“Low-cost carrier AirAsia Bhd wants to opt out of all joint-venture agreements with national carrier Malaysia Airlines (MAS), a source says. AirAsia decided at a board meeting last week that it would seek to terminate its agreements with MAS soon, according to the source, in HERE.
The above statement was a joke of the century! AirAsia (AA) is in no position to be so arrogant. It got to where it is today because it was spoon fed by the Badawi’s administration. Within a short span of time, LCCT was built almost exclusively for AirAsia.
From 2002 to 31-3-2008 AA owed MAHB for services and airport tax totaling RM110 million in HERE.
In 2004 LCCT was built by the Badawi’s Government at a cost of about RM87 million and in 2008 LCCT was renovated at a cost of about RM124 million. The total cost of LCCT was more than RM200 million. The initial contract to build LCCT and the subsequent renovation were all given to Syarikat Pembinaan Fajar Baru (Rembau) Sdn Bhd (now known as Fajar Baru Builders Sdn Bhd), which has no experience in building airport in 2004, in HERE.
In March 2006 under the “Domestic Rationalisation” exercise MAS had to give up more than 90 routes and the Rural Air Services (RAS) for Sabah and Sarawak to AirAsia, which it subsequently sub-contracted to Fly Asian Express Sdn Bhd aka FAKS, in HERE.
The Badawi Administration subsequently granted AirAsia a subsidy of RM250 million, which was more than double of the subsidy given to MAS, in HERE.
After about a year, FAKS had to give up RAS because of too many complaints of its poor services by the people of Sabah, Sarawak and its respective Tourism Boards and State Governments, in HERE.
After giving up RAS, FAKS changed its name to AA X Sdn Bhd. Despite the many complaints against FAKS/AAX Sdn Bhd, AAX Sdn Bhd was allowed by the Badawi Administration to keep the Air Operation Certificate (AOC).
After the infamous MAS-AirAsia share swap, which was reported to be the brain child of the little Napoleons in Khazanah and brokered by En Mohammed Rashdan Yusuf aka Danny, in HERE, MAS had to make many sacrifices under the name of “Cost Cutting”.
- It started with the sponsorship of QPR costing MAS over RM10 million.
- The termination of profitable Firefly jet services from JB to KK and Kuching.
- The Firefly JET Services expansion, which will be in direct competition with AirAsia, was prematurely stopped.
- Termination of MAS profitable routes to Bandung, Surabaya, Dubai, Johannesburg an etc. AirAsia immediately scheduled an additional flight to Bandung and its fare was increase to almost double due to the monopoly.
- PlaneConsult, the AirAsia’s consultant, was appointed by MAS, in HERE.
- Shane Nollan of PlaneConsult was appointed to the post of Acting Commercial Director of MAS.
- En Rozman Omar of AirAsia, was appointed CFO of MAS and En Azhari Dahlan also from AirAsia was appointed as Head of Engineering, in HERE.
- In February/March 2012 MAS had to start uplifting 35,000 AAX passengers initially with no Re-accommodation Agreement. The Re-accommodation Agreement was only signed at the end of March 2012 where extremely low fares were charged by MAS, in HERE.
- MAS gave up the additional Sydney route to AAX, which was granted exclusively for MAS for 1 year.
Luckily the said share swap was reversed under the directives of YAB PM Dato’ Sri Najib on 2-5-2012.
Despite the share swap been reversed, on 7-5-2012 Tan Sri Tony Fernandes (Tony) and Datuk Kamarudin Meranun (Kamarudin) both from Tune Air Sdn Bhd and AirAsia saw it fit to exercise their privilege for free First Class travel to London MAS. Their directorships in MAS were by virtue of them being appointed as directors of MAS as a result of the share swap. Please read HERE.
Both Tony and Kamarudin were directors of MAS from 9-8-2011 until 2-5-2012, a total of 10 months. It would appear that both of them must have been given confidential documents for discussion during MAS Board meeting and obtained confidential documents or information pertaining to the operations of MAS and Firefly during the said period.
In view of the latest development where AA wants to opt out of all agreements with MAS, which will be most welcomed by MAS staffs and other stakeholders, TF and Kamarudin are duty bound to immediately surrender all privileges given to them and surrender all confidential documents or information pertaining to the operations of MAS and Firefly that may be in their possession. They should also cause AA or AAX Sdn Bhd to return all routes that MAS gave to them, terminate the Re-accommodation Agreement with MAS, reimburse MAS of the RM10 million that MAS paid for the QPR sponsorship and etc. This is expected from responsible corporate leaders.
