Saturday, May 12, 2007

MAS Down-grading service?

Senator Datuk Wira Syed Abbas Alhabshee said in the Dewan Negara that MAS has downgraded its service.

The senator liken the service provided by MAS to the low-cost services of its subsidiary, Firefly.

According to Senator, Mas has lost its sense of direction and no longer focused on providing its service to the people.

"I cannot understand why FireFly was set up. Does it want to compete with AirAsia? What I see is that MAS has lowered its service to become a budget airline," Senator said.

It's true the service is lowered to that of budget airline but the fares are premium airline.

It cost less than RM300 to travel to-and-fro from KL to Kuching via AirAsia but it cost me RM1,200 to travel by MAS. What is puzzling as observed is that MAS could cancel a flight if there is not sufficient passenger and I had to take a later flight. Once I was booked for a 8.15am flight to Kuching from KL and the people from MAS called me a day earlier to inform me that the flight had been canceled and that I was given the option to take a 10.05am flight. I didn't have a choice, did I? I am not sure if I refused would they reimbursed me the money or forfeit it. But one thing is certain to me; MAS has acted the same way AirAsia did, ie, to provide the same quality of service as AirAsia but priced at a premium rate.

Is this what Idris Jala ability? Is this the strategy of turning around MAS? The turnaround strategy seems to be about passing the cost and inconvenience to the travelers and keep increasing the price of the tickets. At the same time, the cost of fuel had come down more than 30%, yet the fuel surcharge remains as at when the price of crude was USD70/barrel.

As a turnaround consultant myself, the tactics and strategy utilized is unintelligible and unsustainable. But it seems he was advised by a Mat Salleh.

News culled from: The Borneo Post; May 11th 2007; page 6, Home.

1 comment:

Anonymous said...

To add salt to the wound, Singapore Airlines made more than RM2 bil profit last year. This was while the country's top leaders still insisted on a bumiputra CEO for MAS and refused to consider other options.