How can MAS be a World’s Top Airline in terms of Real Growth,Revenue per Passenger and Margins etc..

MAS being the pride of Malaysia as far as being the National Airline or Carrier for so many years already must always be supported,promoted and ensure her good results all the time! How to do?

Maybe the many unjustifiable take over or change of ownership have effected MAS greatly as compared to SIA.

MAS that started initially as Malayan Airways and later MAS-SIA and then split to become MAS or better known as Malaysian Airlines have had many success stories as well as failures in terms of bringing in the profits as expected be her shareholders and all stakeholders of MAS.

SIA have now become one of the World’s Best Managed Airlines and become a benchmark to many other airlines in terms of excellent customer experience and service,value for money deals,preferred airline status,world class cabin crew and ground services and a model of a great managed company to many businesses.

Actually Malaysia and Singapore have many similarities and in particular the people and their customs but Singapore being led by the dynamic PM Lee Kuan Yew for so many years have helped build Singapore to be a dynamic,progressive,innovative,quality and wealthy country about 5 million population now.

MAS being independant again after “exiting” Air Asia from her sontrolling stake will now need to be positive,dynamic,possess a great management team and BOD plus a talented work force that can also assist Top Mgmt to get things done quickly,correctly and with good outcomes.

MAS with her very own dedicated terminal the KLIA can easily beat other local airlines like Air Asia in terms of customer experience,value for money,shopping and dining experience at KLIA plus many other faciliities that others cannot offer.The big size in terms of land area and built up area of KLIA can easily make a lot of difference and safety assurance for MAS as compared to other airports even Changi!

However it is not the infrastructure only that determine the airline’s performance but the offerings to the customers both for domestic and overseas travel that make a lot of difference.If you pay less but get lots of benefits and quality services surely you will prefer the airline and become True Customers for a long time.If your airline is always having problems like delays,baggage missing,poor ground services and cabin services then you will not become a preferred airline to many just a few only.

MAS must polished up their Top Mgmt Team and prove the market that the Top Mgmt Team always get their act done well and results are almost world class!The share price of MAS must rise and rise to show the market that buyimg a MAS stock is the best thing to do nowadays.The ROI will be consistently good and dividends are always there to great satisfaction.

The activities at KLIA both outside and inside the terminals must greatly increased with lots of shopping and dining centres made available.LCCT have done well with Air Asia aggressive marketing and promotions that life at LCCT is really a “happening” as compared at KLIA which seem to be to quiet and too normal!

When you create a hive of activities at your airport then almost anyone will want to visit KLIA and get something done there either they fly,shop,dine or window shopping…

MAS People have always been the best in the world and they perform excellently well like their engineeering team,F&B or catering services and many more.With Great Leadership and Consistent ,Mas People will grow and grow better.

MAS is positioned to be a Premium Airline in the likes of SIA,Emirates,Qatar Airlines and many others so MAS will have that special offerings that no Cheap Fares or Budget Airlines can offer!Thats a fact!

So,MAS need to make great changes and Transform to a Greater Airline than what it is now and get that done starts with the Leadership,People,Products&Services plus all value added offerings.

Lets see MAS performance from now on…its also a matter of survival and no more a choice for any bailouts or second chances!

Contact Ramli at hp:+6019-2537165 or email: ramlipromoter@yahoo.com

Yes,now MAS is on her own brand again and no more influence by Air Asia including her Top Mgmt Structure.MAS is a premium airline and will have to live by her brand and provide the World Class services all the time,everytime and anywhere MAS operates!Let’s hope MAS will now achieved great success,handsome profits and continual improvement in all areas of customer satisfaction,employee development and products&services innovation!

Recently the annoucement of MAS and Air Asia breakup in areas of equity,management and other services  have now enabled MAS to lead her own destiny of airline excellence,independance and employee satisfaction.Air Asia will now need to live by her tagline and as a no frill airline with low cost flights and services to their customers.

MAS being a premium airline with world class services must ensure her sustainability,business survival and importance.Before MAS will team up with Air Asia to work together to excellence but it was not possible since both airlines have different business model and objectives.So the breakup is good and will lead to a focus on both airlines specialisation and expertise.

MAS was not actually benefitting much from the “tie up” with Air Asia but now with the official breakup MAS can become more focus,independence and ability to do things the Mas Way and not Air Asia Way for MAS!Will the success come or more problems ahead with this break up?

MAS will soar to greater heights of excellence and achievement since now MAS People are happy and they can put their focus,hard work,passion to make MAS a great success as what MAS should be all these while.

To be a Great Compnay we need Great Leadership,Strategies and Execution of Plans by All.Can MAS do it this time?Inshallah with a Good Team and Determine One,MAS will succeed!

What if Steve Jobs were to take leadership role and manage Malaysian Airlines (MAS) out of debts,out of crisis (never ending) and position MAS as the No.1 (or No.2) airline in Asia or Top 10 in the World Rankings?Applying Steve Jobs Way!

The recent financial announcement that MAS may have recorded a loss of about RM2.5 Billion for Financial Year 2011 is so SICKENING AND GREAT DISAPPOINTMENT! WHY?

Almost all of MAS People seem to work very hard at every business process everyday BUT still MAS recorded great loss and wonder when she will make good profits again?

Some of Ramli’s friends have worked with MAS many decades already and what Ramli heard from them that many “foreign workers even engineers” are now in MAS and local Malaysians seem to be at lost and wandering around with no specific directions or mission to make MAS a NO.1 Airline of ASEAN what more the world.”Air Asia” people are also now infusing into MAS processes but still the impact of Air Asia smartness and passion is still not effecting MAS performance or bottomlines?

Ramli having read about Steve Jobs(SJ) iLeadership Ways and Best Practices was just asessing the SJ Ways if introduced in MAS Business and what real impacts or outcomes can MAS expect?

