For MAS Pilots ONLY pt. 3

[Usman]

TAJUDIN, MAS EXECUTIVES ACCUSED OF IRREGULARITIES - AWSJ. .by AFX News - Asia, 18-Feb-2002 08:58:00

KUALA LUMPUR (AFX-ASIA) - Former Malaysian Airline System Bhd chairman Tajudin Ramli and three other senior executives have been accused of. .management irregularities in a police report, the Asian Wall Street Journal reported, citing current MAS chairman Azizan Zainul Abidin.

Azizan told the newspaper that the police report alleges Tajudin and three other former senior executives at the airline were involved in. .management irregularities, focusing in particular on several transactions involving the cargo division during Tajudin's tenure as chairman from 1994 to 2001.

"It's now up to the police to decide on the next step," Azizan said, declining to elaborate on the police report's allegations.

Senior police officials confirmed that an investigation into Malaysia Airlines is underway, the AWSJ report added.

The newspaper also said that the government is pushing for Tajudin to settle some 1.0 bln rgt in personal debt, which is now under government. .control through the Penguarusan Danaharta Nasional Bhd debt collection agency.

The debt is secured by Tajudin's stakes in Naluri Bhd and Technology Resources Corp Bhd.

"He has got to come up with a plan soon. All we want is to protect" the agency's interest, a Danaharta official was quoted as saying.

The AWSJ report said the move is part of Prime Minister Mahathir Mohamad's drive to clean up some of the country's most heavily indebted. .corporations, many of which have avoided painful restructuring due to political connections.

. .MALAYSIA AIRLINES CONFIRMS POLICE REPORT LODGED. .18-Feb-2002 18:52:00

. .KUALA LUMPUR (AFX-ASIA) - Malaysia Airline System Bhd confirmed that a police report has been lodged, as earlier reported in the Asian Wall Street Journal.

However, the company said in a statement that it could not comment further.

"Malaysia Airlines confirms that a police report has been lodged and as this is now a police matter, we are not in a position to reveal further details," the company said.

The Asian Wall Street Journal earlier quoted current chairman Azizan Zainul Abidin as saying a police report has been lodged alleging former chairman Tajudin Ramli and three other senior executives of management irregularities.

[ 20 February 2002: Message edited by: Sick Squid ]</p>

[Usman]

From The Asian Wall Street Journal. .19 February 2002

Malaysia Ratchets Up Pressure On Tajudin and His Empire

By LESLIE LOPEZ . .Staff Reporter of THE WALL STREET JOURNAL

. .KUALA LUMPUR, Malaysia -- The Malaysian government is increasing. .pressure on businessman Tajudin Ramli, the former controlling. .shareholder of the country's beleaguered national airline.

A police report filed by Malaysia Airline System Bhd. last month. .accuses Tan Sri Tajudin and three other former senior executives at. .the airline of management irregularities, focusing in particular on. .several transactions involving its cargo division while he was running. .it, according to MAS Chairman Azizan Zainul Abidin.

"It is now up to the police to decide on the next step," Tan Sri. .Azizan said in a rare interview. He declined to elaborate on the. .report's allegations. Senior police officials confirmed that an. .investigation into MAS's allegations is under way.

Separately, the government is pushing Tan Sri Tajudin to settle about. .one billion ringgit ($263.1 million) of personal debt that is now. .under government control. Tan Sri Tajudin's failure to repay or. .restructure his borrowings could result in his losing control of his. .business empire, according to senior Malaysian government officials. .and bankers. Tan Sri Tajudin didn't respond to requests for comment.

Reversal of Fortune

The moves against the once high-flying executive come as part of Prime. .Minister Mahathir Mohamad's drive to clean up some of Malaysia's most. .heavily indebted corporations, many of which have avoided painful. .restructuring because of political connections. In particular, Dr.. .Mahathir has sought to restructure several debt-laden concerns. .controlled by associates of Tun Daim, who was long one of Dr.. .Mahathir's closest advisers before falling out with the prime minister. .last year. Since assuming Tun Daim's finance ministry portfolio last. .June, Dr. Mahathir has broken up several Daim-linked companies in an. .effort to improve Malaysia's corporate image for international. .investors.

