RUN IDIOTS, RUN!

From: http://weechookeong.wordpress.com/2012/03/15/aj-rashdan-cost-cutting-part-3/

YB WCK wrote;

Not a bad business deal after all! “NOW EVERYONE CAN TAKE MAS FOR A RIDE!” No wonder AirAsia X Sdn Bhd officer announced with confidence that those affected 30,000 passengers can still travel to their destinations without having to pay extra charges in fare.

“European” wrote;

We are following this with great interest and have all respect for the support given to MAS by such a honourable MP. …Chapeau, as the french would say.

We all wonder what else must happen, until officials move in and stop such a obvious robbery (does it take openly carried firearms until officials wake up??)

Not even the Mafia in Italy would dare to rob a company so openly.

Considering MAS is owned by the public, what happens to your Press and TV..?? are they as corrupt too ??? The staff of MAS and the People of Malaysia should stand up against this obvious crime… Even the Press in Europe starts looking at it with increasing interest.

Attracting Tourist for a country that accepts open robbery ??? Attacting business and investment????I don´t think so..

Stand up and bring these jokers to justice.. what more evidence is needed to get all those criminals to jail??? Laws, Corporate Governance… all unheard of?? good luck to those suffering…

MT wrote;

Run idiots, run (while you can) !!!!!

OUCH! 2

Putrajaya mulls MAS-AirAsia break-up, unhappy with results

Source: http://www.themalaysianinsider.com/malaysia/article/putrajaya-mulls-mas-airasia-break-up-unhappy-with-results/

March 09, 2012

KUALA LUMPUR, March 9 — Putrajaya is reviewing the eight-month-old Malaysia Airlines-AirAsia alliance as it has failed to show any promised improvement or lift the morale of the 20,000-strong staff in the flag carrier that lost RM2.52 billion in 2011.

The Malaysian Insider understands that the Najib administration is also considering taking MAS private by directing state asset manager Khazanah Nasional Berhad buy back a 20.5 per cent stake exchanged with Tune Air Sdn Bhd, the majority owner of AirAsia, for 10 per cent stake in Southeast Asia’s largest budget carrier

“Datuk Seri Najib Razak is not happy with MAS’s performance which he was told would improve after the share swap,” a government source told The Malaysian Insider.

(More to clean up here http://www.rockybru.com.my/2010/08/why-sia-is-worth-s187-b-and-mas-is.html )

He confirmed that the MAS Employees Union (Maseu) had met and urged the prime minister to unravel the deal, which will break MAS into separate long- and short-haul operations. MAS also operates the Firefly community airline and MASwings for rural air services in Sabah and Sarawak.

Khazanah and Tune Air agreed to the share swap last August, after four previous unsuccessful attempts for an alliance between MAS and AirAsia, which soared from a decade ago when Tan Sri Tony Fernandes and partners bought the two-aircraft operation and its debts for RM1.

Khazanah’s CIMB Bank advised both parties in the deal, which was seen as the last attempt to save MAS despite an earlier rescue programme in 2001 planned by advisory firm BinaFikir Sdn Bhd.

Coincidentally, BinaFikir co-founder Tan Sri Azman Mokhtar is now Khazanah managing director while the other co-founder Mohammed Rashdan Yusof is in charge of MAS short-haul operations.

“The prime minister wants to see the full picture of the deal and find the best way forward for MAS especially since the union has expressed concerns,” another source told The Malaysian Insider.

The MAS management, under managing director Ahmad Jauhari Yahya, has had townhall meetings with the staff, some of whom are unhappy with Rashdan’s management style

“There are some valid concerns as they feel he isn’t a people person and that is important in a service industry,” the source said.

Another area of concern is the talk of being redeployed outside MAS to the short-haul premium airline headed by Rashdan as that would mean a loss of benefits.

