MAS Fuel Surcharges remains to prop up profit

Surcharge down?

Not for MAS and AirAsia!

When the oil prices went up, MAS said they had no choice but to increase the price of its flight by way of higher fuel surcharge.

The increases of the surcharges went on for so many occasions.

The price of crude oil went up to US$158.85 on July 3, 2008.

Now the crude oil price is coming down sharply and as of today the price is lingering below US$80.00. Many airlines have cut the fuel surcharges - SIA, Quantas and Air France - KLM.

Crude price up, Surcharge up, up, up!

However, MAS and AirAsia needs to uphold the prices as they need the money to boost their profit and pay for their overheads.

They hope Malaysians would, with their BOLEH Spirit, continue to assist and contribute to enhance their bottom line and help MAS becomes much more profitable.

That is so wonderful-land of ours!

That is how Malaysian companies becomes profitable:

- screw the consumers and customers;

- get them to pay for whatever cost ;and

- should there be savings, keep it.

Malaysia Boleh!

MAS & Rempits affected by fuel

On 15th April 2008, MAS Chairman Datuk Dr Munir Majid said MAS has hedge some 40% of its 2008 fuel requirements at US$89 a barrel.

Dr Munir also said MAS had also entered into some hedging contracts at US$95 per barrel for 2009 fuel requirements.

At that time the crude oil price was at US$112 a barrel.

Today, it is reported that MAS has raised its fuel surcharges on international travel by as much as 80 per cent with effect from June 27 to offset record jet fuel prices.

The national carrier said in a statement it is raising its one-way fuel surcharge on short-haul flights (under three hours) by 25 per cent to 67 per cent and medium-haul flights (up to six hours) by 28 per cent to 50 per cent.

For instance, fuel surcharge on the Kuala Lumpur-Sydney flight will rise from RM422 to RM608 each way. The fuel surcharge on one-way tickets from London to Sydney via Kuala Lumpur has increased by 46 per cent from RM773 to RM1,131.

In an open letter to the general public yesterday, MAS managing director and chief executive officer Datuk Seri Idris Jala said it has no choice but to pass on the cost of fuel to consumers.

Jet fuel price has increased by 80 per cent since last year from an average of US$90 (RM293) per barrel to US$166 (RM541) per barrel.

"Put bluntly, if these adjustments don't take place - and quickly - the airline industry will collapse and have a ripple effect throughout the entire world economy," Idris jala said.

How is it that MAS which had hedge it's fuel at US$89 a barrel for 2008 and at US$95 a barrel for 2009 is affected by the rising fuel prices? Is this opportunism or is it to help MAS & Idris Jala to boost its profit margin for the year 2008 so as to prove that the MAS turnaround management had done a great job?

Malaysian Boleh-type of managers do depend greatly on such methods to derive profit to boost the corporations bottom-line and to show that they are great managers.

Maybe, Proton, TNB, Telekom, Khazanah and all the other GLCs can also make their profit reports better by taxing the people by another 200%; if not 400%.

Mat Rempit affected by fuel hikes

The government can use the good reason that the current fuel price increase of 78sens have effectively reduce the number of Mat Rempits.

Umno Putera had being applying all kinds of methods and ways to rebuilt the image of the Mat Rempits but the result of their affirmative actions were miserable and failed miserably.

However, the fuel hike appears to be excellently effective.

Maybe, the govt could consider eradicating the Mat Rempits by a further increase of another RM1 a litre and make it RM3.70 a litre.

Read the Rempit story here.

MAS new Dilemma

Dr. Matilda Metledge was a passenger on a MAS flight to Kuala Lumpur. During the flight she had to leave her family in order to attend to 3 sick passengers. For her contributory effort MAS was given toiletries and pyjamas. But she asked for an upgrade as a consideration. MAS said NO. And Dr Matilda sent MAS a bill for the service rendered.

"If you are a doctor traveling on a plane and you help someone, isn't a 'thank you' sufficient? Lorraine Long, Medical Error Action Group spokesman said.

