Updated @ 12:30 am 22-11-2011: Tan Sri Azman Mokthar, the MD of Khazanah Nasional Bhd in his briefing to PAC yesterday morning and acknowledged that they were 50 verbal and written questions raised by 36 MPs in Parliament. Yours truly regretted and apologized that a new posting cannot be done with regards to what Tan Sri Azman Mokthar and En Ahmad Jauhari, MAS MD, have told PAC with regards to the secret MAS-AirAsia share swap and the so-called Collaborative framework on 21-11-2011. Yours truly was too elated that Malaysia won the SEA Game Football Championship. Cheers to Harimau Muda! The Harimau Muda under the leadership of Mr Ong Kim Sew have made the nation proud. Maruah Negara dan Harapan Negara dipertahanakan oleh Harimau Muda tanah airku!
Syabas kepada Pak Menteri Belia dan Sukan, YB Datuk Shabery Chik, yang mempraktikan Semangat 1Malaysia di Gelangang Bung Karno di Indonesia dengan spontan mencium dahi jurulatih En Ong Kim Swee pada malam penuh bermakna kepada Negaraku, MALAYSIA. Syabas anak-anak buah En Ong Kim Swee, Anda semua produk 1MALAYSIA!
What Tan Sri Azman Mokthar and En Ahmad Jauhari told PAC will be posted in due course.
Updated @ 3:15 pm 21-11-2011: Tan Sri Azman Mokthar, MD of Khazanah Nasional Bhd, KSU of MOF and En Ahmad Jauhari (AJ), MD of MAS briefed PAC of the secret MAS – share swap. Both Tan Sri Azman and AJ have not been interrogated yet. There will be another long session for interrogations of the trio.
Updated @ 11:00 pm 21-11-2011: PAC investigations on MAS – AA share swap scandals begins at 11:30 am this morning – rescheduled. Venue: Bilik Jawantankuasa, Parliament House. Heard that Tan Sri Azman Mokthar and Tan Sri Tony Fernandes have been called to testify.
After the townhall session of 2-11-2011, En Ahmad Jauhari (AJ), MD of MAS, sent out a Circular dated 9-11-2011 to all MAS employees. The townhall session panel comprising of En Mohamed Rashdan Yusoff (Tan Sri Azman Mokthar’s former business partner in BinaFikir Sdn Bhd), Tan Sri Tony Fernandes and Dato’ Kamarudin Meranun and AJ.
To begin with, MAS townhall meeting should be addressed by the head of MAS i.e. MD. It has been the practice of MAS for all these years. It was highly unusual for the Board Members to attend townhall meeting let alone address the employees of MAS especially on policies and directions. By the way, where was the Chairman of MAS, Tan Sri Md Nor Md Yusof?
AJ: Why were Tan Sri Tony Fernandes and Datuk Kamarudin Melanin present and addressed the said townhall meeting? Board members have never addressed the staff at townhall sessions. Furthermore, these two personalities are just representing minority shareholders based on the secret share swap, which was not cast in stone and still under investigations by Bursa KL, SC and Public Account Committee (PAC) & (HERE), and also not endorsed by the MAS shareholders EGM. Perhaps, AJ needed Tan Sri Tony Fernandes and Dato’ Kamarudin Meranun to hold his hands so to speak. This is a curious habit for an adult!
AJ, please take note that chain of command is very critical in an airline environment where there will always be one captain, be it in flight or in management. What has been done, will be seen as the wrong signal by the staff! The question has been asked within and outside MAS: Is AJ really running the show? Read HERE.
The important points in the said circular were as follows:
We are in precarious and extremely serious financial situation. Following two consecutive quarters, MAS has already lost more than RM750 million.
