AJ & Rashdan: “What Cost Cutting?” Part 2 – PlaneConsult

Updates @ 1:30 am on 15-3-2012: PlaneConsult is not the only consultant firm hired by MAS. Ernst & Young is another consultant firm that has been appointed to teach MAS Corporate Division how to do their work. It seemed that AJ and Rashdan, Amok’s crony and ex-business partner in BinaFikir Sdn Bhd, are heavily relying on consultants to do the thinking for them. It has been for some weeks that “two young sweet little” officers from Ernst & Young are in MAS Corporate Division. Quite frankly, it is a case of teaching “grandmothers how to suck eggs”.  MAS had to pay good money as salaries and perks to these two handpicked “corporate gurus” by Tan Sri Azman Mokhtar and yet they needed consultants to think for them. It is laughable.

Under the circumstances, saving MAS is a foregone conclusion! Perhaps it is also a case of “Kepimpinan Melalui Tauladan”. Under Tan Sri Azman Mokhtar leadership, it has became Khazanah’s culture to engage consultant firms to think for them. The Government must account to Parliament what is the total payment made to consultant firms during Tan Sri Azman Mokhtar’s reign In Khazanah from June 2004 until today.     

Updates @ 6:45 pm on 14-3-2012: YB Datuk Nancy, Batang Sadong MP, criticised the MAS – AirAsia share swap and CCF and called for the Government to reverse or cancell the them forthwith as it was not in the interest of the country.  Yours truly believes that there will more MPs calling for the said share swap to be reversed as it was a failure from day one. It is hoped that Tan Sri Azman Mokhtar, MD of Khazanah and the ex-business partner of Rashdan when they were together in BinaFikir Sdn Bhd, will take note. 

Cost cutting to turn around MAS said the TRIO. The TRIO consists of En Ahamd Jauhari Yahya (AJ) Group CEO of MAS, En Mohammed Rashdan Yusof aka Danny (Rashdan), who is Tan Sri Azman

Mokhtar’s (Amok) crony and his ex business partner in BinaFikir Sdn Bhd, and En Rozman Omar, the newly crowned CFO of MAS, who is the former Regional Finance Officer of AirAsia.  Was cost cutting being coined by those with consultant mentality as a gimmick or their genuine intentions? Yours truly leave it to you to judge. For Part 1 please read HERE.

Now let us look at what AJ and Amok’s crony, Rashdan, have done in January 2012 for MAS in their cost cutting exercise under their so-called New Business Plan. Please read the so-called Business Plan as announced by AJ in HERE.

In October to November 2011 MAS engaged a Mat Salleh consultant known as PlaneConsult to carry out a selective review covering “Engineering & Maintenance, Commercial, Fleet Planning and Operational Control”.  The said report was submitted to AJ and Amok’s crony, Rashdan. As of now, yours truly has no knowledge of how much MAS paid to PlaneConsult to do the so-called review.  This must be part of AJ and the crony way of cost cutting!  The person who appointed PlaneConsult to do this review was still unknown. Your guess is just as good yours!  

It is clear that AJ and the crony, Rashdan, have no clue of their respective job besides signing documents to commit MAS and waste good money like what Rashdan, the Amok’s crony, has done in sponsoring QPR home jersey for RM18 million when MAS was bleeding, according to them. The RM18 million could have been put to better used by sponsoring our Harimau Muda, which has made a name for Malaysia. But definitely not to the crony as he preferred QPR, which Tan Sri Tony Fernandes is the co-owner.  Read in HERE HERE.  

AJ and Rashdan, who is Amok’s crony, obviously pretend not to know that prior to the secret MAS-AirAsia share swap and CCF, AirAsia was a known competitor to MAS. For MAS to survive as an airlines, MAS must always be a competitor to AirAsia and other airlines. Tan Sri Tony Fernandes and Amok have been assuring members of the public that the said secret share swap was not a merger. But you will see below that it is not as simple as what they have said.    

Does MAS really needs both AJ and Rashdan? MAS is paying AJ and Rashdan, who is Amok’s crony, a fortune in terms of their salaries and perks and their roles in MAS seemed to be restricted to appointing the Mat Salleh consultant, PlaneConsult, to think and plan for them. They have also allowed the appointment of Mr Shane Nollan as MAS Acting Commercial Director. Was the appointment of AJ and Rashdan, Amok’s crony, a case of GAJI BUTA? 

On 04-01-2012 AJ and Amok’s crony, Rashdan, saw it fit to formally approve the appointment the Mat Salleh consultant known as PlaneConsult from 16-1-2012 to 30-4-2012.  Please take note that why the appointment ended on 30-4-2012. I am just speculating that by 1-5-2012 something may happen. Will it be a much talked about new company called MAS Sdn Bhd be launched then?

