KHAZANAH Stop “ANAKTIRIKAN” MAS! How about LSG Sky Chef Brahim?

The Star reported today that “that Khazanah, which owns a 69% stake in MAS, is said to have concluded negotiations with AirAsia chief executive officer Tan Sri Tony Fernandes to come up with a deal to save the national carrier”.  “Fernandes is to get 20% equity in MAS under the deal that is to be signed this week, with some sources saying it has already received the Government’s approval and could be inked today.”

In my immediate respond to the above, may I pose three innocent questions to Tan Sri Datuk Azman Hj Mokhtar: Why these so-called negotiations of the share swap were done with such secrecy? Why was there a need for such a rush for this so-called share swap to be signed by this week? Is MAS really in dire strait of collapsing or other airline? 

It must be noted that the primary objectives of Khazanah Nasional Bhd (Khazanah) are:

  • To hold and manage the investments entrusted to it by the Government of Malaysia; and
  • To undertake new investments where there are strategic opportunities, in new sectors and in new markets

Why is Khazanah, which is headed by Tan Sri Datuk Azman Hj Mokhtar, was not interested to look into why MAS was left in such a state and AirAsia “is flying so high” (from what I can see from all the moves)?

Since Khazanah is entrusted by the Government to “hold and manage the investment”, why is Khazanah not interested to look into how and why the growth of MAS was stifled directly or indirectly by the unseen hands!

Surely Tan Sri Azman is fully aware of the lucrative catering business in the airline industry in Malaysia was taken from MAS and handed over in a silver plater to LSG Sky Chef Brahim Sdn Bhd (LSG) during the Pak Lah’s administration sometimes in 2004 to service and cater for all National and most International Airlines flying to and from Kuala Lumpur. It is believed that the contractual terms are one sided and unusually long!

Why is Tan Sri Azman not interested in finding ways and means to take back this lucrative business of servicing and catering for all airline in and out of KLIA with government help in the national interest for MAS? Why when AirAsia FAKS gave up Rural Air Services (RAS) PREMATURELY, Khazanah did not demand for the return of the subsidy of RM65 million from FAKS? Why Khazanah did not demand for the payment of RM35 million, which was incurred by MAS to make the 7 aircraft airworthy for RAS, from AirAsia FAKS? These are enough glaring facts for Tan Sri Azman to ponder!

Coming back to LSG. Who has the control stake in LSG? We all should know who is that person related to? Now Khazanah seemed to be blaming MAS management for all the problems MAS is facing. This is most unfair and irresponsible of Khazanah, a national incorporation entrusted with looking after are national wealth. Of course, MAS management is not perfect just like any other company. Khazanah’s chairman, Tan Sri Azman Mokthar, should touch his heart and ask why MAS is in such a sorry state? Was it engineered or just sheer incompetence or by chance?  By whichever management standard one would like to set to measure MAS performance, it falls squarely on Khazanah for failing in its national duties to address whatever problems MAS was facing at the material times. For a start, Khazanah should stop the handing over of the lucrative business of servicing and catering to LSG but it didn’t lift a finger to stop. I hope that Khazanah was not instrumental in the whole exercise of LSG’s take over of the said business.

I am aggrieved that MAS, our national carrier, has been “dianaktirikan” by certain quarters. Please take note that most, if not all, low cost airlines in America, India and last year Oasis in Hong Kong have collapsed. Their national government did not lift a finger to provide financial helps or for that matter to provide them with special rights to owe airport taxes with a discount upon settlement. Quite rightly so because they are public listed companies and should be treated like one. Surely we cannot expect our government to be a financial ambulance for public listed companies!

I dare Tan Sri Tony Fernandes or Tan Sri Datuk Azman Mokthar for that matter to say that AirAsia has been better managed with great business plans with NO direct or indirect government help and the others collapsed low cost airlines did not have the same criteria. Hence, the share swap was made in the national interest!

I pray that the government will step in to investigate this share swap and the airlines servicing and catering business in KLIA with the the sole view to put right the anomalies in the airline industry so that we can be proud of MAS again as our national carrier and ambassador,  like before when MAS was under the care of Yg Bhg Tan Sri Aziz and the like. Stop the rot before it is too late.

