On
Wednesday May 23, 2012, the STAR wrote:
RM9bil fund raising to
enable MAS to continue uninterrupted
PETALING
JAYA: Malaysia Airlines (MAS) yesterday surprised the market
place with a massive RM9bil fund raising proposal that involves the issuance of
bonds and taking a loan.
This is
the fifth consecutive quarter of loss for the airline and though the amount has
narrowed compared to the previous corresponding quarter in 2011 where it
reported RM242mil net loss, but when stripped of the non-cash items, the net
loss for the first quarter in 2012 was RM347mil.
It is
essentially the RM199mil forex gain that narrowed the losses for the first
quarter.”
On the contrary, we have gathered that:
MALAYSIA
Airlines (MAS) is perhaps the only Malaysian company that has undertaken the
most number of restructuring exercises over the past decade to try to get back
on its feet. A decade ago its books were severely tainted with red ink and had
to be cleaned up via the Widespread Asset Unbundling (WAU) exercise where it
became an asset light airline. But 10 years later it is still in dire
straits and appears not too far from where it was a decade ago.
The
state-owned airline has already had two rights issues since Idris Jala took
over, raking in RM1.6 billion in 2007 and RM2.67 billion in 2010 to fund its
operations and fleet purchases.
Industry
experts said that a further injection of cash will not save MAS as “operational
fixes” are required. Most of the past solutions for MAS, either the WAU or
Idris Jala’s business transformation plan, were financial in nature to keep
the airline in the black. But what is needed are operational fixes.
Its
cash and cash equivalent have depleted to RM968.5mil as at Dec 2011 compared
with RM5.2bil in Dec 2007, a rapid rate of cash depletion of almost RM4.3bil
in four years.
THE 2001 and 2003 ORGANISATIONAL
DIAGNOSIS
Since
2001, the WAU Team has not been able to fix "operational issues"
in MAS as highlighted by the late Tan Sri Azizan in the Berita MAS dated
September 2001 and September 2003 and summarised below:
SEPT 2001
1. TO RE ENGINEER THIS ENDANGERED COMPANY.
2. THE ORGANISATION STRUCTURE OF THE
COMPANY IS FOUND TO BE NOT
CONDUCIVE TO AN INTEGRATED APPROACH.
3. REVIEWING AND IMPROVING THE PROCESSES
AND PROCEDURES TO PLUG THE RAMPANT LEAKAGES AND STOP THE HAEMORRHAGE.
4. BEHOLDEN ON US TO PROTECT IT FROM PREDATORS.
5. PRESENT FRAGMENTED MAS IS NOT IN THE
RIGHT STATE.
6. MAS CULTURE IS DOMINATED BY A “SILO
MENTALITY” RESULTING IN UNINTEGRATED AND UNCOORDINATED ACTIVITIES.
7. FOSTERED ABUSE, PLUNDER OF THE COMPANY
FOR PERSONAL GAINS, HIGH
COST, INEFFICIENCY AND HAS DRIVEN THE COMPANY
TO NEAR BANKCRUPTCY.
8. DEDICATE OURSELVES TO CREATING A NEW
CULTURE GROUNDED IN A FEELING OF COMMON RESPONSIBILITY, BASED ON
ACCOUNTABILITY.
SEPT 2003
1. TO ENSURE THAT FACTIONALISM FOSTERED BY
THE CLAN CULTURE WOULD NOT BE AN OBSTACLE.
2. ALWAYS STRIVE TO SUPPRESS ANY TENDENCY
TOWARDS FACTIONALISM.
3. THIS REQUIRES A CHANGE IN MINDSET AND A
NEW CULTURE.
4. WE HAVE TO PREVENT LEAKAGES AND
WASTAGES.
5. GOOD FINANCIAL MANAGEMENT IS
ESSENTIAL FOR OUR SURVIVAL.
THE SHORT TERM GAIN, LONG TERM
PAIN
This is
the fourth in a decade after WAU, Business Turnaround 1 and Business
Transformation 2. The same people who crafted WAU are back hammering out a
share swap without proper due diligence and based merely on “judgment call” instead.
Had
they put in place a long-term plan then, would MAS be in this state? The new team “has taken a short-term view of
MAS when they should have engaged with the experts from within to get to the
root of the problem as the 2012 Business Plan does not address that.
MAS'
poor showing can be attributed to three factors; lack of good leadership
management, people management and cost management in the last 15 years.
An example of poor leadership can
be demonstrated in the email below:
Received
from EN.XXX 87772344
06-12-05 13.01
-> IDRIS.JALA MD, IDRIS JALA MD/OFF
-> MAS.$$MESA MAS EXEC STAFF ASSOCIATION
-> MAS.CHAIRMAN DATO' DR MOHAMED MUNIR CHAIRMAN
W'SALAM,
Puan
XXX/Bro XXX cpy Saudara Idris/Chairman/$$MESA,
BERANI
KERANA BENAR, TAKUT KERANA BERSALAH.
InsyaAllah,
together we can help our new MD to turn around this ailing and beloved airline
even better than before. We have the ingredients, I can sense the honesty,
sincerity and determination in our new MD.
First hurdle is to raise staff
morale, another word we need morale booster.
Second hurdle is to remove
CANCEROUS ELEMENT. We can't afford to have enemy
within. We have enough enemy
outside.
If we
can go past these two hurdles, the turnaround will be very smooth.
We have
done it before; there is no reason why we cannot do it again and even better.
The "Flying Buffet" if
it is true, hopefully not, already created a lot of damage to staff morale.
Leadership by example and accountability is very important in our organisation which
fly national pride.
Together
we can do it.
Rgds/XXXX.
MESA
President.
Tan Sri Abd Aziz baru keluar interviu TV3.
ReplyDeleteBetul dia cakap, Gomen takleh bailout MAS banyak kali. Take it private and let the new owner fix the problems, baru ada akauntabiliti.
Habislah duit EPF aku, bini aku ,anak aku, saudara mara aku, kawanku ...kejam kejam!
ReplyDeleteThis is not acceptable. MAS management past and present must be penalized and taken to court for abusing their power and tax payer money. Otherwise, criminals will have a field day.
ReplyDelete