Under the said appointment, PlaneConsultant is to provide “Implementation support for MAS Organisational and Process change within Engineering & Maintenance Commercial, Fleet Planning, Flight/Group Operations & OCC”. MAS had to pay PlaneConsult 651,000 Euro (equivalent to RM2, 604,000-00 at RM4 per Euro) excluding withholding tax (approximately 10%) as consultant fees and out of pocket expenses.  Additional to the professional fees, PlaneConsult shall charge: 

  • value added tax;

  • any duties, withholding taxes or other such taxes and levies; 

  • for good, services and facilities acquired specifically for the assignment, and for all reasonable travelling and subsistence expenses at cost. Air travel on sectors over six hours shall be in premium economy or business class cabin; 

  • any additional work requested shall be carried out at 500 Euro (equivalent to RM2,000) per hour for Conor McCarthy and up to 300 Euro (equivalent to RM1,200)  per hour for other consultant. Such request shall be considered valid and agreed upon exchange of written communication including but not limited to email communication between PlaneConsult and CEO or COO of client.

What a good package for the appointment! We must commend AJ, Rashdan and the other members of the Board of Directors of MAS for a job well done! 

To understand what have been happening in MAS under the secret MAS – AirAsia share swap and CCF, one had to look at the “Method of Working” of PlaneConsult. Before we go further on the so-called “Method of Working” let us examine the real person behind this PlaneConsult.

The executive chairman and MD of PlaneConsult is Mr Conor McCarthy, an Irish. By COINCIDENCE he is also the co-founder and director of AirAsia!  Yours truly hopes that the picture will be a bit clearer now. PlaneConsult is also the consultant for AirAsia and AirAsia X Sdn Bhd. This is also by COINCIDENCE!  Please read HERE.

PlaneConsult has stated in the document to MAS that amongst its clients are Air Asia, AirAsia X Sdn Bhd, Aerlingus, Qantas, Alitalia, Aero, Deccan, Spanair, Copa Airlines, Jet, Easy Jet and Pluna. But in its website no portfolio on its clients. Please read HERE.

Now let us properly examine the so-called “Working Method” or scope of work in simple term: 

  • PlaneConsult will assign personnel who have executive line management in their specialist areas.  This will include established members of PlaneConcult team who have already exposed to the MAS environment supplemented by other known subject matter experts with appropriate skill sets 

  • A number of local individuals have already been identified and recommended as suitable to assume permanent roles within a restructured MAS, or seek further additional full time MAS resources if required.  To avoid  any ambiguity and for good order sake, the costs of these additional full time resources of MAS are not included within the budgetary figures used within this proposal. It would be expected that the ultimate recruitment and employment terms for these high caliber individuals would be managed by MAS with support provided by PlaneConsultant on request. 

  • All PlaneConsult  adopt a flexible working approach in close liason with the client. This allows ongoing review of priorities to ensure maximum return on investment in the shortest possible timescale whilst ensuring longer term opportunities are still highlighted. Our consultants will become embedded within the organization to ensure executive line management decisions are taken and acting as a catalyst for change where resistance may be encountered in some areas. 

  • The embedded project team, lead by Andy Holmes, will conduct forthnightly progress briefings with Conor McCarthy as PlaneConsult Project Director attending in person every six week or otherwise as mutually agreed.                                                                                                                                                                                                                                                                

What a wide terms of reference for PlaneConsult! Why such wide powers were given to PlaneConsult? AJ, Rashdan, the Amok’s crony, and the other members of the Board of Directors must account to the nation!

Now yours truly hopes that you will now understand the actual situation in MAS.  Both AJ and the Rashdan, who is Amok’s crony, could hide behind all the decisions made by stating that they were merely following the recommendations of the Mat Salleh consultant, PlaneConsult, whom by COINCIDENCE is also the consultant for AirAsia Bhd and AirAsia X Sdn Bhd, and its MD and executive chairman, Mr Conor McCarthy is also the director of AirAsia Bhd. 

En Azran of AirAsia X Sdn Bhd, Tan Sri Tony Fernandes, Mr Conor McCarthy of PlaneConsult and also a director of AirAsia

The glaring facts about the appointment of PlaneConsult are: 

  • Its MD and Executive Chairman is Mr Conor McCarthy, who is also a co-founder and director of AirAsia; 

  • PlaneConsult have also been appointed the consultant for AirAsia Bhd and AirAsia X Sdn Bhd; 

  • After the said secret share swap has been inked by Amok on 9-8-2011, Tan Sri Tony Fernandes and Dato Kamarudin Meranun of AirAsia,  who are the co-founders and top executives and AirAsia Bhd (like Mr Conor McMCarthy who is the co-founder of AirAsia), have been appointed to the Board of MAS; and 

  • Mr Shane Nollan has been appointed as the Acting Commercial Director of MAS. 

The pertinent questions that have been asked by many readers are:

  • Whether there was a conflict of interest in this appointment?

  • Whether PlaneConsult based on the “Working Method” stated above can provide objective opinions based on the and recommendations that can be seen as in the best interest of MAS bearing in mind its MD, Mr Conor McCarthy  is a co-founder and existing director in AirAsia Bhd and is also the consultant for AirAsia and AirAsia X Sdn Bhd?

  • What is the monthly salary of Mr Shane Nollan and Mr Andy Holmes?    

Instead of MAS filling up the post of Commercial Director, AJ and/or Rashdan, who is Amok’s crony, chose to allow the appointment of Mr Shane Nollan, whose experience according to the record is just a Commercial Consultant of PlaneConsult, as  MAS Acting Commercial Director!  