In July, the government took control of Renong Bhd., one of the. .country's largest conglomerates and the former investment arm of Dr.. .Mahathir's ruling party. Renong's then-controlling shareholder and. .executive chairman, Halim Saad -- another Daim protege -- was removed. .from the company's management team. Since then, Kuala Lumpur has also. .moved against other once politically influential concerns such as. .Malaysian Resources Corp. Bhd. in a bid to speed debt-restructuring. .efforts.

Foreign and local investors appear to have welcomed the cleanup,. .lifting the benchmark Kuala Lumpur Stock Exchange composite index. .nearly 13% over the past two months.

Still, the government is continuing to struggle with its controversial. .bailout of MAS in January 2001. Senior government officials privately. .acknowledge that the MAS rescue -- arranged when Tun Daim still served. .as finance minister -- hurt Malaysia's credibility with foreign. .investors. "This will send a signal that we are serious," said an. .official familiar with the current police investigation into MAS's. .affairs.

. .Early last year, the government paid Tan Sri Tajudin's company, Naluri. .Bhd., 1.79 billion ringgit for its controlling 29% interest in MAS.. .That deal valued each MAS share at eight ringgit. That was the same. .price Tan Sri Tajudin paid the government for his stake in the airline. .in 1994, but a 250% premium over the price at which MAS shares were. .trading at the time. And the deal came just weeks after a Malaysian. .government-pension fund bought the Brunei Investment Agency's 9%. .interest in MAS for four ringgit a share.

The resulting public uproar over the MAS rescue exacerbated an already. .widening rift between Dr. Mahathir and Tun Daim, who resigned his. .finance post in June.

After the government took control of MAS, it ordered an audit of the. .airline's affairs during the period Tan Sri Tajudin was the. .controlling shareholder. The police report filed by MAS last month was. .a result of that audit, according to senior government officials.

The report, lodged with the Malaysian police's Commercial Crime. .Division, focuses on several transactions involving MAS's cargo. .division during Tan Sri Tajudin's tenure as the airline's controlling. .shareholder and executive chairman from 1994 to early 2001, according. .to MAS Chairman Tan Sri Azizan.

Kuala Lumpur is now trying to reorganize MAS, which is saddled with. .debts of about 9.2 billion ringgit and has posted accumulated losses. .of more than 2.5 billion ringgit. Last month, the government announced. .that MAS would be taken private, with a government-owned concern. .assuming all assets and liabilities of the airline, including its. .unprofitable domestic routes. MAS's listing status on the Kuala Lumpur. .Stock Exchange will then be transferred to a new company, which will. .run the airline's cargo and international operations under a 30-year. .concession from the government.

The police investigation into MAS comes at an awkward time for Tan Sri. .Tajudin, who is struggling to retain what remains of his. .once-formidable business empire.

Those struggles could get more difficult as the government presses him. .to settle his personal debt, now under the supervision of Malaysia's. .debt restructuring agency, Pengurusan Danaharta Nasional Bhd. The debt. .is secured by Tan Sri Tajudin's equity stakes in two listed companies,. .Naluri and Technology Resources Industries Bhd., or TRI, which. .controls Malaysia's second-largest cellular phone operator.

A former merchant banker and manager of businesses affiliated with Tun. .Daim, Tan Sri Tajudin secured government approval in the late 1980s to. .acquire a cellular-phone business owned by the national. .telecommunications company, Telekom Malaysia Bhd. That company, Celcom. .Malaysia Sdn. Bhd., is now a subsidiary of TRI.