MAS has slightly more than 20,000 staff although former MD Datuk Seri Idris Jala had cut it down to 17,000 when he left in 2009. Industry analysts say the flag carrier could just do with one-third of its current staff especially with cuts in routes in the past six months.

Cutting staff could improve costs but is seen as a major political liability in Selangor, where MAS has most of its operations and the state that Najib wants to win back in the next elections.

The entire airline group posted a net loss of RM1.28 billion for the fourth quarter of last year, bringing its total net loss for 2011 to RM2.52 billion. MAS, however, did see a marginal increase in group revenue, going up two per cent from the previous year to RM13.9 billion in 2011.

The airline attributed the losses to the increase in fuel price, which rose up from US$95 per barrel in 2010 to US$133 per barrel in 2011.

The bigger-than-expected losses were also due to additional provisions like redelivery of aircraft, impairment of freighters and stock obsolescence.

MAS hopes to finalise and announce a plan to raise funds and strengthen its balance sheet within the next 60 days. This is critical as the carrier’s plan to deploy 23 new aircraft this year would cost some RM6 billion.

OUCH!

So it is true, what people are saying.

TF is so very cunning,

He can sell fridge to the Eskimos,

Disneyland to Walt Disney,

Virgins to Richard Branson,

and last but not least,

MAS to Khazanah.

Air Asia : "Now Everyone Cannot Fly"

Source: http://syedsoutsidethebox.blogspot.com/2012/03/air-asia-now-everyone-cannot-fly.html

Tony Fernandez took over Air Asia in 2001. In 11 years of rock and roll growth, Air Asia has become the largest low cost carrier in Asia. This is a fantastic achievement by any measure.

However the intermittent announcements by Air Asia that they are cutting routes indicates not everything is going on as planned. I hope they do better. We really want our Malaysian companies to do well and succeed. It is good for the country and for all of us. Maybe 11 years down the road a reality check is due.

The frequently heard comment even among Cabinet Ministers is that Air Asia flies in about 10 million visitors to Malaysia annually.

A top CEO of a conglomerate pointed out recently that many of these passengers were "stolen" from MAS. There is much truth to this. In the past few years, even my family and I have travelled almost exclusively on Air Asia. Before we used to travel on MAS. So to say that Air Asia flies in an extra 10 million "new" visitors into Malaysia is perhaps quite off the mark. They have actually taken business away from MAS.

Air Asia does take the Nobel Prize for publicity stunts, aggressive ads and staying firmly in the public eye. Do you all remember when Bali suffered the bomb attacks? People just stopped going to Bali. Stepping up to the plate, Tony Fernandez announced that Air Asia would provide one million free tickets for flights into Bali. (The return flight saya tak tahu - usually they charge higher fares for the return flight). Immediately Tony Fernandez received huge publicity and the everlasting gratitude of the people of Bali.

But did anyone stop and figure things out a little ? One million free tickets is a lot of flights. Considering an Airbus A320 seats 140 passengers, that works out to 7142 flights. If AA flew just one flight a day to Bali, it would take 19.5 years to give away all those one million free tickets to Bali. Surely a lot of gimmickry was involved. It was a publicity stunt. The fact that the headline grabbing announcements were made while the ashes of the Bali bombings were still warm does exhibit some ruthlessness.

Similar to the claims of having brought in 10.0 million visitors to Malaysia.

Then Air Asia also went head to head with MAS on many routes, including in Sabah and Sarawak. In the face of AA's stiff competition, MAS retreated from these routes. AA became the monopoly operator on some of these air routes. Now Air Asia themselves are cutting back and shutting down these 'unprofitable' roots. So from "now everyone can fly" it has become "now everyone cannot fly" on some of these air routes.

A few days ago I also received this sms from someone :

"Air Asia is in mess. Biz model not working. Can't fly to Brisbane and Qatar for not paying. Singapore not gonna service their Airbus."

