is but the first. 20% is bot only the initial step.

    TUTUP saja lah MAS tu. Habis cerita.

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    • JMD says, “it is surely hoped that all the pertinent questions above can be answered real soon. Obviously, Khazanah, MAS and AirAsia must provide us with the answers.” And what is the Government doing to provide the answers? Including the Ministry of Information and all the organizations under it that are involved in the business of providing information, especially Bernama.

      Isn’t Bernama, the national news agency, an organization with the important task of finding the answers and relaying them to the public? Shouldn’t Bernama take a proactive role of going out to interview the relevant people, armed with sets of questions prepared in consultation with editors, sub-editors of various levels, instead of merely waiting for the usual handouts from the government ministries, departments, GLCs and other business organizations in which the Government or Khazanah have a stake? Aren’t they the “professionals” who are supposed to know what the public is yearning to know? Should’t they, like the newspapers, be going out to “find the news” and answers that can be fed to the subscribing newspapers, foreign news agencies and all? And in the process help the public, both local and foreign, get a satisfactory picture of what’s going on in the country?

      And the Prime Minister had to visit Bernama yesterday, the first time a PM visiting the agency since its establishment 45 years ago. No doubt it was in the name of a buka puasa event held by the national news organization, but wasn’t that telling? But I wish the PM had said things directly and clearly. Even Bernama reported that Datuk Seri Najib “expressed hope for the Malaysian National News Agency (Bernama) to continue being an important institution for delivering news in the country.” Isn’t the word “hope” also telling? If he was satisfied and is positive about Bernama’s future role, would he have used the word “hope”?

      Yes, JMD wants answers to the pertinent questions concerning MAS and Air Asia share swap. I also want answers on Bernama’s role in providing us with the answers. Bernama could have prodded them to provide answers as soon as news about the share swap surfaced. And, of all places, that piece of news came out in the Opposition news portal, Malaysian Insider. Now let’s hope all the clarifications will come out from Khazanah, MAS and Air Asia today, the day of the final inking of the deal. And Bernama won’t be “delivering” the news to the others today – they all would be at the news conference and get the news themselves. Hope Najib’s message won’t be lost to Bernama in respect of future developments of public interest.

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      • Clarification:

        ” they all would be at the news conference and get the news themselves ” = the local newspaper reporters and foreign correspondents who in other instances could get the news from Bernama, who has much better access, being the national news agency.

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  2. AA daripada dulu memang buat red herring dengan LCT dekat Labu dengan SD dan kerajaan NS, dan tak mau bayar duit cukai lapangan terbang kpd MAB.Ambil rural route konon lepas kasi balik MAS.Nampak macam MAS ni macam lembu asik kena perah aja susu kasi makan orang lain, anak sendiri kurus kebulur. Charirman lama keluar yang baru dah masuk, baru lah buat umuman.Timing is all.
    Saya bankang AA ambil 20%kerana bermacam conniviing dan buttering.Semenjak 2008 AA memang creeping up to PJ,semua orang dah nampak.Sekarang apa lagi acronim yang akan di guna.Ada orang cina tanah besar dulu lagi cakap,di lurah ramai harimau mengaum, tapi di puncak gunung, hanya ada ruang untuk sa ekor sahaja, siapa kah alpha male itu ?
    arjuna waspada.
    changkat lobak.

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    • Without economics or accountancy background, and knowledge of who holds the strings in the whole share swap exercise, I’m going to ask questions more than state my own opinions.

      I hear the name Nor Akop mentioned here and there, but isn’t a matter this big and involving our national carrier decided at a higher level – the Finance Minister, who also happens to be the Prime Minister? Even if others at the lower levels appear to be the prime movers, the Finance Minister and Prime Minister must have been consulted – he may even have directed the move. At the very least, the move must have been with his consent or the players are digging their own grave – in name and public support at least.

      The fact that the flag carrier recorded a first quarter net loss of RM242.3 million against a profit of RM310.6 million in the same period a year ago is astounding. Higher fuel costs must not be the excuse, otherwise all airlines should be folding up. Falling yields are attributable to a host of factors, including ticket pricing and the excessive perks given to staff. Imagine all Managers travelling First Class, each station having at least 3 Managers, so many stations in Malaysia, plus overseas, let alone at the Head Office. Discretion in travelling may be lacking and at one time years ago one Director was said to be travelling three quarters of his time while serving. Remember, family, too, get to travel First Class, free to any MAS destination at least once a year. I’m told other staff also get free annual travel even after retirement, meaning, for life. It seems to me the problem is management more than anything else.