Doctors, as part of the Hippocratic Oath, are obliged to treat sick people without expecting rewards. But is this code of ethic to be applied universally? Isn't it the airline's responsibility to take care of such sick people? And if such assistance is provided by a professional in a commercial environment, wouldn't it be fair and reasonable to expect certain considerations for the detriment suffered?

The ethical aspects deals with situations that is not within the confines of a commercial dictates. Example, if a doctor sees someone on the street who had fainted, he has an obligation to attend to the sick person. But if the sick person lies outside his clinic and he attends to him, wouldn't he has the right to charge for the service rendered? This is the penumbra areas and is paradoxical.

MAS: Late Planes, Heavy profit

Idris Jala said Malaysia Airline made the most profit on those months that its flight were delayed or canceled.

This is because almost every flight had 100% passengers which provide optimum revenue and maximum profit. If every flight were to take off which were half-full, then MAS profit would have shrinked. Apart from the optimum profit there were also opportunity profit. For example, those passengers whose flight were delayed or rescheduled may be forced to cancel their flight plan. At such, they would have to pay cancellation charges or at times may just forego the ticket. This way, MAS would gain additional revenue. As one manager of MAS said to me, MAS terms and conditions allow them the rights to alter, amend, reschedule or cancel any flight as they deem fit and passengers who bought the tickets impliedly agrees with the terms and take the full risks. So far, no one had taken any legal action to recover their losses or expenses.

From what we hear and observed, Idris may be tempted to repeat their "Performance" in order to maximise and optimise revenue so as to enhance MAS recovery. Passengers would indirectly be helping the process of turnaround and profitability of MAS. This is MAS greatest pleasure and critical success factors.

Cheerio; Malaysia Boleh!

MAS on Time

Fantastic improvement!

MAS flight is finally back to ON-TIME!

This morning, I observe on the screen that non of the flights were delayed or cancelled. My flight to Kuching MH2504 was on-time except for the slowness in boarding passage.

Thanks to Idris Jala... he must have done something radical to cause the impact-change.

Credit must be given where credit is due.

According to Idris Jala, The OTP data is 85% and 91% for domestic flight.

I am happy to observe the improvement. I hope they can keep this up and make it better.

Idris, you are great and hope it is sustainable over the long-term. You have my vote!

MAS in the Abyss. Idris in there too.

Flight MH2504 scheduled to depart from KL to Kuching at 8.15am today was delayed to 12noon.

This is MAS, the fucked up airline!

Chan Kong Choy said MAS service had improved frm 58% to 67%... you are a damn asshole minister. 67% means 33% of defects and poor quality which is critical and equals to dysfunctional system and yet you arse minister thinks it is an acceptable limit.

MAS had reached a stage of turnaround...down, down, down the abyss!!!

It is time for Idris Jala to go. He had proven he failed, and had failed miserably. Ask the MAS ground staffs and you will know why. I talk to some of them... they said the problem wasn't theirs, it's the management and what we see and experienced all these happenings are the consequences of what had happened between the management and the ground staffs, in particular, the engineers.

The airline system is dysfunctional; management still thinks they are doing right...33% defects; 33% flight delay and yet they believed they are doing OK... Is this OK???????

MAS: 67% on Time

Transport Minister Datuk Seri Chan Kong Choy said Malaysia Airlines (MAS) has improved the average on-time performance of its flights from 58% in the first fortnight of this month to 67.9% currently.

Wow! Isn't that great?

I just blogged yesterday an incident of delay on 15th July 2007, where flight MH2515 from Kuching to KL which was scheduled to take off at 1.55pm was rescheduled more than 4-times. By 8.20pm, MAS then announced that the flight is canceled and passengers had to line up and change their boarding pass for the 9.30pm flight MH2539.

