What's up in MAS

[GreatWayToFly]

You guys up north must be very unhappy from what i heard.Bonus and share options to limited,privileged few and leaving the majority with a bad after taste.
Thought you guys had it good with the new MD since no postings,averse or otherwise,seen here for a long while.

How quickly it screwed it all up with their REWARDS to selected staff.

[ikan_terbang]

The majority of the PILOTS can only get Chili Sos or Tomato Sos.
The secretive nature of the ESOS leaves me to wonder why the hush hush.

But one thing good though....this will make pilots wake up and be accounted for. The hardworking pilots will get rewarded. Esp those that take time to do Co related course eg Six Sigma, MBA, etc etc

[EY777]

Or they couldn't care less & leave for better places.Better still they now decide to do the low & drag approaches :D

[squak7700]

That is what is happening in flt ops.Dont even mention about other depts.

Pilots seem to be doing their own kind of work to rule.Just imagine uplifting 2 hours of extra fuel on 744 to LHR with fine wx there.Requesting to maintain on airways when given direct track.And the LOW DRAG approach very evident in KL with ATC clamouring for guys to maintain best high speed the other day.


Heard about the TEAM A and TEAM B to LAX?One got bonus the other didn't.The one that didnt insist to maintain LOW level despite given clearance to CLB by LAX.And he was doing it with max speed at that level.When change of shift he told the other capt that they were held from climbing.

There are so many other HAPPENINGS that i'm sure alot of the guys there are willing to share

[CAT IIIB]

This policy is being brilliantly formulated so that;

1.Others are inspired to perform like their top 10% high achievers colleagues.

2.This is in-line with the company's proud motto of "Going Beyond Expectations",indeed.

3.It is to reward the top 10% high achievers(juaras) who single-handedly turn around the company out of the stinking hole.

4.It is to be a lesson to the other remaining 90% workforce of "useless bumps" in the company.

5.Should play more golf with the bosses.

The Management,
JUARAs Laboratory and Research Team,
Human Resource.

[worldlythird]

Iris(sic) Oh Iris! Love you much for your diabolical ways, your lenghty excuses, your elliptical talk.
Love you much for your 3 million share options
Love you for your complicated maths; the company actually loses money giving options at close to market price.
Love you for the 200+ million balance from the MSS. Nice.
Love you for your cost consciouness by keeping the more than deadwood pygmy in your office.
Love you for unleashing the 10% talented dogs.
Love you for your frank opinion that 90% are shirkers and slackers who do not deserve any thing.
Love you for your vision: train lots pilots to break their bargaining power.
Love you for being so obedient to your PM (political master).
Indeed I really love you much!

[ikan_terbang]

............train lots pilots to break their bargaining power...
I think JALA forgot that that to train 1 jumbo driver takes 15-20 years.
So flooding the market with 200 kadets drivers per year for 2 years seem strange move
IN 20 years time there will be 400 more well trained Captains to feed the rest of the aviation world. Well done Jala. All of China and India is thanking you.

[squak7700]

This guy,Jala seems to have lost it after getting his DATUKSHIP.That's what happen to most after getting this title.Seem to make them closer to god.Untouchable.

Ask the union guys.Jala seem to be high and mighty now.

"Dont tell me how to award ESOS and bonus,that's my decision, none of the union's business".This is not the JALA they know.

Back to the CIRCUS.Clowns will always be there to rubbish things up.

[flightleader]

Was shearing off the forward entry door of a A330 with an aerobridge part of it?

[Terry McCassey]

Flightleader - can't fairly blame MH for that little escapade.

[ikan_terbang]

Roti Jala has lost the plot. Time to eat the curry and and move on. Next Please.

[Jangteh]

Idris Jala is not to be wholly blamed for this single management error (which will be discussed in management schools for years to come as case-study). I would think that the SGM of Flight Operations has a clinical decision on who is to be awarded the ESOS or bonus. The only measuring critirea for pilots are the results of our basechecks, but even this yardstick is fraught with shortcomings, like the AE/Instructors who would only award each other with the highest.

All the rest of the divisions in MAS had gone through the Performance Measurement exercises, except for us pilots. Besides, Flt Ops had not explained to us as to how we are to be measured so as to be in the top 10 (so the grey areas are wide indeed). This ambiguity creates disharmony which naturally prevents optimum performance in Flt Ops.

As of now, it would be greatly interesting to see how the top 10% can muster up to keep Flt Ops in great shape when the remaining 90% sulks.

[worldlythird]

For the 90% shirkers & slackers please bear in mind:

After you have done one or all or some of the following productive stuff and then some more others besides ( make the boss coffee, attend all the meetings the boss goes to,
wave hands, clap hands, play golf as some suggests, send greeting cards to the boss’s family or play the guitar) you just might be eternally grateful for the 1000 share options, maybe more that he decides to grant you.

Ass-ume you have 1000 share options and the company share price increases by 1 ringgit you will be paper profit 1000 ringgit.
Ass-ume your salary is 1000 ringgit then 1 month bonus.
Ass-ume your salary is 5000 ringgit then 1000 ringgit paper profit not so good anymore.

But the boss will be paper profit 3 million ringit which is how many months bonus?

The ‘reward’ is asymmetric. And when the aircraft is asymmetric what to do?

It is stated that 50% of the options must go to the bosses.

So some simple maths:
Paid up capital is about 1200,000,000 shares
10% for ALL employees is 120,000,000 shares
50% of that goes to the bosses so the remainder is 60,000,000 to be shared among the 15,000 staff.
So each Staff should get 4000 shares.(you wish!)
But like rush-job MSS the shares already allotted to the 10% talented ones.
Some one has eaten your cake!
Maybe just maybe some crumbs may be left over for you.

So; To be or not to be: a slacker, shirker, or Ass-l**k** and hope that next year you may get to taste the leftovers.