Yours truly has been told that Mr Shane Nollan is a very powerful officer in MAS and is able to tell our local officers what to do.  As the acting Commercial Director, he was also very much involved in the acceptance of the 30,000 ArAsia X Sdn Bhd’s passengers after AirAsia X Sdn Bhd has terminated its London, Paris and Mumbai routes.  Now the number should be higher because of the termination of its Christchurch route.  

Of course, MAS should assist all Malaysians as it has been doing all the time like ferrying students back to Malaysia as its national service during the Egyptians upheaval last year.  AirAsia X Sdn Bhd has announced that it will ensure that these 30,000 passengers will still be able to fly to their respective destinations at no extra cost. This means that AirAsia X Sdn Bhd will be responsible for all extra cost incurred.  It was a very responsible act on the part of AirAsia X Sdn Bhd. It should be applauded for it!

Yours truly would like to believe that under the said secret share swap and CCF, MAS is not contractually bound to absorb such category of passengers at no extra cost.  The questions have been asked by so many readers in yours truly Blog are: 

  • Was the fare charged based on the official published fare of MAS or special fare being given to AirAsia X Sdn Bhd?

  • Since it was the usual practice in such cases that MAS will insist on a bank guarantee to pay for the additional cost of fare for this category of passengers. Did AirAsia X Sdn Bhd provide a bank guarantee to undertake to pay for the additional fares for the said 30,000 passengers?  Or Did MAS waive the requirement of such bank guarantee contrary to its past policy and practice?

Perhaps MAS staff can help to provide answer to the above questions.

The next issue is PlaneConsult’s “Working Method” on: “… local individuals have already been identified and recommended as suitable to assume permanent roles within a restructured MAS”

Was it as a result of this “Working Method” that on 1-2-2012 MAS appointed En Azhari Dhalan as Head of MAS Engineering and 14-2-2012 En Rozman Omar as CFO of MAS. Both were again COINCIDENTALLY from AirAsia. 

Yours truly would very much like to believe that these two ex-AirAsia’s officers were head hunted and it so happened that they were from AirAsia! Rumours have it Ms Kathelene Tan from AirAsia will also be also be going over to MAS. Hopefully it was just rumors.  Amok should be asking himself now that why the PlaneConsult’s “Working Method” have created so many coincidences as far as the employment of ex-AirAsia high ranking officers to MAS! 

Lets hope that in the very near future MAS will not COINCIDENTALLY identify more local individuals to head its departments permanently who happen to be from AirAsia!  Yours truly has been told that there will be a few more but yours truly hope that it was mere rumour!

The Malaysian Competition Commission (MYCC) should investigate into the above to ensure that the above facts do not contribute to stop competition between MAS and AirAsia, which will be against public interest and the Anti-Competition Act 2010.  Please read in HERE, HERE, HERE, HERE & HERE .

Yours truly has also tabled many Parliamentary questions on the said secret share swap and CCF in HERE.  Question No. 2 of the parliamentary questions on MYCC investigation into the said secret share swap is on the Parliamentary Order Paper for today Questions Time. The Answer will be published in yours truly blog as soon as yours truly got the answer.

Yours truly calls upon the Government to revisit the said secret share swap and CCF and reverse it in the light of all the decisions made after Rashdan, the Amok’s crony, was appointed to head MAS on 9-8-2011.

The next posting will be on the famous WAU, the pet project of Tan Sri Azman Mokhtar and his crony, Rashdan, when they were both in BinaFikir Sdn Bhd.  It will be about another scheme similar to the disposal of 70% share of MAS Catering Sdn Bhd to Gubahan Saujana Sdn Bhd, a company controlled by Datuk Hj Ibrahim bin Hj Ahmad Badawi.

Please also read an interesting article by OutSyed The Box entitled “Datuk Seri Perdana Menteri “Ripping off” of MAS Part 3″ in HERE.

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29 thoughts on “AJ & Rashdan: “What Cost Cutting?” Part 2 – PlaneConsult

  1. The Pumkiner

    Calm down YB Wee.

    It has always been our culture to worship Mat Sallehs.

    It seems that our own people, despite years of running our own airline knew next to nothing other than carrying out orders from those Mat Sallehs.

    Danny boy couldn’t fathom why others are not as smart as him in resolving problems of MAS. The Bina Tak Fikir kind of mentality says – appoint more consultants and make sure they are not those helpless locals.

    Reply
  2. Its is CON Sultant and Job

    Bloody hell! No wonder MAS is in such shit now. What have been stated by YB in this posting are very damaging to MAS. The appointment of PlaneConsult must be the work of crony Rahsdan and the Red Indian Pariah. AJ must be his normal self i.e. BUDAK SURUHAN or UPAHAN. From this it would appear that AJ is just existing in MA to collect salary. HE is the CEO of the Panamera Deadwood Department.

    Filled with conflict of interest. How do you expect the Mat Salleh will do a good job for MAS when it is also the consultant of AA and AA X. Plus its MD is also a director of AA and a good friend of the Red Indian.

