A NATIONAL TRAGEDY

On 9 February 2012, former MAS Executive Vice President Dr. Mohamadon Abdullah wrote;

Malaysia Airlines grew from a small Domestic & Regional Carrier to a major player in Airline Premier League. Engineering developed from a Line Maintenance Facility to become a major Aircraft Overhaul Facility in the region (initially supported by expatriate staff but ultimately replaced by Malaysians, through a structured Nationalization programme). Flight Catering operated from a small flight kitchen and became a preferred Catering Supplier. Flight Operations has been recognized as one the best in the world and our Pilots are in great demand, due to a rigid technical training and human factors programmes. There are many more areas that we can really be proud of. Management Succession Plan was emplaced. All these were destroyed in 1994 as a result of the so called “restructuring” and the “virtual airline” concept. I recall 254 years of engineering “experience” were cast aside by just a stroke of a pen. Malaysia Airlines Academy was planned to be a Centre of excellence but now has become “Manipal University”.

Today, MAS has engaged many foreign expertise either through direct recruit or through “Consulting” services (which result in $$$$$ outflow).  Credit and recognition must be given to the pioneer Leaders who took the airline from operating BN2s, F27 and B737-200 to the modern fleet of B747s, B737s, B777s, DC-10s and Airbus series.

Now a foreigner who has no inkling of why MAS was established and has developed (and never gone through the pains of the early years) has been appointed an Advisor. Imagine, a foreign Company is providing Catering Services at Malaysia’s major Aviation Hub.

What a JOKE after 55 Years of Independence! Where is that Malaysian Pride? It is indeed a NATIONAL TRAGEDY.

Earlier on 22 Sept 2011, former MAS Managing Director Tan Sri Abdul Aziz Abdul Rahman wrote;

I have just read your article (here) and would like to add my views. I am of the view that the air transport industry in the country has over the years been mired by wrong government decisions and periodical mismanagement by the operators.

The current state of affairs of MAS has been caused by:

(i)         Some 15 years ago MAS management was messed up and the very fabric of its operation was destroyed and until now it has not been fully revived despite efforts being made to revive it.

(ii)        The situation has been compounded by the wrong decisions of the government to allow Air Asia to operate on domestic and regional routes in the beginning and later on long haul  routes without any proper study on the impact.

(iii)       The authorities failed to appreciate the role and responsibilities of a National Carrier and wrongly placed MAS to compete against a private low cost carrier. It should be noted that it was wrong to convert Air-Asia’s license from international routes not operated by MAS into domestic routes without any study on the impact.

(iv)       Those concerned have failed to appreciate that Malaysia’s air transport premier travel market is very small and that the market is very ‘price sensitive.

There is no way that MAS can compete against Air Asia. Up to now I must say that ‘Nasi hampir jadi bubur’. If they carry out their proposed scheme I confirm that ‘ Nasi terus jadi bubur’. I am surprised that so many clever people cannot under stand simple arithmetic.

You may distribute my comments to the members of your network.

With kind regards,

Tan Sri Abdul Aziz Abdul Rahman.

A TEST FOR MAS NEW MANAGEMENT.

In continuation of the previous post http://mastroubleshooters.blogspot.com/2011/12/

below is the follow up from the same MAS employee as reproduced from 

http://weechookeong.wordpress.com/2012/01/26

anonymous on January 31, 2012 at 7:48 am

Back to the internal woes in MAS and my earlier posting on Dec 17, also picked up by troubleshooters, the Head of HC has finally resigned, and is leaving exactly ONE day after her announcement. For such a senior position, a one day exit with no handover to anyone raises two questions – is the position redundant to start with? and what happened to the ‘Talent List’ and much-touted-but- never-seen succession plan? Simply confirms my observation that the rot in MAS starts and ends with the PEOPLE issue.

Now let’s all spend the next week or so speculating, theorising , gossiping and watching the horsetrading going on. After 30 years, the heads of HR that have come and gone, all lived up to our expectations of botching up in one way or another, all victims to the legacy issues, and none with the gumption/guts/principles to right the blatant wrongs for fear of rocking their own cushy boats.