Only IMHO
Please ask IMMI (I,Me,Myself and Iris)

[worldlythird]

Kudos to the 90% shirkers and slackers. Your team work and understanding of unity is strength is fantastic.

Now the three million bad cop is taking a rest. The two and a half million good cop is stepping forward. This tag team's methods seems to be divide and rule, smoke and mirrors, confuse the enemy, say many things that don't mean anything.

What a way to run a company!

They understand inverse proportion.
Ego inversely proportional to size
benefit inversely proportional to pay.
short term self interest inversely proportional to long term company disadvantage.

[Brianigham]

Sad , what a load of rubbish!

This "GLC" thing is here to stay it seems.

There is this excuse being thrown around that there was not much choice but to implement a PMS system company wide.

Since when was a "GLC" a thing to be proud of or emulated?

Which other GLC in our country is an Airline?

Do any of you out there know if a similar PMS system is in place with other Carriers?

[Brianigham]

CAT IIIB, and others,

More info please .......any news on if there is hope or is this new "MH" useless as well.

Heard that the PMS and ESOS will continue.

[Oyster Shucker]

Hi guys,

It's been a while since I last looked at PPRuNe. The last time I heard was that you guys got a pay rise of 20% or so a couple of years ago. I had hoped that the situation there with regards to pay and conditions would improve after years of problems with negotiations.

Would someone please clarify:PMS, GLC ? I roughly understand what SESOS is and find it typical of the management culture there.

TQ

[worldlythird]

The company quarterly profit for 3 months ended 30 jun 2007 actually showed a operating loss of RM 5,881,000.
The profit from other activities on decreasing trend for some time now.
The profit from sale of assets is 80,050,000.

Still doing business very much the same way.
Justified to reward themselves so much?

They like to compare with their the southern neighbor.(benchmarking they say). have a look at the annual report or the quarterly report.
The CEO is only offered approx 1.2 million ESOS. And some of it is tied to performance.
And what a performance!

IMMI is good at sandiwara. Teamwork was his big thing. Only we don't know who is in his team.

Still hoping for some "mouth watering" left overs or bonuses or big pay rises?
better off to go where they pay market rates.

Here the rich and powerful lord it over the masses. And they always take care of themselves.

[lesenterbang]

The company quarterly profit for 3 months ended 30 jun 2007 actually showed a operating loss of RM 5,881,000.
The profit from other activities on decreasing trend for some time now.
The profit from sale of assets is 80,050,000.


Hmmmm......mind show us the source of this?

[Geragau]

Alas, we're all waiting for the crumbs...trickle down effect lah!

[Paishinel]

I heard that the MAS management is trying to placate the disenchanted with 1/2 month's bonus...real bread crumbs indeed!

[worldlythird]

Hmmmm......mind show us the source of this?
See quarterly reports since Iris took charge end DEC 2005.

Look in airlines websites.
Example:
http:// www.malaysiaairlines.com/getdoc/6c5d55b4-85ec-424f-9ade-86cda1120d49/Malaysia-Airlines---Q207-Bursa-Announcement.aspx (http://www.malaysiaairlines.com/getdoc/6c5d55b4-85ec-424f-9ade-86cda1120d49/Malaysia-Airlines---Q207-Bursa-Announcement.aspx)

Read the spins in the papers. Or look at the numbers. Free to choose.

Operating revenue (3,496,508,000) minus the operating expenses (3,502,389,000) is the operating profit or loss.

Actually, profit from sale of aircraft (8,292,000) , sale of properties (34,282,000) and discontinued operation (37,476,000) make up the 80,050,000.

Oooops! there goes the esos bubble.

This is not a recommendation to buy or sell
This is only a second amateur opinion

[JaguhDunia]

Things are probably not looking up. There was a recent tragic death of a young pilot; maybe the depressing mood in the company did not help at all as he considered his tragic move!:{

[WiraMelayu]

Jaguh, the whole rot in MAS certainly does not help anyone at all. It probably figured a lot in Alvin's darkest moments. May he rest in peace and harmony. Most sincere condolences to the family and friends who has definitely lost a great guy in their lives.:sad:

[Raj Merlion]

Paishinel's news of 1/2 month's bonus, is that true? Gee, I gather that's better than the ex-gratia fiasco we used to get previously.

As for Alvin, it is indeed a sad day. I understand from certain sources that he was just getting his first command. Pray that he truly rest in peace.

[ikan_terbang]

I did not know him personally but such a tragedy reflects the psych of the remaining MAS pilots. Totally demoralised and totally helpless in light of poor working conditions and perhaps poor renumerations and lack of progress in the MOU of the remaining pilots.

[CAT IIIB]

But whatever it is,if he is truly depressed and frustrated with MAS,hey it's globalisation era,a wide-opened job market out there!!He did not need to stick with MAS and endure the suffering:confused:

[Mat Tongkang]

Hi, no one is suggesting that pilot woes in MAS figure prominently on Alvin's mind leading to his sad demise. They certainly did not help. RIP Alvin.

[ngapsayot]

Didn't Alvin just get his first command recently? Hope he truly RIP. Condolences to family and loved ones.

[Mat Tongkang]

Any news about this unfortunate case? Any lessons we can learn from it; let him RIP but not let his passing be in vain.

[MAS Guy]

Hopefully no one follow in his foot step, May he rest in peace. More of us need to leave MAS but not his style.

[Rule35]

MAS Guy

Might i suggest you improve your command of the English language before you make anymore half baked comments and distasteful attempts at humour.

regards

[Brianigham]

ditto Rule35

[Zzyzx Rd]

MAS Guy

It may be true that more ppl should leave Mas but have a bit of respect as well for the late Alvin. May he rest peace.

[Raj Merlion]

From what I know, the monetary rewards for pilots in MAS is good now especially with the appreciating ringgit. Good for the guys who choose to remain. However the systemic rot remains and I believe this will continue as long as pilots keep being docile accepting whatever that's being dished out.

