MAS (Malaysian Airline System) suffered billions of dollars of losses. The government replaced the CEO with a man named Idris Jala, from Shell Malaysia.
Idris was heralded as the man with the midas touch, competent in corporate management, effective and efficient driven, and competent in turnaround management.
Idris said he needed $4 billion to turn MAS around. $1billion from internal generated funds, $1billion from borrowings, and he requested that the govt fork out $2billion.
Idris could not get the $2billion as there was too much objection from the citizens.
How did MAS does it's turnaround?
Did they cut cost, reduces their continuing burgeoning obese, cut and trim excesses and excess fats, improve productivity and efficiency, and implement strategic management tools and techniques in an effort to induce competitive advantage????
To our sorrow and dismay ... they did nothing right till today.
They drive out staffs, about 4,000 of them in the name of voluntary saperation scheme and kept the dead wood within, grounded on solid foundation within the crony-system.
They strip their asset to par off debts.
They sold the MAS Building, their icon building in the city state of Kuala Lumpur.
They sold airplanes so that they can cash out and provide some readily cashflow.
They sold many more of other assets
... read their published account statement.
They did not cut their cost ... They paid 5-star prices for the meals... who is the vendor? You can guess ... ask Pak Lah!
Idris derives the sucking doctrines to turn MAS around. He decides to cut off all those domestic routes that contributed to part of it's losses, and by doing so, PMB had to compensate them $650 million. How was it done?
Jala asked the government to rationalise the domestic routes and pass those non-profitable routes to AirAsia. However, MAS had an agreement with Penerbangan Malaysia Bhd (PMB) and if MAS refuse to ply those routes, they would be repudiating the contract.
The government step in to bail out MAS. They directed PMB to terminate the agreement. The conditions of termination is that PMB must serve 12 months notice in writing to MAS; otherwise they had to pay a penalty.
Penerbangan Malaysia Bhd (PMB) had to pay compensation for the early termination of the agreement for domestic business unbundling because PMB was not allowed by the government to serve 12 months notice in writing to terminate the agreement in order to rationalise the domestic airline sector. What is the rationalization about? It’s about MAS who do not want to serve 90 domestic routes which was passed to AirAsia. Because MAS was losing money on these routes, they propose to severe the agreement which would have been a repudiation of contract. Creatively, the got the govt to instruct PMB to terminate the agreement and at such, instead of being the party who had repudiated the contract agreement, PMB becomes the party who was forced by the high hands to repuduate and thus MAS benefited $650million.
Smart Management? Innovative? Creative? Jala Management Doctrine at work???? Did he learnt it from Shell?
Ya, Jala squeeze every part of the government... he sucks PMB, not only on this $650 million. There is also the sales of airplanes of which was owned by PMB and leased to MAS. However, many don't understand the lease agreement. Should PMB sells the airplane, they had to pay compensation to MAS - 60% of the sales amount.
You believe it? PMB bought the airplanes from MAS in the early 90s in a restructuring exercise conducted by the government to save MAS from bankruptcy and then would lease back the planes t0 MAS.
One of the terms of the agreement is that, should any of the planes be sold, MAS would get 60% of the sales amount as compensation.
Did Jala trim MAS of the fats and excesses ????
...
The Jala ada banyak lubang ... tak boleh tangkap ikan.
Jala only managed to trim their asset-based to convert it to cash for immediate expenditure.
In time, soon, the asset is gone and the cash will also gone... for good!
Then, they have no more assets to sell to generate immediate cash.
They will then need the government to bail them out, again, and again, and again.
Jala sucks PMB and the government using Jala Doctrine which was derived from the early days Dracula Doctrine.
They did not improve efficiency and productivity; I travelled each week, and I have seen nothing had changed for the better; in fact, I smell more dead rats and it's odious.
Worse of all, or should I say, the worst act and a betrayal of the Malaysian public's trust, they increase the domestic airfares so many times and that include, fuel surcharge; they transfer all their cost and inefficiencies to the customers
- the customers pay for all of it - the inefficiencies and pilferages and wastes.
The govt made promises that it will not keep, or rather, it was made to be broken, as often as it was made.
MAS has increased its domestic fares from today, with the bulk of the rise being for the flights across the South China Sea as well as within Sabah and Sarawak.
The price increase was more than the average of 15% for economy and 25% for business class that was announced by MAS managing director Idris Jala on July 31.
“The majority of the routes within Sabah and Sarawak will see the highest increase as operational costs for these sectors are also the highest,” said one source.
MAS always argue that despite the increases, its domestic fares were “still among the lowest in the world”.
The cost of flying on MAS is only 62 sen per mile, which is lower than the cost of flying in countries like Thailand, China, the Philippines, France and Japan - that's what they said.
MAS-Jala said they are dedicated to the creation of a company that will be a source of pride and admiration of its employees and its stakeholders.
What about their customers, those who paid to keep them alive?
They don't care, because they had the government to provide the competitive barriers.
They need not worry at all for if they lose money, the govt will bail them out.
The govt will shut out all competitors so that they thrives and survive at the expense of the rakyat.
They will make money because they increase the airfares and pass all their cost to the customers.
Read their Turnaround Action Plan and see for yourself what they promised they would do and what they had done.
Idris was heralded as the man with the midas touch, competent in corporate management, effective and efficient driven, and competent in turnaround management.