Lets see:

• Focus on products -MAS need to focus on domestic or overseas travels.Which is the Top Priority and MONEY Spinner!
• Talented People hired to work with MAS -sorry to say the current CEO is not an airline expert so understanding 100% of the airline business may not be so airline savvy.SJ was Tech Genius and knows the Tech Business like 1000%
• People at Apple are willing to sacrifice their time just to achieve the Top Player award no tidak apa attitude or dont disturb me during my off time unlike SJ who expect his Team to be ready for answers anytime he called them even at home!
• SJ will reward and recoqnise all good work and results by personally meeting his people and congratulating them!
• Never rest on past achievements even though the cash flow is rolling high but keep on improving the products all the time..
• Always ask “what will the customer’s expereince be” if they open up our apple’s packaging?Same like what will MAS customers’ feel when they are in MAS Air Terminals like KLIA?
• Talent Recruitment not the work of HR Director or Manager only but like SJ (CEO) he will also identify TOP Talents and invite to work with Apples.Can MAS CEO also do the same?
• Teambuilding is KEY to Apple’s Great Success and SJ really “turun padang” and meet his Team to identify their problems,help eliminate the problems and find new areas of improvements…
• and many more what SJ’s Way can also help MAS to be Great Company like Apple (as today is the richest company with biggest market capitalisation above USD500Billion in value!

Lets hope MAS will be GREAT again but to do that the Leadership and People at MAS must think right,act fast and get results at all costs.Focus is key,passion to the mission to be top airline is also important.Making profits and improving the Cash Flow is also KEY and like SJ never say no or give up and lose out to all opponents and distractors!

MAS have been a Top Airline before and MUST now become TOP Again not by wasted efforts,poor leadership and lose focus!

If only Steve Jobs is around maybe MAS can have a new passion and mission to get things done the SJ Way?

Contact Ramli (if interested) at hp:+6019-2537165 or emailed at ramlipromoter@yahoo.com

MPC successfully organised the CEO Forum – Business Transformation Through Innovation – held on 21stFeb,2012 at Hilton Hotel,Petaling Jaya.Using The Social Media,Building the Social Enterprise,Inspiring Innovation,Business Transformation and Rocking the Mobile World…

Ramli and wife today attended the above CEO Forum where 4 Leading Speakers were invited to present their papers.The 4 presentations were as follows:

1.Inspiring Innovation by Encik Khairul Ariffin Ibrahim,Regional Head Performance Improvement-CEO’s Office-Strategy & Innovation,Air Asia

2.Enabling Innovation for Business Transformation by Ms.Che Zan Yassin,Senior Manager,Capability Development ,Malaysia Software Testing Board

3.Tune Talk;Rocking the Mobile World by Mr.Jason Lo ,CEO Tunetalk Sdn.Bhd.

4.Enabling Business Transformation through the Social Enterprise by Mr.V.kugantharan,Manager,Digital Marketing & Social Media,LAVA ActiveInfoFlow

Later,we had the Panel Discussion where there was Q&A session with members of the audience.Ramli also took the opportunity to ask questions to the Panelists.

Maybe the CEO Forum detailed contents can be made available at http://www.mpc.gov.my (please visit this site)

Ramli’s general comments are:

• MPC recently launched Innovation Health Check is worth checking and see the benefits to your organisation.
• Air Asia is all about inspiring their people to delight customers all the time
• People in Air Asia headed by Tan Sri Tony Fernandez all are inspired to the same vision and willingly take action to ensure Everyone Can Fly….
• Making Business Excellence through Continuous Improvement
• Refer to Simon Sinek video who showed the philosophy of thick-act-communicate
• Innovation normally are killed at the root
• create environment where creativity can flourish or grow
• Marketing need twitter followers
• Innovation is a mindset
• USA economies are driven by companies
• Ideas are the true assets of your company
• google with their open source platform ie.android have allowed 500,000 applications made available to consumers
• information at finger tips nowadays
• takes time for a brand to mature
• Tune Talk only have about RM 10 million A&P budget but Telcos like Digi and Maxis have more than half a Billion RM for their A&P budget
• innovation have to be born from something
• Follow people at Tweeter is good like PM Najib have almost 300,000 followers at his Twitter
• mobile phone -centre of the universe
• Innovation is a personal mindset technique
• to achieve 50 million users the Radio took 38 years but FB took only 5 months
• social media now more than email users
• create social enterprise-be connected with your people
• 3 simple steps ie.
• 1.create a social customer (client) profile
• 2.create an employee social network
• 3.develop a customer social network
• product social network eg.Toyota’s Friend
• we are all connected living in a post pc revolution
• and many more…

Photos and Videos(later) of the CEO Forum that Ramli managed to record:

This slideshow requires JavaScript.

Anyone really and passionately care for MAS to really be relevant,a profitable premium airline and posessing Quality People all the time?The BTP1 and BTP2 was so astonishing and did transform MAS BUT why NOW MAS crumble and produce poor results as compared to Air Asia or SIA?Ramli always think MAS is a Great Airline and can anytime be better than others!Transformation of MAS to a 5 Star Value Carrier is still unfinished business!

FYI,Ramli cut and paste the remarks made by the former CEO of MAS when he launched and executed the BTP1 and BTP2 Master Plan.

With such inspiring results before still MAS is a “sick airline” in the actual performance and investors views!Why?

A Letter from the Managing Director

There is no question that MAS is in crisis within the increasingly challenging Asian

airline industry. Today, we have a cash and profit crisis. On current business

assumptions, course and speed, we will surely fail unless we radically change the

way we run our business.

I am convinced that with decisive action, MAS can be a success and emerge as a

winner. We have a plan—The MAS Way—a plan that will turnaround the business

in 2 years. There are already promising early results and a groundswell of energy

that give me confidence that we will realise an all-time high profit for MAS in 2008

of RM 500 million. In my first three months as MD/CEO of Malaysia Airlines, we

have been working very hard to prepare a robust Business Turnaround Plan.  It is

our roadmap going forward.

This will be a long, winding and difficult journey and it will require unleashing the

talents of all our employees and the support of all our stakeholders. We will win

this together.

