Sunday, 25 December 2011


“The report also showed several group photographs of the people involved in managing MAS but none looked smart enough to run the company. One guy has a sneering smile on his face. The one seated and the person standing behind him looked smug, while the lady who was standing tried to look impressive and the man standing on her left tried to fake a smile”

Another MAS revamp plan? Don't be fooled, this GLC is taking us for a ride
Source: here
Early warninghere

Since Ahmad Jauhari was just appointed as the new CEO recently, he must have had a very tough responsibility to ensure MAS makes profit but he must also be aware of the its past performance, and reading through the MAS Annual Report for 2010 there are some salient points to consider.
The front page of the 2010 MAS Annual Report has a large print “GROWTH” followed by the next page stating its vision; "To be the Number One Airline in Asia by 2015" and its mission; "To be a Consistently Profitable Airline".
No, it is not a joke!
Of course, what actually happened was that despite recording a 5% higher revenue of RM3.565bil compared to RM3.40bil in the previous quarter, Malaysia Airlines made a net loss of RM478 million for the third quarter of 2011 ended 30 September 2011. Ahmad Jauhari and team attributed this to higher fuel costs and unrealized foreign exchange losses from outstanding USD borrowings. The cumulative year-to-date net loss for the Group stood at RM1,247 million.
Securing their own fees first
The MAS annual report then showed the airline's journey throughout 2010 with so many milestones being achieved involving signing new agreement for maintenance between the group and other airlines, its involvement in a reality show TV program, charity event, launching of new routes, launching of new products related to holidays, new business partnerships and all sorts of seemingly profitable business ventures. But few details were given as to whether these really made money, although by now, Malaysians know MAS has been losing money for quite a while.
Unfortunately the first important information MAS focused on is the board of directors, their re-appointment, appointment of new members and the approval of the directors’ fees. Yes, that is their first order of business.
Then, it moved on to more shares being allocated to the relevant directors and all the legal mandates needed to ensure that no matter whether MAS was making profit or going bankrupt - the positions and all the entitlements of the entire board could be secured first. No mention of ensuring that MAS made profit, or of eradication of wastages and corrupt practices and paying back the money MAS owes the government from all the bailouts through the years.
It was also listed that under the MAS umbrella, there are 22 subsidiaries and 6 investment associates. The impression one get when reading the report should be impressive but there was nothing written whether any of them are losing money or if all of them are making profit. Surely since MAS' mission is to consistently make profit, these business ventures should be profitable. But are they making profits?
Looks can be deceiving

The report also showed several group photographs of the people involved in managing MAS but none looked smart enough to run the company. One guy has a sneering smile on his face. The one seated and the person standing behind him looked smug, while the lady who was standing tried to look impressive and the man standing on her left tried to fake a smile.
Another group photo and this time with all the men standing and also trying to fake a smile left one with a most uncomfortable feeling. Maybe, they felt happy about the money each of them were going to get. Certainly, none looked worried about the financial status of the company. But why would they want to smile when MAS has not been making money for several years already?
Competent board of directors?
Then the report printed out in detail the curriculum vitae of the top management to impress the readers. But if they are all that good, why is MAS still losing money? Are they really good? Good at what? Losing money? Siphoning money?
The next section of the report proves the point that the whole management team is packed with incompetent souls when the dividend for year 2010 was declared to be only 7.2sen per share!
But MAS managed to fly 15.7 million passengers and the gross revenue for the group was RM13.6 billion. Still, because gross expenditure was RM13.5 billion before tax, no wonder MAS was able to pay only 7.2 sen dividend per share!
It is common sense that MAS must reduce the expenditure to get more profit but unfortunately there is no such effort to reduce the expenditure because the amount of money that needs to be siphoned out has been fixed. Cynical? Look at the carrier's loss record then.
Is the new MAS CEO as hopeless as the others?
So the effort and planning by the new MAS CEO Ahmad Jauhari to form another Premier Airline as announced recently is just another proposal for a money-making-scheme.
If Ahmad Jauhari is not careful, he will be accused of following in the footsteps of what Prime Minister Najib Razak is doing now, borrow more money and siphon it out, without even considering to reduce the carrier's expenditure, increase efficiency, trim the number of staff or reduce the number of the board of directors, reduce the remunerations, or even shutting down the losing subsidiaries or reviewing the present contracts and agreements between MAS and it vendors especially the catering company supplying food for MAS.
Malaysia is already RM445 billion in debt and MAS is contributing about RM1.2 billion of debt each year. Has the UMNO-BN government not learned any lessons yet? MAS should either buck up or just close shop.