[MAS Guy]

But we in MAS always scramble for crumbs.

[ngapsayot]

Ringgit is up and greenbacks are in the doldrums. Heard that EK will offer a much enhanced package in their coming roadshow. Anybody with more info? Thks

[JaguhDunia]

MAS pilots; the global demand for pilots have never been so good, so guys do yourself a favour. Drop the old mind set of burdening the old folks with your kids, cart your sorry whinging ass to greener pastures and prove your worth. All those talk of nasi lemak, teh tarik, datuk nenek doting over your kids are so lame and self limiting. Reminds me of all the jaguh kampungs who travel all over to compete but still wants nasi lemak and maggi mee wherever they go...one word sums it all up, PATHETIC.

[MAS Guy]

Actually it is not Nasi Lemak or Teh Tarik, we have no balls anymore. Camel cut it off! And Sam Black run away with it. That is why he is a Not Wanted man. I'm not ashame to admit it. We MAS pilot have no balls. :{

[Brianigham]

Pathetic!
Wow....that hurt buddy!..but you know what....you are quite right.....thats why it hurts. Maybe I am a Jaguh Kampung after all...sigh!:(
I'll go sit in the corner and lick them wounds for awhile..whimper' whimper'. In the process will try to relocate them balls.
Who da guy that ran away with it again?:)

[Sireh]

Brian, you're sure an impressionable not so young man. You went gaga over rabbit oh, mapa prez etc and now you want to run after blackie's balls? Come on, pull yourself up. Ya, lick your wounds, not the balls and certainly not the mgmt arses and hold your head up high. Fight the good fight; nobody should belittle your decision to stay in MAS even though you articulated your reasons in another thread.

[CAPTAIN WOOBLAH]

Hey where is blackie. Maybe he is sporting a gstring these days. Brian go lick those wounds and get back here when they are better. Then keep fighting the good fight.

[Brianigham]

:ok:Slurp! Smack! Burp!.....me back!:)

[Langkasuka]

Wooblah,
Blackie with a g-string or Blackie in bed with g.stringh? Two equally despicable fellows and both were ex MAPA excos! Guys, do you now see the problem with MAPA and MAS pilots?

Heard from someone nightstopping in the sandpit from kimchiland that all the allegations about his engine pod prang and endeavour to hide it were true. Apparently he had an equally despicable bed fellow who helped him licked arses to slither out of trouble. Not good for ex MAS reputation though.

[kamarulhitam]

Langkasuka, you heard right. Over the Raya holidays, some juicy stuff came out about all those low lifes. Small wonder why MAS and MAPA are so screwed up those days and still is...we still have fellas of the same ilk!

[ngapsayot]

Previous posts from enlightened MAS and ex MAS guys indicated the problems in MAS mirror Malaysian society in general...very true. Politicians make " holier than you " statements of serving the country but connived in the most despicable manner to bankrupt it in everyway ( fiscally, morally,etc ) for the own personal gain as well as that of their patrons. Likewise MAS and MAPA people do the same thing. Cheat, lie, win at any cost for their own diabolical cause, step over dead colleagues for any personal gain...you name it, it's been done and still being done.

I can only say that for the average down to earth Malaysian; just bite the bullet, give a good fight to keep the torch of decency burning and survive through your own intestinal fortitude. No holy knight is on the horizon to make things better.

[Brianigham]

If you are a pilot in MAS, then you have the the opportunity to tell those "liars" off.

If you dont have the balls to tell off your boss in MAS ( for whatever they have done or are still doing) then at least tell us of him here. Maybe there is someone here with a backbone who doesn't know about the rot, but would do something about it if he knew.

If you have a problem with the SGM or GM or your FM, pickup the phone and tell him, use the company mail and tell them. Use your level 6 english and word it properly lor. Jangan hantam only like in here, with no facts. Only then can you be called worthy.

You got a problem with MAPA. Tell them. Vote them out. Tell us here, maybe someone with a backbone will pick it up and tell them, or tell them off. Don't bring back stories from the past about bhai, whoselan and all. These things don't help.

If you can't do that, then you are nothing much yourself. How on earth are you going to "fight a good fight" from the couch, or fight

I may be a lot younger than you guys here who can bring back stories from the book of Genesis, but I have also seen enough of the NATO pilots. Yes, the NO ACTION TALK ONLY.

I have been asking for details, but all I see here is the same ol' whining. "Don't trust MAS, don't trust MAPA" .....like a broken record player with the story of the ghost from Christmas past.

Then someone will come along and whack whoselan,wawawi,camel,sam,bhai,etc,etc. Look up the directory , give them a call and move on.

Don't you see the major changes that are going on in MAS. The restructuring that has taken place and that might take place, is not just about PEOPLE moving. Who you are as a pilot is changing too.

If all you outspoken people can put your money where your mouth is, then we have a fighting chance.

[Virtual Reality]

WELL DONE Brianigham !!!..........:D:D:D

[chintanmanis]

Brian, do you think that you are so up the food chain in MAS that you know that that the abovementioned chaps had not told off the boss? I for one do know of a few guys who had given the bosses the finger and lived to suffer later...then they upped and left. You seem so full of bravado; but I think you are a budding 001. I was told that 001 had similar views like you in his days as a young commander, helping out MAPA bosses, singing their praises and even had a stint as MAPA secretary. Once drafted into the ranks of management, he was a disaster for MAS pilots. An aussiephile, he became a patron saint of the ozzies. I certainly am wary of " mata sepeks " of the likes of you.

[Brianigham]

And what makes you think I haven't shown them all the finger myself. What makes you assume that I am not facing the consequences of that RIGHT NOW!. What bravado my friend? Just plain human rights to speak up when you know something is not right. I am not taking a swipe at chaps like Capt Wooblah, who comes up with the details. I am prodding at the one liners with the big tease posts.