If true this can be quite serious. The fact that Air Asia has been cutting some routes entirely is no mere coincidence. I also think that the recent share swap where Air Asia has become a shareholder in MAS is perhaps a lifeline for Air Asia. I dont think it adds much value to MAS.

I received another sms from another former top gun in our corporate circles. The sms said :

"I luv ur Air Asia Mas conversation (btw a little bird whispered to me that the MAS share swap with AA comes with NO due diligence #*?- go check out). Yes - they were appointed during Badawi's time. Was Azman Mokhtar a "sizzling" investment banker b4 joining Khazanah? Smith Barney apparently calls him a "Duffer" - find out when he was in Smith Barney what was his outstanding achievements? Then Bina Fikir? Asset unbundling? In ***** we say "angkat kain sarong jual semua". Also if you look @ BOD of Khazanah you have mostly Melayus who failed - Azlan Hash*m one of them."

I received this sms after my post on Khazanah Nasional. So the MAS share swap with AA was done without a DUE DILIGENCE? If so, that is not very prudent at all for MAS.

But why would super duper, high flying Air Asia enter into a share swap with MAS? Especially without a DUE DILIGENCE exercise? Maybe Air Asia does need to enter into a share swap with MAS in a hurry. They bought 200 Airbuses last year and are cutting routes at the same time. That does not sound right at all.

For example MAS has good technical back up and repair facilities for their planes including the Airbus. If it is true that "Singapore not gonna service their Airbus" then of course Air Asia's tie up with MAS will assist in servicing the 200 new Airbuses.

In the past AA has built up a not so good reputation of not paying their bills on time especially to MAS for technical services and Malaysia Airports for airport facilities. I hope this share swap does not result in MAS holding the short end of the stick again. MAS is a taxpayer owned airline.

Somehow I get the feeling that the MAS - Air Asia share swap is the beginning of another flight into the unknown for MAS. I also get the feeling the folks in Air Asia have their flight paths mapped out a bit more carefully.

AA's business model based on breakneck growth may have to be relooked. The pace is perhaps really breaking their neck. I think there is a huge market that really appreciates the services provided by AA. Some fine tuning and clear focus on better delivery should take them to greater heights.

MAS RM2.52 BILLION LOSS: SHORT TERM GAIN, LONG TERM LINGKUP

Mother ship is sinking!

“Old Man” wrote on March 2, 2012 at 12:19 am;

“As I see it, it is all convenient creative accounting.

Take a hit in 2011. Charge provisions for 2012 expenses and some mysterious expenses in the 2011 books and:

1. Justifies the illogical actions already taken.

2. Justifies the harsh actions planned.

3. When 2012 ends, a nice recovery (comparing to 2011) can easily be shown.

Oldest trick in the books.”

To further emphasize on how serious the issue below

http://syedsoutsidethebox.blogspot.com/2012/03/proton-loses-money-mas-loses-money.html

we had earlier written an article on Friday, 5 June 2009 as summarized below:

6 MAJOR THINGS THAT MAS SHOULD HAVE HEDGED INSTEAD

1.   MSS – MAS Mutual Separation Schem

Rather than retrenching the staff that cost the PUBLIC a cool RM 500 million in 2006, MAS    

could have adopted the following strategy (still relevant now) to resolve MAS problems faced     

then by:

a.  Spinning off Engineering and Cargo Division (thus reducing the staff numbers by nearly

      6000 but with ZERO cost)

b.   LIFO: Last in, First Out (NOT FIFO. First in, first out whereby many employees who were   

     near retirement age were retrenched according to one standard formula instead of another     

     alternative option)

c.   Engaging the much proven local expert to carry out third party audit / surveillance and

    propose recommendations (NOT the expensive and yet unproven Foreign Consultant)

Based on the FY2007 Financial report, MAS employees strength were reduced from 18,641 (2006) to 17,991 (2007) but staff costs escalated from RM 1.872 billion (2006) to RM 2.001 billion (2007). So where are the cost cutting measures?

