Malaysia Airlines Needs........
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Malaysia Airlines Needs........
Malaysia Airlines is now facing one of its most severe turbulences that threatens its very survival.
Unless it does something drastic to spur revenue growth, it could face bleak times ahead, especially when other airlines are improving their service quality and offering competitive prices.
The road ahead for Malaysia Airlines is simple: it must sell more seats to be profitable.
Aviation analysts believe that the arrival of the Airbus 380, the world's largest and most eco-efficient aircraft, will help in repairing and boosting the airline's image.
New aircraft deliveries aside, the other compelling factor is having the right promotion to get more people to book their flights on Malaysia Airlines.
An analyst from Maybank Investment Bank said Malaysia Airlines must create the buzz for more people to want to fly with it.
With its reputation of having the best cabin crew in the world, he said this needed to be told to more people.
Raising ticket prices to add to revenue may not be feasible at present, said another analyst, as Malaysia Airlines is not be in a strong position to do so.
As a full-fledged premium service airline, it can only do so if service quality increases several notches higher, not only in the cabin but also in other operational areas like ticketing and ground handling.
Despite the recent decoupling of a share swap with AirAsia, one researcher with a bank even suggested working with another premium airline partner to raise its service quality.
But will it work? The Malaysian Airlines employee unions recently voted to not support the collaboration with AirAsia, thus leading to the abandonment of the share swap deal announced last year.
A new business plan for Malaysia Airlines is set to be announced next Monday. It requires one single-minded focus from the 20,000 or so people employed at Malaysia Airlines, to keep about 90 premium service aircraft flying and passengers satisfied. They will have to support it to make things work.
And at the other end of the spectrum of the Malaysian aviation industry, the almost 5,000 employees at AirAsia will also have to keep working hard to ensure that the 98 low-cost service airplanes turn in another year of profit.
-- BERNAMA
GOOD WAY... to launder money...
May 29 (Bernama)
The RM9 billion fund raising proposal announced by Malaysia Airlines last week is a vote of confidence by Malaysia's financial system in the airline's future, a prominent economist said Tuesday.
Dr Yeah Kim Leng, Group Chief Economist of RAM Holdings Bhd, said MAS would not have problems in getting the funding because both Malaysia's banking and capital markets were actually flushed with liquidity.
He said Malaysia had surplus liquidity and high savings and both the government and the private sector currently did not face problems raising funds in the market.
"What we notice here, projects which are viable or bankable projects normally would not face any problems. In fact, we are short of good projects in order to raise private investment value.
"Because of Malaysia's surplus liquidity and a strong banking system, the credit risk spreads as well as the amount of funds, the cost of financing still remained relatively low, especially for projects having good credit quality.
"The other positive thing we notice here is that other international issuers are also coming to Malaysia to raise funding," he revealed.
The RM9 billion financing plan is made up of three components -- the issuance of up to RM2.5 billion Islamic sukuk by June this year, the government setting up a special purpose vehicle to raise RM5.3 billion to pay for eight aircraft, including six A380 superjumbo, which will then be leased back to Malaysia Airlines, and RM1.2 billion for the remaining wide-bodied aircraft purchases this year, funded by a loan facility to be wrapped up very soon.
Dr Yeah said the market was also quite comforted by the fact that Malaysia Airlines' chief executive officer Ahmad Jauhari Yahya had laid out his restructuring plans and come out with a Turnaround Plan.
The plan entails structural cost cutting, improvements to its operational efficiency, rationalising all its contracts and ensuring that its staff force is of the right size as well as starting a Voluntary Separation Scheme (VSS).
"I think if you look at it and given sufficient time, perhaps over two years, if it can undertake all these structural reforms, then it will be placed on a very sound footing and the rest will be up to the impact on how the airline industry will pan out over the next few years.
"But MAS will be in a better position to cope with the competition which is getting very intense on the one hand and on the other hand, because of rising cost pressure due to rising fuel prices," Dr Yeah said.
Ahmad Jauhari said last week said the airline had made some "tough decisions" in its turnaround plan like cutting unprofitable routes especially in long haul and re-looking at all contracts, including its 25-year catering contract.
Dr Yeah welcomed the the move on revisiting the catering contract signed under the old management as such a long-term deal "doesn't make business sense in the first place".