      The MI article stated the “implementing of widespread asset unbundling (WAU) restructuring of MAS in 2002, involving un-coupling the airline’s massive debts and transferring of the MAS fleet to Penerbangan Malaysia Bhd (PMB)”. It is hardly understandable to the layman, but does that mean that it’s a matter of how the assets and liabilities are recognised and structured in the Balance Sheet? Such that I’m told Sime Darby under expatriate management decades ago could announce their annual returns always at a steady, non-dramatic percentage increases every year to gain the confidence of share holders who were assured of steady but comfortable yields on their investment.

      The MI article says “The share swap could raise the ire of the MAS unions which have been working with limited pay rises under the airlines’ Five Star Value Carrier or Business Transformation Plan 2”. But has anybody looked at the kind of record of, say, mishandled luggage and the ire of passengers as a result, that could have caused the falling revenues? And the the percentage of flight space taken up by MAS staff travelling indiscriminately on business or leisurely on holidays?

      If having Tony Fernandez in MAS helps to reduce all those, it may sound beneficial. But one wonders if, as suggested by some including Warrior 231 below, Air Asia is really that strong considering their assets and liabilities. As a layman, I’d be glad to hear responses to my comment here.

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    • What the bloody hell! I hope that statement of mine alone reflects some intelligence (as asked above your comment box) as an expression of disgust with what’s going on in this country.

      Where is decency? Where is rationale in handling national assets and taxpayers money in such assets? These people are behaving as if those assets are owned by their emak bapak. Kepala bapak diorang. I hope you’ll accept that as non profaniity, JMD, as such an expression may also reflect intelligent pointing out of utterly unacceptable practices that have gone beyond tolerance and ordinary statements of disapproval.

      Share swapping or whatever it may be called must be rational and properly valued, based on acceptable principles and norms of doing business. And there must not be conflicts of interest as having two airlines must surely have been aimed at providing competition for the benefit of consumers. Otherwise what the heck was Air Asia allowed to operate in a big way? I know it was largely during Tun Dol’s time but surely the indiscriminate approvals of moves to aggrandize a private individual’s interests must stop and must be thwarted in the name of protecting the national interest, and the taxpayers’ interests.

      Where is Mustapha Mohamed in all this? Has he no say at all as the Second Finance Minister? I have had considerable respect in the man as he has seemed to me to be above board and decent. Are all these the machination of the Fourth Floor boy Omar Ong and the First Finance Minister? We must shout out loud and clear against this move and not allow any tendency that’d lead to monopoly or the influencing of the policies of MAS so as to benefit Air Asia that is supposed to provide competition and benefits to us. In addition to the hefty Ringgits some people would conceivably benefit in the swap.

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  3. haprak, hp6, ham sup, hang tuah!
    Mohd Yusof Nor must have given Tony hallucinating drugs to make him agree to this deal..
    Airasia does not need MAS. It is better for MAS to merge with similar airlines such as Thai/Garuda but not singapore airlines.

    Airasia has already more domestic and regional flights than MAS. In fact, it has more regional flights than anyone else, offering unmatched connectivity. Only problem is that, presently, it is a point-to point carrier and anyone who needs to fly from say, Jakarta to Seim Reap. will need to purchase two tickets, one for jakarta-KL and another from KL-Siem Reap. This is such a hassle. If they can modify their website and include transfers and connecting flights, you can say farewell, not only to MAS, but other smaller regional airlines as well.

    MAS is in a precarious state due to the incoming airbus A380 they bought which will be delivered by the end of this year. That means, they need some money to pay for this aircraft (5 units altogether) which cost nearly a billion RM each.

    and MAS survive due to the kangaroo route. It does not hold even a leading share of that route. maybe about 5% or less. With the introduction of A380 service between KL and Dubai, it will lose even this market to the young airline which have 50 airbus A380 on order. Emirates have more connecting flights between Dubai to europe than any other asian airlines. In fact, even SIA are losing market share to Emirates.

