AirAsia MAS together after all.
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OK THis article is slightly old blog.. from a malaysian journalist..... but we all learn from the past and the mistakes... but some....
rocky's bru: Why SIA is worth S$18.7 b and MAS is worth RM7.2 b
and this blog from blog spot (********) is from angry pax or ex-employee.... i think...
http://airasiaannus.********.com/
rocky's bru: Why SIA is worth S$18.7 b and MAS is worth RM7.2 b
and this blog from blog spot (********) is from angry pax or ex-employee.... i think...
http://airasiaannus.********.com/
Last edited by jetjockey696; 19th Jan 2012 at 15:02.
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The Mas-Ak saga
Hi all, would like to revive this thread after finding this on cyber news. Read on:
I am all for free market competition, I absolutely abhor the "protection still being given" to other quite silly industries we need not have such as autos, cement, steel and IPPs. However, the government failed to recognise the lumbering giant in MAS and basically allowed for "unfair advantage" to Air Asia. *They should have removed the 'shackles' from MAS first before allowing Air Asia in.
Malaysia-Finance ********
The deluge of opinions on MAS-Air Asia saga have been dominating business pages. I have not spoken on the matter for the longest time, but its a brilliant textbook case of what is wrong with Malaysian government linked companies' strategies.
The Blame Game
Former MD of MAS, Tan Sri Aziz Abdul Rahman said that the rot started 15 years back. The highly regulated environment forced MAS into a corner. That the authorities failed to appreciate MAS' role and responsibilities and allowed Air Asia to compete, albeit unfairly, with MAS. Yes, that is absolutely correct. The government did not reassess MAS' position when it allowed Air Asia almost a free hand.*
MAS is not just any company, it was set up with a strong historical legacy, and with it came a lot of baggage and was burdened with a lot of routes it had to do, not necessarily profitable. MAS airfares was also controlled to a large extent.*
I am all for free market competition, I absolutely abhor the "protection still being given" to other quite silly industries we need not have such as autos, cement, steel and IPPs. However, the government failed to recognise the lumbering giant in MAS and basically allowed for "unfair advantage" to Air Asia. *They should have removed the 'shackles' from MAS first before allowing Air Asia in.
The Tajuddin Factor
Well, we know who was behind that saga, and that basically further locked MAS into a long period of vegetation, without any long term plan to match the competition from the 90s till early 2000. There was no coherent strategy to counter the advent of budget airlines.
Positioning
MAS would have been better prepared if it had known its position in the market place. KL is not a business hub, you can try but you have to acknowledge that it will never match Singapore and HK. Malaysians were not aggressive international travellers to start with. Yes, nowadays the situation has improved somewhat but not 10-15 years ago. Hence the international routes, especially to Europe and the US were deadbeats.*
Can MAS Return To The Black Consistently?
Yes, but it must shrink its size and reach. You can market yourself as the premium airline but you know you are competing with Cathay Pacific and Singapore Airlines for the same catchment. How many of us take the other two airlines when we travel longer distances instead of MAS, that answer in itself is what's debilitating MAS. When you add the fact that HK and Singapore are also business hubs, they already have natural substantive load factors for most international routes. Hence they can play the market share game by offering Malaysians low fares to connect to other international routes via Singapore and HK (you can also lump Qatar Airways and ANA into the same boat), something MAS cannot do. *When they already have pushed past breakeven load factors, to steal market share from MAS is something they will gladly do even at a loss.
The National Prestige
Just because its our national airline does not mean we will ALWAYS MUST fly to New York, LA, and other major European routes. Routes management must be "profitable and can leverage" on existing business model for your passengers. So what if MAS only flies to half their current routes? Most important is to stay relevant and profitable. The amount of money being pumped in is basically our money.
Air Asia
As many as there are admirers, there are detractors. Did they get an uneven handed leg up in the early days? Yes, but it wasn't even a GLC. Fine, I say if it wasn't going to Air Asia, it will always be someone else with a similar business model. Be glad that its Air Asia. There are tons of budget airlines but which has been better managed than Air Asia? Like it or not, the company has a clear idea of their catchment passengers. They know the middle class of Southeast Asia will be major air travellers.*
If they did well in Malaysia because of certain favours? You certainly cannot begrudge it for doing just as well in Thailand and Indonesia, can you? They are doing it so much better than any budget carrier in the region, and possibly its the best managed budget carrier in the world, even though Fernandes did not invent the industry.