Debt Plan

TRI is currently attempting to restructure almost 3.8 billion ringgit. .in debt. Company officials have said that Tan Sri Tajudin intends to. .subscribe to new shares offered by TRI under a restructuring plan so. .as to remain the company's single largest shareholder.

But the Malaysian government has placed obstacles in Tan Sri Tajudin's. .path. Late last year, the Malaysian Securities Commission blocked a. .bid by Tan Sri Tajudin's Naluri to use the proceeds from its sale of

MAS to invest in TRI.

The government's demand for repayment further complicates matters.. .About 40% of Tan Sri Tajudin's shareholding in Naluri and 20% of his. .stake in TRI have been pledged as security for loans owed to Malaysian. .banks that have since been transferred to the debt-restructuring. .agency, Danaharta, for collection. "He has got to come up with a plan. .soon. All we want is to protect" the agency's interest, a Danaharta. .official said.

[Slasher]

Since the Malaysian government is just as corrupt as Nams, therefore it follows Dr M and his croneys would be implicated in any investigation? Seems to me its just a floor-show to shutup the bloodey critics. All butts are probabley heaviley tin-plated by now so the timing is good. Mere police reports mean nothing here and probabley mean nothing in Malaysia too. Like other events where corruption and wastage of funds come to light (with the prior government green-light) Id assume Dr M and his butt-lickers are waiting for the locals to forget about it in time. Worked with Anwar didnt it? Works well for the commies here too.

[tigerwood]

Read Tuesday Star newspaper about the matter. Very interesting, as I could see the spokeman (The Dr.) confirming that the police report was lodged by the airline. And....guess what? It's a real joke that the same person was the "head organiser" for the Rally of Support to the former Boss a few years ago at the MAA premises.

[Usman]

Yes I agree with Slasher that it is all just another con job by no other than Dr.Con himself.

Even if your own sister get raped and murdered the police report will not help much unless you're willing to give some money under the counter for investigation to begin. The police force had lost their credibility a long time ago. They are there to protect the rich and the powerful politicians. Not you and me. Period.

They just did this to cool down the restless atmosphere among MAS staff and to score some political points. Hoping that in time as usual matters will be forgotten.

[MAStake]

A Happy Day now that the Truth (or at least part of it!!!) is going to be revealed. But having Dr Con make the report to the police is really something else!!!!. .Can we expect him to head a rally again but this time in support of the New Team? . .PhD in Treachery????

[CAPTAIN WOOBLAH]

Mas stake,

I totally agree with you, man, Dr Con used to think the sun shone out of TR's A***H**E. It was TR that made him SVPFO at a meeting in LGK, probably on one of those yachts that dissapeared. Is'nt it funny where honour lies. One would think Dr Con would have resigned rather than forward the police report after all he is due for retirement and certainly does'nt need the money. "Oh Brutus you swine yet another dagger" Definatly no loyalty.

Guys, don't get me wrong I can't stand the TR establishment and those cronies that ran FLT OPS and various other departments/scams but hey this total back stabbing amoungst cronies is an all new low.

Watch your 6 O'Clock Joe, Black Duck and Ham Sandwich, Looks like you guys are next, all downed by friendly fire.

What a world. <img src="eek.gif" border="0"> <img src="confused.gif" border="0"> <img src="cool.gif" border="0"> <img src="smile.gif" border="0">

[OldAce999]

Capt Wooblah:

Those guys had been shot down already (removed from their management post). They are just mooping up the rest of the Taliban gang.

Hahaha... you can kiss goodbye to the bunch of misguided Islamic fanatic pilots.