The GLC Transformation Program launched by the Government in 2004 has gone

a long way to making this possible. It has provided the necessary ‘air-cover’ and

acts as the spearhead for our business turnaround. We will continue to work

within the guidelines prescribed by the GLC Transformation Manual.

I am fully aware that our stakeholders particularly in Malaysia are very interested

in the affairs of MAS. Whilst this document is aimed primarily at communicating

the Business Turnaround Plan to our staff, we felt that it should be made available

to selected external stakeholders. My team and I have decided to be as transparent

as possible about our problems and how we intend to address them, without

disclosing confidential and competitive information. What we are definitely NOT

disclosing is how precisely we are going to implement the plan. The key to success

is indeed in the execution of this plan and that is our secret.

Over the next three years, look for regular updates on our progress and the impact

of our actions. Much lies ahead of us, but we will succeed.

Idris Jala

Managing Director

Malaysia Airlines

27 February 2006

A Joint Message from the Chairman, CEO and CFO

Dear colleagues,

It is great to see how well we have achieved our Business Turnaround targets to date. Together, we kept and

delivered on the promises we made in our Business Turnaround Plan (BTP 1) and delivered significant results.

We would like to take this opportunity to thank everyone for your contributions over the last 2 years.

We worked really hard and pulled together as a team to successfully implement the BTP 1. Of course, we owe

part of our success to the Government-Linked Companies Transformation (GLCT) Programme which provided

us essential guidelines and a framework throughout the BTP 1 journey.

We must, however, remind everyone that we are not out of the woods yet. There is still a long way to go and

there is no room for complacency. For 2008 and beyond, there will be overcapacity in the industry and

competition will intensify; our yield and profit margins will erode. Based on current industry trends i.e.

overcapacity, increased competition and volatile fuel prices, MAS will surely fail unless we radically change

the way we run our business. We need to continue the momentum we have already built and fundamentally

transform our business into one that will grow in the face of adversity and deliver lasting success.

We are pleased to announce our Business Transformation Plan (BTP 2), which is a continuation of our BTP 1.

It is called “Transformation” because we have successfully completed our turnaround and returned to profitability.

Now, we want to transform MAS to achieve our vision of becoming the World’s Five Star Value Carrier (FSVC)

i.e. providing 5-Star products and services at affordable prices.

Our BTP 1 started with 3 phases: financial survival in 2006, profit generation in 2007 and profitable growth in

2008. Now that we have achieved the target of profit generation, we will shift our focus to profitable growth by

transforming MAS into a FSVC. Our ability to deliver this strategy is the cornerstone of our efforts to grow MAS

into a champion in the global arena. This transformation is vital to MAS’ continued success and relevance in the

long term. If we succeed in achieving this transformation within the next 3 to 5 years, we can realise a net profit

of anywhere between RM1.5 and RM3 billion per annum.                                    

Over the last 2 years, we have seen many of our employees grow as leaders during the BTP 1 journey. We

have learnt a lot and today, there are plenty of opportunities to grow as leaders for those willing to rise

to the challenge. To quote John Ruskin, “The best reward for a man’s toil is not what he gets from it but

what he becomes of it”. We sincerely hope that throughout our next journey to become a FSVC, many of us

will become better at what we are doing and above all, better persons and true leaders in our own right. We

will win this together.

Whilst this document, like the BTP 1, is aimed primarily at communicating the Business Transformation Plan

to our staff, we felt that it should be made available to external stakeholders. We have decided to be as

transparent as possible about our problems and how we intend to address them, without disclosing confidential

and competitive information. What we are NOT disclosing is how precisely we will implement the transformation

plan. The key to success is indeed in the execution of this plan and that is our secret.

The journey ahead is going to be arduous and challenging. It will require unleashing the talents of all our

employees and the support of all our stakeholders. Over the next 3 to 5 years, look out for regular updates on

our progress and the impact of our actions. Much lies ahead of us, but we will succeed.

As always, we are truly grateful for the support and encouragement that we receive from all Malaysians,

far and near.

We look forward to working with you to transform MAS into a Five Star Value Carrier.

Dato’ Dr Mohd Munir

bin Abdul Majid

Chairman

Dato’ Sri Idris Jala

Managing Director &

Chief Executive Officer

Tengku Dato’ Azmil

Zahruddin bin Raja Abdul Aziz

Executive Director &

Chief Financial Officer

Now based on recent news reports,they are not happy and not excited at all with the new CEO of MAS  reporting on the status of MAS

and the profit forecasts in the coming years! Why?

MAS being a Premium Class Airline Company should easily make RM2 Billion or more billions Ringgit and not lesser than that!Why the New MAS Top Mgmt is making a lower profit projections?Who actually is the King Maker of Top Decision Maker for MAS?

We know Air Asia have a great % of MAS equity now and if MAS is acting like Air Asia or try to catch up with profits like Air Asia is making these few years then MAS Mgmt have got it all wrong!You dont compare yourself with performance like football teams of Sentul FC against Barcelona FC or Manchester City FC!MAS must be Focus and become a 5 Star Value Carrier just like what Dato Sri Idris Jala and his Mgmt Team have planned before!

Maybe its good to request Dato Sri Idris Jala on his current thoughts about the way/s MAS is being led and managed?Ramli is a Strong Supporter and Love MAS so much!

Contact Ramli at hp:+6019-2537165 or email: ramlipromoter@yahoo.com

How amazing this recent story of MAS that they forget how Datuk Seri Idris Jala have done all the Business Turnaround and Business Transfornation Projects (BTP1 and BTP2) and then left MAS with a great future for MAS and Himself!Now,everything about MAS is like “SHIT” as though the planes and the people are not working or doing their best?Thats more BULLSHIT its the TOP MANAGEMENT problem really and the problems are actually at Khazanah Nasional Berhad and MAS Executive Board,dont YOU think so?Why get Air Asia involved then?Maybe a new mgmt fad-Buddy Mgmt incorporated in Nonsense Mgmt?

Do you know how much money Malaysian Govt,GLCs,MNCs and PLCs spend for International Consultants professional services and consultancy work?Yes,true many hundred millions of USD not Ringgit please!Are they successful in their consultancy and proposals to all those Malaysian entities?Based on all the problems of these entities the answer is NO.Why NO?

