MAS Split????

[MAStake]

Hear that MAS will be splitting into separate domestic and international operations. What is the fate of the pilots?

[PILOST]

Below is an article on the proposed split.

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Ling: Malaysia Airlines likely to be split into two entities

By Stephen Then and Diana Rose
MIRI: Malaysia Airlines (MAS) is likely to be split into two entities to manage its domestic and international services separately, Transport Minister Datuk Seri Dr Ling Liong Sik said yesterday.

He said this was among the major steps being considered to better regulate the operations of the national carrier.



RAPT ATTENTION ... Dr Ling listening to Aminuddin Yahya, a vice-president of the company undertaking the new Miri airport project Thursday.
Dr Ling said that among the other measures were to control domestic fares and improve the rural air services to provide an effective link to the poor and marginalised folks in remote regions.

"The Government has bought back MAS and it wants to free the domestic services from the international sector which can survive very well. The domestic services have to be heavily subsidised.

"The domestic sector is very important since air travel is the main means of communication for people living in areas where there are not enough roads, no rail services or no proper river transportation,'' he told a press conference here.

Dr Ling, who is in northern Sarawak on a two-day official visit, said the Government had to consider many factors before making a final decision on how the two entities should function.

"The Government has to consider the overall interest of the people and the airline when introducing changes to MAS,'' he said.

The matter had to be weighed from the economic, financial and social aspects. "We must also consider the issue of national integration between the people of Sabah and Sarawak and the peninsula,'' Dr Ling said.

To a question, the Transport Minister said details of the administration and control of the two different entities would be announced after the Government made a final decision.

"In other countries, many airlines are operating domestic and international routes separately. MAS is now handling both sectors as one company. Other smaller domestic airlines are operating only certain routes,'' he said.

On the lack of flights to the rural areas, Dr Ling said the Government acknowledged the importance of this sector in the livelihood of the rural people, especially those far away from the urban centres.

"Now that the Government has bought over MAS, we will give priority to this sector. We know many people have few alternatives to travel except by air,'' he added.

Dr Ling also said that Miri airport would be extended to three times its present size and its taxiway upgraded and extended to turn it into an international one so that Miri can realise its vision of becoming a resort city by 2005.

After visiting Miri, Dr Ling flew to Bintulu to inspect the progress of the RM300mil new airport project. He then flew to Limbang where he had dinner with community leaders.

He is scheduled to attend the ground-breaking ceremony for the RM130mil new Limbang Airport this morning before visiting Sibu.

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Safe Flying
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PILOST

[tigerwood]

MAS split? Is this another way of bringing the airline to a worst situation than it already has? Look at our neighboring country, Thailand. They have merged what was 2 airlines in the past into one Big and strong company. And globally, many airlines looking for partnership, not breaking up into small pieces. Isn't there enough break-up done by TR while he was in MAS? If domestic is not making money, why are we talking about national intergration? To intergrate Malaysian, between east and west, south and north, airfare have to be kept low. I still don't understand MAS, profit or intergration? Business or charity?

[snowmanfx]

Currently, MAS is having a very high load and yet the company is losing money. There are too many things have gone wrong in MAS, splitting MAS will not improve MAS financially.
To return MAS to long term profitability, MAS need is to overhaul the entire organization i.e. management, schedule planning, marketing, ticketing, operation, catering, etc, boosting staffs morale, reducing staffs number by 30% to 40%, undoing 'Mr. 019's privatization' and above all promotion should be based on ability to work and seniority rather than whom you know. Basically, re-start from ground zero.
With MAS track record, it is unlikely for any major foreign airline to take minority interest without management control. However, joining airline alliance is inevitable. With relatively close relationship with KLM and Wing Alliance don't have a South East Asian partner, Wings Alliance should the forerunner.

just my 2 cents of input.

[HighSpeed]

looking for foreign alliance! thats why the split... otherwise who would want to buy in to a company with excess baggage...