MAS closing down for restructuring.....

[gerago]

Report from Business Times :

RESTRUCTURING PLAN: MAS to cancel some old contracts and trim workforce by 10pc, say officials
MALAYSIA Airlines (MAS) will close several departments for a day under its restructuring plan, which will see it terminating some old contracts and reducing the workforce by more than 10 per cent.
Business Times understands that all departments will be affected except for in-flight services, which comprise the technical and cabin crew and the engineering division.
Company officials said MAS is targeting May 28 for the major restructuring.
MAS has also decided to cancel some contracts that are squeezing its profits and sign new agrements at competitive rates, they said.
"By cancelling some of the contracts, MAS will be able to save more than RM200 million a year," said an official.
He said MAS will also let go of excess workers and re-look the salaries of staff, including those in key management positions.
"This is the first step in returning to the black. The next step is to streamline operations, look at more profitable routes and change the top management."
MAS has about 20,000 workers.
The airline embarked on a massive restructuring plan at the end of 2011 with the aim of reducing costs and returning to full profitability last year. Despite the restructuring, MAS lost RM4 billion in three years.
Analysts said MAS should spend less on mass-market advertising and start rebuilding its brand through other means that do not increase expenditure.
"MAS should also explore new opportunities in the airline industry to diversify its income stream," said an analyst.




Read more: One-day closure - Today's Paper - New Straits Times One-day closure - Today's Paper - New Straits Times (http://www.nst.com.my/business/todayspaper/one-day-closure-1.595049#ixzz31d4OxuJt)

[Kentot Besar]

Now why are the flight crew and cabin crew spared from the cull?

MAS should get rid of the dugong, get the B777-300 ERs or the B777X for future sustainable growth. The dugongs and dugong crew are the biggest drain on the company besides the wanton abuses and corruption within its corporate structure.:*

[Roti Canai]

I bet Tony F would love to paint them Red and start Ultra Big Lo Cost

[bungacengkeh]

I fully agree that the dugong is a drain on MAS resources, especially the maintenance issues. Get rid of it and flog the crew off to Skymark!

Typical kampung mentality that everything big is bagus! So much so mapa president sold his soul to fly big dugong!:ugh::ugh::ugh:

[taufupok]

Extract from a report in The Malaysian Insider :


It may be too late to save MAS post-MH370, says Najib

MAY 16, 2014

MAS's net loss expanded to RM443.4 million in the first quarter, from a net loss of RM278.8 million in the same period last year. – The Malaysian Insider file pic, May 16, 2014.
Datuk Seri Najib Razak has said that it might be too late to save Malaysia Airlines (MAS) in its current form, as the national flag carrier struggles to stay afloat following the disappearance of flight MH370.

In an interview with the The Wall Street Journal (WSJ) published yesterday, the prime minister said that bankruptcy might be among several options as a way to restructure the national flag carrier, after years of losses and bitter conflicts with its labour unions.


“We have to look at it from all angles, bearing in mind that Malaysia Airlines is a government-linked company. It's not a private company, so there are certain repercussions in what you want to do in terms of how it is received by the employees and the general public,” Najib (pic, right) told WSJ.


MAS said yesterday that its net loss expanded to RM443.4 million in the first quarter, from a net loss of RM278.8 million in the same period last year.

"The tragic MH370 incident had a dramatic impact on the traditionally weak first quarter performance," the company said in a statement to the Malaysian stock exchange.

It said it saw high numbers of cancellations and a decline in long-haul travel after flight MH370 went missing on March 8.

Since the majority of the passengers travelling on flight MH370 were Chinese, sales in China slumped 60%, added MAS.

Following the announcement, Reuters reported that it was the carrier's worst quarterly loss since October-December 2011. MAS had lost money for the last three years, beset by high costs and stiff competition, the report said.

Acting Transport Minister Datuk Seri Hishammuddin Hussein said yesterday that Putrajaya would not rescue MAS following the airline’s dismal performance.

“Is the Malaysian government offering any assistance to MAS? No,” Hishammuddin said during a press conference on flight MH370 in Kuala Lumpur yesterday.


Acting Transport Minister Datuk Seri Hishammuddin Hussein (left), seen here with MAS CEO Ahmad Jauhari Yahya, has ruled out the government coming to the airline's rescue. – The Malaysian Insider file pic, May 16, 2014.
Ahmad Jauhari Yahya, the airline’s CEO, told WSJ that he thinks there is still time to revive MAS without an expensive bailout or a move to seek bankruptcy.

"We know what we need to do to get the airline working," he said.

WSJ reported that as with other government-linked firms and civil service, ethnic Malays dominated top management positions at MAS, with non-Malays preferring to work in the private sector.

Ibrahim Suffian, executive director at independent pollster Merdeka Center, told WSJ that MAS was more than just a business.