[Usman]

MAS restructuring a double government bail out. .. .The 1.6 bilion MAS restructuring represents a double government bail out of MAS after the outrageos RM1.79 bilion buy back of MAS shares at RM8 per share from Tajudin Ramli, said DAP National Chairman Lim Kit Siang.. .. .MAS managing director Dato' Md Nor Yusof yesterday announced that the RM1.6 billion restructuring exercise involving assets sale to raise RM6.1 billion to enable it to retire some of its debts and provide RM820 million as working capital to fast track its recovery back to profitability.. .. .Lim stated that although the asset plans sale plan would provide a lifeline for the national carrier, it is nothing more that a double government bail out.. .. ."Up to now, there has been no proper responsibility or accountability for such an outrageously exorbitant buy back price paid by the public taxpayers, without any independent professional valuation, although the then Finance Minister Tun Daim Zainuddin had blithely and irresponsibly told Parliament last year that MAS was worth RM15 per share!. .. ."Equally disturbing is the Business Times report that the Employees Provident Fund has bought 6.47 million of MAS shares. As a result, EPF owns more than 12 percent of the airline, the third largest shareholder," said Lim.. .. .Reports had stated that EPF may have spent up to RM18 million to buy the shares last month. Fillings made available by the Kuala Lumpur Stock Exchange showed that EPF bought the shares in three trenches. . .. .Lim said that EPF could have bought more shares as the filling of the transactions would only be made public sometime next week.. .. ."EPF should explain to the 10 million EPF members the reason for such vast investments in MAS, especially as ithas lost its stock trustee status when it failed to pay a dividend in the last financial year," said Lim.. .. .A company which wishes to maintain its stock trustee status will have to pay a minimum of 2 percent in dividend yearly regardless of its registering a profit or loss.. .. ."Such EPF explanation is warranted as the EPF had in the past been used as a captive fund to help the government bail out failing crony companies at the expense of the interests of its members," said Lim.

[Usman]

Malaysia Airlines asset sale plan a vital 'bailout': analysts. .. .Malaysia Airline's asset sale plan was a form of "bailout" but necessary in order to retire some urgent debts, analysts said Tuesday.. .. .The flag carrier said Monday it would sell properties and aircraft to the government to raise some 6.1 billion ringgit (1.6 billion dollars) to repay yen-denominated bonds, retire 1.3 billion ringgit in short-term loans and take delivery of five new aircraft worth 2.5 billion.. .. .Analysts said the airline, struggling under some 10 billion ringgit in debt, has few options to raise funds and seeking government help was a viable option.. .. .The carrier has embarked on a restructuring plan last year to return to the black by 2004 after the government renationalised it in February.. .. .While some analysts were optimistic it could turn around in 2004, concerns emerged over its operational and sales performance.. .. ."It is good for the company because they will get immediate cash to tide over their short term debts which they need to retire," said an analyst with a local brokerage.. .. ."But it is just an indirect form of cash injection from the government -- a bailout... People are saying that the company is depending on the life line from the government.". .. .OSK Research senior analyst Hilmi Mokhtar told AFX-Asia, an AFP-owned financial news service, that the carrier also need to take delivery of several new aircraft.. .. ."The gist of the proposal is to bring in cash and to retire some of its urgent debts," he said.. .. .He noted the carrier had taken delivery of one out of five new aircraft -- three Boeing 747-400s and two Boeing 777-200ER -- and was due to take delivery of the remaining four within the next few months.. .. .Malaysia Airlines has proposed to sell these five and another three existing aircraft to raise some 4.13 billion ringgit and dispose of property assets to free up 2.2 billion in cash.. .. .The aircraft and property assets will be sold and leased back from a special vehicle set up by the finance ministry.. .. ."The two transactions involve about six billion ringgit and that is not a small amount of money. They need to do that (to raise funds). I would think this is a positive move. This is a major proposal," Hilmi said.. .. .Lotus Asset Management fund manager Christopher Leow said the asset sales should have been done much earlier.. .. ."Restructuring of this sort is always welcome... if they don't do anything, it will buckle under the debts. They have to do something quickly and this is one of the ways," Leow said.. .. .Other analysts said a connected move to hive off its catering arm to a consortium led by LSG Skychefs was positive as the unit was been suffering losses and it would help cut its workforce.. .. ."The good thing from the whole proposal is the potential sale of MAS Catering which has been loss making as it will trim down the staff by 10 percent," one local analyst said.. .. .But analysts said the airlines should place more emphasis on its operations, especially after adverse impact from the September 11 attacks in the United States.. .. ."It's not so much cost cutting but more a question of revenue generation," a senior dealer with a local brokerage said.. .. ."With this major corporate proposal, there is a possibility the company will turn around in 2004, which is in line with their timetable," OSK's Hilmi said.. .Lotus Asset Management's Leow also expect Malaysia Airlines to break even in 2004 if it continues with its restructuring plan.. .. ."You will not see the results overnight... maybe in 2004, it will probably break even," he added.-AFP.

