Was Tony trying to spin again?

Tan Sri Azman Mokhtar, Tan Sri Md Nor Md Yusof, Tan Sri Tony Fernandes, En Mohammed Rashdan Yusof

“Tan Sri Tony Fernandes has denied that AirAsia benefited from the RM249 mil in Government subsidies paid to Fly Asian Xpress (FAX) for rural air service operations four years ago. Fernandes said that although the shareholders of FAX were similar to AirAsia, they ended up losing almost RM5 mil of shareholder capital owing to the wind-up costs of FAX.” Read HERE for full report. Was the report the truth of the situation or another spin by Tan Sri Tony Fernandes? 

Below were the comments from a reader of yours truly’s Blog.  The views expressed were that of the reader “OLD Man’ on 7-11-2011.

Tony, Tony, Tony, I wish you would stop all the lying and twisting the facts. Your recent statement that AK did ot benefit from FAX subsidies is an insult to the intelligence of many. Your mother is turning in her grave with all the lies you are spewing out.

Lets study the facts:

1. RAS was awarded to AK to operate.

2. AK sub-contracts it to FAX making FAX the sole operator of RAS

3. The material shareholders of FAX are the same as AK.

4. FAX charges AK for operating RAS with a overrider to cover its other “expenses” including such above board items as financial charges etc.

5. AK claims from the Government subsidies to cover the losses incurred by FAX also with a “little” on top to cover AK administratives and other costs.

6. So in effect, neither AK nor FAX sufferred any losses for operating RAS because the Government undewrites the losses.

7. When MASWings operates RAS, MASWings only receives subsidies from the government to cover their operating losses i.e.total cost less revenue and other expenses that will not be born by the Government.

8. MASWings operates RAS with newer equipment, at far superior service, with more frequencies and destinations. These are all at a higher cost now.

9. The subsidies received by MASWings is only HALF of the amount you received.

From the above, one can only conclude that the “charges” over and above the base costs makes up at least half of the amount claimed.

So one can also conclude that MASWings is more competent than FAX to operate RAS.

You are now spinning that AK did not benefit from the subsidies and it was FAX. We are playing with semantics here.

Froms the facts above, one can also conclude that some of the residual “losses” incurred as a result of winding down by FAX is nothing more than the cost of you folly. ifor one do not believe that you dis not factor this in your claims to the Government.

I would like to remind you that during the time you were pitching for RAS, you declared so proudly that AK can operate RAS at a better service profitably because your low cost model fits it well. You hoodwink the states promises into backing your demand for RAS. In the first place it was AK how come it became FAX, water under the bridge of course.

Lets face facts, it was never your intention to operate RAS in the first place. You went for it as a means of getting an AOC. Well getting the ever so precious AOC is not a benefit, what is?

Having 9,000 staff who carried 130M pax and won numerous awards does not make you a saint. It has no relevance to the subject at hand i.e. the MYR249M subsidies received by FAX to cover losses.

You, I and many knows that passing the AG’s Office audit is by no means a measure of the rightiousness of raw deal everyone else got out of this.

I would like to also remind you of how you also once proudly declared that the Government was being unfair to you and that MAS thrives on Government protection and subsidies.

You are a nothing more than an unscroupulous greedy


What Tan Sri Tony Fernandes should also clarify:

  1. During Fly Asian Express Sdn Bhd (FAX) operations of Rural Air Services (RAS), how FAX cannibalised an aircraft for spare parts, the 6 were grounded due to un-airworthiness?

  2. The poor RAS provided by FAX;

  3. Why was there any necessity for AirAsia Bhd to sub-contract the RAS to FAX?

  4. Why FAX had to dump RAS back to MAS?

  5. Why soon after dumping RAS to MAS FAX had to change its name to AirAsia X Sdn Bhd?

  6. How he and/or Air Asia X Sdn Bhd persuaded Badawi’s Administration to grant Air Asia X Sdn Bhd the Air Operation Certificate (AOC) when it was just incorporated for only 2 months?

  7. Having charted bad poor records under RAS, how he and/or AirAsia X Sdn Bhd “persuaded” the Badawi’s Administration to keep its AOC when it should have been withdrawn because of such bad track record? 