    On flights to US, Malaysians will use either Cathay Pacific/JAL or Korean airlines as MAS flies only to Los Angeles. Except for JAL, all the other airlines serves the three major Malaysian airports, i.e. Penang, KLIA and Kota Kinabalu and flies to all major US cities.

    So as you can see, MAS is squeezed on all sides, not just by airasia. It behaves too much like a KL airline, just like our government. It neglects the needs of those living in Penang and JB, huge towns with businesses and dense population until too late.Except for flights to London and Germany/France, it will have to fight with Emirates for other destinations to Europe and Cathay/China airlines/JAL/Korean for flights to the far east and US.

    The recent ANA/Airasia deal is so much sweeter than this one. By having a stake in a low cost carrier in Japan, airasia are in place to take advantage of the three largest and most dynamic economy in the world. They can have flights connecting various towns and cities in US/China through Japan. This will be a boon to tourism, not only for the north east region, but also the whole of south east asia, as cost of flight tickets may decrease.

    With the airasia/MAS tie up, looks like we are going back to the old days of one airline monopoly. We all remember those bad old days before airasia. Domestically, the fares were expensive and the service infrequent. So looks like airasia can jack up the price of a domestic ticket by 10% or more to make up for the shortage of competitors.

    In other countries, this tie up will not be able to go through as it creates monopoly. It is only in Malaysia that monopoly thrives, from Bernas, to sugar to steel imports, cement, cars and now, airline. This deal clearly shows that the government does not care a hoot about its citizens. It will just make us all pay slightly more for air tickets. Haprak. HP6 Khazanah and government.

    Unless Tony has a plan, I cannot see why he should be interested in MAS.

    by the way, an anti-monopoly act will take effect on 1/1/2012. but this did not deter tge gahmen from creating another monopoly.

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    • Azman Mokhtar and his boys are SUPERDUNGU. Better sell the Malaysian Government to YTL or Usaha Tegas or Genting. Next up for sale are Proton, Tenaga, TM, KTM, PLUS, and other GLCs. Azman and his MCKK friends have failed big time and should take full responsibility for the failure of GLCs in Malaysia.

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    • tempawan,

      You can use the words “haprak, hp6, ham sup”, but don’t you place the name of the Malay warrior Hang Tuah in the same breath without being told you are a bastard.

      I have nothing else to say this time except to point out that you talk hell of a lot, but without quoting any sources of your information. You even mention Mohd Yusuf Nor on this subject when nobody knows who he is. Talking through your ass, eh?

      Learn to talk in ways that people can believe you, man. Look at how Warrior 231 or tst does it below,

      Since you simply rattle off so-called facts and figures without quoting any authority, your opinions above are all “haprak, hp6, ham sup”, man.

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      • @ Tempayan.

        Airasia’s huge debts can easily be settled.
        Based on list price of A320 @ USD27 mil, they need to generate an income of only RM35k per day if crude is @ USD40/bbl in 2004. one return kl-kk flight generate twice that amount.

        Today, they are charging even higher fares and imposing high administration charges. And the dollar has dropped to RM3 per unit. So they get a discount 20% per plane. @USD100/bbls is about USD80 in today’s RM terms. So it is a good time to buy planes, as the fares has gone up due to fuel surcharge etc.

        unlike the government, airasia would have approach the banks first before placing orders for new planes. They chose CIMB, Malaysian banks equivalent of airasia, as advisors.And they would have worked out within their projections, if they will be able to service the loans for their intended market, and only then, will the financiers agree with terms stipulaed.

        And I believe, it was MAS who approach CIMB to do something about its airline knowing they have direct access to Tony. If Tony can save MAS, then it would be a miracle. But most likely, he will hike the airfares in and from Malaysia to do this.

        The match between MAS and airasia is not like bonnie and clyde, but more like Jekyll and hyde. One offers premium, the other low cost. One uses airbus A320, the other uses B-737, one uses mainly rolls royce engines for the larger jets, and pratt and whitney for the smaller ones, while airasia uses GE 100%.

        The best match for MAS would have been Cathay Pacific/qantas.Excluding the coming airbus A380 by MAS, both have similar aircraft types and engines used.and both are premium airlines. The synergy would have been heaven made. One covers the pacific route, while the other covers the kangaroo route.

