MAS Re-structure

[MAStake]

Is there going to be a re-structure OR is it going to be a new circus with the same clowns?

I'll put my money on the latter.

[Iso]

I thought it was already completed. Must have blinked.

[Ironguts]

Well, It depends on if you listen to an outside Orang Puti Management consultancy, or if you are Bumi' and it's full speed ahead on the company expense account. The article beloww is from the Malaysian Star 29/05/01
Govt accepts recommendations for MAS overhaul
By B.K. Sidhu
THE government has accepted most of the recommendations of the Boston Consulting Group for a major shake-up of the management and business processes at Malaysia Airlines (MAS).
The recommendations include:
An overhaul of the senior management structure
Scrapping of several unprofitable routes
Revamp of the cargo division
Overhaul at the catering division
Consolidation of unprofitable subsidiaries.
According to the Boston Consulting Group report, the changes are necessary to return the airline to profitability and to restore the formerly strong international image of MAS.
The US management consultants are also recommending that MAS retains its domestic airline operations as these are crucial feeder services supporting its international routes.
Some quarters in the industry and government have suggested that MAS's domestic operations be hived off and transferred to another company because the domestic sector was a major loss centre for the national carrier.
Following the appointments in February of Tan Sri Azizan Zainal Abidin and Datuk Mohamad Nor Yusof as chairman and managing director respectively, MAS has entrusted the Boston Consulting Group to undertake a comprehensive study to identify the problems it was facing.
Azizan and Mohamad Nor were appointed by the government after it bought over the majority stake of 29.09% in MAS last December for RM1.79bil from Naluri Bhd, which is controlled by businessman Tan Sri Tajuddin Ramli.
The Boston Consulting Group report is believed to have been presented to Prime Minister Datuk Seri Dr Mahathir Mohamad recently.
"The aim of the shake-up is to ensure that the national carrier, which has been in the red for the last four years, returns to profitability, and its image restored," a source close to the airline said.
"If MAS continues to maintain the existing processes and management structure, the bleeding is not likely to stop," he added.
MAS is scheduled to announce its financial results for the full year ended March 31 later this week.
According to Multex Global Estimate, the consensus forecast of 21 research houses which cover the national carrier is for a net loss of RM676.2mil for financial year 2001. The airline posted a net loss of RM258.6mil in 2000.
Star Business understands that MAS is expected to announce a far bigger net loss of between RM1bil and RM1.3bil.
Following the restructure recommended by the Boston Consulting Group, the airline is expected to return to profitability in two years.
On the airline's routes, the source said several would need to be reviewed and some scrapped; the national carrier has thus far terminated its Kuala Lumpur-Haadyai and Kuala Lumpur-Chiangmai sectors

[OldAce]

MAS’ RM1.3 bil losses show price paid for bailout: DAP
K Kabilan

1:45pm, Wed: The shocking pre-tax loss of RM1.3 billion suffered by Malaysian Airline System (MAS) - the highest in its history - showed that the government’s bailout of the national carrier is proving to be costly for Malaysians, said opposition leader Lim Guan Eng today.

The DAP vice-chairman said Malaysians have a right to ask whether the billions of ringgit of losses was the reward for the RM1.8 billion investment by the government in MAS late last year.

He was referring to the government’s decision to buy back shares from former MAS executive chairman Tajudin Ramli last December for RM1.79 billion.

The sale came under much criticism as Tajudin sold his controlling 29 per cent stake in the airline at RM8 per share even though the Kuala Lumpur Stock Exchange market price was at RM3.60 per share.

“Loss of confidence in the government’s financial integrity was complete when the RM1.8 billion was paid in cash even though the RM8 per share was at a 122 percent premium over the market price,” said Lim.

Public funds likely to be used

He added that the losses suffered by MAS was more than five times the previous year’s loss of RM237 million, adding that even shareholders’ funds have dropped 50 percent from RM3.5 billion to RM1.75 billion corresponding with the drop in net tangible asset per share from RM1.74 to 89 sen.

“This raises the possibility of further injection of billions of ringgit in public funds because long-term borrowings (of MAS) still remain high at RM7.9 billion,” added Lim.

“With the country going into an economic recession, the government should concentrate on spending money to help the 21 million Malaysians and not billions of ringgit to help selected individuals whose only qualification is that they are cronies of the country's top leadership.”

Yesterday MAS managing director Mohd Nor Mohd Yusof announced a pre-tax loss of RM1.3 billion for the financial year ended March 31, 2001. However, he expected the carrier to see profit in three years to come.

He said that MAS’ ongoing major turnaround programme was projected to result in a profit of RM341 million for the financial year ending March 31, 2004.

[OldAce]

Just down South, SIA makes RM4+ billion (US1.2bil) profit last year.

HAW HAW HAW

[Iso]

SIA obviously don't know what they are doing!

[longjohn]

SIA are not a Flag Waving exercise.

[MAStake]

Are we finally seeing the departure of dr con, the pygmy, joseph, snake, 001 and all their cronies?

[PILOST]

Don't bet your farmhouse on it MAStake! ;)

[MAStake]

You're right Pilost. I wouldn't bet my salary on it ...... and i'm talking real peanuts!!!!

[Sick Squid]

Boring Housekeeper mode ON

Folks, this is essentially duplicate information to the other MAS thread; can we keep the debate going over on Ironguts original thread from now on, please. Couple of good posts from Ironguts himself and Old Ace on here but the better debate is on the original. Transfer them if you like, folks.

All further posts to the original thread please...

Sick Squid
Far East Forum Moderator

Boring Housekeeper mode OFF