More dysfunctional stories about MAS unearthed

We all know that the criticisms levelled at Malaysia Airlines are nothing short of unpleasant and sometimes can be vicious. But this stemmed from the now cancelled share swap with MAS’ competitor Air Asia. One thing we can be sure, the need to criticise MAS is to see that it will regain its footing amongst the elites in the commercial flights industry.

There was no need to incur serious money to change the logo when the logo itself is the least of its problems

One industrial expert told yours truly, how could MAS, winner of several best cabin crew awards and other notable achievements for several years could suffer a loss while Air Asia, a young airline with such dodgy reputation of having guaranteed flight delays and poor cabin experience and even worse public relations records could garner profits.

The critical key is MAS’ operational costs.

It was never about its reputation or staff performance.

Buried deep in YB Wee Choo Keong’s more recent post, a commentator by the name GE Man wrote a list of peculiarities that is currently being faced by MAS. One have to wonder if they are all true. If they are, then the challenge MAS ought to face is much more steep than the government realised.

Thanks to the blog MAS Troubleshooters for pointing out the said comments:

After the proper set up of MAS Engineering 20 years ago, never in our history we send our aircraft for maintenance to 3rd party .

Yet this Monday/ 23rd July , MAS subsidiary airline Fire Fly is sending their turbo prop ATR 75-200 aircraft to SAE (Sepang Aircraft Engineering) to do a maintenance C1 checks.

One of the aircraft to be send is with registration 9M-FYH.

AJ and Azhari should tell us why MAS Engineering lost this contract too.

Bet they will say that MAS Engineering /MAE had no hangar space and man power to do it .

AA Engineering office is in SAE hangar too, what a coincidence !!

Some one will start to tell all MAS Engineering staffs that we don’t have much work in MAS engineering thus we got to reduce staff and offer VSS.

Lately too, not much of third party aircraft maintenance contract secured in MAS Engineering.

Good luck to all MAS Engineering staff , hope tomorrow you will still have your job.

After loosing Fire Fly ATR 75 maintenance contract to SAE , MAS Engineering /MAE lost another contract to AIROD for Batavia Air and Lion Air B737-300/400 maintenance .

The list of conspiracy and sabotages that bleed’s MAS to death:

1) Killing off Fire Fly B737-400/800 Jet Services since it is directly competing with AA as a low cost community carrier and taking over some of its routes.

2) Cut/Stop MAS profitable routes (Bandung , Surabaya , Sydney etc etc) so AA can take over the routes and mount additional flight. The rakyat had no choice but to pay what ever price AA put since they are monopolizing this routes.

3) Re schedule / re timed MAS flight to odd hours (Hong Kong, Beijing etc etc) so that AA take the prime slot. MAS seat’s load factors dived.

4) Signed the so called an AAX’s 35,000 passengers re-accommodation at a very low fare. MAS loosing money at least MYR 1000 per AAX’s passengers carried and lost of sale able seats to would be full paying MAS passengers.

5) Logo and re-branding, con-sultan fee’s paid, re-painting of more then 115 aircraft which will cost at least MYR 900,000.00 per aircraft that requires down time of at least 10 days.

It will cost a whooping MYR 100 millions. Lost of aircraft utilization will cost money too to MAS. Luckily the change of logo and re-branding were restricted to A380. Even that will cost money for the respraying of the 6 A380!

6) QPR sponsor worth MYR 10 million when AJ is crying MAS is bleeding.

7) A380 seat re-configuration at the wimp and fancy of the Pariah which cost MAS at least MYR 4 million per ship set. With 6 unit A380 ordered , this will add an additional cost of MYR 24 million to MAS and the “old seats” to be scrap.

8) The A380 ferry (joy rides) flight from Toulouse to Kuala Lumpur with some joy riders on board who are not related at all to the ferry flight formalities, incurring additional cost of sending them to Toulouse, hotels, daily allowances and lost of sale-able commercial seats, Kuala Lumpur – London and Kuala Lumpur – Paris.

9) Lost of UN UNIFIL Lebanon lucrative charter flight to AAX. Giving an excuse of MAS don’t have any aircraft available to do it where’s else many aircraft laying idle due to routes cut and excess cabin crews had to be deployed to Golden Lounge to work.