I respect your caution for the tone you get with my post. I have that same cautious approach too and I am still looking out for the replacement agent double 'O' One. It is good to look back to learn from mistakes and also from past victories. As the little pony ( not aspiring to be the next dark horse) I too have learned heaps from folks here. LUV IT. All I am saying is lets not get stuck there in the past. If there are chaps here who have shown the finger then upped and left. Great! Thank you, and peace to you.

My finger has been out for awhile as well. Just don't want it to be a permanent pose, ruins my good looks.

There are pilots in MH who are not interested in going anywhere other than where their roster depicts. Some of us are still airline pilots my friend. We have always wanted to be and are enjoying every moment of being line pilots. Some folks just have to be in management. They can't stand the fact that they are not the boss. And I don't take away any respect due to them as well. Pork, to one man, is to the other, beef.

This ! is not the battle field my friend. The battle field is out there....where it matters.

[boltak]

dear Brian
I have been asking for details
perhaps you can start by telling us when you haveshown them all the finger myself

Then we can learn from you.

Don't you see the major changes that are going on in MAS. The restructuring that has taken place and that might take place, is not just about PEOPLE moving. Who you are as a pilot is changing too.

Please tell us how all those changes have impacted your working life. Have they made yur working life any easier.

You almost sounded like a management type.[

[Brianigham]

:D:)
oooooh......ha ha ha .....I almost sound like management. omigosh!
Thats like saying I almost sound stupid, selfish, short and....yes ugly! ha ha ha.
Excuse me.

[mohdawang]

BTW, how do my Indonesian brothers fare over in MAS boleh? Anybody care to comment?

[runes]

hehehe..
you're right there.. they're definitely ugly, short and conmen
that why they're in misManagement ( all lanuns)

[Geragau]

Are some people posturing, huffing and puffing in prep for MAPA nominations? Seen and heard those stuff before...some broken record we got here!

[ngapsayot]

Aiya, giving a good fight doesn't mean big talk, challenge the bosses head on to impress people, MAPA big talk to win vote, etc. Good fight comes in many guises...non violent or non abrasive work to rule; not doing any favours to flight ops, no duty extension, general non cooperation when asked to work " beyond expectation ", etc.

[Sireh]

Ngap, righto! Just don't volunteer to fly on your off days, no volunteer office work etc! Come to my kebun and sweat it out! Then gobble on the durians, rambutans etc and next teh tarik..... just don't be a barua!

[Diz]

Working on Off day?= Unethical.:ouch:

[WiraMelayu]

Coolies will forever be coolies; they grab at every chance to brown nose and suck up to mandores. Sad thing the mandores are lower in the company pecking order!

[Paishinel]

Ya, yeh...pilots sucking up to lowly clerks and rostering staff to beg for plump flights. Tsk, tsk bringing duty free goodies to pry some info from flt ops officers for info on promotions...how can MH guys keep their heads high? These lowly bloke you guys suck up to will certainly spread news of your apalling behaviours to all and sundry; so you guys will certainly look and be identified as pathetic!!!

[Mat Tongkang]

How about conning your cyber challenged bosses with slick computer graphics and silicon magic thingy about cost savings/fleet promotion paths so that you can catapult up to B744 or A380 ahead of your more deserving seniors? Bribe rostering staff to give you great flights to boost your hours and then bribe others to keep quiet after you have busted your yearly/monthly hours limit. Ahh...these foxy, sly MAS pilots, what a bunch!

[Geragau]

Kutus crawling in the dark to get up onto the top of the head; or creepy crawlies boring to the top of the dung heap? MH pilots need to work in upholding their dignity!!

[Virtual Reality]

Ya, yeh...pilots sucking up to lowly clerks and rostering staff to beg for plump flights. Tsk, tsk bringing duty free goodies to pry some info from flt ops officers for info on promotions...how can MH guys keep their heads high? These lowly bloke you guys suck up to will certainly spread news of your apalling behaviours to all and sundry; so you guys will certainly look and be identified as pathetic!!!

How about conning your cyber challenged bosses with slick computer graphics and silicon magic thingy about cost savings/fleet promotion paths so that you can catapult up to B744 or A380 ahead of your more deserving seniors? Bribe rostering staff to give you great flights to boost your hours and then bribe others to keep quiet after you have busted your yearly/monthly hours limit. Ahh...these foxy, sly MAS pilots, what a bunch!

I thought give reward or get rewarded (read corruptions) is a way of life in Bolehland, not only in MAS but everywhere and anywhere, from govt office to private sector. You could see this everyday. The only different is the magnitude.:ugh: If you could not beat them, join them. "Show me the money and get the job done" or "what do I get in return" are 2 examples how our culture had change. So use your rights and cast your vote accordingly in the next general election.:}

[ngapsayot]

Cyber challenged bosses? More like brain dead!!

[worldlythird]

Greetings to the 90% shirkers and slackers! This year 2008 will be historic or will history repeat itself?

Record profits will be announced. Record bonus then?

The turnaround artist will be turning his back and leaving on the airline. Will he be turning his back on the 3 milion options also.
Or will he turn and pocket the humongous easy money made from the sweat and hard work of the 90% shirkers and slackers. And leave them to pick up the pieces.

So much twisting and turning to do. Can be exhausting!

[JaguhDunia]

For our Chinese brother/sister pilots; remember this is the year of the Rat! So beware of the rats that may eat your cheese!

[CAT IIIB]

The RAT already eaten our EPF cheese.

[Mat Tongkang]

Read somewhere about a great turn round and aiming for RM1 billion profit next. Wow, that would be fantabulous for a ratty year.

[Geragau]

Big fat dreams as usual; maybe with some creative accounting and assets sale.

[Mat Sabo]

I don't think MAS has any more assets to sell to boost their profits!

[MasMamak]

Wow! Happy days for MH gals & guys...a whopping turnaround! Bonus, bonus, bonus..how about bonus before March end?