The next one will be no different. He/she is expected to recycle the same stale wine into even staler bottles, repackaging the bottles with new labels like “Transformation Wave 1 or 2 or 3″ but until the stale and incompetent politicking goons in HC are kicked out, NOTHING is going to change.

MAS is doomed. >>>>

Well done, anon.  

MAS employees must now function as the “check and balance” and safety net.

I personally have triggered the alarm way back in February 2003 but as I suspected they “do not seem to be doing the right things and quite evidently they do not know the right things to do.”

Below is an extract of my report that was personally delivered to MAS top management including a former MD and former Chairman. Consider below as a test for the current new Management.

“Based on a series of investigation, study and event that have unfolded, out of plain responsibility, I would like to raise my concerns on MAS decision makers that we may be living in an unhealthy and disturbing culture whereby:

1.         We take problems for granted.

2.         We fail to analyze the real underlying issues and thus not able to provide professional solutions

3.         We tend to defer important issues and failed to put first thing first preferring to continue prescribing quick fixes and firefighting instead of fire prevention.

4.         We tend to contain main issues, buying time, with the hope that the issues may miraculously go away or at the very least, the individual who raised it will be frustrated, fed up and eventually give up.

5.         We are slow to act and react; we tend to condone many malpractices especially among the management. We have been led to believe that if we expose these malpractices, we are backstabbing our own friends and colleagues. We failed to recognise the fact that if we do not correct and instead choose to ignore the issues, we are actually backstabbing and betrayed the trust given by the nation and the public (staff)

6.         The true professionals and leaders were not given the due recognition and credit they deserve. The non-performers (yes man) are rewarded whereas the performers are sidelined simply because their superiors felt threatened by their able subordinates.

7.         Many have been exposed albeit ineffectively on various course such as leadership, communication, financial, management etc. What really missing is the very basic skills of learning which is analytical, comprehension, expression, interpretation and research skills

8.         We tend to tolerate our own incompetence, giving too many chances when what seriously lacking is a dose of proper lessons

9.         We tend to penalize those who defy, those who had guts in exposing our own incompetence and malpractices.

10.       We tend to be ignorant of the huge responsibilities that MAS has to shoulder and our inaction could jeopardize many lives including our loved ones.

11.       MAS Management acutely lack professionals who can provide solutions to the needs and problems and leaders who solve problem others fear.

12.       In summary, we do not seem to be doing the right things and quite evidently we do not know the right things to do.

MORE TO COME!

FOOLS NEVER LEARN!

Gerakan slams MAS for Sabah tourism washout

Queville To

 | January 8, 2012

The national airline, which has been haemorrhaging money for several years due to poor management, has been unable to implement effective strategies to make its business more viable and has instead taken the easy way out by stopping flights, he said.

KOTA KINABALU: As the Sabah tourism industry watches business plunge following the recent shakeup in the national airline industry, state Barisan Nasional leaders have been caught unprepared for the economic turmoil it has caused in the state.

Several BN leaders are scrambling to extricate themselves and their parties from the mess that has shaken one of the mainstays of the Sabah economy.

Following criticism from State Minister of Tourism, Culture and Environment Masidi Manjun for its recent decision to suspend the routes servicing, Malaysia Airlines (MAS) found itself on the receiving end this time from Gerakan for the downturn being experienced by hoteliers so early in the year.

Gordon Leong Vui Cheung, its chairman here, described the airline’s flight readjustments as “inconsiderate to the need and plight of the people of Sabah besides being against the ‘1Malaysia’ concept advocated by the Prime Minister Najib Tun Razak”.

“In a nation that boasts (the) national integration measures by the government, we are most appalled with MAS’s lack of sensitivity responsibility and concern about its socio-economic obligation to the nation and in particular Sabah.

“We therefore urge MAS to seriously re-consider the negative action and course which it has chosen to take while ignoring the pleads and concerns of Sabahans,” said Leong in a statement yesterday.