In fact 4-ministers including Chan Kong Choy himself, Fong Chan Onn, Hon Choon Kim and Kong Cho Ha, were not spared of the experiences of delay flights. All of them have to cancel their trip to Kota Kinabalu, Sabah. They were slated to fly at 9.45am but the flight was rescheduled to 10.45am which means that by the time they arrived in Sabah, the MCA meeting would have convened. Hon Choon Kim said it was pointless to take the next flight. “The delay disrupted our traveling schedule.“Personally I am fine with it but I don’t know how the transport minister took it," Hon said.

67% means, for every 100 trips, 33 flights are still rescheduled or cancelled. That's a 3-Sigma company????

Open Skies for MAS Only; Closed for Others!

Idris Jala said MAS does not want the Government to open up the Asean Skies for fear that Singapore will benefit more than Malaysia.

However, MAS wants more destination route and wants the government to secure the skies open for Firefly to Singapore and Indonesia.

Thats a tough call from our best CEO that money can buy!!!!

But Tony Fernandes has his own opinion. This is what he told StarBiz in an interview published on July 23, 2007, Special Focus, page B16.


Fernandes and AirAsia have lifted Malaysia’s reputation in the global aviation sector. Whether we like him or not, he has guts.

STARBIZ: In your view, why is MAS objecting to a possible early timeline?

Tony Fernandes:

Did anyone wait for AirAsia to be of certain size? From the start, we were up against an airline that had subsidies, enough aircraft and support from the government.

Just look at us. Five years ago we have 2 planes and today we carry 18 million passengers. We have not have 62 labs or 20 management consultants telling us what to do or 17 code names. It was survival for us and now look at our growth. No one protected us today.

MAS has a bigger market capitalization than ours. So why is one national champion trying to hold back the growth of the other?

Look at CIMB group. It is now a regional bank but not once did Datuk Nazir Razak talk about protection in Malaysia even when CIMB had to compete with banks like Maybank or even Public Bank.

So Idris (MAS MD Datuk Idrs Jala) needs to take a global view. It is a free market out there. Why stop others from growing? I am really surprise at what he said. He should not be scared for MAS.

They (Firefly, MAS’s budget carrier) even have Subang even though we fought so hard to stay back in Subang.

Why are they afraid of competition? We welcome competition. It is time to get rid of ship on our shoulders. Just get the inferiority complex off.

Dear Idris, since you are the only CEO money can buy, could you please rebut Tony's thesis?

By the way, last Sunday (15th July 2007), flight MH2515 from Kuching to KL which was scheduled to take off at 1.55pm was rescheduled more than 4-times. By 8.20pm, MAS then announced that the flight is canceled and passengers had to line up and change their boarding pass for the 9.30pm flight MH2539. There were angry shouts and disparaging remarks from the affected passengers. I heard the flight steward told a Datuk that the flight had to be canceled because it had exceeded the flying hours for the day. Then wh did it take MAS 7-hours to decide to cancel it? Everyone was shouting "Mana Ada Sistem". Maybe, this is what it means by best CEO money can buy. Hello Mohamad Nor Yakcop, can you say it one more time????

MAS won't pay & Won't want Competition

Malaysian Airline (MAS) said it won't pay the $40 million bill to repair and restore the Fokkers and Twin Otters.

MAS felt the government should pay or make compensation in order to ensure that MAS can remain profitable.

Idris Jala said taking back Rural Air Service (RAS) is a form of distraction for MAS due to the amount of time needed to restore the planes and manage the route.

According to Idris Jala, MAS has already been in talks with the government and the government had agreed in principle to do everything at its own expenses.

We surely had a good government who is prepared to pay all bills to ensure MAS can remain profitable. This way, we can prove to the world that Malaysia is capable to manage business, and ensure business are profitable all the time. If MAS have any more financial difficulties due to its fat burgeoning overheads and high cost, it may be probable that the air ticket prices will be further increase. So, passengers must learn to help compensate for the poor services and inefficiencies and ensure that MAS can remain profitable.

At the same time, Idris Jala warned that MAS do not want the government to open the skies for fear that Singapore will benefit more due to the incompetencies and uncompetitiveness of MAS.