[Geragau]

Idris Jala promised a turn around in 2 years; looks like he delivered. Come on guys, give credit when and where it is due!

[ngapsayot]

Too early to tell if we have wool pulled over our eyes. For the time being it looks like he is bringing MAS back on track. The expansion in the last 2 decades had been a foolhardy attempt at self aggrandising according to the whims and fancy of an old mamak who now attempt to appoint the successor to his successor!

[mascamel]

Hear ye, hear ye...MAS is really back on track! It has been reported in national and foreign media that indeed profits was over US$248million . Good luck to our MH boys; now get the guts to demand your dues!

[pendekar]

Is everyone oblivious to the fact that more than a 3rd (ie 300mil) of the RM800mil profit came from sale of company aircraft, and it's HQ and Kelana Jaya buildings...

In addition there's another RM290mil of 'other operating income'...sale of MAS' four seasons?

VSS cost of >RM1bil bourne by Gov't

Almost RM1bil in debt...

If MAS is in the business of trading planes and properties, then IJ helluva great job.

[Brianigham]

Hang On.....

They couldn't have cooked the books.

There IS operating profit.

But our company although bearing the same name is now a different company altogether.

Any change good or bad, has the auto excuse of "Would you have wanted to continue down the previous path ?" The obvious answer to that is NO.

There is danger here.

The PMS system he wants to shove down our throats has this auto excuse " We are a GLC, and this is inline with GOVT aspirations/directive"

Within those 2 excuses alone, a great AIRLINE IS NO MORE.

A profitable business. Maybe thats the only future.

We still have goons in high places. I guess we always will.

[pendekar]

Yeah, but somehow the profits on aircraft, building and "other operating profit" were classified under Operating profit.

Maybe an accountant among us can enlighten us....

After the VSS with almost 3000 staff and without bearing the cost of of the program, the profit is the least you would expect..

[icemanfx]

MAS operating revenue increased 12% from RM13,067m in '06 to RM14,686m in '07. Believe operating earning of RM273m is helped by RM900m cost reduction.

According to MAS 2006 Audit Report;

Note 5, Other Operating Income include;
Third parties interest income
Rental income
Dividend income
Gain on sale of property

From MAS 2006 Audit Report;

MAS paid RM892m loyalty to PMB for domestic operation but MAS charged PMB RM1,111m for domestic operation. Net gain of RM219m for MAS.

MAS may not own any aircraft but is entitled to a 80% share of the gain on disposal of certain aircraft unbundled to PMB.

MAS do received some form of subsidy from the government.

[tigerwood]

Yeah, I was at MAS building 33rd floor one fine afternoon with the rest of the union and association leaders. The meeting was chaired by the former boss, Tan Sri Raja Mohar.

It was a great news. Declaration of company's profit for the fiscal year. In the statement made by the boss, the profit that was declared was mainly derived from the sales of 4 Airbus 300B4.

After a decade, it looks like the same modus operandi. Selling off assets as operational profit. Bravo! Hmmm, what else could MAS sell in the future? Perhaps, an ad " Management for Sale". Sure there are plenty of airlines in this world would grab the offer, since the management have proven their creativity in making MAS a profitable company in 2 years. :rolleyes:

[tigerwood]

Guys, just went thru MAS annual report from the 1998 till 2006. Interesting. For the last 10 years, MAS make some profits and/or reduced losses from selling of aircrafts/engines/subsidiary.

The trend, when the year MAS did not sell any assets/aircrafts, it posted heavy losses.
31 Dec 2006 31 Dec 2005 2004/2005

Total Revenue (000): 13,489,549 9,181,338 11,364,309
Total expenditure: 13,841,607 10,434,634 11,046,764
Taxation: (60,645) (18,657) (35,707)
Profits/(loss) (133,737) (1,251,603) 326,079

Prior to 2003, MAS declared losses for 5 consecutive year. One of the year, it posted pre-tax loss of 1.303 billion ringgit.

*source from MAS annual report 2006
Guys, can anyone here highlight to me when is MAS making significant profit solely from operating revenue for the last 10 years?

[Tongkat Ali]

Me thinks MAS will not be able to post real operating profits until all the fat are cut and go on a lean / mean mode of operation. It's operating expenditure is still too high despite the VSS and cost cutting. Once the assets are all flogged off, it's gonna be a real challenge to Idris show real operating profit.

[JaguhDunia]

Some of the VSS action was justified but there were also abuses which made it a joke...you will notice that wages still make up a major part of the operating expenditure. Corrupt practices are so deeply ingrained in Malaysian corporate culture as well as the industry at large that it is really a monster with thousand heads....cutting those off takes a long time.

[Geragau]

Aha! Creative accounting.....welcome to the real business world. Creative accounting, window dressing....you name it, they all thrive especially in a corrupted business environment.
I don't think I can make much sense of it but just pay my bonus due, and don't eat up all my cheese! Time for some crumbs to fall off the buffet wagon!

[Geragau]

Oops! Just as I was getting my hope high about bonus, a tuak kaki phoned and alerted me to a report about Air Maldives action against MAS. Looks like Tajuddin's **** still sticks to us...MAS management services to Air Maldives signed in the agreement between MHS and the latter. Looks like we need to further act on Dr Con's corruption report on Tajuddin!

[WiraMelayu]

To curb corruption in MAS you will need to catch both big fishes and the small errant fries too. Th big fishes treat MAS like a great buffet wagon treating themselves to huge helpings; the smaller fries are equally damaging with their " cheating " ways leading to customer dissatisfaction. Not forgetting the fella who double dipped when seconded to Jet Airways in the 1990s. Also guys who tried to broke bonds and refused to pay!!

[worldlythird]

My Darling Iris,
Love your sweet nothings.Your lengthy mails say a lot but mean little.

Love your logic. the PMS is imperfect. Grade all the staff and pay using an imperfect method.

Love your generosity.Tell the employees you are paying them miserable but good bonus.