"So Malaysia Airlines will have to contend with all these challenges so that is why I think Malaysia Airlines with this RM9 billion funding has been given a window of opportunity that it should not miss in terms of putting itself in a very competitive position to sustain its operations in the long term," he said.
The RAM Holdings chief economist said the national carrier had now been presented with an opportunity to regain some of its lost ground and glory as MAS had won numerous international awards in its history.
"I think given this opportunity, the current management is on the right track and with the support of the staff, it's well placed to actually move forward," he added.
On the stiff resistance by employees' unions that caused the unravelling of Malaysia Airlines/AirAsia's share-swap deal on May 2, he said in the service industry, staff issues were very important, and for Malaysia Airlines especially, it has to ensure its long-term competitiveness by raising its service quality to meet business objectives of running a top-class airline.
"Now that they have solved the funding issue, I think it is up to the management and staff to come together and execute the Turnaround Plan in the most effective manner," said Dr Yeah.
-- BERNAMA
Unless it does something drastic to spur revenue growth, it could face bleak times ahead, especially when other airlines are improving their service quality and offering competitive prices.
The road ahead for Malaysia Airlines is simple: it must sell more seats to be profitable.
Aviation analysts believe that the arrival of the Airbus 380, the world's largest and most eco-efficient aircraft, will help in repairing and boosting the airline's image.
New aircraft deliveries aside, the other compelling factor is having the right promotion to get more people to book their flights on Malaysia Airlines.
An analyst from Maybank Investment Bank said Malaysia Airlines must create the buzz for more people to want to fly with it.
With its reputation of having the best cabin crew in the world, he said this needed to be told to more people.
Raising ticket prices to add to revenue may not be feasible at present, said another analyst, as Malaysia Airlines is not be in a strong position to do so.
As a full-fledged premium service airline, it can only do so if service quality increases several notches higher, not only in the cabin but also in other operational areas like ticketing and ground handling.
Despite the recent decoupling of a share swap with AirAsia, one researcher with a bank even suggested working with another premium airline partner to raise its service quality.
But will it work? The Malaysian Airlines employee unions recently voted to not support the collaboration with AirAsia, thus leading to the abandonment of the share swap deal announced last year.
A new business plan for Malaysia Airlines is set to be announced next Monday. It requires one single-minded focus from the 20,000 or so people employed at Malaysia Airlines, to keep about 90 premium service aircraft flying and passengers satisfied. They will have to support it to make things work.
And at the other end of the spectrum of the Malaysian aviation industry, the almost 5,000 employees at AirAsia will also have to keep working hard to ensure that the 98 low-cost service airplanes turn in another year of profit.
-- BERNAMA
GOOD WAY... to launder money...
May 29 (Bernama)
The RM9 billion fund raising proposal announced by Malaysia Airlines last week is a vote of confidence by Malaysia's financial system in the airline's future, a prominent economist said Tuesday.
Dr Yeah Kim Leng, Group Chief Economist of RAM Holdings Bhd, said MAS would not have problems in getting the funding because both Malaysia's banking and capital markets were actually flushed with liquidity.
He said Malaysia had surplus liquidity and high savings and both the government and the private sector currently did not face problems raising funds in the market.
"What we notice here, projects which are viable or bankable projects normally would not face any problems. In fact, we are short of good projects in order to raise private investment value.
"Because of Malaysia's surplus liquidity and a strong banking system, the credit risk spreads as well as the amount of funds, the cost of financing still remained relatively low, especially for projects having good credit quality.
"The other positive thing we notice here is that other international issuers are also coming to Malaysia to raise funding," he revealed.
The RM9 billion financing plan is made up of three components -- the issuance of up to RM2.5 billion Islamic sukuk by June this year, the government setting up a special purpose vehicle to raise RM5.3 billion to pay for eight aircraft, including six A380 superjumbo, which will then be leased back to Malaysia Airlines, and RM1.2 billion for the remaining wide-bodied aircraft purchases this year, funded by a loan facility to be wrapped up very soon.
Dr Yeah said the market was also quite comforted by the fact that Malaysia Airlines' chief executive officer Ahmad Jauhari Yahya had laid out his restructuring plans and come out with a Turnaround Plan.