  8. Thereafter, how he and/or AirAsia X Sdn Bhd was awarded with 32 international routes like London, Paris, Gold Coast, Melbourne and etc by the Badawi’s Administration and to operate 13 routes which routes were in competition with MAS?

  9. Last but not least, how much AirAsia Bhd or AirAsia X Sdn Bhd actually charged and received from the Badawi’s Administration, which Tan Sri Tony Fernandes has been quoted to have said that “AirAsia received little help from Badawi’s Administration?

Read HERE, HERE for related article.

34 thoughts on “Was Tony trying to spin again?

  1. MAS Spring

    He was bullshitting and he is now bullshitting. He thought that Malaysians are stupid enough to believe what he said. Prior to the Ministry of Transport announcement of the subsidy of RM249 millions for RAS to AA, Tony never revealed it. Typical pariah. Got so much help from Badawi government and he has the audacity to say he got little help from the 4th floor administration. Just a compulsive liar/spinner.

  2. kasih

    Y.ou have done a great job in following up on the MAS Air Asia swap. I take off my hat to you for consistently and tirelessly working on a matter that is disturbing the minds of the ordinary rakyat. While you are so diligently engrossed in exposing the rot Tony is doubling his effort in rushing to implement his strategy that will make him emerge as a winner and getting most benefits from the deal. He knows what he is doing is only possible in Malaysia. Certainly not elsewhere. Here, he may weave his way through like a snake but he will manage to appear like a white knight and be further glorified.
    Immediatrely after the share swap, besides Rashdan another one by the name of Abd. Aziz Abd. Bakar was parachuted from CIMB to be the Executive Vice President at ED’s office.
    Next to be parachuted was another lady by the name of Nor Zalida Ahmad , sister of COO of Air Asia , appointed VP Public Relations. Meanwhile , several senior MAS staff including the Managing Director has left. Obviously the situation in MAS is messy and ‘kelam kabut’ to say the least. Press statements are made by Tony and his partner. Alas. there was deafening silence from MAS Chairman. Has he suddenly lost his voice after the sudden crowning? He told staff at the meeting that he had to accept the appointment as a gun was placed on his head. Staff and the public at large are bewildered at Tony’s manipulation and maneuvering but are more bewildered at the continued paralysis of the powers that be. The SC and Bursa Saham are also dragging their feet on an investigation that should have ended long time ago,
    Meanwhile Tony goes on his MAS rampage. He has informed MAS staff that they should move out of Subang and move to KLIA starting Feb and finally by May 2012.
    What a strategist you are Tony. Is this to make way for your new premium airline that is supposed to start operations in May 2012 ? Now is this for your interest or MAS’.? Now , with this latest development where do you place MAS in your grand scheme of things?

  3. Hisaini

    TF’s business model is about spinning and he knows that Malaysians and the Badawi’s government were silly enough to buy them. Now with the expose by YB’s blog it is no longer that easy. Now he was trying with his nonsense to cover up the RAS subsidy. He should answer those simple questions posted by YB in this article. Ay pariah, since you have got the gift of gap, please spin your answers tothose questions posed by Old Man and YB.

  4. Hafiz

    Those in the picture were all smiling. They must be happy now that MAS is going down the drain soon. What is more important is: What the fu.ck is SC and Bursa doing with regards to the investigations into insider trading and non disclosure of the deal prior to the signing of the dirty deal. Zarina is dragging her feet for obvious reasons.

    Najib must wake up before it is too late. sack those involved in the deal that will screw MAS eventually.

  5. MAS Cabin Crew

    The pariah was still trying to bullshit his way. We have had enough of his bullshit. MAS management and Tan Sri Azman and his former partner Rashdan can buy his bullshit but not the staff of MAS. MAS staff cannot be bought. MASEUS officials can be kicked around like football because they have too muchb shit in their backyards. Too many contracts given by the management that’s why they are silence after making oen or tow statements.

    Our warning to the pariah is to stop trying to screw up MAS. He can screw AA. We don”t care but not MAS. So Aj and Rashdan, pls stop your nonsense too.