  1. Why lah people never learn?
    Billions here , billions there and people in the villages still using kerosene lamps and well water.

  2. My gosh, how ignorant and stupid can anybody be. Oh I forgot, this is Malaysia Bolehh.

    Former MAS Managing Director Tan Sri Abdul Aziz’s was right when he said
    " I am surprised that so many clever people cannot under stand simple arithmetic.

    Retired MAS Accountant

  3. Very true, anon 23:34 and retired MAS Accountant.

    My heart bleeds to discover all these, but it makes me stronger.
    I believe "when you do the right thing, you get more energy to do more right things".

  4. MAS looked like a Special Purpose Vehicle for somebody or a group to make money.Sigh.

  5. most of the FAs have alot to say on this, but as you know their hands are all tied (as what happened during the 70's). the real problem actually lies on the whole "appointed MDs" concept. how can a person who has never been in aviation industry suddenly being the number one in a commercial airline company. tho they have been sent to class and such, at the end of the day experience on the field itself is truly important. one could read as much as he can but at the end he could never really imagine how would his action affects the operations. never ever they consulted the ones who are actually on the front line. never ever they really see the domino effects on their cutting cost initiative. one might said that MAS have loss the capability on being the 5 star awards again, but the fact is their employee is just tired and unmotivated. their morale is down with this whole share swap and stuff, most of em are just too afraid of what to come. in the midst of losing money, they still failed to utilize the manpower that they currently have, overflowing of technical crew and expatriate technical crew & employment of new FAs. why cant they just revise the whole flight pattern to maximize the usage of their manpower. there are lotsof of operation aspect that they can redo, but hey that would definitely kacau periuk nasi seseorang.

  6. Very well said, Anon 11:16
    You know many in flight antics of these corrupted leaders.

    Email me. We will make them tofu.

  7. asyik pikir nasib MAS je if AA tutup ape pulak jadi kat nasib worker AA? they all malaysian jugak. Nak masuk keje dgn MAS pon susah, good example if nak jadi pilot MAS jangan harap la if takde cable, but not with AA where everyone been given equal opportunity.

  8. why tony wants MAS badly.#1 is because to kill Firefly the local community and friendly low cost airline a subsidary nof MAS.AA is afraid of this,where the first thing done is to cuts routes which profit MAS eg bandung where the price of airway to bandung is increase by AA.#2 AA badly wants the MAS maintenance centre.AA had problems of payment with SIN then shifted to Manila.Cost is expensive to fly an airplane to Manila jus for maintenence so MAS was the alternate avenue.I bet u all out there AA is NOT going to pay a single cents to MAS to maintain their airplanes.Why all the dungus politician be it the ruling party BN or the opposition see this.leave Warga MAS alone,we know what we are doing.As what our former MD Tan Sri Aziz and our Dr.Don said,we Warga MAS had toiled our sweat to build this company.We had been with MAS during good and bad times.If the goverment had not put a corrupted leaders,we won't be what we are today.Buzz off TF.Dahulu kami dijajah oleh orang putih today kami dijajah oleh orsng bernama mat salleh iaitu TF.Bangunlah Warga MAS menentang TF dan AA.Bangunlah warga ku bangsa melayu menentang penjajahan moden ini.Maruah dan mertabat kami dicabar lagi.Janganlah kami leka kat perkara seperi ini bagaikan rumah kami di ceroboh.BANGULAH BANGSA KU,BANGUNLAH WARGA MAS TAK KIRA BANGSA BERSAMA SAMA KAMI BERPAKAT UNTUK MASA DEPAN KAMI DAN UNTUK SYARIKAT YANG SAYANGI

  9. Talk is cheap so everyone out there knows the problems plaguing our beloved airline.All you people know is to only talk about the problems and I dont see anyone having the balls to fix it.To YB,Dr.Don,PM OR WHOEVER out there who knows what to do,why dont you just fix it OR otherwise just SHUT UP and stop all these cheap and unhealthy noise.I have seen 7 MDs come and go and all I see they getting richer and the airline getting poorer.DO you people think this MD will be any different.Think of the parents,wives,children of the people that you all have categorically condemned.Have you ever stop for a minute and think about their feelings.Have we Malaysians lost our sense of dignity.Is this the kind of mentality and behaviour we want to show the world come 2020?The Japanese are so advanced and developed because they are polite and respect each other.It is the respect,integrity and pride that we Malaysians NEED to work on and let us all work on this.