        We can see what ails MAS by looking at the KLIA tarmac. The terminal parked with B737 remains static and parked for a long period, unlike the dynamism at the LCCT. And if you loiter at the KLIA car park you will notice countless limousines and MPV’s carting MAS pilots and stewards/stewardess back home and to work no thanks to difficulty accessing to KLIA from various suburbs in Klang Valley due to non-existant public transport system after 15 years of operations.This service alone costs milllions a month.

        Since Tony has decided to swim with the devil, Nor Mohd Yapcob (not Yusof Nor or what ever) and his serfdom,Khazanah ( the same people who sold out KTM for a directorship post in singapore’s property development JV and will now be forced to come up with S$1.5 billion in capital,. And what does KTM get?), he will from now on, be remembered as a traitor, like Hang Tuah. Airline ticket prices will go up, despite assurances, and despite escalating RM. And the poor consumers will again be forced to cough up more money to subsidise the incompetent

        elites and their cronies, like in the case of IPP’s, Bernas, Proton and many more.

        Hang Tuah would kill his buddy to be a pimp for the sultan by tricking and conning women and ladies into the palace to be enslaved and imprisoned by lustful desires.
        My personal opinion, Hang jebat allowed himself to be killed by Hang Tuah, his friend, and died peacefully, knowing he had done the right thing. May he rest in peace.
        Hang Tuah betrayed his buddy for wealth and fame (like many are betraying their nation and its citizens, by getting rich by corrupt and stupid means) and in his old age, realised what he had done, went AWOL when ordered to bring back Puteri gunung Ledang for the Sultan. I have not heard of any wars fought by hang Tuah, unlike Tun Perak, who defeated the Siamese twice. If this is the hero that you worship, it is a poor choice.

        And before the heat from the merger simmered, MAHB announced an increase in airport tax and amnesty to be given to Tajuddin Ramli.This will make make Malaysian airports to be the among the most expensive in the reqion for international passenger taxes. What I fail to comprehend is, why are all malaysians made to suffer because of the cost of building KLIA. It is like asking the kampungs to subsidise the few in Klang Valley. When the cost of building KLIA was announced, the previous PM, mahathir boasted that KLIA only cost RM9 billion while the Hong Kong airport costs USD20 bil.although the cost of hong kong airport includes the highway, two suspension bridges and MRT, while that stipulated by mahathir was only for the airport.
        come 14 years later, hong kong airport tax is less than current Malaysian airport tax (for international flights), i.e. HK$120=RM46, while international proposed by MAHB is RM66, and the cost of going to town on Hong Kong MRT is much less that KLIA express. So from all these, we can conclude that the government had lied about costs of projects, and that the interest of the rakyat is not prominent when projects are announced and built, but only as a tool to enrich the elites. An example is the selling of the senai airport for RM60 million. and after the land in the vicinity was acquired by the govenrment for the new owner, the party sold off the land for hundreds of millions in profit to their listed entities. The same land grab can be seen in the KL MRT project.
        And if malaysia airports KLIA cannot make ends meet without government assistance at RM9 billion construction cost, why are they going ahead with the proposed KL MRT which would probably cost RM20 billion when completed without the rolling stock and signalling etc. The revenue required to pay for the project is RM60 mil per month to break even excluding interest and running cost over 30 years. If all included, it may balloon to RM80 million. If 200k commuters use in one day, it will cost them about RM13.3 each, excluding land acquisition costs.

        The MAS-Airasia jv seems to be hiding something else since the government has decided to forgive tajuddin ramli of his misdeeds. it is only in malaysia, since may 13th until today, where murderers, rapist, burglars, robbers, corrupt officials can walk away from justice, This I believe is due to the unseen hand of the government lying underneath all the misdeeds. it is so unlike in england, where swift action was taken against the rioters who looted and mugged during the last few days. Instead, the govenrment lock up women and children during the peaceful bersih rally and their organisers asking for a free transparent and fair elections, a citizens right.