    If this is allowed to go on, MAS is finished. If PM does not step in now, at least 60,000 votes are gone for BN in PRU 13.

    Reply
  3. Hafiz MAS

    Clear case of conflict of interest. PlaneConsult has the only ability to recruit people from AirAsia. What a job. If this was the modus operandi, MAS does not need a consultant to do the job. This is the job of the Pariah at work.

    Azman Mokhtor and his crony should know this better. Why is Azman Mokhtar is so quite about the appointment of PlaneConsult?

    Reply
  4. MAS Boy

    what a waste of 651 Euro plus other costs of feeding the mat salleh from AirAsia. Bloody hell. YB I just cannot believe what you have stated. How can MAS management be so stupid?

    We work so hard and yet the Panamera Deadwood like AJ and Rashdan are screwing up for sure. PlaneConsult was just carrying out directive from the Pariah. How can MAS survive when MAS has been stripped naked.

    Stop the PlaneConsult immediately. Shameful at. This is not the way to do it to MAS. AJ and Rashdan must take full responsibilities for what had happened to MAS.

    The bloody crony Rashdan must be out immediately to save MAS.

    Reply
  5. Thirddevil

    The current MAS situation shows you something: you cannot parachutte a guy with no operational background like Danny to run any operations, unless that operation is Mak atau Bapa dia yang punya. Khazanah should have enough experience on this to not doing this silly thing. The fact that this was done show you something : Khazanah is not professional in their daily operations and YB assertion this crony to crony decision is true. When you get your crony to run the show, this will be the result. By the way, there more ex-Bina Fikir personnel in Khazanah that you ever imagined!

    Reply
  6. Anak Malaysia Tulen

    What make AJ & Danny Boy thinks that these Mat Sallehs can do a better job than those people who have been working in MAS for years and with years of vast experiences.
    Hey, Croonies…we the loyal and senior staffs of MAS have more brains that both of you including those who came in to create shit in MAS. Typical Malaysian, who can’t trust and relay on their on people (Malaysian) to do the job.

    What so great about these Mat Sallehs consultant which they brought in? These consultant are just staffs who are from other airlines eg, BA, UA, AA..etc, etc. They go around getting other peoples idea and the change a few words here and there, then sell it to these 2 idiots.

    What make you 2 idiots think that they are better? These consultants might even come from an airline/company that has gone bankrupt, if they can’t help their own airline/company, what make your 2 idiots think that they can help/save MAS?
    We have lots of staffs in MAS who could be a be a consultant a 100 times better than those mat sallehs which you 2 idiots brought in.

    Both you idiots, talk so much about MAS bleeding badly, must cut cost and do all possible to save the company but on the other hand, money is pouring out from the company like water to pay these bloody PlaneConsult, Sponsoring QPR and many more things. Could have used the RM2,604,000 and RM18M for better things, well that showns how smart these asshole are.

    As for YB’s question on:

    Q1. Was the fare charged based on the official published fare of MAS or special fare being given to AirAsia X Sdn Bhd?

    Q2. Since it was the usual practice in such cases that MAS will insist on a bank guarantee to pay for the additional cost of fare for this category of passengers. Did AirAsia X Sdn Bhd provide a bank guarantee to undertake to pay for the additional fares for the said 30,000 passengers? Or Did MAS waive the requirement of such bank guarantee contrary to its past policy and practice?

    Think the above questions could be answer by MAS staffs in Commercial/Sales and Revenue Management Department. So now you see why they have to put Shane Nollan there as Acting Commercial Director.

    All these Panamera Deadwood, should be remove from MAS immediately because the FAT salaries which they are getting could also be put to beter usage in MAS. Pariah TF and his b**ta*d croonies….time has come for you all to pay back and HELL is waiting for all of you.

    Reply
  7. Ishak dari Khazanah

    A big big joke. Aj and Rashdan the jokers in MAS! Tiada maruah. Tidak malu. Both of yu should resign to restore your own integrity that what are left, if any. Credibility sudah habits. Reducing to the standard of crony like Rashdan. Amok use be malu also.

    It is so obvious that this is all the work of the Pariah through cronies.

    Amok masih tidur kah? Bila kamu nak jual keluarga kamu seperti kamu jual MAS. Tak malukah? Pengkianak kepada bangsa dan ugama.

    Reply
  8. MAS staff against the TRIO

    YB There are more mat salleh dunggu walking around MAS office bullshitting their ways around. Thank you for exposing the nonsense by AJ and Rashdan the crony. There are definitely not fit to be there. They are just cronies. They just take instructions from the Pariah. Tepat sekali GAJI BUTA. YB you miss out description that fitted them most is Panamera Deadwood.

    YB you are best and didn’t give up to fight for justice for MAS and its staff.

    Ptui! to AJ and Rashdan. They want us to cooperate. Just look at what they have done to MAS. They appointed PlaneConsult, which is the consultant to AirAsia. The MD is the director of AirAsia. Bloody stupid. Got to be an idiot to do that.

    Reply
  9. Shamsuri of MAS

    Great expose about the cronies at work. It is now time for PM to get rid of the rubbish from MAS. What they have been doing in MAS is to collaborate with the devil Pariah to screw MAS and at the same time hiding behind the mat salleh CON sultant.