The plan entails structural cost cutting, improvements to its operational efficiency, rationalising all its contracts and ensuring that its staff force is of the right size as well as starting a Voluntary Separation Scheme (VSS).
"I think if you look at it and given sufficient time, perhaps over two years, if it can undertake all these structural reforms, then it will be placed on a very sound footing and the rest will be up to the impact on how the airline industry will pan out over the next few years.
"But MAS will be in a better position to cope with the competition which is getting very intense on the one hand and on the other hand, because of rising cost pressure due to rising fuel prices," Dr Yeah said.
Ahmad Jauhari said last week said the airline had made some "tough decisions" in its turnaround plan like cutting unprofitable routes especially in long haul and re-looking at all contracts, including its 25-year catering contract.
Dr Yeah welcomed the the move on revisiting the catering contract signed under the old management as such a long-term deal "doesn't make business sense in the first place".
"So Malaysia Airlines will have to contend with all these challenges so that is why I think Malaysia Airlines with this RM9 billion funding has been given a window of opportunity that it should not miss in terms of putting itself in a very competitive position to sustain its operations in the long term," he said.
The RAM Holdings chief economist said the national carrier had now been presented with an opportunity to regain some of its lost ground and glory as MAS had won numerous international awards in its history.
"I think given this opportunity, the current management is on the right track and with the support of the staff, it's well placed to actually move forward," he added.
On the stiff resistance by employees' unions that caused the unravelling of Malaysia Airlines/AirAsia's share-swap deal on May 2, he said in the service industry, staff issues were very important, and for Malaysia Airlines especially, it has to ensure its long-term competitiveness by raising its service quality to meet business objectives of running a top-class airline.
"Now that they have solved the funding issue, I think it is up to the management and staff to come together and execute the Turnaround Plan in the most effective manner," said Dr Yeah.
-- BERNAMA
Last edited by jetjockey696; 10th Jun 2012 at 09:54.
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Airbus A380 Will Help MAS......
Malaysia Airlines is now on par with other regional premium airlines in terms of standard, quality and customer experience, with the recent arrival of the world's largest and most eco-efficient aircraft, the Airbus A380.
Maybank Investment Bank (IB) Research said the cabin product offering is a quantum leap improvement and on par with the industry's best from the likes of Singapore Airlines and Emirates.
This is a big step in the right direction for Malaysia Airlines to win back customers and maintain its hold in the highly competitive long-haul market, the firm said in a research note today.
It added that the potential cost savings for Malaysia Airlines with the superjumbo aircraft will be an added advantage for the national carrier, which has the best cabin crew, against its peers.
"The A380 aircraft provides unrivalled cost economics for long-haul flights. We estimate this new aircraft will provide 13 per cent to 15 per cent unit cost savings over the older Boeing 747-400 aircraft it replaces stemming from its superior fuel efficiency and higher payload capabilities.
-- BERNAMA
Maybank Investment Bank (IB) Research said the cabin product offering is a quantum leap improvement and on par with the industry's best from the likes of Singapore Airlines and Emirates.
This is a big step in the right direction for Malaysia Airlines to win back customers and maintain its hold in the highly competitive long-haul market, the firm said in a research note today.
It added that the potential cost savings for Malaysia Airlines with the superjumbo aircraft will be an added advantage for the national carrier, which has the best cabin crew, against its peers.
"The A380 aircraft provides unrivalled cost economics for long-haul flights. We estimate this new aircraft will provide 13 per cent to 15 per cent unit cost savings over the older Boeing 747-400 aircraft it replaces stemming from its superior fuel efficiency and higher payload capabilities.
-- BERNAMA
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Okay, let me get this straight, MAS seems to be saying (through Bernama of course) that their turnaround plan is based on the 'world quality' of their A380 aircraft? Let's see, they will have two, maybe three of them in the fleet by the end of this year, servicing LHR-KUL-SYD only, then when they add another one or two, maybe KUL-AMS. Meanwhile over the next three years the plan (this week's anyway) is to retire 7 747-400's, 17 777-200's, and all of the 737-400's? This will lead to a net decrease of over 20 aircraft, including most of the long haul ability, other than the SYD/LHR/AMS A-380's.