        And you can call me whatever you like, as it will reflect back on you. And if you harm me, you only harm yourself in the long run. Do not be like those arrogant defenders of race and religion. God loves those who speak softly and humble themselves. And we are encouraged to learn from one another.And may the malay race someday have the right to their beliefs as stipulated in the constitution and the Koran and be free from intimidation and persecution which they encounter presently.
        (2:256 There is no compulsion in the orderly way of life. Certainly it is now clear between the guidance from the wrong ones. Thus whoever denies the virtual idols and he believes with God alone – thus – indeed he holds with the strongest bond which can never be broken – for him. And God is listening – He is very conscious.)

        Peace.

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        • Dear Tempawan, I suggest you read Sejarah Melayu and Hikayat Hang Tuah before you pen your writings because you seemed to have created an entirely new story. Otherwise, this will reflected badly on you.

          Thank you.

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          • No, JMD, he’ll not read Sejarah Melayu or Hikayat Hang Tuah. Not in full or the original versions. Maybe the Wikipedia versions, like those of the history of this country “re-written” by anarchists and extremists who bend and distort facts that end up not being the established ones or state opinions tailored to suit their own political objectives.

            Like the DAP bloke who wrote a book denying DAP’s role in causing the race riots of 13 May 1969 and who instead tried to suggest it was Tun A Razak – of all people – who, he alleged, connived to cause the riots and take over power. Completely against common sense, totally denying the official records and contradicting the White Paper put out by the National Operations Council that ruled during the period of Emergency declared when the riots broke.

            We have seen his pasts comments – they are all like that, rude and insulting. This time a lot insulting to the Malays. And he couldn’t care a damn. Because he himself is a damned son of a gun. Imagine the bugger talking about Hang Tuah the way he does above. He should be made to turn the gun on himself.

            More against what he says – another time.

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        • tempawan,

          You are trying to sound like a maverick, Mr Know-All, economic genius and high and mighty problem solver, aren’t you? With one stroke of your pen, you barge in here announcing “Airasia’s huge debts can easily be settled.” Well, I’ve got news for you, Mister big tempayan tempawan. I’m not impressed. And I doubt if others are, too.
          Then you rattle so many figures in here as if you are an internationally renown expert. Trying to sound as if each and every figure you use is correct. I’ll let others point out the anomalies and the shittiness of your arguments. I wanna deal with your sounding arrogant and cocky, talking as if you can solve the problems of major airlines in this world by your magic wand. But even on this MAS-Air Asia deal, you use the words “would have”, “I believe”, etc, a number of times. And you don’t know those for a fact, do you? And one doesn’t understand even what you mean by “Malaysian banks equivalent of airasia”.

          I wanna quote you in a manner that I hope will make you think before rattling off whatever crosses your head, that it is only in Malaysia, since may 13th until today, where murderers, rapist, burglars, robbers, corrupt officials and blokes like you can walk away from justice, saying anything you want, irrespective of historical facts and decency to the Malays whose Hang Tuah is a revered figure, not to be made light of. This I believe is due to the Government being too lenient on you and the likes of you, lying, twisting facts and taunting all sorts of Opposition misdeeds. Including even belittling the folk hero of the community that forms the majority in this country.

          It is so unlike in England, where PM David Cameron has said it loud and clear that multi-culturalism is dead, that gangsters and gangster-like behaviour like yours, including the rioters and looters are being curtailed and controlled. Instead, in Malaysia the govenrment let go those arrested only in a matter of hours, when they should be held as long as possible, remanded for further stay in detention, to make it known that breaking the law and illegal assembly does not pay. Pretending to be raising election issues when most of the Bersih 12 points were Opposition political parties’ issues. Pretending to be a legal entity when Bersih is not even a regsitered organisation. Just like there is no such thing as Pakatan Rakyat. Because there is no such legal entity or registered body and what exist are only a jumble of opposition political parties. And you talk about “citizen’s right”. Of a miserly 6,000 less Policemen in civilian clothes mingling with the crowd to avoid any crowd in-fighting. You close your blessed mind to the fact that anti-Bersih citizens also have their right not to suffer traffic chaos etc.

          And what’s this “it will reflect back on you … you only harm yourself in the long run” thing? Feeling guilty conscious, eh? You can repeat your statement “Do not be like those arrogant …” a thousand times. You are the very embodiment of that arrogance you refer to. Indeed, God loves those who speak softly and humble themselves. And certainly not you. Especially when you try to mock the Malay hero Hang Tuah.