[MR. Login]

So good lah you FL, better than CCN. If like this, no need to lead newpaper one. <img border="0" title="" alt="[Wink]" src="wink.gif" />

[Usman]

I only post overseas news on MAS that you don't hear locally. Anyway a lot of the local news had been censured to make its entire materials questionable.. .. .Especially at the time when the TR & Daim had been telling the people that many corporation overseas want to buy MAS shares when in fact in the overseas papers these corporations had denied any interest in the airline.

[Last-Samurai]

Heard that some-one is buying up Malaysia Airlines Berhad(overseas), @RMY8.00,back to the MOF Inc.True or False ?

[Bob Hawke]

Rumour has it, TJ might be buying it back <img border="0" title="" alt="[Roll Eyes]" src="rolleyes.gif" />

[Usman]

Unique privatisation. .. .Lim Kit Siang called for an all-party Parliamentary Select Committee to hold hearings to recommend whether Parliament should approve MAS' RM6.1 billion restructuring exercise.. .. .The veteran politician claimed this was another round of government bailout of the national carrier and questioned whether it was another example of Malaysia's "unique privatisation to privatise the profits but nationalise the losses".. .. .The new RM6.1 billion restructuring exercise involves two key elements of assets sale of RM3.9 billion for the sale and leaseback of the aircrafts and disposal of properties worth RM2.2 billion in order to enable the airline to settle some of its debts and provide RM820 million as working capital.. .. ."But the Malaysian taxpayers and MPs are entitled to ask as to why public coffers should again be raided for another round of a MAS bailout, and in. .particular, whether the Cabinet had been informed when it decided on the first bailout that it would have to be followed with a series of other. .bailouts?" said Lim.

[Last-Samurai]

Its neither GOM nor another Privatised Program.. .Its a private investment program.. .Willing lose out money,just to help Malaysians.. .Still guessing ?. .Cheers. <img border="0" title="" alt="[Confused]" src="confused.gif" />

[Usman]