Yes, you will parade your one A380 out as the company savior, and you will get lots of press (the Star will especially fawn all over MAS with fluff pieces written by PR hacks) in a few weeks when it actually starts flying. Meanwhile Emirates has had their big white Bus flying in and out of KUL every day for the past 6 months (not to mention a 777-300ER). If Malaysian passengers are dying to fly on the Big Bus and have to go anywhere other than LHR, then they will simply step down to C-37 (as they have since 1Jan) and ride the heaviest of metal to most anywhere in the world.
So this is the 'new' company plan, Mark IX. I can't wait to see what happens when SE Asia Open Skies happens in 2015.
Other than a total inability to plan past tomorrow, let alone next week, and the fact that they are going to run a shrinking airline fleet with the same 20,000 employees they 'needed' to fly 100+ aircraft (and about 8,000 more than Air Asia needs for a similar fleet size), the biggest problem MAS has is the almost complete lack of revenue management. How can you claim that you are not making money on flights such as KUL-FCO, or even KUL-LHR, when the airplanes are constantly full, unless you are giving away tickets, or have no clue on how to price them.
I can't fathom how you COULD manage the situation at MAS when every time you want to make any plans your are hamstrung by the following rules:
1. No big decisions can be made without consulting and being overruled by the real powers.
2. No you can't make anyone redundant, the make-work staffing that is MAS cannot change!! Too many votes to be lost in Selangor.
3. No you certainly can't try and fight Air Asia, Tony would never allow that.
4. No you can't drop unprofitable intra-Malaysia routes.
5. Before any plan you have even gets off the drawing board, make sure you remember we must have our 'input'.
6. Renegotiate contracts? Don't be absurd. How can we keep filling our pockets with MAS money if you aren't willing to pay 75MYR per order of Nasi Lamak, or put meals for a full business class even when all the seats are empty? My goodness man, what are you thinking? What will the downline ground staff do for makan?
7. For anything else, refer to rule 1.
MAS will go on, because their are those in the government won't let it fail because the cash flow from the airline to their pockets must not be allowed to stop.
Yes, you will parade your one A380 out as the company savior, and you will get lots of press (the Star will especially fawn all over MAS with fluff pieces written by PR hacks) in a few weeks when it actually starts flying. Meanwhile Emirates has had their big white Bus flying in and out of KUL every day for the past 6 months (not to mention a 777-300ER). If Malaysian passengers are dying to fly on the Big Bus and have to go anywhere other than LHR, then they will simply step down to C-37 (as they have since 1Jan) and ride the heaviest of metal to most anywhere in the world.
So this is the 'new' company plan, Mark IX. I can't wait to see what happens when SE Asia Open Skies happens in 2015.
Other than a total inability to plan past tomorrow, let alone next week, and the fact that they are going to run a shrinking airline fleet with the same 20,000 employees they 'needed' to fly 100+ aircraft (and about 8,000 more than Air Asia needs for a similar fleet size), the biggest problem MAS has is the almost complete lack of revenue management. How can you claim that you are not making money on flights such as KUL-FCO, or even KUL-LHR, when the airplanes are constantly full, unless you are giving away tickets, or have no clue on how to price them.
I can't fathom how you COULD manage the situation at MAS when every time you want to make any plans your are hamstrung by the following rules:
1. No big decisions can be made without consulting and being overruled by the real powers.
2. No you can't make anyone redundant, the make-work staffing that is MAS cannot change!! Too many votes to be lost in Selangor.
3. No you certainly can't try and fight Air Asia, Tony would never allow that.
4. No you can't drop unprofitable intra-Malaysia routes.
5. Before any plan you have even gets off the drawing board, make sure you remember we must have our 'input'.
6. Renegotiate contracts? Don't be absurd. How can we keep filling our pockets with MAS money if you aren't willing to pay 75MYR per order of Nasi Lamak, or put meals for a full business class even when all the seats are empty? My goodness man, what are you thinking? What will the downline ground staff do for makan?
7. For anything else, refer to rule 1.
MAS will go on, because their are those in the government won't let it fail because the cash flow from the airline to their pockets must not be allowed to stop.