10) Lost of Fire Fly ATR 75-200 maintenance contract to SAE.

11) Lost of Batavia Air and Lion Air B737-300/400 maintenance contract to AIROD.

12) The would be B777 seat and IFE retrofit worth at least MYR 150 million for all 15 unit MAS B777. This B777 will be phased out in 3 years time yet a retrofit is initiated and as it is the seat and IFE served its purpose well.

13) B737-800 steel brakes changes to carbon brakes which cost millions. AJ had issued a direct LOI/LA to one of carbon brakes manufacturer without going thru’ a normal company procurement procedure and WITHOUT Board approvals!!

Using a carbon brakes is only economical if you use it since day one you buy the aircraft. Now MAS got to buy the new carbon brakes and discard/throw away/scrap the steel brakes inventory worth millions and MAS got to change tyre type from radial to bias tyre!!

14) Two weeks ago in London Farnborough airshow, AJ signed a MYR 5 billion contract for A380 Trent 900 Engine Total Care Maintenance Program with RR for as long as MAS is flying this A380 aircraft. No engineering and financial evaluation was carried out and NO BOARD approval sought. All decide by the TRIO, AJ, Azhari and Amin.

15) Approximately 3 years ago MAS/PMB had sold 17 unit of their B737-400 classic aircraft to AAR and MAS leased it back (Sale and Leased Back ) from AAR until such time that all MAS new B737-800NG is delivered as replacement.

Two weeks ago, during Farnborough Air show in London too, MAS Airlines Engineering Group (AEG) and someone had signed an agreement with AAR to purchase back 6 unit of this B737-400 classics.

The surprising deal is that the purchase price per aircraft is MYR 19.8 million (USD 6.4 mil). The market price is only USD 2.5 million (MYR 7.75 mill) each (Please refer for aircraft prices).

MAS is paying 2.5 times more then the market price!!!

AND what is the logical explanation buying back this junk??

MAS will be milked by a whooping MYR 118.8 millions for this deal.

As usual no engineering and financial evaluation was carried out and NO BOARD approval sought. All decide only by two persons and one of whom is an ex GE Man.

16) Early this month (July), against all MAS procurement procedure and the first one in MAS history, Azhari had issued an LOI (Letter Of Intent) to LHT a contract worth MYR 500 million for the A330 Aircraft Component Support PBTH (Power By The Hour), knowing that there is other bidders who had offered a lower price then LHT .

Azhari is the first CEO of MAE (MAS Aerospace Engineering) history who issue LOI without Board Approval.

He doesn’t have such authority, only tender department who can issue LOI/LA after BOD had approved it.

A wrong procurement procedure, Azhari will bull doze this A330 LHT contract during this coming BTC (Board Tender Meeting) on Wednesday / 25 July 2012. He will try to shove it to the BOD throat.

17) In the making, Azhari and Amin is now trying to do something about the B737-400 engine CFM56-7 PBTH (Power By The Hour) contract worth at least MYR 1.5 billion (minimum 10 years contract)( more then 200 engines) and source said it may be a direct nego again. One can expect where it will go. Just think who is maker!

18) In the making think, Azhari and Amin is trying to figure out who will get the B737-800 / B777 / A380 / B747-400 APU maintenance contract worth more then a 1 billion ringgit . A total of more then 150 units of APU (Auxillary Power Unit) is to be contract out for maintenance soon.

With 18 on the list above, my dear PM and BOD of MAS and Tan Sri chairman, YB YB , you must not stand still while MAS being screwed to death. MAS is BLEEDING ok!

This will be the way to kill MAS as MAS be will be liable and inherit a long term high engineering operating cost, too high to sustain the business for at least the next 10-20 next years from now , how MAS will survive like this ?

A procurement manual is there to be followed so the tender and bidding is carried out in a transparent manner, how come one person or a TRIO are allowed to decide on this multi billion ringgit contract.

At least least 3 bidders must participate to make the bidding process to be an advantage to MAS bottom line. Direct nego is a suicide!!

The remaining parachuted fellows are the share suap parasites and should leave MAS, so much damaged done in the last 11 months..

When it comes to criticising MAS, we have to thank YB Wee Choo Keong and some of the industry insiders in carrying the torch to keep MAS on its toes.