  6. Anonymous II

    YB, this was what Danny Rashdan spoke to MAS staff in the recent Townhall Session by AJ :

    Danny said :I was from Khazanah and now in MAS. In Khazanah, we saw the losses in MAS, half year is already almost 800 million and we can expect what the whole year is gonna be. But from CCF, we get a lot of synergies. It was quantified that the synergies between the two airlines can be up to RM1 billion minimum. If let’s say we share the synergies, 50-50 and that’s RM500 million for us in terms of synergies guidelines, cost saving, for example how we negotiate with Airbus. Of course TF has very strong marketing relationship with Airbus and we can leverage that for example for future advance and cash bonuses.

    The intention is willing to put the variation back to the front footing because the other fact is the government (Khazanah) is not going to invest more money into MAS. All in is more than RM4 billion invested in MAS since 2007. So this is one way to halt the progress they said is not worth. So this is a great national issue actually.

  7. Smart Dugong

    Stupid bahlol, it is not the synergies that can save money but cost efficiencies and productivity.

    Imagine with all the synergies, the leakages and wastages still continue.

    Inilah masaalahnya bila textbook dungu and kaki penipu synergise, haru biru lah jadinya

  8. Anonymous II

    YB, is Tony trying to confusing MAS staff to give him a chance to screw MAS and turn it into skeleton cow? This is the except from recent MAS Townhall spoken by Tony :

    Answer replied on Merger – We are very against the merger. We think shareholder and employees’ value would be destroyed. What I see in SIA is making a very big mistake, LH, SH and premium airlines. If you look at our history, we started Air Asia and years later with Air Asia X. We also talked about whether we merge it or keep it separate. In fact, we separated them completely. The best scenario to raise capital and finance the game is to focus and less complexity. If you put AAX and AA and MAS there, it will be a terrific recipe and in the end, it will bear result….

    In terms of revising lots of routes – whereas people would like to fly MAS to LHR etcetera but we never interlined. We never collaborate at that end and we keep it separate and keeping our measurement voice focus on doing the job, it becomes easier. So the only way we could do this so that not one shareholder from the other is benefiting. So let’s do the shares swap! If we don’t do the shares swap, there will a merger. By doing the shares swap, the economic interest is aligned in terms of both parties benefited. If MAS does well, AA does well and so are both the shareholders. So that’s the idea. So we the shareholders are very against the merger and we think that will be wronged. Airlines are very destroyed of its capital because of doing so many things……not using the equity wisely.

  9. Anon66

    Kasih is dead on with his posting, Caterham jet services to start flying from Subang next year? And now the news that MAS is going to be dropping routes like there is no tomorrow!

  10. Anonymous II

    The cancellation of Johannesburg, Cape Town and Buenos Aires including Dubai stations as MAS routes were to make ways for Air Asia X to expand further utilizing their current grounded aircrafts. This is for AA and AAX to take over MAS. People, we must get to the ground of putting forward our maximum objection towards the CCF. It is to kill MAS and its unions.

  11. MP Wee,

    Your comments are disgraceful for a Member of Parliament.

    AirAsia X has been open about the RAS issue. All our accounts have been audited by the Auditor-General’s Office. If there remains dissatisfaction, we are more than happy to have the Public Accounts Committee go through the accounts again.

    Time and time again, you have repeated your baseless allegations. Yet, each time we suggest a face-to-face meeting, you have refused to accept our offer.

    The last straw is dragging my late mother into this issue. There is no need to get personal. I am sure you would not want anyone to denigrate your family members as well.

    Once again, I extend you an invitation to AirAsia X to meet with our management team so that we can answer any queries that you have. Azran, Kamarudin and I are at your disposal. We hope that together we can lay the issue to rest.


    1. weechookeong

      Dear Tan Sri Tony Fernandes,

      Thank you for reading yours truly blog and Tan Sri’s responds. Yours truly very regret that yours truly cannot reply to Tan Sri’s reply because yours truly has been preoCcupied with the hearing of Electoral Reforms. Yours truly undertakes to give Tan Sri a reply as soon as it is practicable – most probably tonight.

      Thank you

      With. Kindest regards

      Wee choo keong

  12. Old Man

    Tony, Tony, Tony,

    Starting a new premium airline that compete’s directly with MAS (first class) is your new approach to help turnaround MAS?