          And be informed, you SOG, that the Malays and Muslims do not feel any “intimidation and persecution” that you nastily and rudely say we “encounter presently”. We are only apalled and disgusted at comments made by you and the likes of you, and the attempt to Christianize the Muslims at the Damansara Methodist Church. Irresponsible people who even openly flout the stated purpose of building a community centre as applied to and approved by the MBPJ, but instead call and use the premises as the DU Methodist Church. True it’s unlike in England – David Cameron would have the City Council tear down the Chruch that was built on the premise that it’s a community centre.

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    • ahhh..you are talking about Pak Lah. he is nowhere and he cannot stand because he is a spineless sob.
      (sorry JMD) pak lah brought back reminiscence of the old days.

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  4. 1.As of the 1st Quarter of 2011, Air Asia (AA) debts amounted to 7.7 billion with cash balances amounting to 1.7billion.

    2. In August 2010. AA announced a deferment of their proposed aircraft purchases but sometime in June 2011 they reversed their decision and proceeded to place an order for an additional 200 new aircrafts at the Paris Air Show.

    3. As of 31 March 2011, based on data from their 1st Quarter report, AA’s capital commitments stood at RM 19 billion. With the above announcement, an additional RM 54 billion will be added as Capital Commitments as implied in this article:
    http://biz.thestar.com.my/news/story.asp?file=/2011/6/24/business/8966621&sec=business
    the proposed CC of roughly 75 billion will be spread over a 15 year period ending 2026. In other words,AA has to ratchet up its earnings to an average of 5 billion per annum to meet its future dues. From 2006 to 2010. AA’s revenue grew by 10 fold from 110 million to roughly 1.1billion, an average growth of RM 200 million per annum.

    4. Its cash trove rose 6 fold from approximately 300 million to 1.7 billion but its debts skyrocketed from 1.05 billion in 2006 to 7.7 billion in 2010, an increase of 700%. One gets the ghastly feeling that this is a debt burden that is spiralling out of control.

    The schedule for the aircraft delivery is as follows with the Neo being received from 2016 onwards:
    2012 = 14
    2013 = 13
    2014 = 18
    2015 = 19
    2016 = 19 (4 Neo)
    2017 = 14
    2018 = 18
    2019 = 19
    2020 = 20
    2021 = 21
    2022 = 23
    2023 = 24
    2024 = 24
    2025 = 24
    2026 = 9

    To compound the issue, the world economy including Asia’s will be into another maelstrom and air travel will invariably be hit:
    http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/08/02/bloomberg1376-LPCGED6TTDS201-7DB69T4DDVIF7J1IS4SUCOAULO.DTL

    and we probably will have a white elephant in NS soon give or take three years and another one of my dire predictions I made in when commenting on AA in 2009 materialises.

    Of course AA can cancel orders but contract penalties will be onerous. In any case, TF is betting on the assumption that being a big borrower will shield him from foreclosure as banks will be leery of bearing heavy losses! bUt then a sizeable chunk of those loans are being held by Malaysian banks and in the worst case scenario, the government and the taxpayer will have to pick the tab to avert a financial meltdown cascading down the AA slope.

    Warrior 231

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    • Bloody good show, tst.

      I had the sneaky feeling that all the hoo haa was an eyewash and a possible propping up for the ailing Tony Fernandez “humongous business ventures”. Some people’s personal interests may have been at stake. Thanks for the facts that you put out. They justify those uneasy feelings of mine.

      But now I have much worse uneasy feelings when seeing the prospect of the Government and the taxpayers being made to bear the losses AA may incur in the course of time. Damn the bloody crooks if and when that happens.

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  5. “Astound us with your intelligence!”

    Whoa JMD, this is quite challenging not to mention stressful lah! May we just share our humble thoughts?

    Salam Ramadhan.

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    • Haha… Please don’t be stressed with the slight changes.. Just having some fun with the new tools in wordpress. Any comments are welcomed of course…🙂

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  6. If MAS’s market cap is only RM5.3 billion (S$2.16 billion), it wouldn’t cost Temasek Holdings too much to buy MAS lock, stock and barrel, privatise it and delist from Bursa Malaysia. In fact, it would be pocket change for Temasek, seeing as how they have assets of around S$190 billion (probably less now, given the stock market rout all over the region).