Leong was commenting on a statement by party member, Minister of Youth and Sports Peter Pang on Friday, stressing that MAS’ top management must realize the airline has an obligation to provide readily available and affordable flights within the country.

“We are most disappointed, to say the least, with the recent unhealthy move made by MAS and we do share the concerns, anxiety and worries experienced and raised by all Sabahans, individual travelers to major tourism players alike,” Leong said.

The reaction from the BN leaders comes after several embarrassing incidents were highlighted in local newspapers revealing how travellers from and to Sabah were unable to obtain seats on flights in the national airline.

Two incidents that were reported this week involved a heart patient who had to seek urgent medical treatment in Kuala Lumpur accompanied by a family member as well as a woman who was unable to fulfill her mother’s wish to see her.

RM72 million loss likely

All were forced to take alternative measures to travel for much costs, according to the reports.

Leong said that the state was already experiencing a decline in tourist arrivals which he blamed on limited flights and the cancellation of “unprofitable routes” serving the eastern hub and connecting the state to Osaka, Heneda, Seoul and Perth.

He said transport authorities should have been aware that any changes in the policies and business plans by MAS, its subsidiary, Firefly and budget airline AirAsia would inevitably affect the state tourism industry players and the people.

Those in the tourism industry here fear that the soaring cost of and unpredictable domestic travel will force holiday makers and domestic travellers to by-pass Sabah.

Leong estimated that the Sabah tourism sector would stand to lose at least RM72 million a year based on last year’s 30,000 arrivals from Australia alone.

The national airline, which has been haemorrhaging money for several years due to poor management, has been unable to implement effective strategies to make its business more viable and has instead taken the easy way out by stopping flights, he said.

“They should be thinking outside of the box, including adopting the Blue Ocean Strategy to regain its profitability and long term financial viability.”

Leong urged the anti-monopoly Malaysia Competition Commission to investigate the share swap and business alliance between MAS and AirAsia to protect consumers from any form of monopolistic practices or exploitation.

“At the end of the day, the people of Sabah and Sarawak will be the biggest losers if such a counter-productive policy is being adopted incessantly and continuously by MAS, Firefly and AirAsia,” he pointed out.

MAS: Fools and Bloody Fools

Another Brick in the Wall exploding.

Well done, Sir

“One problem with the unions was that they are not united. Reliable sources claimed the union representing the Managers are only interested to save their own arse by bodeking the new management to lend them support despite knowing Danny Yusof's turnaround plan fall short of being amateurish work and is doomed to fail again.”

“From the beginning, MASEU knew that the collaboration will not work and it will not favour MAS and employees. They also knew that the management has no idea of how to turnaround MAS and is merely out to chop chop the company.

WTF are they not asserting themselves? Why should they be dabbling over issues like anti-trust laws? Who gives a Mother's damn?

Let's deal with the long list of foolish works by the fools calling themselves management later.

Why are the unions and staff not coming out and be more forceful to protect the company and employees from the corporate sharks devouring the company? Instead, most of the staff are saving their own skin by leaving the company before others flood the job market.

Bloody fools!”

Full details here

http://anotherbrickinwall.blogspot.com/2012/01/mas-fools-and-bloody-fools.html

WE MUST STOP THIS NONSENSE.

“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 warning: here

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.

Organisational Diagnosis: Another symptom?

In continuation of the previous post http://mastroubleshooters.blogspot.com/2011/11/preamble-5.html,

below is another gem by MAS employee reproduced from:

http://weechookeong.wordpress.com/2011/12/07/teks-ucapan-di-parlimen-terhadap-gang-of-two/#comment-61380

Anonymous on December 17, 2011 at 1:52 pm

After 30 years in MAS, and now into the 7th MD/CEO, I can say with conviction that any hope of any recovery can be safely dumped into the deepest dustbin.

Every business plan/transformation plan is rolled out as a quick-fix to the problems of the day, and ignores the rot and the weakest point in mas, which is the way people are hired, trained, developed (or not) and rewarded/punished.