    Or is this another tactic one of your tactics to get your way?

    Old Man

  13. dragon lord

    Dear MP Wee,

    we are very lucky to have an MP like you. I’ve been following your blog especially on MAS / AA issue. As Tan Sri Tony Fernandes have replied, allow me to highlight few issues:

    1. Is the repair cost of aircraft returned to MAS by FAX app. RM35m have been
    paid to MAS. If yes, kindly provide proof of payment.

    2. The decision to stop jet operations of FireFly (FF) & sponsorship of MAS to
    QPR made by the EXCO – interim caretaker of MAS before the appointment
    of MAS Managing Director. You are one of the EXCO and both decisions
    directly or indirectly benefiting you. Dont you think this is conflict of interest.

    3. FF have increase the frequency of their flight to Kota Kinabalu from 3 to 6
    flights a day, and when you sit in MAS Board suddenly FF ceased its jet
    operations with lame excuses “not profitable”. If not profitable, FF will not
    increased the frequencies not only to Kota Kinabalu but to Kuching too.
    Stoppage of this route directly benefiting AA. As FF have become a treat to

    4. As published in newspaper MAS is sponsoring RM18 M to QPR for home
    jersey while AA only sponsoring RM2.5 M for away jersey. MAS is losing
    RM800 M while AA is a profitable company. If you really concerned & sincere
    to help MAS why don’t AA take the home jersey.

    5. You (TSTF) are the champion of “LEVEL PLAYING FIELD” during Idris Jala
    is the MD of MAS but the stoppage of FF – MAS LCC the challenger of AA
    while you are in the EXCO is NOT level playing field.

    6. If the CCF between MAS / AA is for national interest, why do AA send the
    aircraft for maintenance & repair to overseas (before CCF) and not to MAS?

    Hopefully TSTF will clarify.

    ” you can fool some people sometime, but you cant fool all the people all the time”

  14. Anonymous II

    YB, bravo…..hehehe….That idiot TF cannot take the truth anymore. (hahaha) and that is disgraceful! TF, welcome to the blog that spells the truth and the truth is you are just a small boy who called someone the night before the signing of share swap with this melody “DENG, DENG, DENG, DENG, We are taking over M.A.S”.

    Fat hope you can do that. If you think you can share swap, we also can share swap in the name of your mother’s grave. Shame on you as Malaysian who can’t speak a single true word.

  15. Anonymous

    To avoid any confusion, I believe we are all agreed that AA, AK, AAX, FAX, Tune Air, Tune Hotel, Tune Money, Tune Talk, Tune Sport, Tune Tones, Caterhamam Air Asia, Catheram Cars, Caterham Jet are for all intents and purposes, ALL equal to Tony Fernandez.

  16. Rakyat Prihatin

    TF, good to see you here…

    good to see your new weekend dresses for cabin crew…it looks better than the bitch mini skirt…

    by stopping Firefly and vy attacking others (SQ) shows that you are DAYUS , PENAKUT and TAK DAK TELOQ…

    Firefly is getting known while AirAsia is getting crazy by charging insane charges (the seat selection,conv. fees and whatsoever)….

    You are saying that YB Wee is disgracefull…so you???by doing this to Malaysians you can be called noble???oh please…dont takl about Malaysia is you can even speak B.Malaysia and you stewardesses are still wearing bitch mini skirt…

  17. Rakyat Prihatin

    TF, good to see you here…

    good to see your new weekend dresses for cabin crew…it looks better than the bitch mini skirt…

    by stopping Firefly and vy attacking others (SQ) shows that you are DAYUS , PENAKUT and TAK DAK TELOQ…

    Firefly is getting known while AirAsia is getting crazy by charging insane charges (the seat selection,conv. fees and whatsoever)….

    You are saying that YB Wee is disgracefull…so you???by doing this to Malaysians you can be called noble???oh please…dont talk about Malaysia if you can even speak B.Malaysia and your stewardesses are still wearing bitch mini skirt…

    sorry…minor alteration…i’m getting anxious of this…we as a consumer cant make a choice anymore…we definitely want Firefly to fly back…

  18. Hanafiah of MAS

    Who is disgraceful? It got to be TF – the greedy liar. Twisting and turning with no respect for Malaysians. We can now see how he has been spinning to make AirAsia smell like a rose when its services and business model are so bad. The Star and MalaysianInsider have been helping him with the spinning and to put down MAS so that TF can do what he wants with MAS.