Of course the success of any organisation is the LEADERSHIP Factor!

The consultants are hired to advise and recommend whats best BUT if the LEADERSHIP play the game of “Touch N GO” style of management where there is lack of hard work,no gemba style of mgmt and worst still if they practise “Bottom Line Results” type of managing on day to day terms rather than paying close attention to such operational details like people performance,processes,products and services quality,promotions work and many others (basically operational matters that make the company perform well)then the OUTCOME is due to be bad to worst and not good to great like what most quality or world class companies do well always!

Maybe its time to get CEOs from engineering or HR background and let the accountants excel as CFOs of their respective companies since they managed by studying numbers and money they love to sit in their cool rooms and think&decide rather than go to the site and study all the facts and datas for achieving Great Business Results.

MAS have done well their initial Business Turnaround and Business Transformation Projects when Datuk Seri Idris Jala was brought in from Shell to get MAS out of debts and bankruptcy and he also showed that MAS can make their biggest profits in 60 years tenure of almost RM800 Million!WOW!

The BTP2 was also planned and engineered to ensure MAS will become a 5Star valued carrier and not like AirAsia a World Class Low Cost Carrier!If the focus is MAKE LOTS OF PROFITS then who made most a 5Star Valued Carrier or a World Class Low Cost Carrier?

MAS must benchmarked with the same apple to apple type of carrier ie like with SIA or Emirates or even Thai Airways?The business model and scope of business is very much different since Premium Airlines or 5Star Valued Carriers pay lots of attention on High Quality Service,Great F&B,Service both in the air and on ground  with execellence,high trained crew and airline staff,continual improvement efforts,teamwork,economic costs to achieve high profits and all other subjects that can fully satisfy the customers of economy,business and first class!The satisfaction of employees must also be taken into consideration to become an airline of world class standards all the time!

So whats interesting to know especially by Ramli is what actually happened after the quick departure of Datuk Seri Idris Jala to Head PEMANDU in the PM’s Dept who showed that MAS can make RM800 Million profits in a year (record in 60 years of MAS history) and also left all the Business Plans for MAS to maintain and excel as a 5 Star Valued Carrier?Why the sudden drop of good performance to the brink of bankcrupt again and where Top Bosses at Khazanah Nasional Berhad and MAS Board easily agree the fast way out by inviting Tan Sri Tony Fernandes of Air Asia by not offering the post of CEO of MAS (Tony is also the Group CEO of AirAsia) but a share swap and enable Tony to acquire about 20% of MAS,thats a better deal maybe to Tony!Now we wait the actual results of MAS whether this “magic wand of Tony Fernandes” can make MAS to the road or flight of great profits and improve share price and market capitalization?

To Ramli,if the CEO of MAS or the POWERS OF MAS just sit in their cool office rooms and does not Go Gemba then this dream of MAS making profits again and being respected for her MH tagline will never be achieved and become another nightmare and maybe  the worst kind!

Hey,where is Datuk Seri Idris Jala?Ramli have not read any serious remark or comment on why MAS is a failure again and on the verge of bankruptcy?Please Datuk Seri,your comments,advice and remarks is so important!

GTP and ETP will not be a success story if your past BTP1 and BTP2 at MAS cannot sustained her performance to ensure continued success even though the leadership change because the plans are good and can sustained her performance!Its all about Continual Improvement and More Breakthroughs!

Luckily MAS is not offered to Foreign Powers or Investors otherwise we may lose our long standing NATIONAL ASSET that we have owned since 1947 till now!

Ramli can be contacted at hp:+6019-2537165 or email at ramlipromoter@yahoo.com

Lets see what other Bosses at MAS and Khazanah Nasional Berhad are saying on this Hot Subject of MAS-AirAsia

Saturday August 13, 2011

Rashdan: MAS off to a good start

The same team that crafted and undertook the widespread asset unbundling (WAU) exercise a decade ago to bail out the then debt-ridden Malaysia Airlines (MAS) on the brink of bankruptcy is back on board. And on Tuesday, MAS tied up with its once arch rival AirAsiafounders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun. This marks yet another fresh start for MAS which has seen more than its fair share of restructuring, turnaround and transformation plans in the past decade.

The idea for the collaboration is to get MAS to do what it’s best at being a focused full premium service carrier. The newly-set up executive committee led by new MASchairman Tan Sri Md Nor Yusof met for the first time on Thursday. It plans to scrutinise every single document, contract, strategy, profit and cost centre to weed out the weak areas and bolster the airline’s financial status.

StarBizWeek’s B.K. SIDHU met up with MAS’ newly-appointed executive director Mohammed Rashdan Yusof (pic), who says the team is off to a good start. Below are excerpts of the interview:

SBW: What is the biggest problem facing MAS?

Rashdan: If you look at its operating statistics, the airline’s cost is one of the best versus other full service carriers. Its cost per ASK is competitive but the RASK (revenue per available seat km) is suffering. It (lacks) the ability to charge on a global basis, and this in turn is connected to our products. What we need is quality. We need a product which is highly competitive, the likes of the Middle Eastern airlines, and not Singapore Airlines alone. They are formidable competitors and we need to be at least at par or better.

Our strength clearly lies in our service the golden girls, the golden touch, the Malaysian touch, Malaysian hospitality. Hopefully people will pay what it’s worth and we can raise yields and RASK. We want to bring back the golden days that is how we made money and that is how we want to continue to make money. It is a simple strategy. We need to get back to that.

Do you agree that share swap does not address the fundamental need to manage revenue?

RASK is about revenue quality. In the past, the airline did a lot of global sales. We had revenue but now we want high quality revenue such as high yields and high RASK. People will only pay high yields and RASK if the product and service is good. So we will continue to maintain our competitive edge in services, both cabin and ground crew and also our inflight products. The good thing now is that we will no longer be distracted or detracted.