After all the over hype BTP (Business Transformation Plan), sure enough they are now facing bigger problems because instead of looking on intrinsic quality and efficiency, they brought it more new personnel (again with zero aviation knowledge), so much so that MAS is now top heavy, sluggish and rather than being the leader, they tend to trail Air Asia business strategies (remember the advertisement colour scheme, ELF (Everyday Low Fares) etc, etc.

     

On the MSS, this is what the smart IJ and team could have done in 2006 instead;

Thursday, 03 November 2011 11:05

KUALA LUMPUR: Hong Leong Bank Bhd has embarked on a voluntary separation scheme (VSS) as part of its consolidation exercise towards growing its newly enlarged entity.

The VSS payment formula is based on a VSS multiplicand that ranges from 1.4 (for executives) to 1.6 (for non-executives) multiplied by the length of service (capped at a maximum of 22 years) multiplied by the basic salary or 50% of total monthly salary until retirement, whichever is lower.

2.   Capital injection of RM 3.67 billion in 2007.

With reference to MAS 5 year financial performance ended 2007, there was a huge increase in Cash & Bank balances in 2007 in excess of 3.67 billion as compared to 2006.

Questions:

♦    Where does the huge capital injection of RM 3.67 billion comes from?

♦   Why MAS need to borrow 859 million when they have sold fixed assets for 594 million and increase the shareholders equity to 3.9 billion in 2007 from 1.8 billion in 2006?

♦   Why do MAS need to hold 5.25 billion in Cash & Bank balances whereas in the past 5 years, their average balances were only around 2 billion?

From the above performance, it clearly illustrated that in FY 2007, profit of RM 852 million was not gained from operations but ‘creatively’ generated by selling her fixed assets and borrowings of RM 859 million.

3.   Continued purchase of A380 and late decision on B737-800 orders in 2008.

Even though A380s were ordered circa 2005, MAS missed a golden opportunity to cancel the order in 2007 because of manufacturing defects faced by Airbus. MAS has been extremely lucky that the A380 were further delayed to 2012. Imagine what would happen if MAS had the aircrafts now especially with the severe global economic downturn, we could have been worst off compared to SIA, Qantas and Emirates.

A former MAS MD who has been keeping a very close eye on MAS had said in June 2006 that “their argument is that SIA, Emirates and Qantas have it, so we too must have it to be (in sync) with the market” demonstrates poor business sense and justification.

4.   Safety Issues

Two very serious incidents caused by MAS in 2008 which involved Saudi Arabia's B747-300 (wet leased from Air Atlanta) that caught fire in Bangladesh (subsequently written off due damaged beyond repair) and another Saudi Arabia B777's extremely expensive damages on both engines.

Yet, not many personnel have been informed about the real cause of these expensive and potentially fatal incidents and the preventive measures to be taken to avoid similar incidence.

5.   Fuel Hedging

As at 19 February 2009, the Group has entered into various fuel hedging transactions for periods up to 31 December 2011 in lots totaling 17,350,000 barrels.

Thursday March 5, 2009 (Another IJ and team brilliant moves)

PETALING JAYA: Malaysia Airlines (MAS) stands to chalk up close to RM3bil in hedging costs over the next two years while its competitor AirAsia Bhd enjoys the benefits of lower crude oil prices, analysts say.

An analyst estimated that MAS was currently sitting on a collective paper loss of around RM2.8bil for financial year 2009 and 2010 as a result of its hedging activities.

6.   I rest my case!

As at Dec 31, 2007, MAS had RM 5.25 billion in cash and bank balance and as at Dec 31, 2008, MAS had a cashpile of RM3.57billion. Where has the RM 1.68 billion gone to???? (Dec 2011 – less than RM 1 billion)

Why buy an airline that normally gives a return of 2 – 5% p.a.? The cash will be better spent if MAS buys back GE Engine Services which can easily give a return of 20 – 30 % p.a.?