From The Straits Times, Singapore. .20 March 2002. .. .Mahathir gets tough on corporate bail-outs . .By Brendan Pereira . .MALAYSIA CORRESPONDENT . .. .KUALA LUMPUR - One characteristic of Malaysia's top corporate captains is that when the going gets tough, they look to Putrajaya for. .redemption.. .. .Sometimes they plead for a second chance. Sometimes the tears flow. Sometimes they are forced to appeal from a distance - by post. . .. .Tan Sri Tajudin Ramli, former Malaysia Airlines (MAS) chairman and controlling shareholder of the national carrier, falls into the last category. . .. .His main pitch to top Malaysian leaders is hardly groundbreaking. He pledges continued loyalty to the Mahathir administration and country.. .. .He is likely to face a wall of silence for two reasons.. .. .Reason No 1: At Putrajaya these days, they are a touch sensitive to the claim, delivered by many political and economic analysts, that Prime Minister Datuk Seri Dr Mahathir Mohamad is too forgiving of corporate figures who bloomed on government largesse and self-destructed on poor management. . .. .It hurts them like a harpoon in the back. The Malaysian leader has made it clear that an ongoing police probe into mismanagement and. .other irregularities at MAS must be allowed to continue unhindered. . .. .A senior government official told The Straits Times: 'If there is wrongdoing, the person or persons involved will be charged in court.. .The PM is trying to create a new benchmark for corporate behaviour.' . .. .Reason No 2: The Mahathir of today is prepared to admit that even his best-intentioned policies, like the plan to create an elite group of Malay entrepreneurs, have not gone according to plan. . .. .It is a move that has disarmed his enemies and burnished his image as a leader who is not infallible to the odd mistake. . .. .That side of the 77-year-old - more evident to politicians and friends around him for the past 12 months - was on display in London recently. .when he addressed Malaysian students. . .. .He admitted mistakes had been made in the handling of national steel company, Perwaja - a seismic shift in government thinking on the. .company which shut down its stuttering operations this month. . .. .For the past six years, the administration has argued that poor management and fraud were behind the continuous bleeding of the company. . .. .While in London, he also acknowledged that Malaysia Airlines' troubles had more to do with mismanagement and criminal breach of trust than. .with the limp business environment forced by the currency crisis of 1997.. .. .This new approach has not gone unnoticed. Mr Nasharuddin Mat Isa, thesecretary-general of Parti Islam SeMalaysia, said: 'Dr Mahathir knows. .that there is a lot of unhappiness over the way some big companies in Malaysia have been run.. .. .By being open about MAS and Perwaja, he is trying to limit the role the opposition can play in exposing wrongdoing. . .. .He is also trying to undo the image that some Malays have of him. They believe that he is a person who will never admit that he has been. .wrong. . .. .'It shows that he is human and not anything like the dictator the opposition says he is. Quite a good strategy.' . .. .Well, he certainly was wrong about MAS in the days when Tan Sri Tajudin was at the controls. . .. .In January last year, the government paid the former chairman's company, Naluri, RM1.79 billion (S$861 million) for its controlling 29-per-cent interest in MAS. . .. .That deal valued each MAS share at RM8. That was the same price Tan Sri Tajudin paid the government for his stake in the airline in 1994,. .but a 250-per-cent premium over the price at which MAS shares were trading at the time. . .. .The deal also came just weeks after a Malaysian government pension fund bought the Brunei Investment Agency's 9-per-cent interest in MAS. .for RM4 a share. . .. .It created quite a stir in and outside Malaysia, and hurt the country's credibility with foreign