    This is the real case of Gaji Buta. How can MAS be revive by AJ, Rashdan, Rozman Omar and Azhari Dallan? This evidence is clear enough for PM to act immediately. That quiet Amok must also be thrown out of Khazanah to have allowed such shameful activities to go in MAS.

    Until today, Aj & that crony can not find a suitable person in MAS to be its Commercial Director. Why do both of them need to have that bloody Mat Salleh Shane Nollan to be acting Commercial Director? Why Why Why? We in MAs know what both AJ and Rashdan up to. The cronies better start to pack your bags before more shit will hit the fan and you will be out in shame.

    Tolong jaga maruah kamu dan keluarga kamu. Kamu telah jadi JOKERS dalam MAS. No more respect for you cronies.

    Thank you YB for a good article to expose how the cronies at work.

    Reply
  10. hamid hussein

    YB isn’t there anything that you or we can do to stop all these cronyism and conflict of interest stage by these so called con sultans if the PM does not take any action Perhaps a report to the MACC could stop all these hanky panky dealings. Lets hope the questions you asked will be answered truthfully by the govt The minister responsible for this fiasco should be put away together with those dunggus(to borrow outsyed the box favourite word) from khazanah and this irrelevant entity should be dissolved Thank you

    Reply
  11. red indian

    Dear mr yb
    After all the expose n news with regards mas.why is that no action or immediate recovery has been made by goverment esp NAJIB.very sad when GLC being cannibalize when no body care!
    If u were watching buletin tv3 on 13th mar when reporter trying to interview AJ for share suap,he ran away like pondan or mak nyah being chase by authority,so called group ceo.wat a shame mr no ball.shame on u.

    Reply
  12. Harris

    The cronies have been exposed! Hooray! AJ, Rashdan and even the chairman are not seen around. They must planning their witch hunting how the information appear in YB’s blog. This is their mentality.

    They are not managing MAS. They are doing salaries and perks. They close their eyes and left everything the Mat salleh PlaneConsult whose MD is Conor McCarthy from AirAsia.

    Hey! Budak suruhan Aj and crony Rahsdan, you are supposed to manage MAS and not to take instructions or following the whims and fancies of the Pariah.

    Please expose more things about this Rashdan, a real crony and an idiot.

    Reply
  13. Lee from MAS

    Danny boy thought that the mat salleh is his father. Now here is he to hide. Everything has been blown out in the open for every body to see their real intentions.

    Their intention is how to cannibalize MAS. Like how the Pariah cannibalized the RAS aircraft for spare parts. Majority if not all the MAS staff are cursing and swearing at Danny, AJ, Rozman and Azhari for what they have done or are doing to MAS.

    Reply
  14. muzaky

    the reason why they want to create the short haul just because they want to control all MAS operation in Malaysia and MAS Narrow Body regional routes since they dont have any other choice because they cannot compete with JetStar and Lion Air. thats why they kill Firefly operation which is better Malaysia low cost airlines compare to them. from there the gang can analyze which sector profitable routes. Wonder why AAX not doing well? after share suap, anything from govt can divide to two maaaa… MAS is NATIONAL CARRIER and ALWAYS become MALAYSIAN PRIDE. Dont tell the public that you want to cut cost by introducing new short haul and long haul. Damn! you cut major staff benefits or ask them to resign and join new co under rashdan loser. No need to tell everything here, because all the info and the clue already been stated by YB and other comment. to conclude my comment, all the BOD and the Gang must Get the hell out from MAS organization. MAS staff dont need them. YB, just want to let you know, the staff now really in deep demoralize and angry with this Gang, please chase them out.

    Reply
  15. Adilah

    Yet again you use our blog for research – and do not give credit where it is due. We broke the Con McCarthy story years ago. That not him in the picture you have, by the way. Take one off our blog – you help yourself to everything else.

    ‘Fly AirAsia? Not me’

    Reply
  16. Masayu

    Dear YB, you r doing good job for MAS..i wonder where are the Melayu MPs especially from UMNO that say they are patriotic about MAS…surely you are getting more votes from us. Carry on the good job YB….

    Reply
  17. MKamal

    Dear YB, my million dollar or ringgit question is WHAT THE HELL IS THE FINANCE MINISTER a.k.a PRIME MINISTER IS DOING ABOUT ALL THIS BULLSHIT!!!???? Give or buy the people with RM500 and yet MILLIONS perhaps BILLIONS of Ringgit are being wasted, pocketed by these corporate pirates!

    Reply
  18. Anonymous

    YB, well done for all the good work you have done to expose the rampant corruption and conspiracy to destroy MAS. Below is the email send by our beloved TF to his Air Asia staff. Looks like TF is planning to run away from Malaysia !!! Too much heat is it ?

    To our Indonesian friend, beware and get ready to be gang rape by TF. He has done it to MAS. Maybe Garuda next in line ?

    From: Tony Fernandes
    Sent: Wednesday, 7 March, 2012 3:23 PM
    Subject: AirAsia ASEAN

    Dear AllStars,

    As we continue into 2012, I would like to say a huge “Thank You” to all staff for helping AirAsia to soar in its first decade of operations. I look forward to working with all of you for an even more exciting second decade!

