MAS 12:26 am e-mail on the Re-Accommodation Agreement with AirAsia X
On 15-3-2012 yours truly has highlighted the uplifting of AirAsia X Sdn Bhd(AA X)‘s passengers where MAS ticket showed that NO FARE was charged. On 17-3-2012 yours truly has also lodged a police report over this matter.
Out of a sudden MAS management saw it fit to send out an e-mail on 28-3-2012 at 12:26 am! WAU! MAS management was working on overdrive so much so that e-mail was sent out at 12:26 am. Now we know why En Ahmad Jauhari Yahya (AJ), the Group CEO of MAS told MPs during the “Briefing of MPs Session” on 26-3-2012 that MAS staffs are of low productivity.
Obviously MAS staffs need not burn mid night oil to do what the top management staff had to do! They had to do special project to protect the “special interest” of the company! You should know what I meant lah! They should be rewarded with higher salary, better car, allowance and their maids be granted with special privilege of automatic upgrading from Economy Class to First Class if travel on MAS. After all, Amok’s crony, Rashdan, has already set the standard while traveling on MH 122 on 1-1-2012. Please read in HERE and HERE.
Subject:Malaysia Airlines enters into re-Accommodation Agreement with AirAsia X
28 March 2012
Malaysia Airlines enters into Re-Accommodation Agreement with AirAsia X
Malaysia Airlines has entered into a Re-Accommodation Agreement (“RA”) with AirAsia X effective 27 March 2012to re-accommodate the latter airline’s passengers on four routes cancelled using excess capacity on Malaysia Airlines flights. The four routes involve Mumbai, Delhi, London and Paris.
Economy and premium class passengers holding confirmed AirAsia X tickets issued before 13 January 2012 on the four routes would be transferred for travel on Malaysia Airlines between 28 March and 27 October 2012.
Under the terms of the RA, Malaysia Airlines would receive upfront cash paymentsor pre-payments on tickets for the re-accommodated passengers before departure. To date, Malaysia Airlines has received a prepayment of RM20 million in cash.
Malaysia Airlines benefits as it is able to achieve higher passenger numbers on its flights which would be incremental to its normal load patterns. Hence, the related revenue from this arrangement is pure incremental revenue for the airline and would significantly contribute to the profitability of Malaysia Airlines.
Re-accommodation of passengers is an industry practice whereby airlines support each other to minimise disruption to passenger travel arrangements. In the past, Malaysia Airlines has upon request and on an ad-hoc basis provided uplift and re-accommodation of passengers of other airlines.
These arrangements were provided with regard to excess seats availableand agreed costs involved. In all cases of re-accommodation, Malaysia Airlines would charge the airline concerned for the re-accommodation. Recent reports that Malaysia Airlines may have re-accommodated AirAsia X passengers without payment or at rates unfavourable to the national airline are unfounded and untrue.
Malaysia Airlines would also like to put on record that it continues to respect and abide by all governance requirements in the execution of this transaction.
The above e-mail sounded great for MAS. We must congratulate the famous TRIO for a job well done. Of course, the congratulation must also be extended to Mr Shane Nollan of PlaneConsult, who by coincidence was appointed as the Acting Commercial Director. Mr Shane Nollan must be very high paid by MAS because of his rare talent! Yours truly has asked the Ministry of Finance of his salary plus allowance for month but no answer has been forthcoming. Yours truly, will press on with the same question next week in Parliament.
Based on the above e-mail, if there are more termination of international long haul routes by AA X due to “high cost fuel” (don’t laugh please this was what we are told) then it should be “an incremental revenue” for MAS!. Obviously this must be one of the main objectives of CCF.
To yours truly, this “incremental of revenue” is definitely a windfall for MAS. No wonder, Tan Sri Md Nor Yusof, AJ, Amok’s crony, Rashdan, Tan Sri Azman Mokhtar, the MD of Khazanah, are backing the MAS – AirAsia share swap and, more importantly, CCF to the hilt. Please don’t laugh this is a serious matter. We must give “credit” where credit is due!
AA X has announced that there are 30,000 affected passengers due to cancellation of routes to London, Paris, Mumbai and New Delhi. Yours truly believe that total number stand at 35,000.
Now lets examine the carefully drafted said e-mail. Lets start with the first paragraph:
“Malaysia Airlines has entered into a Re-Accommodation Agreement (“RA”) with AirAsia X effective 27 March 2012to re-accommodate …”
It conspicuously omitted the date on which the said agreement was entered into. It only state the said Re-Accommodation agreement was effective as from 27-3-2012.