Discipline, responsibiity and accountability are just words. Acts of misconduct or negligence are dealt with by double standards for years. A person known for dishonesty can be promoted to a position of high responsibilty because of “”connections”, in fact the joke is, the bigger you fumble, the higher you gonna be promoted, provided of course, you have ‘godfathers’.

Even when the company is bleeding and on its knees, recruitment and promotions (barely justifiable) continues. The performance mgmt system, run for 5 years, is just a form filling exercise. When vacancies esp at high levels occur, speculation and horsetrading and ‘negotiations’ determine who gets the post. The so-called talent mgmt dept claims to have a talent list no-one knows about, and in any case, when mas keeps bringing in people from outside, the list is as good as toilet paper.

The HR division is run by little napoleons whose motto is ‘do what we say, not what we do’. The new lady with 2 years khazanah training came in to ‘trnaform’HR but she just recycled the same old stale wine in new packaging, and ended up with trusted leiutenants, the Vps who have absolutely no credibilty or capabilty to speak of. One of the great jokes of the transformation is to organise kite-flying for staff!!

Now with the new CEO and deputy again parachuted from outside, we have 3 structures and 2 biz plans in 3 mths with changes to come, before stf can understand one, another comes out. This duo, for all their claimed qualifications have no clue how to manage. Plans are rolled out with scant understanding of the sentiment on the ground.

Sure, they dont have to bother abt the staff (after all arent we responsible for the mess?) but they forget, in order to drive their biz plans (even though the plan is full of holes) it is these same stf they have to buy-in to make it work. Now, stf have to depend on second hand news, rumours etc to find out whats going on, in “dialogues’with unions, only vague and contradictory answers are given, finally, the credibilty of these 2 as far as the stf are concerned is ZERO.

The whole issue of mas is the PEOPLE, many good and loyal ones who are simply outnumbered by the politiking goons. Put the untrustworthy nonexec union into the whole pot, then what we end up with is a great big mess which made us vulnerable to predators, as has now happened.

We simply brought it upon ourselves.MAS is doomed.

MAS: 10 years too late - Even the analysts were sleeping on the job.

Analysts wonder what long-term plan can the airline conjure

By LEONG HUNG YEE

hungyee@thestar.com.my

“Ten years on, it is back to square one. For the first nine months to Sept 30, 2011, MAS posted a net loss of RM1.24bil against a net profit of RM8.55mil a year ago. Its cash and cash equivalent have depleted to RM968.5mil as at Sept 30 compared with RM1.92bil a year ago.”

IT is undeniable that Malaysia Airlines (MAS) is facing a crisis and is in a dire state now. The carrier is having both cash and profit crisis for a while and may fail if it continues the way it is now. Realising this, the management introduced a new Business Plan 2012 on Wednesday hopefully to turn its fortune around. Many will be interested in the business plan and the details on how it will help steer MAS away from turbulence.

But surely many will ask ... doesn’t MAS have enough business plans already? Over the past decade, the flag carrier has undergone several business plans including the Widespread Asset Bundling (WAU), Business Turnaround Plan 1 (BTP1) and Business Transformation Plan 2. Some of these initiatives have produced some promising results but the momentum was not sustained, nor did it steer MAS from further turbulence.

Ten years on, it is back to square one. For the first nine months to Sept 30, 2011, MAS posted a net loss of RM1.24bil against a net profit of RM8.55mil a year ago. Its cash and cash equivalent have depleted to RM968.5mil as at Sept 30 compared with RM1.92bil a year ago.

Some analysts are saying the new business plan was basically a new plan with the same story they have been seeing over the years.

More details here:

http://biz.thestar.com.my/news/story.asp?file=/2011/12/10/business/10060480&sec=business and

http://biz.thestar.com.my/news/story.asp?file=/2011/12/10/business/10069906&sec=business

Compare here:

http://mastroubleshooters.blogspot.com/2011/11/6-major-things-that-mas-should-have.html