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, SCandPublic 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.
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 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.”
[MAS employees were too familiar with the above tag lines but even with increased revenue, the employees have not been looked after in terms of increment or bonuses unlike during the time of Tan Sri Aziz Abdul Rahman. Even Tan Sri Tajuddin Ramli’s time, the employees being paid ex-graia payment during festive seasons like Raya, Chinese New Year and etc. At the rate the new management was going about making those stupid decisions, FAILURE will be inevitable. If such decisions become the norm, then AJ will no doubt be another failed MAS MD soon!]
It would appear that when there is a change in the management of MAS, the first thing that a new maangmenet will do is to bring in their “macai/kuncu” and paid with very high salaries and bring in Mat Salleh consultants. All these have been proven to have failed and those “macai/kuncu” ended up as dead woods in MAS, which have contributed to one form or another of the LEAKAGES by virtue of their non-performance i.e. GAJI BUTA.
A good management will start to examine the policies and decisions of the previous management and adopt the good ones ansd discard the bad ones. For example, YM Tengku Azmil and a team of MAS officers have spent many man hours and money in pursuing membership inONEWORLD, which is similar to Star Alliance where SIA, Thai, Air New Zeland, Lufthansa, Swiss Air, Air Canada, Scandinavian Airlines, Air China, Brusell Airlines, Continental Airlines, Croatia Airlines, South African Airways, British Midland International, ANA, Austria, United, Turkish Airlines, U.S. Airways, Polish Airlines, AEGEAN, ADRIA, Egypt Air, Polish Airlines, Asiana Airlines, Blue 1, Tap Portugal and Spanair.
In September/October 2011, MAS has reached the final stage of becoming a full member of ONEWORLD, where MAS will be in full collaboration with 12 other international IATA arilines, namely British Airway, Qantas, Iberia, Royal Jordanian, Cathay Pacific, FinnAir, LAN Airline, Malev Airline, Mexicana, S7 Airlines and other. The collaboration with the 12 airlines will no doubt be more meaningful and beneficial to MAS then the CCF, which at this stage only appears to favour AirAsia but not MAS. Now all the efforts and money for the ONEWORLD has been thrown into the drain. Another form of LEAKAGE.
This is one of the major problems in MAS where new management comes in and discard all existing plans and strategies without any consideration whether they are still relevant to MAS. There is no continuity in management. This is bad and this is happening now. As we can see that the present management has no direction and experience in running airlines business. It is a case of putting square tag into a round hole! This is one of the major reasons why must is BLEEDING. This also encourages LEAKAGES because new people will not know the actual happenings in MAS and where are the LEAKAGES.
Yours truly hopes that MAS maangement will continue with the effort to become a full fledge member of ONEWORLD. The earlier that MAS joins ONEWORLD the better for MAS. But it cannot be said for AirAsia, as it is not an IATA airlines.
AJ, please forget about emloying Mat Salleh consultants. We have enough talents in Malaysia and many good employees of MAS have left MAS to join SIA and other international airlines. If we were to treat our Malaysians well and respect their professional advice, yours truly is certain that they will return to make MAS great again like when it was under Tan Sri Aziz Abdul Rahman, where MAS was making profits and has a Sinking Fund of RM2 billion!
Last but not least, “MH“ used to stand for MALAYSIAN HOSPITALITY and all Malaysians are proud of it. MAS cabin crews won many international awards under this spirit of “MH” which is synonymous with MAS. Furhtermore, MH has in one way or another touched the heart of every single Malaysian. MH was there to bring back the body of the Rt Honourable PM the late Tun Abdul Razak. When civil war erupted in Egypt a few months ago, MH was there to evacuate Malaysian students to bring them back to “tanah air yang kita cintai” and etc. The list is inexhaustive. MH is always around to unselfishly perform its national services and duties for our beloved nation. MH has been our ambassador since its inception. MH flies our Jalur Gembilang to many cities promoting Malaysia.
MH is our national pride. The nation must not allow one or two irresponsible persons to treat it as their toy.
After the share swap, which was supported by Tan Sri Azman Mokthar, Tan Sri Md Nor Md Yusof, YB Tan Sri Nor Mohamad Yacop (the one time extremely powerful Minister of Finance II), Datuk Azman Yahya (also a Scomi director) and En Mohammed Rashdan Yusof (ex-partner of Tan Sri Azman Mokthar in BinaFikir Sdn Bhd) all from Khazanah, the meaning of “MH” have been changed to “MUSNAH HARAPAN” for MAS 19,000 strong employees and “MARUAH HILANG” for MAS and the RAKYAT of Malaysia.
MH/MALAYSIAN HOSPITALITY never failed this nation. Therefore, the Rakyat of Malaysia must not fail MH / MALAYSIAN HOSPITALITY. Let join hands and minds to fight against any attempt by those who want to make “MARUAH HILANG” for MAS and Rakyat Malaysia, and “MUSNAH HARAPAN” to the employees of MAS.
The MAS employees have stood up and spoke in one voice against the secret share swap and the CCF in yours truly blog. Yours truly salutes all the employees of MAS and other Malaysians for voicing their heartache and sharing the information with other Malaysians.
MAS employees and the nation are wandering what are the leaders of MASEUS doing about the dangerous trend prevailing in MAS now. Are the MASEUS leaders still around or having their so-called meeting in Maldive?
It is now the time for all the stakeholders (MESA, MAFFA, MASMA, AMALE, MASRA and etc) to stand up and be counted not by one press statement alone but deeds – untuk merpertahankan maruah dan kepentingan MAS dan perkerja-perkerja MAS!