Guaranteed Success Formula for MAS

MAS has come up withn the RIGHT FORMULA to ensure SUCCESS - Pass all cost to their customers and the remainder of any residue, to the government. This is a 100% guarantee for success!!!

MAS discovered that Proton who could not sell their cars in direct competition with foreign-made cars has got the government's to set up barriers to shut-out competition by way of higher taxes and tariffs imposed on foreign-made cars, plus tax incentives. Since, precedence had been set by the government, MAS, a national air-carrier could also seek the same treatment from the government and at the same time, increase the air-fares. If it's traffic is reduced due to the high fares, then, the government can impose sur-charge or tariffs on other airlines in such way as was done with Proton. That may prove to be a sure win for MAS. Malaysia Boleh!

The Star reported at page 14, Nation, 23rd Nov 2005, entitled MAS to raise fares in bid to avoid losses

Deputy Transport Minister Datuk Douglas Embas said that MALAYSIA Airlines (MAS) will increase the overall fares as one of the strategies to resolve its financial problems. According to Douglas, the fare increases would be done cautiously to ensure MAS remained attractive to passengers, taking cognizance of its competitors. In winding up the debate in Parliament yesterday, Douglas said several measures would be taken by the national carrier to resolve its losses and ensure profits.

The measures to be taken include increasing MAS’ revenue for all destinations, and this measures involve increasing fares, Douglas told the Dewan Rakyat. Another measure was for MAS to increase its capacity and review flight frequencies. This involved an in-depth study as it included operations at all destinations and would take into account the operational cost. Douglas also said MAS had undertaken an in-depth study to reduce operational costs at all levels of the company. On capital expenditure, he added that MAS would undertake only key projects that would bring positive returns on investment. MAS would also decide on disposing of certain assets. Another measure was fuel hedging to cushion the impact of increasing fuel prices.

Douglas also said MAS would undertake strategic measures to strengthen its financial position, including:

1. Increasing its Golden Holidays packages and temptation products;
2. Increasing maintenance, repairs and overhaul jobs for other airlines;
3. Marketing its facilities at the MAS Academy to other airlines; and
4. Increasing revenue from ground handling services for international airlines.

“We hope that with these measures MAS will be able to overcome its problem,” said Douglas.

Do we have hope? We better hope for Divine intervention.