MAS-Air Asia Tie Up
It should have gone through. Only by lining up interests will MAS get a chance to survive. Now, more than half of MAS routes compete unfavourably with Air Asia, how will you compete? Your premium international routes are also in trouble as well with the problems elucidated earlier. Basically, to survive, MAS will have to be another Air Asia, now why do you want to do that all over again?
If it was me, I would have done an even larger share swap, maybe 30% for 40%. Yes, the flip flop by the government to appease the 22,000 employees union was unnecessary, it just prolongs the pain.*
Read more at: http://malaysiafinance.********.com/...te-of-mas.html
I am all for free market competition, I absolutely abhor the "protection still being given" to other quite silly industries we need not have such as autos, cement, steel and IPPs. However, the government failed to recognise the lumbering giant in MAS and basically allowed for "unfair advantage" to Air Asia. *They should have removed the 'shackles' from MAS first before allowing Air Asia in.
Malaysia-Finance ********
The deluge of opinions on MAS-Air Asia saga have been dominating business pages. I have not spoken on the matter for the longest time, but its a brilliant textbook case of what is wrong with Malaysian government linked companies' strategies.
The Blame Game
Former MD of MAS, Tan Sri Aziz Abdul Rahman said that the rot started 15 years back. The highly regulated environment forced MAS into a corner. That the authorities failed to appreciate MAS' role and responsibilities and allowed Air Asia to compete, albeit unfairly, with MAS. Yes, that is absolutely correct. The government did not reassess MAS' position when it allowed Air Asia almost a free hand.*
MAS is not just any company, it was set up with a strong historical legacy, and with it came a lot of baggage and was burdened with a lot of routes it had to do, not necessarily profitable. MAS airfares was also controlled to a large extent.*
I am all for free market competition, I absolutely abhor the "protection still being given" to other quite silly industries we need not have such as autos, cement, steel and IPPs. However, the government failed to recognise the lumbering giant in MAS and basically allowed for "unfair advantage" to Air Asia. *They should have removed the 'shackles' from MAS first before allowing Air Asia in.
The Tajuddin Factor
Well, we know who was behind that saga, and that basically further locked MAS into a long period of vegetation, without any long term plan to match the competition from the 90s till early 2000. There was no coherent strategy to counter the advent of budget airlines.
Positioning
MAS would have been better prepared if it had known its position in the market place. KL is not a business hub, you can try but you have to acknowledge that it will never match Singapore and HK. Malaysians were not aggressive international travellers to start with. Yes, nowadays the situation has improved somewhat but not 10-15 years ago. Hence the international routes, especially to Europe and the US were deadbeats.*
Can MAS Return To The Black Consistently?
Yes, but it must shrink its size and reach. You can market yourself as the premium airline but you know you are competing with Cathay Pacific and Singapore Airlines for the same catchment. How many of us take the other two airlines when we travel longer distances instead of MAS, that answer in itself is what's debilitating MAS. When you add the fact that HK and Singapore are also business hubs, they already have natural substantive load factors for most international routes. Hence they can play the market share game by offering Malaysians low fares to connect to other international routes via Singapore and HK (you can also lump Qatar Airways and ANA into the same boat), something MAS cannot do. *When they already have pushed past breakeven load factors, to steal market share from MAS is something they will gladly do even at a loss.
The National Prestige
Just because its our national airline does not mean we will ALWAYS MUST fly to New York, LA, and other major European routes. Routes management must be "profitable and can leverage" on existing business model for your passengers. So what if MAS only flies to half their current routes? Most important is to stay relevant and profitable. The amount of money being pumped in is basically our money.
Air Asia
As many as there are admirers, there are detractors. Did they get an uneven handed leg up in the early days? Yes, but it wasn't even a GLC. Fine, I say if it wasn't going to Air Asia, it will always be someone else with a similar business model. Be glad that its Air Asia. There are tons of budget airlines but which has been better managed than Air Asia? Like it or not, the company has a clear idea of their catchment passengers. They know the middle class of Southeast Asia will be major air travellers.*
If they did well in Malaysia because of certain favours? You certainly cannot begrudge it for doing just as well in Thailand and Indonesia, can you? They are doing it so much better than any budget carrier in the region, and possibly its the best managed budget carrier in the world, even though Fernandes did not invent the industry.
MAS-Air Asia Tie Up
It should have gone through. Only by lining up interests will MAS get a chance to survive. Now, more than half of MAS routes compete unfavourably with Air Asia, how will you compete? Your premium international routes are also in trouble as well with the problems elucidated earlier. Basically, to survive, MAS will have to be another Air Asia, now why do you want to do that all over again?