However, MAS budget airline Firefly is keen to fly to Singapore and Indonesia.

So, we hope other countries will open up their skies for MAS and at the same time accept the fact that Malaysia can't open up its skies to others as we have yet to be able to compete.

We hope that other countries can be more tolerant towards Malaysia's plight and sympathizes with MAS dilemma as we have an inefficient system and management and we just do not have the capabilities and capacities to compete without the NEP and without erecting trade barriers.

Idris Jala surely should be voted the best CEO Malaysia had and the best CEO money can buy. Idris had proven that he can turnaround a company quickly as he has the power and influence to convince the government to allow MAS to increase its airfare which substantially cover the losses and to get PMB and the government to pay compensation and contribute substantially to its revenue. At the same time, MAS is also able to control the skies and ensure that there is no competition from others.

Hail Idris; Hail MAS! Hail Malaysia!

Idris Jala: CEO that Money can Buy

2nd Finance Minister Nor Mohamed Yakcop described Idris Jala as the best CEO that money can buy.

He said:

“When we decided to find the best CEO for MAS in the world, the best CEO that money can buy, we sent searching throughout the world but found him in Sarawak, Idris Jala."

Is it that money cannot buy other better CEO? If Idris is the best CEO in the world, then his boss in Shell Malaysia and Shell international and the stockholders in Shell must have been fools as they only placed Idris as one of the lower-rank top executive in a small subsidiary. I do agree that Idris was a much better CEO in direct comparison with the other cronies in UMNO and also better than many of the ministers and leaking MPs.

Nor Mohamed Yakcob had also forgotten that at the time when Khazanah & the govt was searching for a CEO, there were great political pressure and harassments from UMNO and UMNO Youth DeputyPresident that only a Bumi, accepted by UMNO Youth Timbalan, should be selected for the post. Idris then appointed several Mat Sallehs to head the turnaround. However, the turnaround was largely possible with the compensation of more than RM1bil from MAB and the substantial (between 30-50%) increase in airfares and surcharge which means the cost was transfered to the passengers. The other aspects of turnaround was the hiving-off the loss-making domestic flights. Another tactic used was to postponed flights that do not have enough passengers and consolidate them at a later flights, all at the expense of the customers. Is this called turnaround? Well, any Tom, Dick and Harry can do that too.

Posting from H/P

Trying to test my Samsung SGH600 toy using the WIFI at the lounge at Kuching airport. Flight delayed for 3hrs as Idris is repairing the jala plane. Mana Ada System. Fortunate the mee rebus is good at the golden lounge and they are putting me on another flight which is one hour later.

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.

Disappointed with how MAS handled diversion.

MAS flights to KLIA diverted

31 Mar 2007

At least five Malaysia Airlines flights were diverted from the Kuala Lumpur International Airport in Sepang to Penang yesterday due to bad weather.

A passenger, Nancy, said passengers were disappointed with how MAS had handled the diversion.

"There were no MAS officials on hand at Penang International Airport to advise us on the situation or to at least tell us when we would be flown back to Kuala Lumpur.

"Passengers were left wondering what was going to happen next. There were no refreshments and no information. A few passengers missed their onward flights from KLIA due to the diversion."

Flight MH608 eventually departed from Penang at 9pm and arrived at KLIA 50 minutes later.

A MAS official said the national carrier had followed all the standard procedures.

Followed procedure? That means what had happened to the frustrated passengers at the Penang airport are procedures. And the procedure is: "Don't care the damn about the passengers; don't give them any refreshment; don't give them any information; let them wait at their peril. That's MAS procedure?

I had experience a delayed flight for more than8 hours and the officer told me that they have a right stipulated in the conditions of contract and that's procedure. They don't care a damn.

Did we had Idris Jala at the helm? Can Idris please explain to all Malaysians and all other passengers who had suffered?