  19. Smart Dugong

    TF said “Azran, Kamarudin and I are at your disposal.”

    Ha, ha, ha, now TF knows who is the Boss.

    TF, do you think YB will come to your place to be bought.
    If you want, meet him at a neutral place lah.

    Haiya, ini pun Dugong kena ajar.

  20. Anonymous III

    Hahahahahha…well said Smart Dugong. And Rakyat Prihatian – memang dia tu tak ada telur. Kalau kan ada, dia akan buat LIVE TURUN PADANG.

  21. Smart Dugong

    Yeehaaaa. Toni sudah kena spinned by himself.

    AA – 9000 staff – revenue per annum RM 4 Billions
    MAS – 18000 staff – revenue p.a RM 14 Billions.

    So siapa pandai berniaga, siapa pandai goreng sampai hangus.

  22. Penumpang Geram

    TF is trying to teach Malaysian and i wanna know is he trying to fool YB Wee like what he has done to the Malay idiots in MAS and MASEUS???

    lets put down MASUES because they do nothing…kekadang fikir…lebih baik takde union…adakah mereka2 diatas MASEUS telah mendapat sogokan seperti projek dan hal2 lain hanya untuk menutup mulut???

    well said Rakyat Prihatin…dont talk about Malaysia if TF (mengaku sebagai orang Malaysia) cant even speak Malay…jangan rompak harta Malaysia bawa keluar…why dont you sponsored national team and buy national team rather if you wanna talk taht you are truly Malaysian and everything you do is because of Malaysia..dulu mungkin you do it for Malaysia…now???i dont think so…the fares is getting increase by charging unacceptable charges such fuel, conv. fees,counter check-in fees (RM10 per person is definitely ‘CEKIK DARAH’) and ect.

    be gentle by competing Firefly.Firefly is doing well because they know what Malaysian want…Aerobridge, low fares (with all the taxes still lower than AK),genuine passion of cabin crews [professional than AK crews (AK crews use to speak English everytime including to elderly)]…

    just change yourself rather than trying to help/chage others…jangan jaga tepi kain orang…

  23. Randy

    Flying in circles
    Posted on 10 November 2011 – 10:27pm
    Comment by
    Kang Siew Li

    TEN years ago, AirAsia took to the skies, bringing the no-frills airline model to Malaysia and breaking the near-monopoly that national carrier Malaysia Airlines (MAS) had enjoyed on most routes within and out of the country.

    Then, amidst the initial scepticism, many airline analysts and market observers believed that AirAsia’s entry would bring much-needed competition to the market, as well as substantial benefits to passengers from more choice and competitive fares.

    AirAsia was also touted to have made it possible for people who could never afford to fly, and those who already do, to fly more frequently.

    Then, in January 2007, AirAsia launched its long-haul budget arm AirAsia X, providing passengers with greater choices in long-haul air travel.

    Three months later, the competition was further heightened with the entry of MAS’ unit Firefly, bringing air travellers here another alternative to low-cost travel.

    Still, despite more competition, passenger traffic continued to grow and in fact, challenges the airlines to be innovative and efficient which in turn led to a continued decline in fares. Malaysia’s airline industry was deemed a perfect example of competition in the deregulated market, with passengers being the ultimate beneficiary.

    Fast forward to now. As a result of the MAS-AirAsia pact in August, MAS now focuses on the premium segment, leaving the low-cost segment to AirAsia. Firefly is also being transformed into a full-service short-haul carrier.

    While there are still four airlines operating, they now essentially share common shareholders — Khazanah Nasional Bhd, which controls MAS and Firefly, and Tune Air Sdn Bhd, which is the investment vehicle of AirAsia founders Tan Sri Tony Fernandes and Datuk Kamarudin Meranun. The share swap also enabled the airline bosses to have representation on each other’s board.