On the other hand, AJ and the Board of Directors of MAS should commence an in-depth review of all the decisions that have been made after the share swap especially the termination of Firefly jet services, MAS profitable routes to Bandung, Surabaya, Dubai, rescheduling of its flights to the cities in China and the Re-accommodation Agreement to uplift 35,000 AAX passengers. If the said decisions were found to be made not in the best interest of MAS, then AJ must take immediate steps to reinstate or terminate them forthwith.
Please read also Typical Low Caste Carrier.
Agree AA should immediately terminate all its agreemnts with MAS especially the Re-accommodation agreement to uplift its 35,000 passengers at very low cost fares. Just imagine fare to London cost RM1,111!
AJ look for a way out to terminate the RA as it is not in the best interest of MAS. MAS is definitely lost money to uplift the 35,000 passengers. Wake up clueless AJ.
:
The incompetent and belligerent leadership
of Mat najib is clearly bursting at the seams
when we see how MAS is allowed to degenerate
into a laughing stock ‘zimbabwe-class’ airline.
Look all the money wasting effort-sponsoring
a club on the verge of relegation [to the
coca-cola championship] , helping to undertake
passengers for profit-making Air Asia at
a great loss to itself and loosing valuable customers
at the same time.
Wow, it does not speak well at all what kampong -minded
Mat Najib can actually deliver as a chief
executive of 1- Malaysia!
And to overpay Mat Jo 0.25 million MYR monthly is a gross
overpayment of the man’s ablity and competence. I doubt if
his last salary is within 20 per cent of his current salary.
It would reasonable to expect that if a man is paid MYR 0.25
million/mo he would bring in at least 20 times that amount
of profit to the company/mo !
It would appear that an effort is made to drive the valuation
of Mas share to a couple of dimes is made thru the series of
planned blundering decisions. A belligerent attitude towards
managing national assets…. The last time the Malaysia leadership
was deemed belligent , it resulted in the devaluation of the MYR!
At least that was the comment of Alan Greenspan the Fed chief soon after
our currency collapsed.
.
Is this a national progression of the rot from the top
that Madey had been saying..
Dolah Mat Mata layu took for himself the Mas Catering.
So does these series of belligerent actions mean
that Najib is taking Mas minus the Catering division?
A second currency devaluation would be imminent if country
continues to carry on with these belligerent management style.
The landed assets had presumably been distributed ..
.
.
..
Well it’s about time
Alhamdulilah!!!!!! I hope that AA and the Pariah will terminate all the agreements with MAS especially the Re-accommodation agreement charging low low cost fares to fly premier airline. Kalau si Pariah adalah anak jantan, batal RA degan MAS dengan segera.
The Sleepy AJ please wake up and stop allowing the Pariah to treat MAS like shit. You are the worst CEO MAS ever had. Other previous CEo may not be good but at least they have stood up against the Pariah.
Look at Idris Jala, he withdrawn all privilege for the Pariah to fly MAS. Only the Sleepy AJ is still allowing the pariah to take advantage of MAS after the share suap was reversed.
How MAS going to be well when you are a Sleepy CEO and Adviser at the same time. Both are on gaji buta!
Aj why are you waiting for now. Since the pariah wants to terminate the joint venture agreements with MAS. just say yes and at the same time terminate all the other agreements too. Terminate the RA immediately and see whether the big mouth Pariah can still talk. They will get an immediate headache.
AJ please be the CEO of MAS and not just a kuncu of the pariah. Terminate the RA now. Get rid of the botak Azhari the few left over of the pariah’s kuncu.
Since pariah is calling it a day with MAS then MAS shouldn’t waste more time with them. Throw out the AA remnant in MAS like Azhari Dahlan, Nor Zalida Ahmad.
Cancel the RA with AAX. Left them go and look for another airline that can give them the extreme low fares like to London cost only Rm1,100.
Aj you shouldn’t have signed such an agreement in the first place. May be you are too busy travelling to London and back.