[After 3 months of taking over the MAS management by Tan Sri Md Nor Md Yusof, En Ahamd Jauhari, En Mohammed Rashdan Yusof (Rashdan), Tan Sri Tony Fernandes, Dato’ Kamarudin Meranun, Datuk Ahmad Yahya, Datuk Krishnan Tan, Dato Rohana and Tan Sri Wan Azmi Wan Hamzah, what have they done? From what yours turly have seen were senseless spending of MAS money to pay sponsorship money totaling RM18 million to QPR, cancellions of Firefly’s full load flights during Raya season and terminations of Firefly and MAS profitable routes to favour AirAsia and AirAsia X Sdn Bhd.
Aj: Were these senseless decisions part of the new management’s business plan to cut down the losses?]
Since early August we have been re-examineing every aspect and details of our operatins. By the end of the month, the Business Plan will be circulated to all of you.
[So far no Business Plan was announced except Managmenet Chart. AJ in charge of wide body operations and Rashdan on narrow body operations. More significantly, all division heads to report to the Deputy CEO, Rashdan, and Deputy CEO reports to CEO. What a brilliant move!]
From now until end of 2012, we have to make money in order to stop bleeding. This is the KPI for the next 14 months.
[During Raya seasons most airlines would increase their flight shcedules to accommodate demands for travel but MAS cancelled its Firefly’s full load flights. This was a clear case of a businessman with no business acumen. It was a senseless act to make MAS lost more money. At the same time AJ said ”MAS had to make money to stop the bleedings”].
Comprehensive Collaboratin Framework (CCF): CCF enable both MAS and AirAsia to work together in several areas which will benefit both arilines. It is only fair that we also recognize that AirAsia is a successful Malaysian company and there is much that we can learn from them. Under the umbrella of the CCF, there are synergies in the areas of join procurement, engineering & maintenance, negotiating with aircraft manufacturers, and others. These are estimated to have a value of RM1 billion.
[Successful in what? What to learn from AirAsia? Learning how to owe airport taxes to the tune of RM120 million, withholding airport taxes for un-travelled passengers totaling RM6.89 million, refusing to use aerobridge for the convenience of passengers, getting handouts from the Government, business model based on profitability without taking into consideration the national interest and duties, demaning for many (39) routes only operating 13 routes by AirAsia X Sdn Bhd and spinning of success stories with the helps of mass media.
Genuine CCF can be carried out wihtout a secret share swap that based on share price. Petroleum companies in the North Sea co-operated in research project and at the same time competing with each other in business. Why can’t MAS do the same?
Aj: On “NEGOTIATION LEVERAGE WITH AIRCRAFT MANUFACTURER”, please take note that in the first quarter of 2011 Tan Sri Tony Fernandes had already signed up with Airbus to purchase 300 Airbus aircraft. Which aircraft manufacturers do you intend to negotiate with? Yours truly fears that MAS under Aj leadership will end up negotiating to take over the purchase of part of the 300 Airbus aircraft from Tan Sri Tony Fernandes.
Yours truly and the Rakyat are curious to know how could you arrive at the value of RM1 billion under this heading. Until this very day, no details have been announced except those decisions made that were detrimental to MAS i.e. cancellations of fligt, termination of profitable routes (JB to KK & Kuching & KLIA – Bandung) and sponosrsing QPR. Were you trying to spin on the CCF? ]
Resetting MAS network plan: We will have to revamp our network for both wide body and narrow body operations. Call for tough and difficult decisions to reduce unprofitable routes if our current efforts to resuscitate MAS have failed.
[On 23-8-2011, 12 days after the signing secret share swap, MAS terminated Firefly’s profitable routes from JB to Kuching and Kota Kinabalu. During Raya period, MAS cancelled Firefly full load flights causing great inconveniences to about 7,000 passengers.
On 3-10-2011 terminated MAS’ profitable route to Bandung, Indonesia on the gorund that too many MAS staff traveling on the flight. Surely, this cannot be true. Even if it was true, MAS can restrict the number of MAS staff travelling on each flight.
So far all the above decisions were thoughtless and made for the benefit of another small time airline.]
