MAS CEO Idris Jala is now minister in PM’s Dept

[jetjockey696]

Good Luck MAS... I hope the new CEO doesnt undo what Idris Jala has done, bought MAS out from red, well blood red.



Online star: Friday 28th August.

PETALING JAYA: Malaysia Airlines (MAS) chief executive officer and managing director Datuk Seri Idris Jala (pic) has been appointed a Minister in the Prime Minister’s Department.

Idris will not hold a portfolio in the PM’s Department but will be the chief executive officer of the Performance Management and Delivery Unit (Pemandu, the organisation that oversees the implementation of the Key Performance Index initiatives.)

“Idris will complement, support and report to Tan Sri Dr Koh Tsu Koon, Minister in the Prime Minister’s Department in charge of National Unity and Performance Management,” said Prime Minister Datuk Seri Najib Tun Razak in a statement yesterday.

Najib, who informed the Cabinet of the appointment at the Cabinet KPI Workshop in Putrajaya yesterday, said the Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin has consented to the appointment.

Idris will be sworn in as a senator at a later date.

“Dr Koh continues with his task of formulating and executing the overall policy and strategy on performance management and organisational transformation with special focus on National Key Results Area (N-KRA).

He will be the chairman of the Pemandu Board which includes the Chief Secretary to the Government and other senior officers.

“Idris, who will also assume the deputy chairmanship of the Pemandu Board, will be responsible for specific N-KRAs and National KPIs (N-KPIs) and advise on Ministerial-KRAs (M-KRAs) and M-KPIs.

“He will focus on sharing his expertise and experience in Shell and MAS and driving implementation of performance management in the Federal Government,” said Najib.

He added that Idris would report to Dr Koh on matters relating to KPIs and directly to the Prime Minister on other duties assigned to him as a minister.

The board of Malaysia Airlines will announce separately Idris’ replacement.

Idris was appointed chief executive officer and managing director of MAS in December 2005, in the aftermath of the company’s biggest financial loss in its corporate history.

Prior to joining MAS, Idris spent 23 years at Shell. Between 2002 and 2005, he was Shell MDS (Malaysia) managing director and Shell Malaysia Gas & Power (Malaysia) vice-president.

Between 2000 and 2002, Idris was Shell International Retail Marketing vice-president based in London.

He was also vice-president (business development consultancy) where he led a team of top notch internal consultants on radical business improvement projects and revamped the Shell global retail business model in order to achieve profitable growth.

Between 1998 and 2000, Idris was Shell Sri Lanka managing director where he helped shape the turnaround of Shell’s LPG business in Sri Lanka.

He holds a bachelor’s degree from Universiti Sains Malaysia and a masters degree from Warwick University, Britain.

[worldlythird]

when the TAG team was running the show giving a dismal performacne.(2 hands clapping) now with only one hand remaining can it be any better?

And do not forget that in semuanya-ok-land the more lousy your performance the faster you are kicked upstairs(promoted) no such thing as resigning and asking for forgiveness as the japanese and koreans do.