    Going forward however require us relooking at some of the critical roles and organizational set-up we have, and think about what new things we need to introduce. The things that helped made us successful in our first decade may not be the best things as we enter into our second decade. We must always innovate and change to suit the new times and conditions and realities.

    Starting from 2012, there will be two major changes to the way we do business. I would like to talk about them in more details, and tell you about what are our plans in implementing them.

    1. JAKARTA OFFICE

    In 2012 we will start operating the new AirAsia Jakarta office in Jakarta. We will have a small core of Group functional heads there, who will manage the various AirAsia companies as a group. They will make sure we have a consistent look and feel in our branding and operations and culture wherever we operate. This is a critical need as we become bigger and start having more operations in more countries.

    Given that the ASEAN secretariat is also in Jakarta, this will help us to push for a more level playing field, both on commercial, operational and regulatory areas, across all of ASEAN. This will help AirAsia especially, already the most ASEAN of all companies in the region, grow and expand and become a true ASEAN powerhouse.

    The Group heads based in Jakarta will be located there permanently. I expect all movement and transition from their current office (mostly from MAA in Kuala Lumpur, though over time I want to see a truly diverse Group management team from all across the region) from April 2012.

    The Group heads and teams will be travelling a lot across the Group operations to make sure they are consistent and we leverage on any opportunities to learn from each other as well as cut costs and increase revenues. Group heads won’t be “double-hatting” anymore – they won’t be handling Group AND country responsibilities at the same time. I want the Group heads to appoint country heads to replace them in their country roles immediately, or where succession is not ready, before the end of the first half of 2012.

    I shall be appointing a CEO to the Malaysian operations soon, and have proposed the name for the Board’s consideration. I shall fully move into my role as the Group CEO working with the country CEOs of Malaysia, Thailand, Indonesia, Philippines, Japan (and other countries as they come on board), as well as the Group functional heads. I and Kamarudin shall be working out of Jakarta whilst we work on our group growth strategies, but we will be travelling across our networks regularly, and you can expect to see us as much as before, if not more.

    2. GROUP MANAGEMENT STRUCTURE

    The way we run the group now is based on strong relationships and constant communication and high level of trust. Whilst we have pushed through a few core beliefs and principles on how the AirAsia companies should be run (high efficiency and asset utilization, great and consistent branding, great culture etc) it gets more and more difficult to continue managing it this way as we grow.

    The downside of our current management structure is that countries sometimes becomes misaligned from the core management and business principles, and we end up spending a lot of energy trying to bring everything back in line. Our energy is best used to grow the business and fight the competition and serve our guests better rather than fix internal misalignment.

    With that in mind, and in conjunction with the set-up of our Jakarta office, we will manage the Group differently from 2012 onwards. Here are the core roles, and how they will interact:

    Deputy Group CEO, President Group Finance, Corporate Finance, Treasury and Legal : Kamarudin will take on this role to ensure the group has a strong and focused management and supervision in the critical areas of finance and legal and compliance. Reporting to him are Andrew Littledale, who has just been promoted to Group CFO, Aireen Omar who handles Corporate Finance, Amir Faezal who handles Legal & Compliance, whilst Kamarudin handles Treasury direct

    Group Management Team (GMT): This will be a small core of our senior management team that will meet regularly and review the group’s progress and decide on policies as well as push for innovation and collaboration. The members shall be myself, Kamarudin, Tassapon (TAA CEO), Bo Lingam (Group Chief of Operations & Planning), Kathleen Tan (Group Head Commercial, also representing the AirAsiaGo/Expedia JV), Andrew Littledale (Group CFO), Zaman Ahmad (Group Head of Customer Experience & Technology, also representing the CAE/Academy JV), Johan Aris Ibrahim (Group Head Financial Services & Loyalty, also representing the Tune Group) and Adzhar Ibrahim (Group Head People). Azran Osman-Rani, representing AirAsiaX, is also a part of the GMT. Other members of the management team outside of the GMT may also be invited to attend permanently or as needed.

    Country CEOs: They will work towards growing the business in their country, manage safety, manage corporate governance (and investor relations when they go public) and government relations, be local ambassadors of our brand and look for and develop new business opportunities. They will also monitor the performance of the Group heads and their teams in their own respective countries.

    Group Heads: The Group heads of operations, commercial, customer experience, people, financial services and loyalty will run their respective functions by having direct control of the various country heads under their function. They will hire the country heads, manage their performance and determine their rewards such as increments, promotions, bonuses and growth and development. They will work very closely with the country CEOs to make sure good decisions are made and communication channels are open.

    In functions where the country CEOs have primary responsibilities, such as finance, safety etc, the country heads of such functions will work closely with the Group heads of those functions to make sure we have consistent policies and processes and decisions are made after having taken into account all relevant factors at country as well as group level

    Country Heads: in the functions that report direct to the group heads, the country heads will report directly to the Group heads, and indirectly to the country CEOs. They will take their primary instructions from their group heads, who will work closely with the country CEOs to make sure we manage all issues properly and we share all successes together.