"It also serves a social and political purpose. When it runs into trouble, it is very difficult for the government to behave in a commercial way," he said.

News of MAS heading down to bankruptcy has created a divide among analysts and the company's employees union. The union’s chief, Alias Aziz, told WSJ that since MAS is a government-linked company, help from Putrajaya should be the way to go.

"We need the government to help us. We need them to help us to serve our customers.

"We're a government-linked company. We should get the help we need," he said.

Analysts, however, told WSJ that MAS needed "tough love", even to the point of allowing it to go through bankruptcy, as Japan Airlines did a few years ago.

"There will be a line crossed where the government will look at it and ask whether they should declare bankruptcy.

"The only way out is creative destruction - kill the airline and rebuild it from scratch," Shukor Yusof, an independent aviation analyst formerly with Standard & Poor's, told WSJ. – May 16, 2014.

[datogu al MONA]

MAS need a total purge and total reset. Start anew. Fire everyone and rehire on merit. Meanwhile, during this exercise, transfer all to AK as a caretaker national carrier.:ok:

[jetjockey696]

Get rid of the excess of supervisor of supervisors and managers etc. its seems everyone is supervisor and managers..in MAS. even the toliet cleaner. they all demand manager or supervisor salary for doing nothing.. the worst are the excess granny secretaries with nothing to do except for eating, chat on the computer and type a few words per hour.. and then go home..

There is so much waste in MAS.. similar to Garuda in Indonesia. All the same all CORRUPTION..To much Datuk and Datins running the company.. YOU cant change MAS or Garuda.. corruption rules. its part of normal life. its a parasite.

Toni F. across the runway is not much better...

[squarecrow]

Indeed I remember the DCA pulled AK to task for having to many Chief Pilots even had a CRM CP. Dont remember any Toilet Chief Pilot.

[Kraus]

I just got off an MH fligt. There were three people to tell me where to qui to check in! Then three check-in desks were closed while staff behind them crushed candy or shot angry birds.
I can't see them changing too much, it's just how much the chairman of the investor company that owns most of, it is prepared to put up with.......politically.......Najib. Follow the money....

[Kentot Besar]

Those deadwood, candy crushers and incompetents ARE THE BN GOVERNMENT's " safe deposit ". They occupy a lot of cushy and not so cushy positions in GLCs...they are a massive vote bank. They are the rock of a Malayan Utopia!;)

[veloo maniam]

Still there are pilots(MH) who ask for track shortening.
These are the guys who seem to "save" the liqiud gold
for the airline. ATC complies whenever possible. I believe
these figures total up to millions annually.
Is there anyone in MAS who cares for these 'savings" by
some of the flying crew.
If this airline is bleeding so much, year-in-year-out,
why then the request for track shortening from ATC.
Whats the purpose of all the savings in fuel.
With the new airspace, there is either minimal holding
or none at all. Can someone care to enlighten us.
P/s Cross BOBIS between F130-A110
After MUNOV descend on the profile.
Dont ask for lower after MUNOV for R32L
MH should know by now.:ugh:

[ssangyongs]

Veloo,

I believe most of us who asked for track shortening did it on purpose of saving a good 2-3 minutes of our flight time. We just want to be home earlier. Fuel, doesnt really make any difference now as it has been calculated in the FMC.

I know at least two of the airlines still didnt adjust block time for flights arriving into KUL. We were always late, on paper. Track miles have increased greatly, so does fuel burn.

But i agree on the part there's no more holding. Just keep everything on STAR and you'll be fine.

Its just this one day i was asked to increase my ROD to be early and low at SAROX for track shortening, but when controller changed, the guy on other frequency asked us to maintain STAR and we were made to maintain it until TUNKU (runway 33)

Now that's a waste of fuel.

Runway 33 mixed mode operation during peak hour looks fine. I hope after all of us familiarize with the new arrivals and runway, request can be made for Red Bus to utilise 32L if their parking stand were to be on P or J. Depending on traffic situation.

[taufupok]

Kindly read this interview with the former MD of MAS :

Nobody wants to hear MAS voice, please don't do that - Abdul Aziz | Malaysia Gazette (http://malaysiagazette.com/nasional/nobody-wants-hear-mas-voice-please-dont-do-abdul-aziz#axzz337uyAClL)

[desertopsguy]

The comment about net loss expanding from 275 million in 2013 to 443 million in 2014 cannot be attributed solely to MH370.

All of Jan, all of Feb and first week of March i.e. 75% of the first quarter - there was no MH370. It's very convenient to blame those losses on an event that occurred in the last 25% of the quarter.

The one to watch is Q-2 !

"Candy crushers" - LOL love that comment, spend one month salary on latest Samsung/I-phone just for that :ugh: ... says alot!