    In retrospect, it looks like Malaysia’s airline industry is going back to the days when all routes within and out of the country were served mainly by a single carrier.

    As airlines around the world move and adjust from a controlled to a deregulated market, is Malaysia going back to square one?

    These are but some of the questions that have come up following the MAS-AirAsia collaboration.

    As an airline executive pointed out: “How is it possible for the government to allow four airline operating licences (MAS, Firefly, AirAsia and AirAsia X) to be held by the same shareholders? What happened to a deregulated airline industry that brings more competition and greater pricing freedom?”

    Apart from these four airlines, the only other passenger airline in the country is Berjaya Air, which offers limited domestic scheduled and charter services, mainly to its own resorts.

    While MAS and AirAsia bosses have vehemently denied that the tie-up will result in monopolistic practices and that fares will go up, we will have to take their word for it for now.

    But already, some passengers have complained of less choice of flights from Kuala Lumpur to Sabah and Sarawak following the discontinuation of Firefly’s jet services from last month.

  24. Antitrust

    yea…well said randy…now Malaysians are hardly flying MAS because of the fares and what so called premium service while we are getting hard to choose…we even need to risk ourselves…

    Air Asia is actually not a LCC…for example, flying to Langkawi with promo fare RM63, they will charge RM10 for fuel surcharge, RM30 (20kg of baggage fees-passengers going to Langkawi for atleast 3days will definitely brings their luggage more than 7kg),plus tax RM6 (LCCT)…the total is about RM109…this is not included the seat selection (family who travel together must/should go for this one otherwise they will seat separately no matter what the age of your child…i had experienced this before…my 5 and 6 years old nieces was separated from their mum…Air Asia take this for grunted) before, we could compare with MAS and we can make a choice by flying MAS rather than Air Asia because the fare different is too small…now definitely we cant because MAS fares are getting higher than before…this is monopoly…TF kills the competition…

    the monopoly become lighten when the Firefly jets were ceased…the rakyat is become anxious about this…their flight were cancelled without notice…their process of changing/getting seat in MAS is really hard and the refund too…

    now the rakyat has no choice at all…Air Asia is fear of competition…so they need monopoly and what so called ‘exclusive’ (flying exclusively) to gain passengers even by doing dirty job by killing competition…

  25. Anonymous

    I still remember the words of Mr Tony Frenandez when he said that Air Asia is in a different market segment. Air Asia goes after a differenet set of Customers and routes from MAS. The market is big enough for both to co-exist.

    When Customers and routes were “stolen” from MAS, Tony then shouts bloody murder – MAS is competing directly with Air Asia.

    Then he shouts unfair protection by the Government.

    Followed by lack of support by the Government.

    The list goes on.

  26. Thirddevil

    TF’s business model can be summed up into two words ” take advantage”. If you want to stay together with your kids on AA , you have pay more to get seat numbers. If you want to watch TV at Tune Hotel, you have to pay more for the TV. TF also took advantage of his friendship with KJ and his cohorts. Once they are useless, he dumped them . Hence the statement such as ” we benefits more during Tun M and Dato Sri Najib’s time than during Pak Lah’ s time” . Khazanah should expect the same modus of operandi here on MAS – in 3 years after TF sucked everything out of MAS and after the contract of non disposal of MAS shares expired, he will dump their shares in MAS like a shit. And it will leave to Khazanah to pick it up and do the cleaning.

  27. Johan


    Just carry on spinning. Will see where you are going at last. First moved AA HQ to Jakarta then denied not true. Now set up Caterham airline which he registered in October. Now he denied. The authorities like MAB, DCA and Ministry of Transport should just ignore his requests. Let him start a new airline without AOC. Make the sued of aerobridges mandatory like SIngapore, Thailand, Cambodia and other countries. If AA does not want to use the aerobridge then they forget about taking off and landing in KLIA 2. Screw him and his AA.

  28. Risau Giler

    izit true that they will change the MAS logo just because Tf doesnt want the red color on the WAU logo???

    hmmm.will the MAS stewardesses will be wearing mini skirt too???

    after that what is/are the identity of national carrier???

  29. Pingback: Smearing your landlord, ahead of your new home « The "thirteen million plus Ringgit" guy rambles….

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