    In areas where the countries have direct responsibilities, such as finance and safety etc, the country heads of these functions will report directly to the country CEOs, but with strong ties to the Group heads of these functions

    This business model has its own complexities, but it has been proven to be very successful by large international companies such as GE which wanted to create a strong and consistent operation, branding and culture. I have full faith and trust in our managers’ ability to work together and trust each other and learn from each other, and I have no doubt we can be successful.

    To recap:

    • I and Kamarudin shall manage the AirAsia Group through our Jakarta office.

    • We have set up a Group Management Team (GMT) made up of a small team of functional heads and CEOs to help manage the group.

    • Country CEOs will focus on growing the brand and the business and managing regulatory functions in their own country, whilst Group heads will have primary responsibility in managing the operations and branding and culture in all the countries directly. But the country CEOs will have a key role in monitoring the overall performance of the country. Some country heads will report directly to Group heads, and indirectly to country CEOs, whilst some others will report directly to country CEOs and indirectly to Group heads.

    • Country heads of the functions that are run directly by Group heads will be hired, managed, rewarded and developed by Group heads, who will work closely with the country CEOs on these.

    • The country organizational set-up must be identical from one country to another country. This will allow us to manage each country consistently through this new management structure. Where there are current inconsistencies, we will make changes that will become effective as soon as possible

    There are a lot of details that need to be worked out – keep a lookout for more details being announced over the next few weeks. I expect the structure to be fully set up and changes to reporting lines made and job descriptions re-written before the end of Quarter 2, 2012.

    Lots of love

    Tony

    Reply
  19. Pak Pandir

    YB
    This is truly shocking. I wonder where is MYCC, MACC with all these goings on.
    To even a layman this doesn’t look like a ‘collaboration’ at all, more like an invasion!. And from MAS response as shown in the Letters to the editor in today’s Star Business, the Communications lady states that all this is all decided by the Board. So it is not just AJ and Danny, it’s the whole Board as well!

    Adilah
    If as you claim all that credit should go to you, well, don’t just stop there. If you knew this “YEARS AGO”, why the silence and allow this ‘invasion’ to take place, and now claim you have all the info? But I suppose better late than never. Since you are at it, how about exposing somemore revelations, I am sure many MAS staff, and YB too, will be very grateful.

    Reply
  20. Thirddevil

    Khazanah’s investment policy can be described with 3 words : instant noodle and Starbucks. Khazanah under the current management hardly invested in start up companies and nature those companies to grow organically – it is always acquisitions and acquisitions – the instant noodle investment method. And the they acquired any companies, Khazanah tends to pay high price for those acquisitions – the Starbucks – damned expensive but you can get an equally good coffees from the roadside stalls. This investment methods have been Khazanah’s philosophy. This attitude mainly because of the ” not my money” mentality that exist in Khazanah. The same can be observed in them by the widespread use of consultants in their decision process – because the use if the consultants means they can blame someone else for the decisions. You can see clearly this mentality in the so called MAS / AA agreement. When asked on what basis the shares were swapped, AMOK of Khazanah mentioned something like ” based on judgement call” . Obviously his judgement is totally flaw. And with this flaw judgement , the PM must make a decision to rectify and correct the situation. Indecision will cause lot of voted in the next election. And what will you do with the current Khazanah management? Give them some free tickets to their newest investment in Kidzania so they can play acting and learn how to run a business!.

    Reply
  21. anom

    It was clear that the cronies are rapping MAS in every sense of the word. That crony Rashdan is a very good word. Now he is getting Nor Zalida Ahmad, the Acting Head , strategic communications of MAS to defend him. He has no ball to defend himself. Now he is hiding behind the Board.

    by the way who is this Nor Zalida Ahmad??? Is she related to Datuk Kamarudin Melanun? Like Datuk Hayati is said to related to that crony Rashdan.

    Why YB please examine thee role of Datuk Azman Yahya, who sit on AA and MAS board and that super star Omar Ong who is in PMO and also sit on AA board.

    Reply
  22. Scout

    anom

    Nor Zalida Ahmad is the sister of Zaman Ahmad, Group Head, Customer Experience and Technology for AA. She is also related to Kamarudin Meranun, co-founder of AA.
    She was formerly attached to CMS (Cahaya Mata Sarawak) reporting to the CEO Richard Curtis. From all accounts, nobody can describe her performance there as “outstanding”, so no surprise that it is the Mesti Ada Saudara connection that got her the job in MAS.

