Sunday, October 29, 2006

MAS Turnaround in Deep Shit




Malaysian Airline System Bhd said it expects to return to profitability by 2007, but warned that its restructuring plan could be hurt if the government liberalizes the aviation industry before 2008.

In an interview, Chief Executive Idris Jala said the airline's turnaround might be derailed by regulatory changes following talks between Malaysia and Singapore on whether to open their airspace to nonnational airlines ahead of a Southeast Asian aviation-sector liberalization set for 2008.

"Our turnaround plan was conceived to coincide with the [Association of Southeast Asian Nations] road map and an earlier liberalization [of the aviation sector] will set us back as we do need time to turn around," Mr. Jala said.

What Idris Jala is saying is that:

MAS can only turnaround if MAS has no competitors in the industry and that they are allowed to raised the price as high as possible till 2007 in order for them to turnaround.

Well, in order to protect MAS, customers must pay for all the loses MAS suffered which was due entirely by their mismanagement, inefficiencies, high overheads, overly expensive vendors and maintainance cost and corrupt practices.

9 comments:

mob1900 said...

well-said, it's like having whole stadium cramp with people, charge them high ticket prices and watching an empty field with only a single player.

bayi said...

As usual, we are made to pay for the incompetence of the "specially selected bumi managers" of GLCs.

salman said...

These are the comments which never helps any GLCs in Malaysia to prosper. Never trusting but always assuming the worst. Well done keep it up. May Malaysia prosper further with this kind of attitude.

Maverick SM said...

Salman, praising the GLCs will help them better. Observed in the last 2 decades the performance of most of the GLCs and the praises heap on them; then look at the financial restructuring schemes mooted and implemented - all publics money was dumped down the drain.

Maybe, you are one of them within...

Just look at AirAsia; what assistance did they get and yet they can be successful...

mmudahlupa said...

We're all been caught by `J-a-l-a' and his bunch of fishermen!

mob1900 said...

Alas 'Salman' loves his cruthes. Stay crippled, dude.

O2Deprivation said...

I am just a layman, when I look at the ticket price that I am paying now, compare to a while ago, the only comment I have is "what a rip off!"

mmudahlupa said...

MAv, i still remember you said MAS Turnaround Plan will fail. Well the result and public reaction speaks for itself.Maybe you should turnaround Jala till he cannot turn anymore! what about a study on `Why MAS Turnaround Plan Failed? Engage Dr. Lim Ghee Teck NOT ASLI?

Mat Malaya said...

Interesting comments on MAS turnaround especially comparing when to Air Asia. Are they not getting the support from the govt? Think again, they've gotten the best deal. All the choice route without the required investment. Doggy aircrafts (1st 2-3 years operations). Need not to "subsidise" the poor chaps in Sabah and Sarawak AND the MPs and "oligarchs".
When MAS talks about postponning the MAS monopoly not to happen BEFORE 2008, people shouted monopoly. Idris and his team has been give 2 years to turnarround the company. Has the term expired? Again lets vuew this from short, mid and long term perspectives. You need not give a GLC forever to be competitve and you sure don't give a company 18 months to turnaround a 20 years of mismanagement.
Lastly, Singapore have at least 3 airlines that needed the passenger critical mass. Can they get it from Singapore or Australia or the Phillipines? Why talk of Malaysian open airspace when they have lock-out Malaysia from Australia.If you want to be competitve and be cut-throat, we Malaysian should stop adopting "Prosper Thy Neighbours" attitude. Let be competitve and play this economic game to its final conclusion.
I have never had any problem with competition good or otherwise. The only problem is when one instigate one thing, hide their hand and tries to sound otherwise.