Make Money – our single KPI in 2012: I will like to state upfront that when we begin to make the money, we will share the rewards of this success with staff.
[Before making a single Sen, on 16-8-2011, 7 days after signing the secret share swap, En Rashdan, now deputy CEO of MAS, rushing to London to sign the agreement for RM18 millions for a two years sponsorship of QPR home jersey. The substantial shareholder of QPR is none other than Tan Sri Tony Fernandes. By the way Genting paid RM17 million for Aston Villa, a much better team than QPR, for home and away jersey! Why don’t MAS pay the RM18 million to its staff as bonuses, incentive or ex-gratia payment if MAS has the RM18 million to spare?
How about a few brand new Firefly B737-800 are lying idle on the tarmac of KLIA? When an aircraft is lying idle on the tarmac means lsoing money not only in term of revenue but the finance costs. To your truly, this is part of the LEAKAGES!
Cancellations of full load Firefly flights during the recent Raya season was part of “Make Money – single KPI? Yours truly could only conclude that such decisions were parts of lost making exercise or LEAKAGES to benefit others and bringing Firefly and MAS into disrepute!]
“Moving to KLIA : Moving the administrative operations in Subang to KLIA by end of February 2012.”
[This is the problem with MAS. Every time there is a change of management, there will be cosmetic changes like management chart and moving of offices. Yours truly feels that this was part of the bigger agenda of reducing work force rather than addressing the LEAKAGES in MAS. AJ should bear in mind that many employees of MAS have set their roots in PJ and Subang i.e purchased their houses, sending their children to schools in the vaccinity of their home, their respective spouse working in KL or PJ area and etc. To suddenly move them away by a stroke of a pen, will be thoughtless and heartless without taking into considerations the travelling time, extra transportation costs and grreat inconveniences to the average employees. It may make no different to the top management, who have been paid a fat salaries with all the perks including company car, driver, travelling expenses and etc. This will be seen as an attempt to force them out of MAS. There were talks of many of them resigning.
This decision clearly showed that the current management is directionless, thoughtless of the employees welfare and most of all a waste of public fund in paying for renovations costs and other costs. It will be part of the LEAKAGES. Was this and other LEAKAGES part of the CCF to turn around MAS? Another joke!
If moving administrative operations to KLIA was of such high priority, then the present management will not be able to save MAS but to destroy it. They have got no clue about airline business. They only have a string of useless qualifications from Cambridge University, LSE and the like but zero expereince in mamanging an airlines. So how are they going to save MAS? They are in MAS to bleed MAS with their high salaries.]
“QPR sponsorship: AJ said that Rashdan provided a clarification on the total investment costs which was RM9 million annually for two years. Rashdan has explained that exposure from this sponsorship to MAS is phenomenal not only in Britain but also in other parts of the world.”
[AJ is a fast learner in spinning. Read HERE, HERE. Why can’t AJ stated that the total cost of the said sponsorship was RM18 million? Well, RM9 million annually for two years will appear lesser to the new management but not to the MAS employees and the rakyat. The said sponsorship was splashed in all the newspapers. What was the point in spinning on such matter? Just admit the mistake made by Rashdan and the said decision was made to follow the wishes of his Guru, at the expense of MAS.
AJ, please take note that the secret share swap was signed on 9-8-2011 under the pretext that MAS was bleeding and needed to be saved! On 16-8-2011 (7 days after the share swap) Rashdan had to rush to London to spend RM18 million at a time when MAS was supposed to be spending time to plug all the LEAKAGES and taking positive actions to recover the outstnading rental and other costs totalling more than RM150 million on the Alwafeer Air scandals. Read HERE & HERE.]
“Together, let’s prove them wrong: We are in a constant environemnt of change. Each of us needs to be part of this journey and once we are on the recovery, the rewards of our success will be SHARED. The road ahead will be difficult as we will make tough and unpopular decisions. Failure is not an option.”