The challenges and recommendations.

a.    This incomprehension has to be contained, if not eradicated at all costs or it will lead to a vicious cycle of self-destruction.

b.   We must welcome challenge and conflict as a source of creativity and learning opportunities.

c.   We need above all else, world-class management and work practices. We need to routinely consider the unthinkable and the business we are in, even when things appear to be going well.

d.   Ultimately, we are responsible for what we do and for what we don’t do.

2 years 9 months now, they woke up to face the most serious and crucial realities of the present. It is a NATIONAL TRAGEDY indeed!

Original here

MAS’s response here

More idiots here

MR. PM, CAN WE PLEASE STOP THIS NONSENSE?

7 REASONS WHY THE PRIME MINISTER SHOULD STEP IN NOW AND

FACILITATE KHAZANAH TO REVERSE THE SHARE SWAP

BETWEEN MAS AND AIR ASIA

1.            THE SHARE SWAP EXERCISE WAS AN OBVIOUS CONFLICT OF INTEREST

AND IF THE GOVERNMENT CANNOT SEE THAT, THEN WE HAVE SERIOUS GOVERNANCE ISSUES IN OUR INSTITUTIONS OF INVESTMENT.

Most citizens and all that are watching this fiasco know how seriously flawed the share swap deal is. For KHAZANAH and the government to try to justify its merits, is taking the rakyat for being fools and would further erode the confidence in the ruling government and its ability to make the right decisions. This will really test the resolve of the Prime Minister in making tough and correct decisions which would gain the respect of the people and augur well for the country in terms of its ability to admit wrongs and correct them.

2.      MAS WAS ‘PROFITABLE’ FOR 4 YEARS IN A ROW FROM 2007 – 2010 AND SO WAS AIR ASIA. WHY DO YOU NEED TO DO A KNEE JERK SHARE SWAP JUST BECAUSE THE FY2011 RESULTS WAS NOT POSITIVE?

The share swap was being done after the announcement of a bad 1^st half year results and was done in haste to supposedly save MAS. What is ironic is that MAS had reported ‘profits’ from year 2007 – 2010 and therefore if we were to use the profitability angle, why should KHAZANAH do this deal at all. The issue was of course of cash-flow and if we think that Air Asia was good then we have not read their accounts correctly. They too have cash-flow problems, if not now but in the very near future so it was obvious that this deal was done with knee jerk reaction and timed to take advantage of the reporting of bad results from MAS to undertake the share swap. It looks very sinister and opportunistic.

3.      IN ANY CORPORATE EXERCISE, THE ONLY WAY TO HAVE A COMPETITOR ON YOUR BOARD IS IF THE COMPETITOR PAYS MONEY TO ACQUIRE SHARES AND EITHER MERGES OR BUYS OVER A COMPANY VIA A FRIENDLY OR HOSTILE TAKEOVER.

KHAZANAH must be INSANE to think that to save MAS is to invite its ‘commercial enemy’ to come on its Board and be privy to all its trade secrets and strategies in order to help it. In business you either fight to outdo your competitors or exit the business if you cannot fight. Otherwise, in this case of MAS being a public listed company, either a friendly or hostile takeover of the company is done via the acquiring company mopping up shares from the stock market to a level where it can trigger a general offer. 

THIS HAS TO BE DONE BY WAY OF BUYING UP SHARES OF A CERTAIN PERCENTAGE IN CASH AND NEVER THROUGH A SHARE SWAP WHERE MANIPULATION AND COLLUSION CAN HAPPEN ESPECIALLY IN THIS CASE WHEN THE ACQUIRER AND THE ACQUIREE GOT TOGETHER SECRETLY TO NEGOTIATE A CORPORATE EXERCISE OF PUBLIC INTEREST.