Please take note that yours truly has published an article showing the online ticket for a passenger from KL to Mumbai with ZERO fare, in HERE, and had also lodged a police report on this subject matter on 17-3-2012, in HERE. From 15-3-2012 to 27-3-2012 before12 mid-night, there was no briefing or e-mail to members of staff.
Perhaps the top management and their staffs became extremely hardworking over their norm from 15-3-2012 to 28-3-2012, hence the e-mail sent out at 12:26 am!
Next week MPS will be debating the Supplementary Supply Bill, yours truly will ask the Minister of Finance when was the said Re-Accommodation agreement was signed. MAS staffs and the MAS unions should also demand for an answer to the same question. The reason being that if it was entered well before 3-3-2012 then the ticket for the affected AA X passenger, to Mumbai on 3-3-2012 should not show ZERO fare but it did. Please see below:
Reliable sources in MAS said there was no such an agreement entered into before 28-3-2012 and the so-called agreement was entered into was an afterthought. But yours truly didn’t believe the said source. Therefore, yours truly will have to ask for answer in Parliament and MAS staffs should ask Md Nor, AJ, Amok’s crony, Rashdan, Rozman Omar, the former PM Tun Abdullah Badawi, the MAS Advisor.
But you must not forget Mr Shane Nollan, the Mat Salleh of PlaneConsult, whom MAS staff should be familiar with, is the specially handpicked by MAS management and appointed as the Acting Commercial Director with wide powers. Just to recap, PlaneConsult is also the consultant of AirAsia and AA X. On such matter on FARE Mr Shane Nollan must be fully apprised of this particular SPECIALtransaction.
The 3rd paragraph of the said e-mail
“Under the terms of the RA, Malaysia Airlines would receive upfront cash payments or pre-payments on tickets for the re-accommodated passengers before departure. To date, Malaysia Airlines has received a prepayment of RM20 million in cash.”
If AA X is an IATA airline then there is no problem in term of payment because it will go through BSP (Bank Settlement Plan). But AA X is not an IATA airlines. Under such circumstances, it has been MAS policy/rule to ask for “Bank Guarantee” from AA X as part of this Re-Accommodation agreement.
From the said e-mail, it would appeared that there was no such Bank Guarantee to cover for the cost of fare for the said 35,000 passengers. Again reliable sources in MAS told yours truly that “the low productivity MAS staffs” did insist of a Bank Guarantee from AA X but the person with power over such matter said no need. May be that was the reason why the said early hour e-mail did not mention it.
Again yours truly has been informed by reliable sources in MAS that the total cost of the fares for the affected AA X passengers is more than RM50 million.
Of course, yours truly did not believe these two were true.
Yours truly will of course ask the Minister of Finance what is the total cost and why there was no such Bank Guarantee being given in this case. MAS staffs and MAS Union leaders should also ask the same group of top management guys about it. Again you must not forget about Mr Shane Nollan of PlaneConsultbecause of his portfolio and the wide powers.
The 6th paragraph of the said e-mail
“These arrangements were provided with regard to excess seats availableand agreed costs involved. In all cases of re-accommodation, Malaysia Airlines would charge the airline concerned for the re-accommodation. Recent reports that Malaysia Airlines may have re-accommodated AirAsia X passengers without payment or at rates unfavourable to the national airline are unfounded and untrue. Malaysia Airlines would also like to put on record that it continues to respect and abide by all governance requirements in the execution of this transaction.”
The key words here are “excess seats available” and “agreed costs involved”.
In the said e-mail, there was no mention of what were the “AGREED COSTS INVOLVED” on the fares for the said AA X passengers.
Again yours truly has been informed that most, if not all, the seats for this affected AA X passengers have beenpre-booked/reserved on MAS flight and the “AGREED COST INVOLVED” for the said fares were much lower than the lowest fare charged by MAS for the destinations.
As for the London and Paris routes, MAS had to pay for the Emission Tax. Yours truly is not sure whether MAS is paying for this tax.
Last but not least, let look at this part of the 6th paragraph:
“Recent reports that Malaysia Airlines may have re-accommodated AirAsia X passengers without payment or at rates unfavourable to the national airline are unfounded and untrue.”
This gives the impression that this early hour e-mail was in respond to the exposure in yours truly blog and the said police report. However, yours truly stands to be corrected if these matters have been published before 15-3-2011.
Yours truly will also ask the Minister of Finance to tell Parliament whether there was any proper due diligence and study done by the Khazanah’s top officials including YB Tan Sri Mohamed Nor Yakop, the former powerful Minister of Finance II, Tan Sri Azman Mokhtar, En Mohammed Rashdan Yusof, and the MAS Chairman, Tan Sri Md Nor Yusof before the MAS – AirAsia share swap and CCF were inked on 9-8-2011.