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Yep i think you pretty much hit the nail right on the head
, I especially like your take on the goverment`s mouth piece " The Star " so so true, they really takes us all for fools
, I especially like your take on the goverment`s mouth piece " The Star " so so true, they really takes us all for fools
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Unions' Support Vital For Malaysia Airlines' New Turnaround Plan
A union is usually described as a democratic organisation of working people standing up for their rights on the job.
On the other hand, it is also said that unions can also be unreasonable to deal with when they put pressure on companies in terms of wages or their attitude towards certain company policies.
In the case of Malaysia Airlines (MAS), its workers unions were opposed to the share-swap arrangement with AirAsia and hence the subsequent rescinding of the deal.
It is common knowledge that they were unhappy over certain arrangements which they deemed as having put MAS at a disadvantage to the low-cost carrier.
Certain quarters have also questioned the lapses in judgment by MAS' major shareholders which had contributed to the brief but failed tie-up.
But going forward, MAS needs the support of its various employees' unions for any new turnaround exercise while its employees should embrace change so that they will have a better and more secured future, say analysts.
RAM Holdings Group Chief Economist Dr Yeah Kim Leng said regaining its lustre as one of Asia's premier international carriers is not going to be easy as the global airline industry is facing an increasingly tough and challenging environment.
Rising fuel costs, falling demand, fierce competition and challenging regulatory environments are plaguing the industry, he told Bernama.
Against this grim backdrop, all airlines have to contend with the constantly changing business landscape, failing which the weak, uncompetitive and inefficient will be driven out.
Dr Yeah believed that restructuring in various industrial sectors and companies were happening at a much faster pace in the country in response to the rapid internationalisation of trade, investment and business opportunities amidst the need to escape the middle-income trap syndrome.
Once the plans to revitalise MAS have been unveiled, the onus will be on the employees' unions to rally around their company.
Dr Yeah also said the MAS management would also have to work hard to fully harness its human capital and motivate its workforce to improve areas like cost efficiency, productivity and service quality to realise the company's business goals.
The critical success factors, he stressed, would be the ability to execute the airline's business strategies effectively and this has to be communicated to its employees with the cooperation of their unions.
Sharing the same view, another analyst who requested anonymity, said as MAS is essentially a service-oriented business and a government-linked company, the airline certainly needed the unions' support to turn around.
"The unions should give assurance that their members are supporting the management's turnaround plan while the management has also to give assurance on job security," he said.
The unions, he said, have to accept changes in a number of areas so that MAS would have a strong chance to grow again.
-- BERNAMA
On the other hand, it is also said that unions can also be unreasonable to deal with when they put pressure on companies in terms of wages or their attitude towards certain company policies.
In the case of Malaysia Airlines (MAS), its workers unions were opposed to the share-swap arrangement with AirAsia and hence the subsequent rescinding of the deal.
It is common knowledge that they were unhappy over certain arrangements which they deemed as having put MAS at a disadvantage to the low-cost carrier.
Certain quarters have also questioned the lapses in judgment by MAS' major shareholders which had contributed to the brief but failed tie-up.
But going forward, MAS needs the support of its various employees' unions for any new turnaround exercise while its employees should embrace change so that they will have a better and more secured future, say analysts.
RAM Holdings Group Chief Economist Dr Yeah Kim Leng said regaining its lustre as one of Asia's premier international carriers is not going to be easy as the global airline industry is facing an increasingly tough and challenging environment.
Rising fuel costs, falling demand, fierce competition and challenging regulatory environments are plaguing the industry, he told Bernama.
Against this grim backdrop, all airlines have to contend with the constantly changing business landscape, failing which the weak, uncompetitive and inefficient will be driven out.
Dr Yeah believed that restructuring in various industrial sectors and companies were happening at a much faster pace in the country in response to the rapid internationalisation of trade, investment and business opportunities amidst the need to escape the middle-income trap syndrome.
Once the plans to revitalise MAS have been unveiled, the onus will be on the employees' unions to rally around their company.
Dr Yeah also said the MAS management would also have to work hard to fully harness its human capital and motivate its workforce to improve areas like cost efficiency, productivity and service quality to realise the company's business goals.
The critical success factors, he stressed, would be the ability to execute the airline's business strategies effectively and this has to be communicated to its employees with the cooperation of their unions.