If it was me, I would have done an even larger share swap, maybe 30% for 40%. Yes, the flip flop by the government to appease the 22,000 employees union was unnecessary, it just prolongs the pain.*
Read more at: http://malaysiafinance.********.com/...te-of-mas.html
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Since the merger
between MAS and AirAsia didnt go through... the officials is is trying to save something by saying....and put a positive spin on the negative since elections are soon..
AirAsia & MAS Look To Create Intensive Win-win Collaboration Areas
AirAsia and Malaysia Airlines are currently discussing ways to create intensive collaboration areas while maintaining a win-win situation.
AirAsia Chairman Datuk Aziz Bakar said discussions are currently ongoing between both parties, without any sort of interference from the government.
"We are still trying to finalise matters with Malaysia Airlines on the whole aspect of collaboration. No exact timeline can be stated for the moment.
"Both airlines are looking at the right module and proposals on collaboration after the swap deal was dropped.
"We are creating a win-win situation. To us at AirAsia, whatever we do must be a win-win scenario, whether its a share swap or collaboration. If not why would we want to sign in the first place," he told reporters at a signing ceremony between AirAsia, Educational Testing Service (ETS) and Eshia & Associates Sdn Bhd, here.
Asked if AirAsia, through its long-haul affiliate AirAsia X, would revive its currently suspended routes to Mumbai, New Delhi, Paris and London, Aziz Bakar said: "No. That decision stays."
On May 2, Khazanah, the biggest shareholder of Malaysia Airlines, officially called off the share swap deal.
The investment holding company transferred its 10 per cent or 277,650,600 ordinary shares in AirAsia back to Tune Air, which in turn, gave its 20.5 per cent or 685,142,000 ordinary shares in Malaysia Airlines back to Khazanah.
-- BERNAMA
Malaysia Airlines And Airasia Making The Right Moves, Say Analysts
May 6 (Bernama) -- The supplemental collaboration agreements (SA) signed between Malaysia Airlines and AirAsia will pave way for the country towards becoming a regional airlines maintenance hub, say analysts here.
Vice-President, Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said under the SA, both airlines have agreed for a joint venture in procurement and maintenance activities, which are seen as good moves and a huge business opportunity.
"That means they want to buy airplanes together. Component parts will be bought together (through a joint venture company) so it will make Malaysia a regional maintenance hub, if they work together," he told Bernama in an interview here today.
It was reported that the procurement initiative between the airlines is expected to lead to efficiencies by exploring the potential of outsourcing their procurement activities to a mutually owned joint venture (JV) company.
Among the key areas to be explored could include high spend items such as fuel, insurance, information technology and communications.
As for the aircraft component maintenance, support and repair services, he said the airlines would jointly explore the setting up of a JV, including identifying its viability and structure.
Nazri said at the moment, the national carrier's balance sheet was not strong with only RM1 billion cash in hand and RM3 billion in bonds.
He said the airline would need to have another RM2 billion to fulfill the capital expenditure of RM6 billion this year.
When asked whether Malaysia Airlines will go through another round of cost-cutting, he said the airline had done a lot of cost-cutting with two transformation plans over the past decade.
"I think it is rather restricted. Malaysia Airlines and AirAsia have different models so the airline should learn from Singapore Airlines (SIA) rather than AirAsia.
"The SIA during a volatile period, spent more on service to win customers loyalty so I think cost-cutting is not feasible. Air Asia is different as it plays on cost effectiveness," he said.
-- BERNAMA
between MAS and AirAsia didnt go through... the officials is is trying to save something by saying....and put a positive spin on the negative since elections are soon.. AirAsia & MAS Look To Create Intensive Win-win Collaboration Areas
AirAsia and Malaysia Airlines are currently discussing ways to create intensive collaboration areas while maintaining a win-win situation.
AirAsia Chairman Datuk Aziz Bakar said discussions are currently ongoing between both parties, without any sort of interference from the government.
"We are still trying to finalise matters with Malaysia Airlines on the whole aspect of collaboration. No exact timeline can be stated for the moment.
"Both airlines are looking at the right module and proposals on collaboration after the swap deal was dropped.
"We are creating a win-win situation. To us at AirAsia, whatever we do must be a win-win scenario, whether its a share swap or collaboration. If not why would we want to sign in the first place," he told reporters at a signing ceremony between AirAsia, Educational Testing Service (ETS) and Eshia & Associates Sdn Bhd, here.
Asked if AirAsia, through its long-haul affiliate AirAsia X, would revive its currently suspended routes to Mumbai, New Delhi, Paris and London, Aziz Bakar said: "No. That decision stays."
On May 2, Khazanah, the biggest shareholder of Malaysia Airlines, officially called off the share swap deal.