As I have stated in an earlier posting regarding the depature of Danny, again it is time for a gentle reminder for MAS staff not to be overly “celebratory” if it is true that AA wants to end all “collaborations” with us. Let us pause to ponder what has happened these 11 months. Let us evaluate objectively what the last 11 months have done to us. At the risk of sounding dramatic, it is reasonable to believe that , now, more than any other time in our history, MAS is extremely vulnerable , fragile and weak. Our former collaborators are now our competitors again, but this time, with a very HUGE and potentially fatal (to MAS) difference – AA had access to, and was privy to, all MAS’s trade secrets , practices and strategies, even the pre-booking status for all sectors for at least 300 days ahead , its pricing strategies, and through PlaneConsult and the other consultants swarming around, all operational information as well. It is safe to state that they know all our strengths and all our weaknesses. We are laid bare. Unless AJ and team, even the BoD, have new ideas and strategies to play the new game in a totally new playing field, we are dead in the water. From our observations of recent developments , from the change of flight slots to Beijing and HongKong, and even with the rather over-hyped but under-delivered introduction of the A380, we are left with the distinct impression that it is all very stale. The much touted “game changers” in the Business Plan remain hypotheses that have yet to be translated into workable, realistic action plans. There still is no organisation structure in place that is designed to drive the Business Plan (which btw is stale as well, but what the heck). As for the “foundations” to drive the Business Plan, termed “Winning Organisation” , based on the development of the people, the continuous improvement initiatives, talent identification and development etc, all people related, what have we seen so far? The HC division, tasked with spearheading this, is busy with their own internal “reorganising” which of course will result in more promotions for its own people, and the sustained in-breeding, will undoubtedly assure us of one thing which will result – NOTHING. The total exit of AA is merely the end of an “infection”, but the internal cancer remains rampant, prevalent throughout the organsation, and unless major curative treatment options are quickly adopted, MAS will meet its inevitable end.
Hear2 Concerned.
Legal minefield laid within all the collaboration agreements!
YB,
I believe there are very real issues affecting the process of terminating all the collaborative agreements that will cost MH dearly without swift intervention by the government. The architects to these agreements must be brought back to unwind the relevent clauses failing which the full force of the law must be brought to bear on them. The MH & Tune Air BODs, Khazanah & the MOT must be held responsible.
If not, its going to take an eternity & that would spell doom for MH.
The theory is simple , AA will only terminate
what the hell is happening with mas. i’m leaving the company but i hate to see mas in such a sorry state . i’ve known a lot of good and honest people working their ass up in mas . although i hate tony but on the positive side i wish our CEO is more like him , aggressively defending his company. come on aj , you should be aggressively and passionately defending MAS against airasia , i really hate to see mas being push around by airasia and bloggers as it was just too embarrassing. Nowadays mas had been a laughing stock in the aviation industry . mas really need a stronger leader to pilot it away from the storm.
AJ is either too blind or too short to see all this….or maybe he is just too stupid for anything!!
MAS does not need any AA croonies to sit in as MAS BOD. So now the Pariah TF is talking, shud have got all your arse out of MAS long time ago. AJ, it’s time that you and all the rest of Pariah TF croonies leaves MAS. The longer you a.se holes stay in MAS the more money MAS will loose.
Aj is not only short. He is short sighted. He couldn’t see anything except his mentor, the pariah. Just ask around, no CEO of any other airline would sign the RA to uplift the 35000 AAX passengers with such low cost fares. MAS was made to relieve the burden of AAX and then rewarded the Pariah with he Sydney route.
Now the Pariah can talk big. AJ, how could you be so stupid or you pretended to be stupid to look after the Pariah. NEVER SEEN A THICK SKIN GUY LIKE AJ IN MY LIFE.
AJ, examine the RA with AAX. Find way and mean to terminate it as it is not in the best interest of MAS to proceed as it will cause MAS to uplift AAX passengers with such low cost fares unheard of in the market.
Only the clueless idiot will agree to sign such a RA. Wake up AJ you are CEO of MAS not AAX. Don’t pretend to be stupid.
Please answer what GE Man has said in his comments regarding the proceedings in the Tender Board of a few days ago.
What an idiot.
AJ , you cut Bandung , Surabaya , AA increase frequencies…AJ you lay down your tools lah and leave MAS .
The Star paper said ;
“”It strengthened its hub via the introduction of Bandung-Penang, Bandung-Pekanbaru and Denpasar-Yogyakarta routes.
It also increased the frequency for Bandung-KL and Denpasar-Surabaya routes. “””
http://biz.thestar.com.my/news/story.asp?file=/2012/7/26/business/11731115&sec=business
don’t just terminate the agreements take back your Zalida and Azhari
I cannot understand what are the unions doing ?
|Scare of those suckers. Use the people force to get rid of those who made your life miserable.
Actions actions speaks louder then words.
MAS bleeding but male cabin crew already changed to new uniform ?
Those suckers will suck MAS dried before they got kicked out .
Ahmad Judi
This is the mentality of our topLESS Management. Their shallow mentality is: changing logo, changing uniform, new organisational charts and more Business Plans will turn around MAS. This was how they have been doing things in MAS.
Further, that clueless idiot also thought that by giving away profitable routes to Bandung, Sydney and Haneda on a silver platter to the Pariah, was part of his turning around plan. How stupid can one be.
I don’t mind being paid RM250k a month for doing all these stupid things and the same times be little the graded staffs of being of low productivity.
Mr Clueless, you are one of the major deadwood in MAS.