The A380 aircraft is coming in May. That will be a class of its own. Tony and Kamarudin have a fantastic relationship with Airbus and we can do a lot of things with them on our side. They are a clear asset … the way they negotiate for engines, spare parts and even planes and their cost savings culture. We could use all of that expertise at MAS.

Do you have the buy-in from the employees?

We met the union leaders and to my sweet surprise they are fully behind us. They understand that if we succeed, so will they. The rest is about execution and the new team will not let them down.

Where will immediate savings come from?

At our very first exco meeting, we identified savings in procurement. I can’t tell you where as we have not told our suppliers yet. They are capital expenditures and are large.

We have looked at the detailed study done by Bain & Co and the figure is up to RM1.2bil cost savings jointly.

The immediate areas will be training, (the whole gamut of) procurement from aircraft, spares, engines to simulators. As for funding, we can look at new ways of financing our aircraft purchase. In training, both of us have simulators and facilities. We will look at how we can share and have best practices.

What is the cash situation at MAS?

It is manageable and we have in excess of RM1.6bil. Obviously we have very large deliveries in the pipeline in terms of aircraft and these are for replacement of the aging B747 aircraft which have a high fuel burn. But with the new B737 and the A380 coming in, we immediately move to a higher productivity platform. If we use these new aircraft for our thick trunk routes, and promise improvement of product, which we assure you will be second to none in the region, surely people will pay more for it.

(That will lead to) fuel ASK improvement, and yield and RASK improvements. If we are able to demonstrate that and generate positive cashflow, the financing will surely come.

There has been much criticism over WAU, which you were also part of. Your comment.

WAU was successful in that it saved the airline from the brink of bankruptcy in 2001/2002. It gave the then MD Tan Sri Md Nor Yusof a platform to put into place operational restructuring, which he did. If you look back at the share price chart right up to his last day, it peaked during his tenure and shareholder revenues increased. So it is up to MAS to continue the good work he has done. Md Nor did financial restructuring and the managers (his successor) should have followed through.

Now his return as chairman is more meaningful as he understands the industry well.

In your opinion, what is the biggest challenge that could derail these big plans?

The biggest risk is if we take our eyes off the ball on how difficult this is to execute. It is not an easy ride.

The global economic outlook points to a double dip. Will this throw a spanner in the works on your plans?

Economic cycles come and go. But when the cycle is going up, you better be sure you are there to milk it. That comes in well with our aircraft deliveries. The future is for our taking. We just have to make sure we have the capacity to deploy and take advantage of it. Of course, we will face fierce competition from the usual suspects Garuda, China carriers that have identified Asia as their playground, the Middle Eastern carriers and Qantas, Jetstar … Why on earth should we retract when Asia is the playground?

To compete with SIA or Emirates, you need connectivity, frequency and comfort. How do you stack up?

We are seriously looking at launching the premium segment for short-haul carrier and that will serve us a strong feeder network. We already have the resources from Firefly jet services and that resources can be directed for full services proposition. It takes only months to realise this.

Three years from now, will we have to hear the story again of why MAS failed?

Three years from now, the only airline you will want to fly is MAS.

MAS is like a “Heavyweight” category and AirAsia is like a “Flyweight” category and mixing them up can become meaningless because is just like mixing with a durian and ciku since both have different tastes and customers also have their preference!Maybe its better to get the Right Top Talent or Team of Professionals to lead,to solve all these poor performances and prepare for a great takeoff(improve profitability and share price increase) and having the world’s best people in the world’s best airline!This mix up of Mas&AirAsia is not the best solution if its just for the extra capital,thats what Ramli think!

More news report on whats happening at Mas and AirAsia:

Tuesday August 9, 2011

Rivals MAS and AirAsia to become allies

By ANITA GABRIEL and JEEVA ARULANPALAM
starbiz@thestar.com.my

PETALING JAYA: National carrier Malaysia Airlines and low-cost carrierAirAsia Bhd‘s major shareholders Khazanah Nasional Bhd and Tune Air Sdn Bhd will today announce a landmark share swap deal worth just over RM2bil which will turn the long-time bitter rivals into collaborating partners.

According to sources, under the share swap deal, Khazanah will acquire a 10% stake in AirAsia from Tune Air, a private vehicle controlled by Tan Sri Tony Fernandes and Datuk Kamarudin Meranun.

As at July 6, 2011, Tune Air owned a 26% stake in AirAsia. Sources also said Khazanah was in talks to acquire a 10% stake in long haul low cost carrier AirAsia X but this would be announced at a later date.

As part of the agreement, a source said MAS would issue new shares to Tune Air which would end up with a 20% stake in the national carrier. Khazanah, which has a controlling stake of 69% in MAS, will continue to remain the single largest shareholder in the national airline after the exercise.

The source added that MAS, which was in dire need for fresh capital, would also make a rights issue very soon.

The valuation of the swap will be based on the recent share price of both companies as the exercise involves non-controlling stakes. Trading in both counters are suspended until today for two days pending a material announcement. MAS and AirAsia were last traded at RM1.60 and RM3.95 respectively.

“There is really little that’s innovative about all of this. The reality is that if you look at the big players in the industry, they have a low cost arm and a premium arm. If anything, MAS is just playing catch up only now,” said an observer.

A special executive committee comprising three to five members including MAS newly-appointed chairman Tan Sri Md Nor Yusof anddirector Mohammed Rashdan Yusof as well as Tony and/or Kamarudin will be set up to run the daily operations of the carrier in the interim while the search for a new chief executive officer will commence soon.

The source said MAS CEO Tengku Datuk Azmil Zahruddin would step down from his post to make way for these changes while Rashdan, who is Khazanah’s executive director of investments, would likely play a more active role in the airline until a CEO is identified.

“The exco will be a subset of the board, which will take over the running and management of the airline in the interim. The main decision maker at the airline will be Md Nor,” said the source.

CIMB Investment Bank Bhd has been appointed advisor for the share swap deal representing both parties.