Any sane person can see this is an injustice and abuse of process so IF KHAZANAH DOES NOT REVERSE THE SHARE SWAP, THE BIGGER IMPACT WILL BE THE POLITICAL AND ECONOMIC RAMIFICATIONS TO THE GOVERNMENT FOR NOT UNDOING THIS BAD DEAL.

4.  KHAZANAH HAS FAILED TO SAFEGUARD PUBLIC INTEREST. IF THE AUSTRALIAN NEWSPAPERS CAN ADMIT A MISTAKE ON PRINTING AN ERRONEOUS REPORT, THAN FOR US TO BECOME A TRULY FIRST CLASS COUNTRY, KHAZANAH SHOULD ADMIT ITS MISTAKE ON THE SHARE SWAP AND REVERSE IT.

KHAZANAH has a duty to protect public funds and national net worth of the country. By continuing to press on, KHAZANAH has failed its duty and charter to the people who are relying on officers of the highest integrity to protect and enhance the country’s net worth and assets.

If the Australian press can admit their reporting mistakes and reverse or print a retraction, there is nothing wrong with KHAZANAH ADMITTING ITS MISTAKE AND REVERSING THE SHARE SWAP AND RETURNING THE ASSET TO THE PEOPLE OF MALAYSIA. By not doing so, when there is clear evidence of questionable intent, action and vested interest, shows we are moving towards being a banana republic where we can justify anything that we do whether right or wrong.

5.     KHAZANAH HAS CREATED A MAJOR INVESTMENT BLUNDER BY A CREATING A PRECEDENCE WHERE A NATIONAL ASSET CAN BE COMPROMISED AND IN ANY OTHER INCIDENT COMPROMISING A NATIONAL ASSET IS AN ACT OF TREASON.

What KHAZANAH has done is to create a dangerous precedence where an entrepreneur can acquire a national asset without having to put a single sen or RM on the table. If this is the case, since there are many, for example oil and gas entrepreneurs, can they come to the government and say that they want to swap 30% of their company for 10% of Petronas?

In any other deal once an entity is classified as a national strategic asset, it cannot be owned by individuals or entrepreneurs.  

6.      IT IS TIME FOR THE COUNTRY TO APPOINT TRUE PROFESSIONALS TO RUN COMPANIES AND STOP THE ‘4^TH FLOOR BOYS MENTALITY’ AND RESTORE CORPORATE ORDER IN GLCS BY NOT HAVING ANYMORE PARACHUTE CEOS AND YOUNG UPSTARTS RUNNING OUR NATIONAL ASSETS.

In order for the country to progress, every sector of industry must be run by professionals who have invested their time and energy to be the best in their industry. They should be promoted within their industry where they obtained the seat of power by garnering and earning the respect of their peers, staff and industry watchers. True successful companies globally invest heavily on succession planning to ensure the best from within them rises to the top to lead their ‘troops’ into the ‘ commercial wars’.

We have to stop parachuting individuals into so many GLC CEO positions that caused a whole generation of professionals to be bypassed by this practise. Most if not all of the current young upstarts come from either rich families or ‘academic’ background and have little appreciation of what happens in the engine room of most industries. They will impose their ideas not through sound and tested innovations, but by abusing the power of their positions as they will hide their lack of knowledge through coercion. These parachute CEOs have no track record in the industry.

IF THE GOVERNMENT IS INTERESTED TO KNOW WHY THERE IS A BRAIN DRAIN IN THE COUNTRY, THIS IS A MAJOR CAUSE OF IT, I.E. WHEN TRUE PROFESSIONALS CAN BE BYPASSED AND USURPED BY OTHERS WHO DO NOT HAVE THE CREDENTIALS IN THEIR INDUSTRY.

7.        KHAZANAH SHOULD STOP MEDDLING IN OPERATIONAL COMPANIES WHEN THEY HAVE NO CLUE AND ARE INCOMPETENT TO MAKE DECISIONS.