    It would be an interesting proposition though, if Temasek were to put in a bid for MAS. After all, Singapore Airlines recently had a market cap of S$16.98 billion, and Temasek is the major shareholder in SIA.

    One wonders, though, just how MAS is going to compete against the premium airlines like SIA, Cathay, British Airways and Qantas, not to mention the oil funds-flush Gulf airlines like Emirates, Etihad and Qatar Airways. Plus having it’s nuts squeezed on the low end by every low-cost carrier out there.

    Adding to that is the unpalatable fact that the KL International Airport (KLIA) is caught between the premier business and logistics hub of Singapore and the premier regional tourist hub of Thailand. So, where is the future for MAS if it predicates it’s growth and future on the continued development of KLIA. AirAsia, on the other hand, has spread it’s eggs into other baskets, which, given the onset of the Asean open skies regime by 2015, will give it added impetus to grow.

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    • Why would you want Singapore to take over MAS and get all of its revenue, routes, manpower, assets etc? When faced with challenges, we immediately call for foreigners for help? In the mean time, Malaysians should not support or encourage our national carrier or at least lend moral support in times of trouble? First sign of trouble, we immediately sell it off to our neighbors? Surely there are several other methods, solutions that can be thought of by our experts before we dismantle one of our national pride and feed it to foreign vultures?

      Thank you.

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    • There you go. This sillyanon fellow.

      Of course, he’ll speak for Singapore. As licking Lee Kuan Yew’s arse and glamourizing Singapore has been his forte all along – in Rocky’s Bru, Big Dog and here. It’s his business to do so but I can’t accept it when he rubs Malaysian leaders and Malaysia down in the process. And he often says things that are arguable rather than factual. After all, economists, like politicians, always disagree on a host of issues everywhere in the world.

      I believe he is Singaporean. He has not responded to suggestions that he is so time and again, implying that he is. He doggedly comes in plying his sickly trade in Malaysian instead of Singapore blogs because he can’t sound anything critical in the Little Red Dot. He’ll get hounded until his tail falls off on its own accord. And he, like so many ultra kiasu of the DAP kind, is so tebal muka. You can tell him to get lost time and again, he’d still show up. What a disgrace of a fella.

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  7. CIMB is the Adviser of this MAS-Air Asia share swap thing. Nazir, Najib’s brother, is CIMB CEO. He has made a lot of money for CIMB from advising the business deals of GLCs and such government entities as Khazanah. He has also amassed hundreds of million Ringgit wealth himself. Good for him if all are above board. But is this MAS-AA deal good for the rakyat? A lot of tax payers money is involved, for goodness sake.

    Nazir may not have initiated the deal. One must ask who did? It’s been pointed out that Idris Jala spoke about the disposing of 30% stake in MAS some time ago. Who thought of that? Why and what for? If it’s a matter of frequent losses, surely the management can be changed and some one with real, long-term experience in the actual running of an airline could be found to turn the business around and sustain it on a long term basis. The airline was said to be making money during Idris’ time, so why talk about re-structuring even at that time?

    I simply cannot accept the Khazanah MD’s statement “They (the two airlines) are … competing in some cases and collaborating in some cases.” What the hell does he mean? What kind of competition is that when you have one party having shares and Board representation in the other? And he talks about “the power of MAS’ 13 million passengers and AirAsia’s 39 million passengers a year .. a very powerful combination.” Is he only after “the power of passengers”? And he appears to be dismissive of comments when saying “We don’t have time anymore to look at petty things and differences. It’s time to go forward,” How come he is MD of such a hefty entity as Khazanah with such a mentality?

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  8. Tuan Hamba Jebat,
    Saya baca dalam akhbar hari ini (11 Ogos) bahawa Khazanah N rugi RM114 juta dlm satu hari pada hari Bursa niaga 10 Ogos.Kerugian ini dalam bentuk kertas. Disebaliknya pula, Tune Air ( TF& KM) untung RM 82 juta (munkin dalam kertas juga).

    Menurut akhbar juga (isu 10 Ogos) makhlok yang mengendalikan “tukar saham suka sama suka” ini adalah adik kepada PM kita.