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22 thoughts on “KHAZANAH Stop “ANAKTIRIKAN” MAS! How about LSG Sky Chef Brahim?

  1. anonymous

    YB I heard the prices charged LSG to MAS are very high and contract for more than 10 years. please check. Thank you for highlighting.

    Reply
  2. Staff_MAS

    Thanks to the brilliant WAU strategy proposed by BinaFikir, MAS has been nothing but hidup-segan-mati-tak-mahu over the years. And now, Danny aka Rashdan, the ex-co partner of BinaFikir will be appointed as the new COO of the merged AirAsia-MAS. Khazanah has failed miserably under stewardship on Azman Mokhtar and his boys and why on earth we, the Malaysians, are keeping our eyes closed and allowing this horrible-corporate-disgusting-event to happen?

    Reply
  3. anonymous

    Badawi is the chairman of MAS if you all have not known. So it all falls into place. Isn’t it?

    Expected. Remember ECM Libra?

    Reply
  4. Con Air

    It is becoming clearer now. I am not surprised of the share swap between MAS/AirAsia because Badawi is the Chairman of MAS. No wonder Munir Majid also cannot take it and resigned as chairman. But Munir Majid was instrumental in getting Badawi appointed, I think.

    I do remember ECM Libera, a household name in Malaysian politics under Badawi.

    The share swap just sting, sting, sting and sting.

    Reply
  5. tst

    1.As of the 1st Quarter of 2011, Air Asia (AA) debts amounted to 7.7 billion with cash balances amounting to 1.7billion.

    2. In August 2010. AA announced a deferment of their proposed aircraft purchases but sometime in June 2011 they reversed their decision and proceeded to place an order for an additional 200 new aircrafts at the Paris Air Show.

    3. As of 31 March 2011, based on data from their 1st Quarter report, AA’s capital commitments stood at RM 19 billion. With the above announcement, an additional RM 54 billion will be added as Capital Commitments as implied in this article:
    http://biz.thestar.com.my/news/story.asp?file=/2011/6/24/business/8966621&sec=business
    the proposed CC of roughly 75 billion will be spread over a 15 year period ending 2026. In other words,AA has to ratchet up its earnings to an average of 5 billion per annum to meet its future dues. From 2006 to 2010. AA’s revenue grew by 10 fold from 110 million to roughly 1.1billion, an average growth of RM 200 million per annum.

    4. Its cash trove rose 6 fold from approximately 300 million to 1.7 billion but its debts skyrocketed from 1.05 billion in 2006 to 7.7 billion in 2010, an increase of 700%. One gets the ghastly feeling that this is a debt burden that is spiralling out of control.

    The schedule for the aircraft delivery is as follows with the Neo being received from 2016 onwards:
    2012 = 14
    2013 = 13
    2014 = 18
    2015 = 19
    2016 = 19 (4 Neo)
    2017 = 14
    2018 = 18
    2019 = 19
    2020 = 20
    2021 = 21
    2022 = 23
    2023 = 24
    2024 = 24
    2025 = 24
    2026 = 9

    To compound the issue, the world economy including Asia’s will be into another maelstrom and air travel will invariably be hit:
    http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/08/02/bloomberg1376-LPCGED6TTDS201-7DB69T4DDVIF7J1IS4SUCOAULO.DTL

    and we probably will have a white elephant in NS soon give or take three years and another one of my dire predictions I made in when commenting on AA in 2009 materialises.

    Of course AA can cancel orders but contract penalties will be onerous. In any case, TF is betting on the assumption that being a big borrower will shield him from foreclosure as banks will be leery of bearing heavy losses! bUt then a sizeable chunk of those loans are being held by Malaysian banks and in the worst case scenario, the government and the taxpayer will have to pick the tab to avert a financial meltdown cascading down the AA slope.

    Warrior 231

    Reply
  6. Now Everyone can do a quick kill

    tst and others

    you all are spot on. you all understood what this share swap is all about. What I fear most is the share swap is to help a few personalities to make a quick kill.

    Why the rush if there are real merits in this share swap? So Azman Mokhtar why are you so eager to rush this? Remember WAU? Axman Mokhtar, Nor Yakob and Rashdan. I rest my case.