KHAZANAH needs to stop making incompetent decisions, period. Meddling in operational issues when you have already appointed a CEO whose day to day work is to eat and breathe the company that they are leading is tantamount to undermining corporate hierarchy. Should a change of strategy be needed then a change of CEOs would do the trick but make sure you select someone from within the industry who would have no excuse for underperforming if chosen.

What is practised in global corporate operations is that they could have a diverse BOARD OF DIRECTORS that are entrusted to serve the best interest of the company and asking the right questions and sharing cross industry experience in order to ensure check and balance on management actions and recommendations.

Ripping Off Malaysia Airlines

SUNDAY, FEBRUARY 19, 2012

Ripping Off Malaysia Airlines

Source: http://syedsoutsidethebox.blogspot.com/2012/02/ripping-off-malaysia-airlines.html

Do you recall this news last year ?

MAS, Qantas set to forge closer ties

• Malaysia Airlines and Qantas Airways Ltd are holding talks on closer partnership in the run-up to the national carrier joining the One World Alliance, sources said yesterday.
• “Talks are ongoing regarding a more comprehensive relationship with the airline (Qantas). The plan is to have something in place before the One World programme kicks in,” an industry source told Business Times.
• It is understood that the initiative is part of a wider plan to revive the fortunes of the national carrier. For the nine months ended Aug 30, 2011, MAS suffered a pre-tax loss of RM1.2 billion against a pre-tax profit of RM23.73 million in the same period a year ago.
• The market has been abuzz with the posibility of a MAS-Qantas tie-up

First of all I suspected something was seriously not right with this proposal. Why would a gwailoh airline like Qantas from Australia suddenly want to form partnerships with Malaysians? Especially when MAS itself was suffering losses of RM1.2 billion? There can only be one reason. Do read on.

I also suspected that some "con"-sultan must have thought up this idea and sold it to the same GLC dunggus who got liwatted by the Arabs and Sri Lankans over the Medini fiasco. Ini mesti lagi satu round cerita "GLC bodoh" kena liwat oleh con-sultan.

Well folks, here is the reason. Qantas Airlines is also facing financial difficulty. They have been losing money big time. Here is the news:

• "Qantas on Thursday reported an 83 per cent slump in half-year profit due to rising fuel costs and $194 million in losses related to the two-day grounding of its fleet last year.
• THE jobs of 1460 Qantas maintenance workers, including up to 400 in Brisbane, will be put under review today as the airline announces hundreds of cuts in other areas of its business.
• Qantas is also expected to announce the loss of hundreds of staff in other areas, including flight and back-office roles, as it scraps unprofitable routes.
• Qantas, which announced 1000 job losses last year, says the heavy maintenance jobs will not be moved offshore, despite union fears work could be shipped to Singapore, the Philippines, China and Hong Kong.

Qantas is making losses. MAS is making losses. So why would Qantas want to approach MAS (versus say SIA or Garuda or Thai Airways who also operate in this region) for a partnership?

They wont come unless they smell money - the bottomless pit of Malaysian taxpayers money which is being burned by the GLCs. MAS is a GLC. As always the 'con'-sultans will advise the GLCs to pump more taxpayers money into the business.

Not only Qantas is in financial trouble, the Australian low cost carrier Air Australia just left their passengers stranded in Phuket and grounded all their planes. Here is the story :

• Air Australia and its administrator were in discussions well before the airline ran out of money.
• 4000 of Air Australia’s customers are now being told to make their own way home after it went broke in the early hours of this morning.                               (Editor's note: Sound and look familiar?)
• The break point is claimed to have been the refusal of a jet fuel supplier to refuel an Air Australia flight from Phuket to Melbourne last night   

Let me give some free advice to MAS. Please dont listen to your 'con'-sultans if they advise you to form any alliances or tie ups with Air Australia ok. The airline has gone bust.

Further reading:

http://mastroubleshooters.blogspot.com/2012/02/national-tragedy.html