“If you stand back and look at this deal, you can see the value it will bring to a full-service carrier (FSC) like MAS. The trend among FSCs is that they are gradually deriving a bulk of their revenue less from the airline operations and more from ancillary services such as maintenance, repair, operations (MRO) services and so forth. These services are huge profit centres. Currently, AirAsia outsources these services. With this partnership, MAS can be the outsourcing agent,” said an analyst.

“This way, MAS which has a staff strength of 20,000 can use its people more productively. There won’t be a need to lay off staff as both airlines will be run separately,” said the source.

The deal’s defendants say this deal marks a “great opportunity to create Malaysia as an airline hub”. “The whole idea is not for Tony to run MAS. It is to realign both airlines’ interests to allow them to grow with a more clear business model MAS in premium segment and AirAsia in budget segment as opposed to being in each other’s way,” said an analyst.

A source said this deal “has been cooking for so long but in the absence of a structure that could work and concerns over a clash of cultures, it had failed to take off.”

Latest updates on Tan Sri Tony Fernandes and Air Asia ownership of about 20% of MAS Shares is untrue and denied by Khazanah Nasional Berhad -as Ramli heard and saw on TV3 Night Line News this early morning 8thAug,2011.

Maybe at this moment in time,its good news that Khazanah Nasional Berhad have denied the reports that about 20% of MAS Shares will be owned by Tony Fernandes through his Tune Air Sdn,Bhd (the majority owners of Air Asia Berhad)

Khazanah Nasional Berhad will still hold the majority share of MAS until a date or need to announce any major corporate change to MAS.

So,its good time to study within and uphold this National Carrier and her status as a National Asset and never to easily let go to individuals or people who may have different mission in business and upholding of Malaysia’s Prize Assets like MAS,Proton,Petronas,Sime Darby and many others…

LATEST MEDIA STATEMENTS AS RAMLI READ AT STAR ONLINE:

MEDIA STATEMENT FROM KHAZANAH

Kuala Lumpur, 7 August 2011

”We refer to media reports that Tan Sri Tony Fernandes and Dato’ Kamarudin Meranun will emerge as the single largest shareholder ofMalaysian Airline System Berhad (“MAS”). These reports are incorrect. The aviation sector is a strategic sector to the economy and MAS remains a core holding in Khazanah Nasional Berhad‘s portfolio. Khazanah will continue to maintain its position as the single largest shareholder in MAS.

As an active strategic investor, Khazanah constantly reviews ways to improve the performance of its portfolio companies and concurrently the competitiveness of key strategic sectors of the economy. Further announcements will be made at the appropriate time with regard to Khazanah’s position in MAS’ ongoing transformation plan.”

*MEDIA STATEMENT FROM AIRASIA’S TAN SRI TONY FERNANDES & DATO’ KAMARUDIN MERANUN

Kuala Lumpur, 7 August 2011

“We refer to the press coverage over the last two days that has reported that we would become the single largest shareholder in MAS.

We wish to clarify that this is not true.

As the major shareholders of AirAsia Berhad and AirAsia X Sdn Bhd, we are committed to increasing shareholder value in both our core investments by continuously exploring various opportunities to enhance our franchise.”

 

MAS need to study their LEADERSHIP,BUSINESS STRATEGIES,PRODUCTS&SERVICES,MARKETING&PROMOTIONS PLUS ALL THEIR BUSINESS PROCESSES THAT WILL MAKE MAS PROFITABLE,WELL LIKED BY CUSTOMERS AROUND THE WORLD AND IMPROVE THEIR SHARE PRICE AND MARKET CAPITALISATION JUST LIKE WHAT AIR ASIA HAVE BEEN DOING THESE FEW YEARS SINCE TAN SRI TONY FERNANDES AND TEAM BOUGHT AIR ASIA in 2001 FOR RM1 ONLY (BUT TAKING OVER THE OUTSTANDING DEBTS OF RM 40 MILLION (hope that amount is right)

So,its all about DYNAMIC LEADERSHIP that matters in any company,government agency and Political Party!

Malaysia just cannot possess poor leaderrship,no vision no mission type of leaders and with no professional ability and personal humility as some mgmt gurus emphasized.The Leadership of Prophet Muhammad pbuh is the best leadership that the world possess and we must study and apply all the time.Please read about Prophet Muhammad pbuh Leadership and the 4 Pious Caliphs that made Islam spread to all corners of the world and still expanding with an increase of almost 2 Billion Muslims now.

Contact Ramli for more information at hp:+6019-2537165 or email: ramlipromoter@yahoo.com

Malaysia’s Aviation History -The Events that have made Malaysian Aircrafts flying all around the world everyday without failed and with one of the best aviation safety records in the world…

Chronology of events for Aviation in Malaysia:(Ref:The Star Online)

>1898: A balloonist jumps off the top of a government building in Jalan Tuanku Abdul Rahman, Kuala Lumpur, and crashes at the edge of the Selangor Padang Club.

> 1911: G.P. Fuller makes the first recorded flight in Malaya and lands his Antoinette Monoplane at the race course in Jalan Ampang, Kuala Lumpur.

> 1924: The first civil aircraft in Malaya, a Fokker FVII of KLM, lands on a bumpy grass strip in Alor Setar, Kedah.

> 1928: Alor Setar, Kedah, becomes the hub of aviation activities in Malaya as KLM carries out fortnightly services.

> 1929: Aviation comes to Kuala Lumpur with the inaugural meeting of the Malayan Aeroplane Club held in the Malay States Volunteer Reserve Mess.

> 1930: Commercial aviation begins in Malaya with the services of Imperial Airways and its “flying boat” operations in Penang.

> 1938: War breaks out and all civil aviation aircraft are requisitioned by the government.

> 1948 Kuala Lumpur Airport in Sungai Besi is expanded.

> 1956: Kuala Lumpur Airport in Sungai Besi is upgraded to international airport status with the first flight to Europe taking off there.

> 1965: Kuala Lumpur International Airport in Subang is officially opened by the Yang di-Pertuan Agong Tuanku Syed Putra ibni al-Marhum Syed Hassan Jamalullail.