    Reply
  7. WAU

    Rashdan the new COO for the new AA/MAS! God forbids. Ask Rashdan, Tan Sri Azman and Nor Yakob what is WAU. Disgusting is the words.

    The trouble is Tan Sri Azman mokthar is not fit to head Khazanah. Nor Yakob is also not fit to be a member of Khazanah Board. Tan Sri Azman is well connected to the then 4th floor. Nor Yakob should still remember is famous ex-political secretary, Hasbie Satar, who has been charged for money laundering.

    Reply
  8. TONTO

    Well done, YB. I have been watching you and you are the most consistent MP.

    Why is the opposition keeping quiet… simple, they are allowing the country to go bankrupt first so that they can easily blame the current govt for their failure.

    There is a joke going around town that we used to have an Idiot as the PM and now we have a PM with a lot of Idiots as advisers.

    Time to save the country, People.

    Reply
  9. Hj Azman AAziz

    Why is PM Najib allowing these lopsided malpractises to proceed? If IMalaysia is to ever succeed, AMokhtar tenure at Khazanah and AA MAS share swap must END now. If this is allowed to go on, BN will lose its support in the next GE13. Memories of Zakaria ‘Klang Palace’ and Toyo ‘Broomstick’ still fresh in our minds. By the way, If these are secrecy deals, how come everyone knows about it – there’s a mole leaking out the news on purpose.

    Reply
  10. ikan bilis eating up ikan kurau

    tst/Warrior 231and others

    I am glad that all of you still care for this country national carrier (MAS). This share swap deal only benefitted AirAsia. Just ask yourself this questions: How AirAsia is going to cope up with the deliveries of its 200 Airbus beginning next year. 200 airbus flying to only 13 destinations. Don’t tell me AIrAsia is going to deployed 11 airbus for each destination?

    If AirAsia is doing that well, why it is flying only to 13 destinations when it has managed to bullshit its way to get 32.

    The share swap deal is to save AirAsia. I agree with YB that this is a case of ikan bilis eating up ikan kurau. Another ECM Libra in the making.

    I hope that the PM will see through all this and stop it.

    Reply
  11. Dr. Mohamadon Abdullah

    I hope many more Member of Parliament like YB Wee Choo Keong. Please raise the matter in Parliament and debate it thouroughly and objectively for the benefit of the Nation. After all, Members of Parliament when in the August House is the Government. Do away with the attidtude of “scoring points’. It does not do good to the Country and the Rakyat.

    Reply
    1. weechookeong Post author

      Doc,

      Thank you for your comments. Please rest assured that I will definitely bring up this matter this coming October session. How can MAS survive when profiting section being taken out and given to you know who lah.

      May I take this opportunity to wish you and family Selamat Berpuasa.

      Thank you.

      wee choo keong

      Reply
  12. anak gombak

    A certain individual was planted into khazanah for the benefits of destroying GLC…so then certain individuals in their circles will eventually be brought into those ‘ailing GLC’….. lastly full control.

    Peasents like us should stop those elites in politics and business world from plundering whatever assets that belong to the country and the rakyats.

    Can we ( majority )really stop those elites criminal ( minority ) ??

    note: sorry sdr had to delete the name for obvious reason. thank you.

    Reply
  13. Pingback: Taxpayers’ money used to enrich AirAsia? | Jebat Must Die

  14. Pak Zawi

    YB,
    It is good that you are raising this in Parliament in its next session. Though it may not change things much, hopefully the other MPs will wake up and discuss this issue to avoid another massive rip off by these modern day plunderers of the nation’s coffer. Malaysia may have not much asset left and time is definitely not on our side given the swiftness and secrecy such a deal being made.
    I wish you the best of luck.

    Reply
  15. Abang Hamzah

    I suspect some GLCs are “being milked” to benefit certain cronies condoned & protected by Khazanah. This is where politics & business present a “disastrous mix” for Company like MAS.

    Reply
  16. Anonymous

    What more..??Now Firefly was asked to operate as full service airline…a silent way to ‘kill’ Firefly also.

    Reply

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