    Reply
  23. One Rakyat

    As a Malaysian, indeed, it is very sad to see such a fine airline which used to be among the best in the world and the pride of the nation reached the present state. Starting from Mahathir’s time and thereafter, cronies and their relatives acting in concert with the very people who are supposed to protect the interest of the nation continuously raped it for personal gains. It is now being raped again and this time it may be fatal. Those blamed will always be the staff though the one that drove the Company into the mud are the management and politicians. When the new airline is formed some may even lose their rice bowls.
    One of the present management business plans is to sell MASKargo, which used to contribute to MAS revenue significantly. MAS Maintenance & Engineering (MRO), among the top 10th in the world, the Ground Handling and simulator training are the arms and legs of the operations. They termed these facilities as non core business. Have the management projected out how much it would cost them if they were to out-source these functions verses the amount they would get, which I understand (correct me if I am wrong) all for RM 300 plus millions (about US100 millions). How does the management arrive at this amount? Has a proper valuation by independent body being done or is the price intended to benefit the buyer?
    As a Malaysian public, who is quite familiar with the aviation industry, I really share concern with MAS staff where the business deal results in a conflict of interest. Individually, the staff cannot do much but collectively under the unions and associations, if they have interest in the welfare of their members, there is a chance. The election is coming. Give a choice to the PM. Your strength is 18000 and you come from every corner of the country. Imagine if each of you can convey a message (either through the internet or verbally) to 10 people who may be your brothers, sisters, father, mother, cousins, uncles, aunties and friends, particularly in the heartland, of what actually happened in MAS and in turn ask each one of them to carry the message further and further. you may get what you want to abort the deal. If you cannot get what you want then at least there is a chance to get those who are greedy and guilty punished.

    One Rakyat

    Reply
    1. Jasper Bloodstone

      One Rakyat

      How is it then that Singapore Airlines divested it’s maintenance and engineering operations into a separate public-listed company called SIA Engineering?

      Or how SIA divested it’s in-flight catering and ground handling services to another public-listed company called SATS?

      Leaving SIA to concentrate on it’s key airline operations?

      Reply
      1. Anonymous

        I’m not sure how SIA divested it’s in flight catering but i’m damn sure it doesn’t involved 25 years of 1 sided agreement as MAS-LSG.

  24. One Rakyat

    Dear Jasper Bloodstone

    One of MAS business plan is to spin-off the supporting functions (Maintenance & Engineering the Ground Handling and simulator training). This is a business transaction which would involve money in exchange for a percentage of share or entirely (as reported in the KLSE news dated 08 December 2011 and quote “not rule out the possibility of disposing of its other businesses such as cargo and engineering entirely if the price is right” unquote).
    If the management sincerely wants to re-structure the supporting functions into subsidiaries then it is perfectly alright. Most probably it will be the right thing to do, i.e. provided MAS has the controlling share. In fact, way back the previous MAS management had this plan in place but for unknown reason it did not go through. Later, when these subsidiaries are public-listed then it would be better for MAS.
    The issue and concern are:
    (a) Instead of MAS has the controlling share, it may end up with Air Asia, particularly when they are represented on MAS Board (which I am sure you would agree has an element of ‘conflict of interest’). Under the present environment and management anything can happen. Just look at the past events. Didn’t you see how the share price of Air Asia was being manipulated from RM1.34/5 to RM 4.00 within a few weeks and MAS share price went down followed by an announcement? Fundamentally, when a company owes so much and is being run like playing a game of musical chair where the last will be caught standing, it cannot happened but yet it happened and the people responsible got away with it. Didn’t you read that the management claims the transaction will benefit MAS? What we see is the other way round. To me these people are working for Air Asia.

    (b) MAS business plan expects to generate RM 255 to 337 from the spin off. Some will be to Air Asia (page 27 of the Business Plan). How did the management arrive at this figure and for what percentage of the share? Has a proper valuation by an independent body being done? As a member of the public what is of concerned is the present management (reading from what have been said by the staff which has never happened before) giving away MAS asset to Air Asia for a peanut price and for some people personal benefits.

    One Rakyat

    Reply
  25. One Rakyat

    Dear Jasper Bloodstone,

    Do you know how MAS catering ended up under the present owner? Did MAS willingly sell it? In Malaysia anything can happen for some people personal benefit.

    One Rakyat

    Reply
  26. kapakhalus

    The thing about Tony Fernandez, he has no qualm “sleeping” with the politicians and the claimed elite groups as you can read TF letter. Damn, he already courted and appointed some of them to the AA Board of Directors to do his/AA bidding.
    The term “collaboration” is a camouflage for the invasion, the “take over”, and the “raping” of MAS and its last remaining assets – the workforce staff and entities which contribute to the MAS Groups’ revenues through ancillary revenues that benefit AA the most. You can check the JV companies which they formed and planned to form on the basis of collaboration that will take away MAS ancillary business entities but the equityship will lean more towards the AA groups or people with AA interests. When TF and Kamarudding came and sat with MAS in one town hall, they made very flowery comments to show their entrepreneurship and managerial styles which if the MAS people can talk to the AA staff for evidences. Sucks!!! What the Fu.. (What TF!)..
    TF and collaborators planned to divide and rule MAS and to tear down the Unions and Associations which without them, the Managements have free hands to hire and fire more MAS staff without respect and honorable compensations. MAS Unions and Associations have been not once but many times demonstrated supports for the Management’s plans to turn around MAS. However, strategic decisions which led to losses, excessive expenditures, mis-hedging and misfortune were the Management’s. The same thing which you cannot fault entirely fault the Rakyat for the Government’s strategic decisions, plans and wastages. BUT the RAKYAT are to be blamed if they continue to vote for the Parties to run our Governments and us. So its YOUR CHOICE, RAKYAT!!!

    Reply

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