Sharing the same view, another analyst who requested anonymity, said as MAS is essentially a service-oriented business and a government-linked company, the airline certainly needed the unions' support to turn around.
"The unions should give assurance that their members are supporting the management's turnaround plan while the management has also to give assurance on job security," he said.
The unions, he said, have to accept changes in a number of areas so that MAS would have a strong chance to grow again.
-- BERNAMA
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Union Opposition, Negative Public Perception Cited For Aborting Share Swap
Opposition from the Malaysia Airlines Bhd (MAS) workers' union and the negative public perception are among the factors for the termination of the agreement on the share swap between MAS and AirAsia (Tune Air).
Prime Minister Datuk Seri Najib Tun Razak said since the implementation of the share swap, several MAS workers' unions did not give their cooperation to the MAS management and had opposed several efforts for drastic changes that were important for the recovery of the airline.
Najib, who is also the Finance Minister, said this in his written reply to a question from Hee Loy Sian (PKR-Petaling Jaya Selatan) who wanted clarification on the outcome of the investigation by the Securities Commission on the share swap agreement and the factor that led to the termination of the share swap.
The Prime Minister said the negative perception on the price collusion and the perception of antitrust practices had also resulted in a negative public perception on the share swap.
"This had placed pressure and distracted the focus of the MAS management on efforts to turn the company around.
"Subsequently on May 2, 2012, Khazanah (Nasional Bhd) had agreed to terminate the share swap in order to give an opportunity to the MAS management to concentrate on efforts to achieve benefits of synergy that had been identified," he said.
Meanwhile, Najib said the share swap agreement between the two companies was not subjected to investigation by the Securities Commission.
-- BERNAMA
Prime Minister Datuk Seri Najib Tun Razak said since the implementation of the share swap, several MAS workers' unions did not give their cooperation to the MAS management and had opposed several efforts for drastic changes that were important for the recovery of the airline.
Najib, who is also the Finance Minister, said this in his written reply to a question from Hee Loy Sian (PKR-Petaling Jaya Selatan) who wanted clarification on the outcome of the investigation by the Securities Commission on the share swap agreement and the factor that led to the termination of the share swap.
The Prime Minister said the negative perception on the price collusion and the perception of antitrust practices had also resulted in a negative public perception on the share swap.
"This had placed pressure and distracted the focus of the MAS management on efforts to turn the company around.
"Subsequently on May 2, 2012, Khazanah (Nasional Bhd) had agreed to terminate the share swap in order to give an opportunity to the MAS management to concentrate on efforts to achieve benefits of synergy that had been identified," he said.
Meanwhile, Najib said the share swap agreement between the two companies was not subjected to investigation by the Securities Commission.
-- BERNAMA
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Bravo Maseu...you saved the fat bangla from killing himself swallowing high blood pressure pills!
Where is mapa in all this...is mapa colluding with tf? I have my suspicions!
Where is mapa in all this...is mapa colluding with tf? I have my suspicions!
Last edited by mokham; 18th Jun 2012 at 07:38.
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Look out Jakarta, hold on to your wallets, TF is comin' to town!!! I guess he has milked the good people of Malaysia for all they are worth, and now is taking the show on the road....
Tony Fernandes move to Jakarta is to grow profit by five-fold
SEPANG: Growing profits by four to five-fold is the aim of Tan Sri Tony Fernandes as he moves to Jakarta to drive AirAsia's regional expansion after handing over the reins of the airline's Malaysian operations to 38-year-old Aireen Omar .
“AirAsia has been dependent on the Malaysia operations for growth and yet Malaysia has only 28 million people. If we can get the other operations to grow, the potential of increasing profits by 400% to 500% over time is there,” said Fernandes who is AirAsia group chief executive officer.
However, he did not set targets for when this would be achieved.
“But in six months, we will be able to say (when it is achievable). The impetus is in trying to deliver profitability to the countries that the group is not generating as much as Malaysia, and I believe we can do that with the right emphasis and the right drive.
“We want to focus on creating a powerful Asean-Asian airline and make Japan, Indonesia, Thailand and the Philippines as profitable as Malaysia. That's our goal to realise the potential of what we've built,” Fernandes added after announcing Aireen's appointment.
