Todays News:
MAS is reviewing it's operations and air fares in a move to gain competitiveness.
I am puzzled! Is it saying that MAS hasn't been competitive and didn't consider the air fare pricing when they decided to increase the air fares?
The third quarter of 2006, MAS reported profit of RM240 million. Great turnaround, but did they turnaround it by creative accounting? Out of the RM240 million profit, RM194 million was attributed to a one-off gain of RM194mil from the sale of MAS’ headquarters in Kuala Lumpur and compensation received from the government. The balance of RM50 million had been attributed to the recent increase in air fares.
Will it be sustainable? MAS had also reduced its workforce and cut unprofitable routes as part of its cost cutting measures, as well as raised ticket prices to bolster income. But is this sufficient to cause a turnaround? I think they hardly understand turnaround management. What had improved is the accounts reporting system. They are more creative now.
I am puzzled! Is it saying that MAS hasn't been competitive and didn't consider the air fare pricing when they decided to increase the air fares?
The third quarter of 2006, MAS reported profit of RM240 million. Great turnaround, but did they turnaround it by creative accounting? Out of the RM240 million profit, RM194 million was attributed to a one-off gain of RM194mil from the sale of MAS’ headquarters in Kuala Lumpur and compensation received from the government. The balance of RM50 million had been attributed to the recent increase in air fares.
Will it be sustainable? MAS had also reduced its workforce and cut unprofitable routes as part of its cost cutting measures, as well as raised ticket prices to bolster income. But is this sufficient to cause a turnaround? I think they hardly understand turnaround management. What had improved is the accounts reporting system. They are more creative now.
3 comments:
MAS are now being runned by guys with Pentium VIII brain cells and ideas. Brilliant people, thumbs up!
I do agree with you that 'turnaround management' is probably not in their vocabulary at all.
Its like putting a DBKL Cleaner to manning MAS... you still get results, anything is possible!
No matter how they move it still 'Mana Ada Sistem'.
It IS the ONLY airline in the world that do not own a single aircraft!!!
Like that I also wan to run an airline!
Malu lah!
Like that also cannot make money!
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