Love your truth. The share holders are INVESTING their cash in company in hope of dividends and capital appreciation. A double whammy effect.The employees are investing their skills and time.
Should the company go bankrupt the shareholders have a claim to the company above the employees. If at all they lose only their cash. they have other sources of income. The employees will be left jobless with all the financial obligations.Definitly a double whammy!

Love your familiar technique of playing one group against another.To say bonus payment to staff is more than dividend payment to shareholders. But the truth is the company has no real dividend policy.

And to say that the pilots will be getting more increment than the other employees.That is wicked. Now the other staff will shift their focus to the pilots as the cause of all that befall them.

Love your TURUN PADANG. What is the difference between this and the previous management's Management by walking about (the golf course)?
If only you would go down on me more!

In this day and age of internet and what have you.

Love your grudging way. Lay on thickly all the POTENTIAL bad news to take whatever little joy out of the bonus.

Love your insight. The incoming high tide lifts all ships big and small plus all the rotten debris will float up. So do not be too smug. The low tide will surely come. That will tell the difference between the big ships and the leaky ones.


Love your loyalty. To power and money.Would you be around for better or for worse till death (or debt ) do us part?


PS. Really miss your guitar playing!

[Mat Sabo]

Has anyone has any more juice on the Air Maldives countersuit and the bonus thingy? Still have some MAS shares lah despite jumping ship.;)

[Paishinel]

Strange that silence persists on this thread. Mascamel wrote.....MAS back on track! And bonus guys!

Idris Jala has announced the sale of up to 55 B737-800 for USD 4.2 billion. Great days ahead or the same humdrum buffet train on the roll?

[Sireh]

The big order for the B737-800s have finally come; good call by Idris by not going for the cheapie A320's!

Young wannabe skippers will definitely cut their teeth with the Boeings, the B737 being a great jet to get one's first jet command.

[N118KA]

Sireh, absolutely right about that! Good choice MAS. Nothing like that "snap together" rubbish at the Flying Circus!

Though it is sad to see that things are pretty much "sama sama" back home.

[Geragau]

The B737-800's are sure wonderful news! Looking forward to these new shiny jets and to command one for first upgrade to captaincy will be wonderful for those long suffering f/o's waiting on the wings!

[Oz_TB10]

Hey there,

Dont take this wrongly, i know that MAS is not the most perfect Airline in the world, but here's what really gets under my skin.....

Why is it that none of you guys can support another pilots airline. Everyone works hard and hey screw the rest who think that flying a A320 is a mickey mouse!

Everyone of you guys trained hard and had 2 routes to making it as a pilot earlier on ie MAS, Air Asia and now the third FireFly.

Please learn to live together, and hey there will always be a jackal in every operation, but please dont discount those who have worked hard without the right connections and cables.

We all want to be good pilots but if one cant stand the other then just keep it to themselves and be a PILOT!

[Geragau]

For MH and AK guys to comment and gadoh over!


MAS Q1 profit down 9.5% to RM120m




KUALA LUMPUR: Malaysian Airline System Bhd (MAS) reported net profit of RM120.06mil for the first quarter ended March 31, down 9.5% from RM132.71mil a year ago.
It announced Tuesday that operating profit declined to RM132.9mil from RM146.8mil a year ago due to higher operating expenses mainly from the increase in fuel cost.
Revenue was higher at RM3.75bil compared with RM3.54bil a year ago while earnings per share declined to 7.19 sen from 9.49 sen.
“The outlook for the aviation industry in 2008 is extremely challenging as fuel prices continue to escalate to record highs,” it said.
“Growing signs of a global economic slowdown, further liberalisation and increasingly excess capacity further compounded the tough business environment,” it said.
MAS said for the next quarter, the immediate focus was to manage the high fuel prices coupled with seasonal soft demand in view of the shoulder season in Europe, the United States and North Asia.
“The increased fuel surcharges and fares imposed will alter travelling patterns and frequency for both long haul leisure and business travels.
“With intensified competition coupled with huge capacity injection in 2008 especially for the Middle East and Asia, revenues are under tremendous downward pressure,” it said.

[N118KA]

Oz_TB10 ~ Everyone of you guys trained hard and had 2 routes to making it as a pilot earlier on ie MAS, Air Asia and now the third FireFly.

The sensible ones (without the right cables and connections) all left/leave for greener pastures... SQ, EK, KL...

[Paishinel]

This from The Star :





Bumpy flight ahead for MAS

By WONG SAI WAN


ISTANBUL: Malaysia Airlines is bracing for tough times ahead due to rising fuel prices.
In view of this, its managing director/chief executive officer Datuk Seri Idris Jala said MAS had introduced cost-cutting measures and put off all unnecessary spending.
Saying the situation would be “even worse than SARS or the time when the airline nearly went bust three years ago,” he said he had met unions and other workers associations to inform them of the situation. The warning comes in the midst of jet fuel prices reaching US$171 (RM550) per barrel.
http://www.thestar.com.my/archives/2008/6/3/nation/n_15idris.jpg "If not for the fuel prices, our first quarter profits would be about RM800mil"- DATUK SERI IDRIS JALA
Analysts said the alarm bell raised by MAS was significant because the airline was one of the better performers in the industry over the past two years. The airline made almost RM1bil in profits last year.
The freeze on spending include freezing all recruitment and training (except with MD/ED approval), review of loss-making routes and flights, prioritising projects and expenditure.
Idris, who was speaking to Malaysian
journalists covering the International Air Transporters Association annual general meeting here, said the cost-cutting mea-sures were necessary until the situation improved.
“This time last year, jet fuel was at US$80 (RM258) per barrel and we made a profit of RM133mil for the first three months. This year, fuel prices have reached US$171 per barrel and yet we made RM120mil.
“If not for the fuel prices, our first quarter profits would be about RM800mil.”
He expressed confidence that MAS would survive the crisis because “everyone had been through it before”.
He pointed out that at least a dozen airlines in the world had folded up because of the oil crisis and he expected this figure to rise.
He confirmed that MAS fares would increase between 3% and 20% on all routes and that the Everyday Low Fare campaign was a success with MAS netting RM23mil in profits in its first two weeks.
Related Story:
IATA urges govts to help prevent airlines from going bust!