MAS Sells, EPF Buys

MAS to sell academy to EPF for RM145m

March 10 2007

Malaysian Airline System Bhd (MAS) has agreed to sell a property that houses its training academy and information technology centre to the Employees Provident Fund.The sale of the property in Kelana Jaya, including the freehold land the building is on, will be for RM145 million.

MAS said it would use the cash to fund working capital and the deal was part of its turnaround plan to sell non-core assets.

It will then lease the same property from the EPF for five years, with an option to renew the duration of the lease for a further five years. The proposed disposal is expected to be completed by year-end.

“The proposed leaseback is to give us more flexibility in choosing what are the best options for office consolidation in the future. “This can help to maximise the yield and, at the same time, achieve the best price possible,” the statement said.

MAS will make a gain of RM43.2 million after subtracting the property’s value of RM99.2 million in its books and another RM2.6 million in expenses for the deal. An independent valuation of the property in October last year valued it at RM145 million.

MAS bought the property in 1989 for RM133.1 million.

If you owned a building and sells it to cash out, then why would you lease it back from the buyer for 5-years?

MAS said this is to maximise yield? Ha,ha,ha, This is the first time I have learn financial management where I am told that the way to maximise yield is to sell your assets and then lease it back from the buyer.

Why don't MAS consider REIT (Real Property Investment Trusts)? Would it makes more commercial senses?

Interesting fact is that MAS bought the property at RM133mil, had a book value of RM99mil, now claims that they stand to gain RM43mil after selling the asset at RM145mil.

MAS will be stripped naked except the Net

MAS has further improved their bottom-line and will see better profits.

Idris Jala has continuously proved that he is capable in generating what Jeff Ooi called excess revenue and cost reduction.

MALAYSIAN Airlines System Bhd (MAS) is selling the two-year-old Four Seasons Resort in Langkawi to a company controlled by a Saudi Arabian prince for RM435 million.

That way, they had generated another half a billion of "excess" revenue and by doing so, they would also be reducing the cost of overheads and expenses arising out of the operations.

MAS yesterday signed an agreement to sell "Malaysia's most expensive hotel" to Kingdom Langkawi BV, a company affiliated to Prince Alwaleed Bin Talal Bin AbdulAziz AlSaud.

This is Prince Alwaleed's first investment in Malaysia. A sum of RM400 million was agreed for the hotel portion and RM35 million for another 10ha of land.

MAS will gain RM62 million from the sale after taking into account its net assets of RM365.08 million and incidental expenses related to the disposal amounting to RM7.9 million, it said in a statement to Bursa Malaysia.

The sale forms part of Idris Jala's "strategic asset rationalisation exercise" through the disposal of "whatever assets" under its Business Turnaround Plan.

The disposal of the building and land measuring 35.64ha is expected to be completed by the third quarter of 2007.

Last year, MAS completed the sale of the MAS building at Jalan Sultan Ismail for RM194 million.

On Monday, the national carrier announced that for the full year ended December 31 2006, it posted a net loss of RM133.74 million. If they keep stripping their assets and if the price of crude oil will drop further below US$40, and if the government will allow them to increase the tickets by another 50% and PMB will further compensate them another RM600 as further agreed, then by next fiscal year, MAS can project to make profit of RM1bil net. Then, NST and The Star,( and Jeff may want to join in the chorus) will blow the trumpet of the great success but not mentioning the factors.

MAS Mystifies

The Sky is the Limit, but the consumer's pocket is limited.

Jeff Ooi article: Voila, Idris Jala!, he wrote:

"Idris Jala seems to have managed to stop the bleeding at Malaysia Airlines. His formula is somewhat similar to what Che Khalib Mohamad Noh employed in TNB -- revenue creation and cost reduction."

Jeff is an MBA and probably a financial exponent. But, can we consider a few points?

(1) The crude oil price was at one time US$70/barrel and now is hovering around US$50. What was the translated savings? and

(2) The passengers of MAS had to pay fuel surcharge which was tabulated when the crude oil price was US$70. When, at 28% deflated price, why is it that the fuel surcharge remains? Other airlines have all lowered; why haven't MAS? Is it that "What goes up won't come down?"