The investment holding company transferred its 10 per cent or 277,650,600 ordinary shares in AirAsia back to Tune Air, which in turn, gave its 20.5 per cent or 685,142,000 ordinary shares in Malaysia Airlines back to Khazanah.
-- BERNAMA
Malaysia Airlines And Airasia Making The Right Moves, Say Analysts
May 6 (Bernama) -- The supplemental collaboration agreements (SA) signed between Malaysia Airlines and AirAsia will pave way for the country towards becoming a regional airlines maintenance hub, say analysts here.
Vice-President, Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said under the SA, both airlines have agreed for a joint venture in procurement and maintenance activities, which are seen as good moves and a huge business opportunity.
"That means they want to buy airplanes together. Component parts will be bought together (through a joint venture company) so it will make Malaysia a regional maintenance hub, if they work together," he told Bernama in an interview here today.
It was reported that the procurement initiative between the airlines is expected to lead to efficiencies by exploring the potential of outsourcing their procurement activities to a mutually owned joint venture (JV) company.
Among the key areas to be explored could include high spend items such as fuel, insurance, information technology and communications.
As for the aircraft component maintenance, support and repair services, he said the airlines would jointly explore the setting up of a JV, including identifying its viability and structure.
Nazri said at the moment, the national carrier's balance sheet was not strong with only RM1 billion cash in hand and RM3 billion in bonds.
He said the airline would need to have another RM2 billion to fulfill the capital expenditure of RM6 billion this year.
When asked whether Malaysia Airlines will go through another round of cost-cutting, he said the airline had done a lot of cost-cutting with two transformation plans over the past decade.
"I think it is rather restricted. Malaysia Airlines and AirAsia have different models so the airline should learn from Singapore Airlines (SIA) rather than AirAsia.
"The SIA during a volatile period, spent more on service to win customers loyalty so I think cost-cutting is not feasible. Air Asia is different as it plays on cost effectiveness," he said.
-- BERNAMA
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AirAsia, AirAsia X And MAS Collaboration Important, Says Rafidah
I guess the airasia group (Air asia, air asia x and MAS) is getting about worried about the competition that's gonna land on there virgin doorstep in 3 years time. The open skies in asia..
May 11 (Bernama) -- All airlines in the country must be able to face challenges when the Asean open sky policy comes into force in 2015 and therefore, collaboration efforts between AirAsia, AirAsia X and Malaysia Airlines (MAS) is important, says AirAsia X Chairman Tan Sri Rafidah Aziz.
"If airlines do not strengthen now, through what ever way, there will be problems. This is why AirAsia and AirAsia X is willing to continue looking at possible collaboration with MAS," she said
She emphasised that the collaboration had nothing to do with the share-swap."It is about cut cutting cost so that we can pass the efficiencies to consumers. We have agreed at the board level to sign a memorandum of understanding (MOU) to continue pursuing this collaboration as long as it does not violate any anti-trust law globally and bring benefits to us," she told a press conference after the Malaysian National Co-operative Movement (Angkasa)'s 41st celebration.
Following the reversal of the share swap deal, AirAsia, AirAsia X Sdn Bhd and MAS, have entered into a supplemental collaboration agreement (SA) to explore areas of mutual-need to realise savings and boost efficiencies.
May 11 (Bernama) -- All airlines in the country must be able to face challenges when the Asean open sky policy comes into force in 2015 and therefore, collaboration efforts between AirAsia, AirAsia X and Malaysia Airlines (MAS) is important, says AirAsia X Chairman Tan Sri Rafidah Aziz.
"If airlines do not strengthen now, through what ever way, there will be problems. This is why AirAsia and AirAsia X is willing to continue looking at possible collaboration with MAS," she said
She emphasised that the collaboration had nothing to do with the share-swap."It is about cut cutting cost so that we can pass the efficiencies to consumers. We have agreed at the board level to sign a memorandum of understanding (MOU) to continue pursuing this collaboration as long as it does not violate any anti-trust law globally and bring benefits to us," she told a press conference after the Malaysian National Co-operative Movement (Angkasa)'s 41st celebration.
Following the reversal of the share swap deal, AirAsia, AirAsia X Sdn Bhd and MAS, have entered into a supplemental collaboration agreement (SA) to explore areas of mutual-need to realise savings and boost efficiencies.
Last edited by jetjockey696; 14th May 2012 at 18:27.
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Lose-lose rather than win-win
AirAsia & MAS Look To Create Intensive Win-win Collaboration Areas
Is there more " udang di sebalik batu " that we do not hear of?