> 1972: Malaysian Airlines System takes to the skies.

> 1992: Malaysia Airports Bhd is formed.

> 1998: Kuala Lumpur International Airport in Sepang is officially opened by Yang di-Pertuan Agong Tuanku Ja’afar ibni al-Marhum Tuanku Abdul Rahman.

> 2001: AirAsia is bought by Tune Air Sdn Bhd for RM1.

> 2006: The LCCT-KLIA terminal opens to cater to low-cost carriers.

> 2007: AirAsia X, which provides high-frequency long-haul flights, begins operations.

Monday June 13, 2011

Centennial of flight

Stories by ALLAN KOAY 
star2@thestar.com.my

Malaysia’s excellent aviation safety and security records have propelled it to new heights in the industry.

IMAGINE you were a Malayan in 1911. It must have been quite a sight then to see an aircraft, probably the first anyone had ever seen in their lives, land at a race course in Kuala Lumpur. But it did happen. That was the country’s first recorded flight, by one G.P. Fuller who landed his Antoinette Monoplane at the race course in Jalan Ampang, Kuala Lumpur.

This year marks 100 years since aviation came to Malaysia. But even before that first flight by Fuller, in 1898, someone had already attempted to fly in then-Malaya – a balloonist who jumped from the top of a government building in Jalan Tuanku Abdul Rahman in Kuala Lumpur, but crashed at the edge of the Selangor Padang Club.

A century has passed and Malaysia can proudly hold up a list of changes and achievements in aviation.

Set to soar: Last year, passenger traffic in all airports in Malaysia hit a record high with an increase of 12%.

The first centre of aviation in the country was Alor Setar when KLM started providing regular fortnightly services in the late 1920s. In fact, the British built the first two airstrips in Alor Setar and Taiping in 1929.

Aviation only officially came to Kuala Lumpur on May 10, 1929, with the inaugural meeting of the Malayan Aeroplane Club, which later became the Kuala Lumpur Flying Club.

In 1956, the Kuala Lumpur Airport in Sungai Besi officially became the country’s first international airport when the first flight to Europe took off from there.

It was only in 1965 that the Kuala Lumpur International Airport in Subang was officially opened by the then Yang di-Pertuan Agong Tuanku Syed Putra Ibni al-Marhum Syed Hassan Jamalullail.

Malaysia now has a world-class airport with the Kuala Lumpur International Airport in Sepang, Selangor; our own skilled pilots and training academies; and even the world’s fastest-growing low-cost carrier, AirAsia. But in recent years, there has been so much more to be proud of, according to the Department of Civil Aviation (DCA).

There has been high growth in passenger handling. Last year, passenger traffic in all airports in Malaysia hit a record high with an increase of 12%. As of April 2011, passenger traffic rose by 9%.

“This is an indication that the aviation industry is recovering swiftly and that there is a huge demand in air transport,” said director-general of civil aviation Datuk Azharuddin Abdul Rahman.

Kuala Lumpur International Airport in Sepang is one of the largest and most advanced in the world.

And ever since the Sultan Abdul Aziz Shah Airport in Subang was transformed into the Malaysia International Aerospace Centre, Malaysia is now a major player in the maintenance, repair and overhaul (MRO) industry, with 136 MRO companies of various sizes, of which 40 are local firms.

“We also manufacture small aircraft and aircraft components, being the first in Asia and the fifth in the world to sign the Bilateral Aviation Safety Agreement (Basa) with the US Federal Aviation Administration (FAA).

Meanwhile, the Malaysia Aviation Academy in Sepang has trained more than 500 air traffic controllers from more than 50 developing countries since 1984, and is on its way to becoming an International Civil Aviation Organisation (ICAO)-accredited civil aviation academy.

In fact, Malaysia has been an elected member of the ICAO Council since 2007 (ICAO is a specialised UN agency that works with countries to set common standards and recommend practices for civil aviation).

“Malaysia’s election to the ICAO Council was due to its excellent aviation safety and security records as well as its ability to represent other states in the Asia Pacific region,” said Azharuddin.

Indeed, the last major air mishap in Malaysia was 16 years ago – on Sept 15, 1995, when a Fokker-50 crashlanded in Tawau Airport, Sabah, killing 49 passengers.

“Since this accident, we have handled more than eight million take-offs,” said Azharuddin. “We hope our safety records will help reduce statistics on the world’s air accidents average.”

Statistics in the United States have shown that one person dies in an air crash for every four million flights taken. Some even say air travel is safer than driving in a car. The BBC once made a statement that flying is “six times safer than travelling by car and twice as safe as rail.”

“The general public perceives that air travel is unsafe because once an accident happens, it gets wide media coverage and it involves many lives,” said Azharuddin. “Road accidents happen practically everyday so much so that the general public perceives them as something usual.”

He added that in safety and security audits by the ICAO, Malaysia has shown “remarkable results.” In fact, Malaysia attained a Category I certification in the International Aviation Safety Audit by the FAA.

The 911 terrorist attacks in 2001 arguably had the biggest impact on the civil aviation industry, in particular commercial flights. Tighter security measures have since been put in place worldwide.

More frequent and convenient air travel also means diseases can spread more quickly, as evident during past global pandemics such as SARS and H1N1, which also means more stringent safety measures.

A newer aspect to the concerns of the civil aviation industry nowadays is the environmental impact of air travel.

Pioneer

“On average, aviation contributes only 2% of greenhouse gas emissions but the industry, spearheaded by the ICAO, has done quite extensive work on reducing the emissions to ambitious levels,” said Azharuddin.

“As a Contracting State, Malaysia is committed to the strategic objective of ICAO in reducing the impact on the environment. The Continuous Descent Approach (CDA) at KLIA is a flight procedure imposed on arriving aircraft at the airport in order to reduce greenhouse emission. Malaysia was the first in the world to implement such a procedure.”

The CDA is a smooth descent at a consistent angle that helps to reduce fuel consumption (thus reducing carbon monoxide emissions) and noise. The flight procedures at all airports in Malaysia are designed for the same purpose, said Azharuddin.