(3) PMB had compensated MAS a few hundred millions for fiscal year 2006. What is the % contribution in relation to the profit? Was it 40% or 50% of the gross profit of RM1.6b?

(4) What about the other compensations that the government had made for rationalisation of the domestic routes?

(5) Do also consider the currency translation gain. The US dollar was RM3.80 last fiscal year and is now RM3.50. That's about 9.5% paper gain and at an external borrowing in excess of RM10b, the paper gain can be more than RM1b. What was this gain in relation to the profit?

(6) For the fiscal year 2006, there were two times ticket price adjustments (increase of between 20-50%). What is the profit difference based on fiscal year 2005 pricing and 2006 adjusted price? Did the price adjustment contributed to some RM1bil extra revenue?

The sky may not have limit, but the consumers have their limit and where is the corporate citizenship? Pak Lah is the finance minister and his son-in-law is from Oxford; why can't they read between the lines?

Jeff, was that "Revenue creation and Cost reduction?" Did you analyze the financial details? Did you read the comparative operating cost? Did the maintenance cost reduced substantially that had impacted the bottom-line? What was the Cost of Poor Quality last fiscal year and this fiscal year? Assuming the ticket price adjustment for last year helps generate more than RM1bil additional revenue, do we classify this as revenue creation or passing the cost to customers? The aspect of cost reduction is substantially contributed by the retrenchment of more than 2,000 senior or long-serving staffs largely due to the reduction in domestic flights and outsourcings of certain services. Is this cost reduction? What about productivity index over the corresponding period and what is the KPI in relation to the competitors?

Headlines are for Spinners; Jeff, you ain't gonna be theirs too; It would make more sense if a comparative study had been made between the preceding years' results and also with regional competitors.

MAS, the $20m Gatekeeper

MAS only a Gatekeeper and "We don’t own the cargo complex".

MASKargo senior general manager Datuk Ong Jyh Jong said they were merely the “zone authority” for the complex.

“We don’t own Kompleks Kargo Udara Kedua. Our task there is gatekeeping, ensuing the goods passing the zone have all the right documentation and those who work there are authorised personnel.”

He said they also provided security coverage within the cargo complex perimeter but not on the premises belonging to Federal Express, DHL, Klas and 21 other freight forwarders operating within the cargo compound.

He said Malaysia Airports Holdings Berhad owned the complex while Dynaview managed the premises of those operating there.

Nobody is at fault, you see!!!

For $20m per annum, they get gatekeeping job and all they do is to provide security coverage at the perimeter - that means, only employing "Jaga" (security guard); nothing else.

"Park at your own risk; Store at your own risk"

Read the contract carefully. It's full of exclusion clauses and absolutely no liability. However, Common Law has distinguished it and they cannot claim exceptions if there is negligence or omission to act. There is a duty of care principles to adhere to.

An interesting report was in the NST.

The blame game has started.

The Airfreight Forwarders Association of Malaysia (AFAM) and MAS had a face-off over the heist, NST report.

AFAM blames MAS for their lack of security measures at the cargo complex. MAS however claimed they cannot be held responsible as the complex does not belong to them and that they are only in charge of security at the entrance and exit points.

WHO THEN IS IN CHARGE OF SECURITY AT THE COMPLEX?

MAS senior GM (cargo) Ong Jyh Jong pointed out that the heist had not taken place at the MASkargo Complex in Penang, but rather at the Second Air Cargo Complex (SACC) in Batu Maung.

"We are merely the zone authority at the SACC and the premises do not belong to us. We only play the role of gatekeeper at this complex," he said. "Our responsibility is to monitor incoming and outgoing goods. We ensure the documents are in order and the goods match the items on the manifests. "We also monitor people who go in and out of the SACC, ensuring they have the proper security clearances," Ong said.