The Malaysian operations contribute 75% to group profit despite AirAsia having subsidiaries in other countries.
AirAsia has set up a regional base in Jakarta known as AirAsia Asean as part of its regional expansion strategy. With presence in five countries now, the aim is to have joint ventures in five more countries in the region. The set-up in Jakarta will have a staff strength of 20 people, comprising the core team of AirAsia and the relocation cost is about RM1mil.
“We need to pivot to a wider, regional lens from the first decade's focus, which was largely domestic. The enormous potential in an underserved market of three billion people spread across Asean, North-East Asia and South Asia offers huge opportunities. AirAsia, we are convinced, is ideally positioned to reap huge dividend by serving this market,” he said.
Fernandes would be moving to Jakarta next month to head the group while the day-to-day running of the Malaysian operations would be handled by Aireen.
In a statement to Bursa Malaysia, AirAsia said Aireen would be the CEO and executive director while Fernandes and Kamarudin would quit their posts as group CEO and deputy group CEO respectively by June 30. They would become non-independent non-executive directors of AirAsia.
Aireen said at the press conference that AirAsia would maintain the 60% domestic market share it currently enjoys.
“I know I have a big shoe to fill and I am confident to keep the target alive. Everyone can fly not only now but forever.
“We have 60% domestic and 40% international market share. We intend to maintain that and grow it,” she said, adding that AirAsia's local operations would continue to be creative and innovative.
She said maintaining market lead, cost discipline and increasing revenue would be among the main challenges going forward.
Aireen joined AirAsia in January 2006 as director of corporate finance and is now regional head of corporate finance and treasury.
She holds an economics degree from the London School of Economics and Political Science, and a masters in economics from New York University. She started as associate with Deutsche Bank Securities Inc, New York in September 1997 till August 2000. She returned to Malaysia to join Maybank Investment Bank as assistant vice-president from March 2001 to November 2003. In December 2003 she joined Bumiwerks Capital Management as director until December 2005.
Fernandes described her as “tough and aggressive” while Kamarudin credited her for being able to lock up aircraft financing at very competitive rates during the crisis.
Aireen said had no inkling that she would become CEO of AirAsia.
“I was shocked to know that I was one of the four candidates the founders and the board were looking for because in whatever I do, I did not have a thought that I would be in that position. I just go on doing my best and stay ahead of the curve.
“So when, they (Fernandes and Kamarudin) called me to a board meeting to tell me that I was chosen, I was overwhelmed and excited.
“It was all mixed feelings at that point. It is a huge responsibility and there will be lot of people monitoring my progress, but I am honoured and humbled by the trust and confidence placed on me by Fernandes, Kamarudin and the board,” she said.
-The Star
Tony Fernandes move to Jakarta is to grow profit by five-fold
SEPANG: Growing profits by four to five-fold is the aim of Tan Sri Tony Fernandes as he moves to Jakarta to drive AirAsia's regional expansion after handing over the reins of the airline's Malaysian operations to 38-year-old Aireen Omar .
“AirAsia has been dependent on the Malaysia operations for growth and yet Malaysia has only 28 million people. If we can get the other operations to grow, the potential of increasing profits by 400% to 500% over time is there,” said Fernandes who is AirAsia group chief executive officer.
However, he did not set targets for when this would be achieved.
“But in six months, we will be able to say (when it is achievable). The impetus is in trying to deliver profitability to the countries that the group is not generating as much as Malaysia, and I believe we can do that with the right emphasis and the right drive.
“We want to focus on creating a powerful Asean-Asian airline and make Japan, Indonesia, Thailand and the Philippines as profitable as Malaysia. That's our goal to realise the potential of what we've built,” Fernandes added after announcing Aireen's appointment.
The Malaysian operations contribute 75% to group profit despite AirAsia having subsidiaries in other countries.
AirAsia has set up a regional base in Jakarta known as AirAsia Asean as part of its regional expansion strategy. With presence in five countries now, the aim is to have joint ventures in five more countries in the region. The set-up in Jakarta will have a staff strength of 20 people, comprising the core team of AirAsia and the relocation cost is about RM1mil.
