Two of my BUM buds have written on MAS and MAS/SIA...

and we can learn/unlearn some corporate and private citizens' viewpoint and concerns of two contrasting airlings' operations... Oh, coming into the picture is also Tony Fernandez' AirAsia.

From A Little Tafler's Room at melvin-mah.blogspot.com:

Wednesday, August 24, 2011

MAS' Red Marks

Half-billion ringgit loss for second quarter. That's what the results from the MAS earnings was like, with such result shows the roller-coaster effect that the main Malaysian airline is facing in the last few years like. I can see that if there's one reason, it's because of the popularity and the better alternative of Air Asia that sales for MAS dropped - that would be my first inference and talk about it.

Unless of course other airlines don't have the destinations that MAS gives, then of course you would go for the current ailing airline. I once remembered that the staff and crew were complaining that their salaries were the lowest of the region, if I am not mistaken that is.

If I look at the diagram above, SIA has always been very consistent in its sales and services, and multiply the net profits by 2.4, even theirs have surpassed our lines. One of my relatives who is in service there told me that their annual bonuses is 1/4 of the yearly salary (for one of the years there).

I can only say that the why MAS got red margins not just only this year, but in previous years is simply because of how it was badly handled in the beginning. The bailout in 2001 to this day never restored the company back to its prime moments. Though Idris Jala did manage a turnaround, it was partially finished, never to the full restoration until he got roped in to be in Pemandu lab head. Then comes the hedging oil strategy and positioning, it looks like at the wrong end. It should have been placed around a 5-10% lower than the estimate because the fuel prices will eventually go down somehow. People realized in 2008 that going to 147 and up was totally impossible because there is a bubble limit before it gets burst.

If MAS says that the fuel costs was the main problem behind the half-a billion dollar lost, then the problem is the ringgit is weak and still at an unacceptable levels. It has to go up some more. Why does SIA still remains successful? You look at how SGD vs USD - 1.2 to 1, easy to buy fuel, and what about us? 3 to 1, so how much money did we lose due to exchange rates?

It's a false footing for the so call Najib's ETP. The ETP's progress and funding assumes that the yearly GDP is no less than 6% or more but with world markets taken a beating in the last few weeks, it is virtually impossible to reach the 6%, so it's likely a setback and at least a six month delay in the roadmap. Frankly, I don't really believe in the "our economics are strong" statement. That sounds like McCain's and a right-wing statement, a statement that cost McCain in his presidency against Obama.

To travel by air at this point of time, for the poor, will be hard...very very hard.

From DonPrayPuks @ :) 12/08/2011 MANA ADA SISTEM AIRLINES - MY 2007 NOSTRADAMNIC PREDICTION COME TRUE! by Earheart Lindhberg, Donplaypuks® intrepid correspondent for aviation industrious crashing affairs Malaysian newspapers, online news portals and blogs are awash with breaking news that a certain share swap deal between Tony F of AA and major shareholder of Mana Ada Sistem Airlines (MASA), the Great Khazi, is just a precursor to the eventual complete takeover of MASA by TF who will finally be appointed the Managing Director and become the public face of MASA. Many suspect, and not without considerable justification, that the current situation where TF is a non-independent non-executive director of MASA is just an interim face-saving Ali-Baba arrangement to quell rebellion in the ranks and the natives in the "Malay heartland" (wherever that may, er, east of Kuala Selangor?) getting restless and rioting and looting (in Malaysia, no, never!) a la London and the Arab Spring Movement. In any event, the deal would make no sense unless TF has been given assurances that for the moment at least, he will be calling and firing the shots from behind the scene regardless of whom the Great Khazi says is the Chairman and the CEO. Many are against this share swap deal mainly because of the monopoly it will create and the hammering consumers will get from its price fixing. Nevertheless TF's management and entrepreneurial flair may just be what MASA needs to shake off over 30 years of social welfare-type management style, Government interference and mismanagement and crony and management led plundering and looting that has brought MASA to its knees. A prime example is the allegation that outsourcing of MASA's catering requirements to a relative of a former sleeping prime minister resulted in $2 nasi lemak packets being procured for $20!! More shocking are allegtaions that Indian vegetarian meals cost MASA $200 per set!!?? Forget me not too that Perterjunan Malaysia Berhad (PMB, 100% owned by the Great Khazi/Taxpayer) is said to be saddled with some estimated $10 billion over of re-structuring losses and irrecoverable aircraft leasing charges. Expect nothing less now than total staff shakeout and management re-structuring and VSS at MASA.TF and the Bina Fcukir boys will be fools if they don't start pruning, chopping, cleaning and clearing. An opportunity like this may not present itself more than once in 50 years! But, the Taxpayer is entitled to demand the Prime Minister and Government immediately provide clear cut answers to some very vexing questions: 1. How much in total has it costs us to re-structure MASA since a certain TR took over in the '90's? 2. How much irrecoverable loss is PMB carrying and how much are MASA's unpaid debts to PMB? 3. Why is foot-in-mouth Minister for Outlaws, Nazi, championing the case for various government agencies dropping their law suits against TR in favour of a secret settlement for an undisclosed sum (what, OSA classification again?) when there are several police reports by ex-MASA staff accusing TR of fraud, CBT and embezzlement. The fact that TR, as part of an "attack is the best form of defence" stragedy, has counter sued for $13 billion is irrelevant. The average Ali, Muthu and Chong out there will tell you TR has no case and to call his bluff! And "mengarah" does not mean "direct" or "order" but "advise"??!! My foot! No one must be allowed to get away with murder! (How many people remember or know that our former Finance Minister and billonaire Tun Daim Zainuddin and Tajuddin Ramli were once business partners in Raleigh Cycle Berhad in the '80's - refer pg.186 of 'Daim - The Man Behind The Enigma' by Cheong Mei Sui & Adibah Amin). I had predicted that something like this deal between MASA and Tony F/AA would happen, way back in 2007! Click Here Donplaypuks® with our airlines, man!