    Ekoran daripada pertukaran saham ini, apa yang saya faham ialah berikut:-

    1. Saya dan keluarga saya tidak dapat lagi menikmati perkhidmatan Firefly dengan tambang yang berbaloi (Have you tried flying using Firefly yet?).

    2. Kalau kita nak kamana-mana di Malaysia atau sekitar Nusantara dengan tambang murah selepas ini hanya naik AA saja.(Frequent delays everyday with hidden costs).

    3. Kalau dompet kita kencang dengan “gambar Agong” bolehlah naik Mas sekali sekala atau pun Sapphire (Firefly rebranded).

    4. Khazanah pegang 49% dalam Mas dan 10% dalam AirAsia dan selanjutnya akan pegang 10% dalam AAX ( Insya Allah la).Bagaimana hutang AA dengan kerajaan, terikut sekalikah atau kira luput?

    5. Akhirnya rakyat gigit jari kerana tiada pilihan lagi nak pilih penerbangan yang murah dan selesa sementara kepala-kepala koporat hidup senang lenang dengan cara menipu rakyat.

    6. Akhir dan akhir sekali, (syafalis) , langkah-langkah seperti ini jika berlaku lagi, alamat tenggelamlah kapal BN pada PRU akan datang. Tapi mereka peduli apa, sebab duit semua sudah masuk poket.

    Sekian , terima kasih

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    • 1. Saya khuatir berlakunya 6 diatas. Tidak ada tanda-tanda tindakan seperti itu tidak akan berlaku lagi. Saya masih tidak faham mengapa, contohnya, Omar Ong dipasak kedalam BOD Petronas, selepas ditolak kali pertama. DanTan Sri Hassan Marican dinyah dari Petronas berikutnya. Adakah Omar Ong memain peranan dalam saga Air Asia ini?

      2. Saya setuju dengan pendapat bahawa Pengarah Urusan Khazanah tidak akan berani buat begitu jika tidak ada kebenaran, malahan kemahuan, Menteri Kewangan Pertama, yang juga Perdana Menteri Dato Seri Najib. Hal bahawa CIMB, yang diterajui Nazir, adik, Najib, “menasihatkan” penukaran saham itu juga menarik perhatian. Tidak tahu apa sebenarnya yang dinasihatkan CIMB. Berpuluh, malahan beratus, juta Ringgit bayaran “menasihat” itu. Ada yang mengatakan bahawa Nazir mendapat upahan dari CIMB berdasarkan jumlah untung yang CIMB perolehi. Dia dahulu dilaporkan sudah mempunyai banyak ratus juta Ringgit.

      3. Apa kita boleh buat? Adakah hanya orang UMNO sahaja yang boleh ambil tindakan? Apakah tindakan seperti yang dilakukan kapada Tun Dol dahulu boleh mula dilakukan sekarang?

      4. Ada kemungkinan kah Najib mengambil langkah langkah pro-Melayu dan Bumiputera secara dramatik diantara sekarang dan PRU13? Mungkinkah langkah langkah demikian menyenangkan hati dan menarik undi mereka yang nampak dia sangat memihak kapada bukan Melayu setakat ini? Terutama mereka yang telah sedar kesalahan mereka mengundi Pembangkang diPRU12 dan sekarang fedap dengan langkah langkah Najib. Termasuk apa yang berlaku MAS-Air Asia ini.

      5. Dukacita saya hanya ada so’alan, tak ada jawapan.

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  9. First of all, this deal of Air Asia, a budget carrier swap shares to save the ailing MAS is quite ridiculous, what next, taxi federation saving railway operators?

    Since the competition is no longer the case between those two, then of course, the fare will increase base on the logic of economics. Basically we the consumer will have to pay the price. This is what they say “rakyat di dahukan, pencapaian diutamakan”

    We have a crappy dinosaur railway network, highway that jammed up during festivals and accident prone. We had Air Asia to give an alternative means to travel and guess what, they have to take that also from us.

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  10. Please……you are not capable of comprehending the depth and corruption of Islam UMNO….

    Its an UMNO Islamic transaction so Diam lah!!…shhhhhh…lagi shoik if done in Ramadan…siapa Hina Islam melainkan UMNO??

    Like

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