investors. . .. .Even diehard members of Dr Mahathir's ruling party questioned the wisdom of bailing out a Malay corporate captain, who had added little. .value to the national carrier in seven years. . .. .Till today, the frustration and anger on the ground over the rescue is still palpable. . .. .After the government took control of MAS, it ordered an audit of the airline's affairs during the period Tan Sri Tajudin was the controlling shareholder. . .. .In January, a company executive filed a police report alleging wrongdoing in the award of contracts involving the cargo division. . .. .In a nutshell, the probe centres on a contract between MAS and German-based ACL Advanced Cargo Logistic to develop Hahn Airport in Germany as a cargo hub, part of the spine network that Tan Sri Tajudin had envisaged.. .. .Only one problem here: The airline says that it got the short end of the stick in the deal it should never have signed. Under the contract,. .it agreed to make seven flights a week from Kuala Lumpur to Hahn Airport.. .. .After a while, it became obvious that the airline could not keep its side of the deal. . .. .The airport was 100 km away from the customs checkpoint and was a non-starter as a cargo hub. . .. .Investigations have also shown that Tan Sri Tajudin was a significant shareholder in ACL. . .. .MAS contends that he should have declared his interests in ACL to the national carrier's board of directors.. .. .His failure to do so had contravened the Companies Act. . .. .Other allegations of impropriety are contained in a thick internal audit carried out by the company. These revelations have stung Dr Mahathir. . .. .For years, he has promoted and fashioned the policy of creating a class of Malay entrepreneurs who, by their success, will be the perfect role models for others in the community to emulate. . .. .Even when some Malays questioned the idea of pushing too much into the hands of a few, he hushed them with this persuasive argument: Not. .everyone is blessed with the skills and brains to become a top-notch businessman. . .. .Those who had been handpicked had all the right credentials to rise to the top and create more wealth for the rest of the community. . .. .But the failures of Tan Sri Halim Saad, Datuk Seri Abdul Rahman Maidin and other Malay corporate poster boys have created a new generation of doubters over the viability of a plan to pluck someone from relative obscurity and turn him into an entrepreneur. . .. .Now, not even Dr Mahathir can put up a defence of the chosen few without feeling some political heat for their excesses. . .. .Certainly not at MAS, where the government is trying to reorganise the airline, which is suffocating with debts totalling RM9.2 billion and. .has posted accumulated losses of more than RM2.5 billion.. .. .The government has announced that MAS will be taken private, with a government-owned concern assuming all assets and liabilities of the. .airline. MAS' listing status on the Kuala Lumpur Stock Exchange will then be transferred to a new company. . .. .The move comes at a time when the Mahathir administration is trying to remake Malaysia Inc.. .. .Tan Sri Nor Mohamed Yakcop, economic adviser to the Prime Minister, spelt out the new requirements at a recent speech to young Malay. .professionals. . .. .He said: 'We want the next breed of corporate leaders to be not just technically competent and hardworking, but also to be of the highest. .ethical make-up. . .. .'With these qualities, the new breed of professional leaders will be able to impose self-discipline and self-regulation on themselves. . .. .'The most important part of your worth is your ethical core. Your integrity is the basis of your professionalism.' . .. .As much as this philosophy is a new benchmark for new corporate players, it is also a warning that the Mahathir administration may be less forgiving to the current crop of corporate figures.. .. .Even to those who hawk loyalty as an overriding virtue.