p.s. he was promoted before he resigned



Saturday August 8, 2009

Turbulence at Malaysia Airlines

A QUESTION OF BUSINESS WITH P. GUNASEGARAM


MALAYSIA Airlines says its net profit of RM876mil for the second quarter of this year is its highest ever quarterly profit. Yes, that’s true but that’s not the whole truth.
The whole truth is this: The accounting profit due to hedging gains masks Malaysia Airlines’ serious operational problems caused by declining traffic and prices, and high costs. If it does not reverse this soon, it could well run out of cash not long from now.
Despite the net profit of RM876mil, Malaysia Airlines had an operating loss of RM420mil for the same period, after taking out a gain of a massive RM1.34bil from a partial reversal of provisions of nearly RM4bil for derivative losses.
How’s that possible? How could accounting net profit be so good but the actual financial position and outlook for the company be so dire? Here’s how.
Malaysia Airlines adopted Financial Reporting Standard 139 (FRS 139) from the beginning of this year. Effectively, this standard requires hedging positions to be marked to market value and the resulting loss or gain to be taken into the books.
On first adoption of this, Malaysia Airlines had huge losses of RM3.95bil, which were taken straight into the balance sheet – not via the profit and loss account. These losses are not actually realised but represent the losses if oil prices remained at the level they were at Jan 1, 2009.
For the first quarter of the year to March 31, 2009, Malaysia Airlines, as oil prices continued to decline, made huge hedging losses of RM567mil, pushing net losses to about RM695mil. Why, when oil prices are declining, should Malaysia Airlines lose in terms of hedging? That’s because Malaysia Airlines had hedged at prices believed to be roughly equivalent to around US$100 a barrel for oil.
While oil prices declined (to as low as US$30 a barrel), the losses from its derivative contracts increased as they are marked to lower fair values. That means it effectively continues to pay high prices because of the hedges which basically capped prices of oil but did not provide for benefits to flow if prices fell instead.
On hindsight that was a bad move because oil prices declined. But Malaysia Airlines practised what it called competitive hedging which means it did what most other airlines did when it came to hedging – a follow-the-leaders policy that has cost it dearly.
Why does it benefit when oil prices are rising? That’s because it has already taken a hit for when the price was low – remember the RM3.95bil charge against the balance sheet for derivative losses. That charge put it in negative territory in terms of accounting equity or shareholders’ funds even though it had cash of close to RM4.62bil then (Dec 31, 2008).
Because of this charge, any rise in the oil price towards US$100 a barrel enables recovery in proportion to the increase in oil price, and if the price goes up to US$100 or more a barrel it will enable the recovery of most of the RM3.95bil provision.
But here’s the important point to remember: Malaysia Airlines’ current profit and more are coming entirely out of the provisions for hedging losses it made – if there had been no provision, there would have been no profit.
And here is where the accounting standard fails in painting a true picture to the public.
The previous one-time charge was taken through the balance sheet. The standard, however, allows any subsequent gain in an accounting period to be taken through the profit and loss account, misleadingly inflating reported profit.
It would have been better if the gain had gone straight to the balance sheet via an adjustment to the value of the derivative contracts, leaving the profit unchanged. But such is accounting policy at times.
What would be a fairer and more accurate reflection of profit? It can be argued that this would be if all hedging losses/gains are allocated and expensed to the period in which they were realised. In other words, if actual incurred costs were used.
This would be if FRS 139 had not been introduced. Then, Malaysia Airlines would have reported a loss of RM803mil for the latest quarter and a loss of RM1.6bil for the first half of the year, according to figures disclosed by the airline.
That looks like a much fairer reflection of the actual predicament that it faces.
When accounting seems dubious in terms of painting the true picture, it always pays to look at the cash position.
For the first half of this year, figures show that operations drained nearly RM1.5bil in cash, almost equivalent to the loss if FRS139 had not been used. That means in a year, the airline could be out of cash if it does not start reversing the situation.
As at Dec 31, 2008, the airline had RM4.62bil in cash, reducing by a huge RM850mil to RM3.77bil as at March 31, 2009 and by a further RM830mil to RM2.94bil as at end-June 2009. That’s a rapid rate of cash depletion of almost RM1.7bil in a mere six months.
There’s still a lot of cash and it gives substantial cushion for the airline to weather the downturn but only if it can turn around into operational profit and start generating cash flow once again. At the moment, the airline is in the grip of a potentially lethal pincer attack – its high fuel expenditure caused by hedging that went wrong and severe declines in revenue caused by both falling prices and reduced demand.
That’s a terrible place to be and the public would have appreciated a straight address by the airline on these pressing issues instead of the emphasis on the record reported but misleading profits. How Malaysia Airlines is going to generate cash is the question to answer. By glossing over the whole truth (its media release never so much as mentioned an operating loss of RM420mil for the second quarter of the year or highlighted the drain on cash) and choosing to focus on record quarterly accounting profits, Malaysia Airlines does a disservice.
This is not only to its shareholders, mainly the Malaysian Government, but also its customers and the Malaysian public, which indirectly owns most of the company, all of whom deserve a clearer explanation of its financial situation and future plans.
lManaging editor P. Gunasegaram thinks that sometimes accounting is an ass, much like law is more often.

[icemanfx]

Tengku Azmil named new MAS CEO
Aug 28, 09 1:52pm

Malaysia Airlines or MAS today announced that Tengku Azmil Zahruddin has been appointed as the new managing director/chief executive officer of the airline effective today.

Azmil will replace Idris Jala who has been appointed minister without portfolio in the Prime Minister's Department and as the chief executive officer of performance management and delivery unit (Pemandu).


In a statement, MAS said Azmil who is the executive director/chief financial officer of MAS joined the national carrier in 2005 from Penerbangan Malaysia Bhd.

Prior to this, he was attached to PricewaterhouseCoopers in London and Hong Kong.

Tengku Azmil named new MAS CEO - Malaysiakini (http://www.malaysiakini.com/news/111617)

[ganga747]

Unlike the boleh land mentality of the rest , this man brought real changes.
A great set back for MAS

[hambim336]

If you want to get more materials that related to this topic, you can visit: Secretary KPIs (http://keyperformanceindicators.info/executive-secretary-kpi/)


Best regards.