So looks like bonus is going to be ex-gratia soon! More to gadoh over!

[chintanmanis]

As for Captain Wooblah, why are you so angry?
After all your company has announced record profits. As a TRI/TRE you have received 21/2 months bonus (maybe more) plus the 1/2 month paid last year.
You have been alloted a few tens of thousand share options which is going to fatten your purse.

Or perhaps you do not believe the spin that is going on in your company? But then you are in the enviable position of TRI/TRE where you have first cut and the cream and icing and what have you. So why the angst







Wow! If it's true then congrats MH guys!:ok::ok::ok: Good for you guys to stick it out with Idris Jala.

[Mat Sabo]

Free round of teh tarik and roti jala for everyone! Cheers!

[tigerwood]

１９９８:　MAS suffered losses due to Asia financial crisis. Oil price was USD28 per barrel

２００５:　MAS suffered losses due to over staff. Introduced MSS.

２００８:　MAS will face the same faith above。This time due to high fuel price and everyday low fare promotions.

So, there's always a reason why MAS not going to make money(profitｓ）

[worldlythird]

http://http://www.malaysiakini.com/letters/106048

have a read. rather long. not very accurate but close

[Telur Belacan]

The MSS was surely fishy and todate, no one can fathom the rational behind that scheme. As far as fuel hedging is concerned, it's a very difficult call. Fat bangla is not vindicated despite the fuel at USD40 a barrel in the recent months......it has gone to over USD70 lately.

[worldlythird]

Bursa Malaysia : Listed Companies - Announcements (http://www.klse.com.my/website/bm/listed_companies/company_announcements/companyAnnoucementSearch.jsp?url=http://announcements.bursamalaysia.com/EDMS\edmsweb.nsf/LsvAllByID/48256E5D00102DF5482575D3003DD86F?OpenDocument)

[Munajeeb]

No good news at all :

MAS back in red in first quarterJun 12, 09 5:18pmMalaysia Airlines (MAS) said today it sank into the red in the first quarter, with losses of RM695 million due to weaker demand, overcapacity and volatile fuel prices.
MCPXhttp://media1.malaysiakini.com/track/?id=bW9vbm1hbg%3D%3D
The national carrier said the loss for the three months to March compared with a net profit of RM120.1 million a year earlier. It was the first quarterly loss for the company in two-and-half years.
http://media1.malaysiakini.com/32/4826f19cb364bbc30a0e26c9b105aafb.gifThe airline also posted an operational loss of RM138 million, while revenue for the January-March period was RM2.7 billion, down from RM3.8 million a year earlier.
"This is the first operational loss for Malaysia Airlines since the third quarter of 2006 as it faced a triple squeeze; overcapacity, extreme fuel volatility, and a global slump which hit passenger and cargo demand," the company said in a statement.
It also said the outlook remains challenging as travel demand in the second quarter "is expected to remain soft" but could improve later.
"The outlook remains challenging as yield pressures continue to mount as airlines proceed to reduce fares and fuel surcharges to encourage consumers to travel," the airline said, according to Dow Jones Newswires.
Industry to lost US$20 bil

MAS profit had plummeted 71 percent in 2008 due to the global slowdown, while its fourth-quarter profits for 2008 were down 81 percent to RM46 million from RM241.9 million a year ago.
On Monday, the airline industry body IATA has said the world's airlines are expected to lose nine billion dollars this year, almost double an estimate just three months ago, making the crisis worse than the aftermath of the September 11, 2001 attacks in the United States.
Combined with a revised estimate that it lost US$10.4 billion in 2008, the industry now looks set to lose almost US$20 billion over two years.
Airline executives however expressed hope of a turnaround next year, saying some carriers may start making money in late 2010.

[EY777]

Guess a PN17 Company with a substantial cash deposits have a lot of bargaining power with the SC ...... :}

PETALING JAYA, June 12 (Bernama) -- Malaysian Airline System Bhd (MAS) registered losses for the first quarter ended March 31, 2009 as it faced a "triple squeeze" -- overcapacity, extreme fuel volatility and global slump which hit passenger and cargo demand.

MAS registered a net loss of RM695.398 million compared to a net profit of RM120.06 million in the same quarter last year.

"It reported a first quarter 2009 operating loss of RM138 million, the first for the airline since third quarter 2006," said Managing Director and CEO Datuk Seri Idris Jala, when announcing the company's first-quarter results here Friday.

MAS also saw losses from fuel hedging amounting to RM557 million.

Revenue declined to RM2.7 billion from RM3.75 billion previously, in the face of the worst global recession in 70 years, with seat factor dropping 13.1 percentage points.

Passenger yield, however, was up four percent to 29.5 sen/revenue passenger km (RPK).

Idris said MAS, however, has strong liquidity and RM3.8 billion cash in its coffer, thanks to its across-the-board cost-cutting measures and cash conservation stance.

"Cost savings over the last three years amounted to RM2 billion.

"To-date we have proactively cut capacity by 11 percent in 2009 and we have put in place stringent controls over costs and investments," he said.

Total expenditure for the quarter decreased by 20 percent, mainly due to a RM730 million reduction in the total fuel bill as a result of lower price and consumption, he said.

He said MAS expected to save RM700 million to RM1 billion this year with among others, a freeze on recruitment as well as budget cut of seven percent across-the-board in 2009.

"There is also a freeze on all discretionary training and travelling and it is not taking any delivery of new aircraft until end-2010," he said.

Besides this, MAS has adopted an aggressive sales approach, especially via Internet, he said, adding that its focus in 2009 was to continue its competitive fares initiatives to stimulate demand.