“We need to pivot to a wider, regional lens from the first decade's focus, which was largely domestic. The enormous potential in an underserved market of three billion people spread across Asean, North-East Asia and South Asia offers huge opportunities. AirAsia, we are convinced, is ideally positioned to reap huge dividend by serving this market,” he said.
Fernandes would be moving to Jakarta next month to head the group while the day-to-day running of the Malaysian operations would be handled by Aireen.
In a statement to Bursa Malaysia, AirAsia said Aireen would be the CEO and executive director while Fernandes and Kamarudin would quit their posts as group CEO and deputy group CEO respectively by June 30. They would become non-independent non-executive directors of AirAsia.
Aireen said at the press conference that AirAsia would maintain the 60% domestic market share it currently enjoys.
“I know I have a big shoe to fill and I am confident to keep the target alive. Everyone can fly not only now but forever.
“We have 60% domestic and 40% international market share. We intend to maintain that and grow it,” she said, adding that AirAsia's local operations would continue to be creative and innovative.
She said maintaining market lead, cost discipline and increasing revenue would be among the main challenges going forward.
Aireen joined AirAsia in January 2006 as director of corporate finance and is now regional head of corporate finance and treasury.
She holds an economics degree from the London School of Economics and Political Science, and a masters in economics from New York University. She started as associate with Deutsche Bank Securities Inc, New York in September 1997 till August 2000. She returned to Malaysia to join Maybank Investment Bank as assistant vice-president from March 2001 to November 2003. In December 2003 she joined Bumiwerks Capital Management as director until December 2005.
Fernandes described her as “tough and aggressive” while Kamarudin credited her for being able to lock up aircraft financing at very competitive rates during the crisis.
Aireen said had no inkling that she would become CEO of AirAsia.
“I was shocked to know that I was one of the four candidates the founders and the board were looking for because in whatever I do, I did not have a thought that I would be in that position. I just go on doing my best and stay ahead of the curve.
“So when, they (Fernandes and Kamarudin) called me to a board meeting to tell me that I was chosen, I was overwhelmed and excited.
“It was all mixed feelings at that point. It is a huge responsibility and there will be lot of people monitoring my progress, but I am honoured and humbled by the trust and confidence placed on me by Fernandes, Kamarudin and the board,” she said.
-The Star
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My rumour dept .... heard rumours TF MAYBE setup another airline in Indonesia with local.. haha... maybe buy batavia..
not a lot can be done with Air Asia Indonesia.. unless he remove all the secret charges that you occur as a airasia traveller, its just to expensive to travel with IAA as a normal working Indonesian.
Rumours..say he has recruited his old friends, that help him set up Airasia in the early days.., the ones that that he fired or removed. once again. to help him again in JKT.. I guess he see Indonesia as milk and honey.. milking is soon to commence...
OK it sounds like a TF terrorist cell.
As Hogger60 said hold your wallets..and count your fingers if your do business with uncle TF... and watch who you sleep with...
not a lot can be done with Air Asia Indonesia.. unless he remove all the secret charges that you occur as a airasia traveller, its just to expensive to travel with IAA as a normal working Indonesian.Rumours..say he has recruited his old friends, that help him set up Airasia in the early days.., the ones that that he fired or removed. once again. to help him again in JKT.. I guess he see Indonesia as milk and honey.. milking is soon to commence...
OK it sounds like a TF terrorist cell.
As Hogger60 said hold your wallets..and count your fingers if your do business with uncle TF... and watch who you sleep with...
Last edited by jetjockey696; 19th Jun 2012 at 06:24.
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After conning all the 3 Prime Ministers and the Iron nanny to get involved in his grand masterplan and screwing MAS left , right centre top to bottom and incurred losses to MAS from 1.5 billion to 2.5 billion and the looming KLIA2 , he smells time to move t a new grazing field. With the Malaysian market getting saturated and 300plus A320 coming in, he will be politically disconnected from the 3 stooges. ( and he dont give a damn about it) If he can bribed thru the 3 stooges, nothing is more difficult in Indonesia. " Pokok nya Bisa.....bisa diaturrrrrrrrr..
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I am glad the MAS union helped scuttled that funny deal. I wonder how Air Asia will now fare? Quite a number of my colleagues are now flying for AK, I hope their jobs are secure. With two airlines competing there will be more job opportunities for all.