Idris said he needed $4 billion to turn MAS around. $1billion from internal generated funds, $1billion from borrowings, and he requested that the govt fork out $2billion.
Idris could not get the $2billion as there was too much objection from the citizens.
How did MAS does it's turnaround?Did they cut cost, reduces their continuing burgeoning obese, cut and trim excesses and excess fats, improve productivity and efficiency, and implement strategic management tools and techniques in an effort to induce competitive advantage????
To our sorrow and dismay ... they did nothing right till today.
They drive out staffs, about 4,000 of them in the name of voluntary saperation scheme and kept the dead wood within, grounded on solid foundation within the crony-system.They strip their asset to par off debts.
They sold the MAS Building, their icon building in the city state of Kuala Lumpur.
They sold airplanes so that they can cash out and provide some readily cashflow.They sold many more of other assets
... read their published account statement.
They did not cut their cost ... They paid 5-star prices for the meals... who is the vendor? You can guess ... ask Pak Lah!
Idris derives the sucking doctrines to turn MAS around. He decides to cut off all those domestic routes that contributed to part of it's losses, and by doing so, PMB had to compensate them $650 million. How was it done?Jala asked the government to rationalise the domestic routes and pass those non-profitable routes to AirAsia. However, MAS had an agreement with Penerbangan Malaysia Bhd (PMB) and if MAS refuse to ply those routes, they would be repudiating the contract.
The government step in to bail out MAS. They directed PMB to terminate the agreement. The conditions of termination is that PMB must serve 12 months notice in writing to MAS; otherwise they had to pay a penalty.
Penerbangan Malaysia Bhd (PMB) had to pay compensation for the early termination of the agreement for domestic business unbundling because PMB was not allowed by the government to serve 12 months notice in writing to terminate the agreement in order to rationalise the domestic airline sector. What is the rationalization about? It’s about MAS who do not want to serve 90 domestic routes which was passed to AirAsia. Because MAS was losing money on these routes, they propose to severe the agreement which would have been a repudiation of contract. Creatively, the got the govt to instruct PMB to terminate the agreement and at such, instead of being the party who had repudiated the contract agreement, PMB becomes the party who was forced by the high hands to repuduate and thus MAS benefited $650million.
Smart Management? Innovative? Creative? Jala Management Doctrine at work???? Did he learnt it from Shell?
Ya, Jala squeeze every part of the government... he sucks PMB, not only on this $650 million. There is also the sales of airplanes of which was owned by PMB and leased to MAS. However, many don't understand the lease agreement. Should PMB sells the airplane, they had to pay compensation to MAS - 60% of the sales amount.
You believe it? PMB bought the airplanes from MAS in the early 90s in a restructuring exercise conducted by the government to save MAS from bankruptcy and then would lease back the planes t0 MAS.One of the terms of the agreement is that, should any of the planes be sold, MAS would get 60% of the sales amount as compensation.
Did Jala trim MAS of the fats and excesses ????
...
The Jala ada banyak lubang ... tak boleh tangkap ikan.
Jala only managed to trim their asset-based to convert it to cash for immediate expenditure.
In time, soon, the asset is gone and the cash will also gone... for good!
Then, they have no more assets to sell to generate immediate cash.
They will then need the government to bail them out, again, and again, and again.
Jala sucks PMB and the government using Jala Doctrine which was derived from the early days Dracula Doctrine.
They did not improve efficiency and productivity; I travelled each week, and I have seen nothing had changed for the better; in fact, I smell more dead rats and it's odious.
Worse of all, or should I say, the worst act and a betrayal of the Malaysian public's trust, they increase the domestic airfares so many times and that include, fuel surcharge; they transfer all their cost and inefficiencies to the customers- the customers pay for all of it - the inefficiencies and pilferages and wastes.
The govt made promises that it will not keep, or rather, it was made to be broken, as often as it was made.MAS has increased its domestic fares from today, with the bulk of the rise being for the flights across the South China Sea as well as within Sabah and Sarawak.
The price increase was more than the average of 15% for economy and 25% for business class that was announced by MAS managing director Idris Jala on July 31.
“The majority of the routes within Sabah and Sarawak will see the highest increase as operational costs for these sectors are also the highest,” said one source.MAS always argue that despite the increases, its domestic fares were “still among the lowest in the world”.
The cost of flying on MAS is only 62 sen per mile, which is lower than the cost of flying in countries like Thailand, China, the Philippines, France and Japan - that's what they said.
MAS-Jala said they are dedicated to the creation of a company that will be a source of pride and admiration of its employees and its stakeholders.
What about their customers, those who paid to keep them alive?They don't care, because they had the government to provide the competitive barriers.
They need not worry at all for if they lose money, the govt will bail them out.
The govt will shut out all competitors so that they thrives and survive at the expense of the rakyat.
They will make money because they increase the airfares and pass all their cost to the customers.Read their Turnaround Action Plan and see for yourself what they promised they would do and what they had done.
1 comment:
This is true:
A friend of mine works for as a supervisor for a contractor that dumps all MAS 'toilet waste' for MAS aircrafts in KLIA.
Believe it or not, the contractor is charging RM10,000 per aircraft per landing basis!!!!
Should this figure is true, i hv calculated MAS must have cost in about RM500 per passanger for dumping shit on their aircrafts.
As a caring citizen and bumi lover, i encourage every passanger of MAS to dump in their aircrafts to bring the average cost down!
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