Shareholder equity, however, shed by RM459 million which meant that technically, MAS met the definition of Practice Note 17 company but it has obtained exemption from Bursa Malaysia with its strong cash balance, he said.

He said effective 2009 financial year, MAS has adopted the new accounting standard, FRS 139, which would be mandatory in Malaysia effective Jan 1, 2010.

"This provides the financial community with transparency of its financial results, enabling them to evaluate MAS on a like-for-like basis as its peers.

"Many airlines have already adopted similar accounting standards," he said.

With the adoption of FRS 139, the unrealised mark to market (MTM) fuel hedges, foreign exchange and interest rates that were off the balance sheet, were recognised on the balance sheet, he said.

Idris said however, the unrealised fuel MTM were contractual fuel hedge arrangements over the next three years to 2011.

"There will be no impact on the profit and loss. The fuel MTM losses are effectively 'paper losses' and will only be realised over the next three years. The quantum realised depends on the actual oil prices," said Idris.

He said the fuel MTM was sensitive to oil price movements.

"Assuming all things remain equal, MAS could potentially see a hedging gain of RM1.1 billion in second quarter of 2009 based on the fuel price of US$66 per barrel on May 29, 2009.

"This could mean that MAS' RM695 million net losses in first quarter could be fully reversed by the RM1.1 billion potential gains," he said.

MAS has spent RM400 million to restructure some of its hedges, he said.

For 2009, it has hedged 40 percent of its fuel needs at US$103 per barrel, while for 2010 and 2011 is 60 percent and 40 percent respectively at US$100 per barrel, he said.



-- BERNAMA


Well, I hope they have a good plan with their 'war chest' .... if not we'll be footing the bill again .... :hmm:

[MMBenar]

Just a quick thought......Idris, how about sharing the RM 3.8 billion before your management squander it? Hedging fuel so far ahead wasn't too smart for an ex-oil man! I am sure MAS do understand the volatlity in spot fuel prices.

[icemanfx]

As fuel is hedged til December 2011, MH company profit is no longer under control for the next 11 quarters. Profit can swing from profit to loss or vice versa every quarter subject to market price. No matter how hard MH employees work, their bonus and effort can’t be assured or recognized.

As a responsibility to shareholders, employees and stakeholders, head should roll for those who responsible for fuel hedging. However, MH has the history of rewarding failure; who know, he may become CFO one day if he is not already.

[Vel Paar]

Something fishy here.............fuel hedging until Dec 2011? That's a pretty long term hedge in volatile times! What are our pen pusher experts in their corporate towers thinking when they hedge? Is this plain stupidity or someone using the situation to hoodwink the not so bright fellas up in management to make big bucks for themselves?

[worldlythird]

sample of FAMOUS SAYINGS OF IRIS

THE STAR, SATURDAY, APRIL 18, 2009
When asked on MAS’ hedging policy, which has seen it hedge 64% of its requirements at US$100 per barrel, Jala says this is simply because MAS has adopted a competitive hedge policy.
“We are in the business of selling airline tickets and creating that demand for travel, not of hedging oil prices. Our strategy is to hedge our requirements based on what the other players are doing. I have seen many airlines go belly up because they concentrated too much on hedging. It becomes such an expensive exercise,” he says.

sample famous strategy of the TAG team
THE STAR, THURSDAY, APRIL 16, 2009
MAS adopts a competitive hedge policy, where it hedges its fuel requirement based on what its competitors are also doing.

wah! so easy to make money!!!
BUY at 100 - 145 usd
SELL at 45 usd
write off the loss. (55 to 100 usd)
BUY again at 45 usd
SELL again at 75 usd
book the gain (30 usd)
so where is the profit?
I have to figure that one out.

Perhaps IRIS and his sidekick will share their money making strategy with us!

[nostep]

Now staff asked to take 5% pay cut if basic over $1500rm but no one has heard about except the Papers once again

:D:D:D

[juzlime]

will we see this in MAS? good job letting peeps above 55 flying.. 3 times a month with maximum pay.

Continental Captain dies en-route...
A Continental Airlines Inc. (http://www.bizjournals.com/houston/gen/Continental_Airlines_Inc._7270C1BE3648438FBB9AB12FE2DA9FB1.h tml) pilot died in mid-flight Thursday en route from Brussels, Belgium to Newark Liberty International Airport, according to news reports.
Reuters reported the plane later landed at the airport under the control of two co-pilots.
“The captain of Continental flight 61, which was en route from Brussels to Newark, died in flight, apparently of natural causes,” Continental said in a statement. “The crew on this flight included an additional relief pilot who took the place of the deceased pilot. The flight continued safely with two pilots at the controls.”
The plane was a Boeing 777 with 247 passengers on board.
The 61-year-old pilot was based in Newark and had worked for Continental for 21 years, the airline told Reuters. Continental has one flight daily between Brussels and Newark.

[worldlythird]

Properties mostly sold. No more huge cash cows to milk.

Airplanes mostly sold. Residual value negative because of glut in the market.

Market share dwindling.

Shareholders asked to cough out money a couple of years ago. NOt likely to cough out some more.

Cash reserve dwindling fast.

Wherre to look for money now?

Maybe the Guarantee Losing Companies willing to throw good money after bad.

Or the GOMEN?

Aviation sector faces losses and dwindling demand (http://biz.thestar.com.my/news/story.asp?file=/2009/6/20/business/4148213&sec=business)


OSK Research analyst Ng Sem Guan expects MAS to post a core net loss of RM291.7mil for the financial year ending December 2009.

“Based on our estimates, MAS may eventually incur RM1.88bil in realised losses from its hedging position if crude oil price were to move within a small range at the US$70 per barrel level,” he says.

Kenanga Research forecasts MAS to make a net loss of RM2.3bil for the full year, excluding mark-to-market positions.