The DCA, as the regulator of the industry, is concerned with all areas of civil aviation, from airworthiness, airport standard and air traffic management to safety, security and flight operations. It has a huge task on its hands. The risk of an accident or incident becomes higher if even one component is overlooked, said Azharuddin.

And with a fast-growing low-cost carrier such as AirAsia now taking to the skies, it means even more work for the regulators.

“More aircraft flying in the airspace means more blips on the radar screens for air traffic controllers to juggle with, more aircraft for the aircraft maintenance engineers to certify, and more airline pilots to be licensed,” said Azharuddin.

After this centennial point, more challenges are ahead for the DCA and the industry as a whole, he said. Preparations must be made now for both human capital and infrastructure.

“The whole industry needs a transformation roadmap,” said Azharuddin. “And the transformation will materialise this year with the establishment of an autonomous Civil Aviation Authority of Malaysia to replace the DCA.”

Ramli have already highlighted much earlier about the possible “take over” of MAS by Air Asia..ooops Tony Fernandes ..Now its happening with almost a 20% stake and soon more % and finally maximum control and maybe change the name of Malaysia Airlines to “Fernandes Airlines” and thats the end of Malaysia Airlines Great History?MAS is a National Pride maybe better to appeal to Datuk Idris Jala to come back and lead and make MAS Better&Greater!You just need to increase MAS share price by another RM3.00 and MAS is greater than Air Asia unless somebody dont care anymore?Thats the danger actually?

Ramli have highlighted this problem of MAS (read former postings at this blog)becoming a target takeover by Air Asia namely Tony Fernandes due to the current good results of Air Asia BUT based on MAS History,National Pride,Premium Services and Great Quality  Staff (sorry not Top Mgmt as it is now)MAS must be made to be on her ownself with Top Talented Dynamic Leader who can turn over the tables from a weak performing carrier to one of the world best carriers like Singapore Ailrines (remember MAS was a sister company with SIA many years ago before they separated)The recent news report on the proposed shareholding (about 20%) of MAS to Tan Sri Tony Fernandes by people at Khazanah Nasional Berhad is very “interesting and disappointing” more for the “lost of steam” of upholding our Malaysian Pride and willingness to take the gamble of losing much more at a later date and maybe its better to let leave Tony Fernandes to manage and lead his Air Asia to higher and stable positions rather than the “greed and chase for higher uncalled and not needed glamour” to also want MAS in his stable of companies which is still uncertained and instable!Maybe many people have same thoughts like Ramli just ask MAS employees?

Read this article from Star Online about Tony Fernandes owning almost 20% of MAS:

Sunday August 7, 2011

Share swap deal: AirAsia’s Fernandes to gain 20% stake in MAS

By WONG SAI WAN
saiwan@thestar.com.my

 

KUALA LUMPUR: Malaysia Airlines (MAS) and AirAsia will swap shares in a surprise deal which will see Tan Sri Tony Fernandes becoming the single biggest shareholder.

Khazanah Nasional Bhd, which owns over 17% of MAS, is said to have concluded negotiations with Fernandes to come up with a deal to save the national carrier.

Sources said the deal, which was struck last week after negotiations over the past year, became urgent after MAS’ poor showing in the last two quarters.

Fernandes is set to get 20% of MAS equity under the deal that is to be signed next week, with some sources saying it has already received the Government’s approval and could be inked by tomorrow.

Industry players expressed surprise at the deal because of past animosity between the management of the two airlines.

Those who were aware of the negotiations were also surprised at the speed at which it was concluded.

At present, Khazanah, a strategic investment company, holds about 17% stake in MAS, and under the deal with Tune Air Sdn Bhd, it will get a similar stake in AirAsia. Fernandes and his co-founder partner Datuk Kamarudin Meranun hold 26.28% in the world’s biggest budget airline.

Fernandes declined to comment when asked about the deal.

Insiders in both airlines confirmed that the negotiations concentrated on the synergy such a share swap would bring.

First, there will be rationalising of routes. Between them, the two airlines cover most of the lucrative routes from Asia to Europe.

Second, when they are seen as a single unit, their bargaining power with airports and aircraft manufacturers will double, said a source close to the deal.

He pointed to the recent move to merge SapuraCrest Petroleum andKencana Petro-leum via a share swap as an example for the AirAsia-MAS deal.

Insiders said it was unlikely the two airlines would merge into a single unit, but would operate though separate managements at operational level, while sharing common directors and policies.

Malaysia will get the best of both worlds a premier full-service carrier in MAS and the best budget carrier in AirAsia.

“They have been competing with each other for too long, and it’s time to work together because there is more than enough to go around,” said a senior government official.

The official added that the “feud” between the two had been going on for 10 years since Fernandes and others took over the ailing AirAsia fromDRB Hicom.

AirAsia is twice as big as MAS in terms of market capitalisation. MAS is worth about RM5.3bil, while Fernandes’ outfit is worth slightly more than RM11bil.

AirAsia stocks closed at RM3.95 per share yesterday while MAS’ was at RM1.60.

A news portal, The Malaysian Insider, which broke the story of the deal yesterday, reported that Fernandes would likely appoint Khazanah’s executive director of investments Mohd Rashdan Mohd Yusof as chief operating officer after the share swap. Rashdan already sits on the MAS board.

Sources said no decision was made about the position of MAS CEO Tengku Datuk Azmil Zahruddin.

MAS recorded a first quarter net loss of RM242.3mil against a profit of RM310.6mil in the same period last year. Analysts expect the national carrier to make full-year operating losses due to high fuel costs and falling yields.

In contrast, AirAsia recorded a first quarter profit of RM171.9mil for this year and a record RM1.5bil in profits for 2010.

Sources said the merger would also force the two airlines to take stock of their future aircraft purchases if they are to enjoy any synergy.

AirAsia purchased 200 Airbus A320 aircraft earlier this year with an option to buy another 100, while MAS was set to make a decision on the replacement aircraft for its Boeing 747 and 777 fleet, which is more than 20 years old.