[Colosseo]

Keep it comming FL600.. .One thing for sure,we're not gonna get that. .kind of reporting here.I'm quite sceptical on. .the ability of the local authorities to pursue. .the matter.. . EASY COME, EASY GO !

[OldAce999]

The last time they took an 'ethical' pilot to head the Flight Operation in 1994, they end up with the Taliban Ayothollah aka Camel who really messed up most every pilots in Malaysian Airline.

[Usman]

Singapore Airlines, announced it is shedding staff as part of its attempt to halt a slide into losses. Only 24 hours after announcing a sharp drop in its November traffic - down 13.7 percent on the previous year - Asia's second largest carrier said it has started offering. .voluntary redundancy or early retirement packages to staff with over 15 years service.. .. .The airline has already started to put in place other measures to cut costs as it sees its revenues fall.. .. .After posting a huge drop in interim profits - down 88 percent to USD$73 million - the Singapore flag carier issued a profits warning for the. .first time in its history. It immediately started a program of capacity cuts, put a block on recruiting and fired 100 cabin crew.. .. .SIA has also deferred orders for over 40 new planes, split between Airbus Industrie and Boeing.. .. .Pilots, who have already been asked to accept a 7 percent cut in pay, and cabin crew will not be considered for the redundancy deal, but it is. .open to the remaining 28,000 people employed by the SIA group.. .. .-------------------. .. .SINGAPORE (Reuters) - Singapore Airlines Ltd (SIA) has told employees it may be difficult to escape losses in the 2001/2002 financial year as. .overseas investments turned sour.. .. .But the Business Times quoted chief executive Cheong Choong Kong as saying in the SIA. .in-house newsletter that the airline must stick with its global ambitions because it could not grow with its "tiny home base".. .. .Cheong said SIA's largest markets -- Singapore, Japan and the United States -- "were badly mauled" as traffic fell 20 percent in the. .aftermath of the September 11 attacks on the United States. "Convincing signs of recovery have yet to emerge," he said.. .. . Especially hurt was SIA's 49-percent-owned Virgin Atlantic [VA.UL], which derives more than 70 percent of its revenue from the "battered" trans-Atlantic route, the Business Times said.. ."SIA's woes were compounded by the demise of Ansett, which led to the over S$300 million ($162 million) write-down of investment in Air New. .Zealand," Cheong said. "This makes the task of keeping financial year 2001/2002 out of the. .red even more difficult.". ."There are lessons to be learnt from the Ansett debacle, but none requires abandonment of our objective," Cheong said, adding that the reasons. .for investing overseas were as valid as before.. ."A long-term objective must not be surrendered because of one setback. We should be made of sterner stuff.". .. .Cheong said there was no denying SIA had suffered a major setback but it had always warned that the path to globalisation was strewn with risk.. ."The alternative of carrying on as usual, with our fortunes reliant solely on operations based in Singapore, would mean stagnation and declining. .returns on capital," he said. Cheong also noted that "a large carrier with a tiny home base cannot. .expect continuing growth and steady profits".. .. .========================. .. .MAS Optimistic -Orders 25 new aircraft.. .. .MAS Managing Director,Dato Md Nor Yusof, announced that MAS was continuing with its fleet expansion programme involving the delivery of 25 new aircraft in Boeing 747 and 777 class for the long-haul sector.. .. .Malaysian Airlines certainly believes the good times will roll on. The carrier has signed a lease for four 747 freighters with cargo major. .Atlas Air, which are to be phased in before the end of the first quarter of this year. . .. .MAS declined to comment on the move.. .. .But Clancy of NW airlines thinks the new strategy makes sense, arguing that the 747 is much better suited for electronics traffic than the MD-11 that MAS used in the past.. .. ."They're out to reclaim traffic that should have been theirs to start with. A lot of traffic has been siphoned off by truck to Singapore." he. .said. "They've now defined a frequency-based strategy with a worldwide network to offer reliable frequency. In essence, they decided to outsource and be a network manager rather than an operator and let Atlas focus on moving the. .pallets at the lowest cost.".. .. .Northwest Airlines says cargo business on the three weekly DC-10 passenger flights it. .added last year from KL has been good.. .. .===. .. .KUALA LAMPUR, - (Reuters ). .Even as the aviation sector is undergoing a worldwide recession after the terror attacks on the U.S., Malaysian Airlines is reorienting its business strategy by re- deploying its aircraft. .capacity to markets like India and China, that offer the best opportunities for growth.. .. .Malaysian Airlines System (MAS) is enthused by the IATA ratings that pointed to continuing growth prospects... .. .This is underlined by the fact that travel between India and Malaysia has grown `significantly' in the past one year or so. The MAS has started twice a week connectivity between Hyderabad and Bangalore with Kuala Lampur. .recently. "We have a desire to increase the frequency to this and new destinations in India,'' said the airline Managing Director, Dato Md Nor Yusof.. "We are looking at the leisure travellers, whose growth has been tremendous. .between the two countries. . .. .From India, the last year saw 300,000 travellers to Malaysian destinations. This is growing because of the greater awareness among people about Malaysia,'' Dato Md Nor Yusof said while interacting recently with a group of visiting presspersons from India.. .. .The MAS was able to benefit as it now could access the Indian market from major cities like Mumbai, New Delhi, Bangalore, Hyderabad and Chennai. To build and improve traffic from the Indian market, MAS has introduced promotional fares from new points like Mumbai, Bangalore and. .Hyderabad; its prices from Chennai and New Delhi to Malaysia and beyond are competitive.. .. .As for the impact of Sept 11 events on MAS business, he said the U.S. made up for seven per cent of total MAS operations. "In the worst case. .scenario, it would be seven per cent reduction in business." We were less dramatically affected than some others " he added. "The response would be more psychological.".. .. .The Managing Director noted that MAS was continuing with its fleet modernisation programme involving the delivery of 25 new aircraft in. .Boeing 747 and 777 class for the long-haul sector.