AFAM chairman Walter Culas said the Ministry of Finance had appointed MAS as the Free Commercial Zone (FCZ) authority at the Penang airport in 1996. "Therefore, MAS should be responsible for all entries into the zone. "How can MAS say that they will leave it to the authorities to decide who is responsible for the robbery? Under the Free Zones Act 1990, MAS is responsible for everything that goes in and out of the free zone area. "The issue is the main guard house at the entrance as the robbers were allowed to drive straight in without security checks."

He accused MAS of trying to wash their hands off the robbery when it was allegedly negligence on their part which contributed to the heist.

"Nothing was done, the identity cards of the two truck drivers were not even checked by the security guards when the robbers drove in," Culas claimed.

"They should be held accountable for what happened at the entrance because there is only one entry and exit point at the SACC," Culas said.

THE ISSUE OF IMPLEMENTING THE ELECTRONIC CARGO PROCESSING SYSTEM

Ong said that MAS had tried to have an electronic system installed but this move was contested by AFAM in court. MAS had wanted to charge RM5 for each cargo processing fee. AFAM rejected it. Culas replied that the subject of the electronic system was totally irrelevant to the heist. AFAM would like to categorically mention the issue of tracking cargo has nothing to do with the latest robbery at Batu Maung.

Over the past years, AFAM had highlighted the urgent need to have better security facilities such as CCTVs, tighter security procedures for movement into cargo facilities, an alarm system and the installation of a direct hotline to the nearest police station. All these were ignored.

ON THE WARNING FROM AFAM ON THE BIG ROBBERY

Ong confirmed that MAS head of security Jeff Nor Jetty had received the warning from AFAM but said there was nothing specific which made it difficult for them to take effective action. Culas said AFAM took their own initiative to tighten security measures at the MASkargo Complex in KLIA after they received the anonymous tip-off.

Ong later said an ‘operations order’ had been issued to security personnel to be more vigilant.

AFAM’S CLAIMS THAT ANYONE CAN GO INTO THE COMPLEX WITH A WAVE OF A HAND

Ong said that such a statement was uncalled for as MAS had stringent security measures at the Kuala Lumpur International Airport Cargo Complex. Culas said he would stand by the claim as he was speaking from experience and had personally gone to the MASkargo Centre in Bayan Lepas, Penang and been allowed entry after waving his hand at the security guards.

"Ask any freight forwarder in Penang and they will verify my claim. It is a fact of life and the same thing was going on at KLIA until last year following the RM4 million LCD heist in October. "The current stringent security measures were only implemented after last year’s heist," he said.

Ong later replied that MAS begged to differ on this claim saying it was not so casual. The guards were trained security personnel.

It is a fact of life - just wave your hands at the security and .... semua OK!

Coming back to the question: Who actually is at fault? Act of God? Ask Samy Vellu.

MAS Chairman Seeks Vindication

Munir lodges police report


MAS chairman Datuk Munir Majid yesterday lodged a police report over an e-mail containing several allegations against him.

Munir: “I have to protect my legal interests”.

The report will be investigated under Section 500 of the Penal Code for criminal defamation.

Apart from identifying its authors, the police would also look into the allegations raised in the e-mail.

As part of the investigations, individuals mentioned in the e-mail would also be called in to help in the investigations.

The e-mail, titled ‘MAS the Flying Buffet’, dated Nov 28, was made public when several senators mentioned specific allegations contained in it. They also raised the allegations during a special briefing session with the new MAS managing director, Idris Jala on Dec 21.

The senators had asked for a meeting following allegations (raised by the e-mail) that extravagance and wastage on the part of the MAS management had contributed to the national carrier's losses.

Senator Datuk Kamarudin Ambok said the Senators also asked Idris about an allegation that the MAS chairman flew to London three times a week, but he (Idris) had not replied.

During the meeting with the senators, Idris told them that the management needed to raise RM3 billion to turn the airline around.

MAS became a hot topic when it reported a net loss of RM684.4 million for the first half of this year.

Will this episode unveil the pandora box?

It will get insidious ... the public will hear more of it.