Questions Time 13-6-2012: MAS uplifted the 35,000 AAX passengers at very low fares

Now Everyone Can Fly MAS

Pertanyaan Lisan 13-6-2012

Y.B. TUAN WEE CHOO KEONG [WANGSA MAJU] minta MENTERI KEWANGAN menyatakan jumlah kos MAS untuk uplift seramai 35,000 penumpang-penumpang AirAsia X Sdn. Bhd. (AAX) di bawah Perjanjian “Re-Accommodation” yang bertarikh 28-3-2012 dan sehingga Mei 2012, berapakah jumlah bayaran yang telah dibuat oleh AirAsia/AAX Sdn. Bhd.:-

 (a)           kenapa MAS mengenakan tambang teramat rendah dan di bawah harga pasaran termasuk semua cukai ke destinasi tertentu di bawah RA sedangkan MAS dalam keadaan “PARAH”; dan

 (b)           kenapakah MAS tidak batalkan RA semasa AAX gagal membayar RM31 juta “deposit” pada atau sebelum 31-3-2012 yang dimana AAX perlu melunaskannya mengikut undang-undang dibawah RA dan mengapa MAS masih meneruskan “uplifting” penumpang-penumpang tersebut.


Tuan Yang di-Pertua,

Untuk makluman Yang Berhormat, Perjanjian Re-Accomodation (RA) di antara MAS dan AirAsia X telah ditandatangani pada 27 Mac 2012. Melalui RA, MAS dapat meningkatkan pendapatan apabila lebihan kapasiti sedia ada dapat diisi oleh penumpang-penumpang AirAsia X tanpa melibatkan kos agihan, kos pemasaran dan komisen jualan tiket.

Berhubung kadar tambang, persetujuan ke atas kadar tambang bagi setiap sektor adalah berdasarkan all-in-rate termasuk surcharge dan cukai. MAS akan mengeluarkan tiket kepada penumpang AirAsia X pada kadar tambang yang dipersetujui dalam RA. Memandangkan persetujuan kadar tambang dibuat melalui RA, maka jumlah tambang berkenaan tidak dinyatakan dalam tiket yang dikeluarkan dan hanya diletakkan ‘No Fare’. Kadar tambang yang ditawarkan kepada Air Asia X ditentukan berdasarkan jangkaan hasil (expected yield), anggaran seat factor dan seat capacity bagi tempoh RA, kos agihan dan jualan serta jumlah penumpang yang ramai.

 Bagi memelihara kepentingan MAS, RA hanya melibatkan tiket penerbangan AirAsia X yang dikeluarkan pada atau sebelum 13 Januari 2012 dan penerbangan untuk tempoh 28 Mac 2012 hingga 27 Oktober 2012. Anggaran nilai RA adalah sebanyak RM51 juta di mana AirAsia X telah membuat bayaran pendahuluan sebanyak RM20 juta sebelum RA ditandatangani dan sehingga Mei 2012, jumlah bayaran yang telah dibuat oleh AirAsia X adalah sebanyak RM50.1 juta.

 Berdasarkan perjanjian, AirAsia X perlu membuat bayaran pendahuluan sebelum MAS mengeluarkan tiketnya kepada penumpang terlibat. Semua tiket penerbangan yang dikeluarkan oleh MAS kepada penumpang AirAsia X akan diselaraskan dengan pendahuluan yang telah dibayar oleh AirAsia X. Dengan mengambil kira bahawa AirAsia X perlu membuat bayaran pendahuluan untuk uplift penumpang-penumpangnya, maka Jaminan Bank tidak diperlukan dalam transaksi ini.

Memandangkan jumlah pendahuluan yang telah diterima daripada AirAsia X adalah mencukupi untuk menampung jumlah tiket yang dikeluarkan oleh MAS, maka MAS berpandangan bahawa RA berkenaan tidak perlu dibatalkan. Tambahan pula, MAS mengawal ketat pengeluaran tiketnya kepada penumpang AirAsia X untuk memastikan supaya jumlahnya tidak melebihi pendahuluan oleh AirAsia X.


MAS was uplifting the 35,000 AAX passengers well before the Re-Accommodation agreement was signed on 28-3-2012. You will note that MAS sent out an e-mail at 12:26 am on 28-3-2012 to do damage control because MAS was performing the uplifting exercise well before the 28-3-2012 without signing any agreement.

The MAS Beyond fares for AA X Sdn Bhd
The MAS Point to Point fares for AAX Sdn Bhd

Just check around the market, one will never get an airfare of RM1,111 for Economy Class and RM4,911 Business Class inclusive of all taxes from KL to London. From now until October 2012 it will be extremely difficult to get seats for the sectors in the tables above especially the London route. Just go to the websites of the airline and you will be able to compare the airfares charged.  The above airfares that have been agreed by Mr Shane Nollan of PlaneConsult as the then Acting  Commercial Director of MAS, and endorsed by En Ahmad Jauhari Yahya (AJ), the Group CEO of MAS, were most ridiculously low beyond imagination. Please read in HERE.

At that material time, this was how MAS interests were protected by AJ, En Mohamad Rashdan Yusof, En Rozman Omar (CFO of MAS)  and Mr Shane Nollan of PlaneConsult. This had to be part of the spirit of the share suap and the infamous “Comprehensive Collaborative Framework”, the brainchild of Rashdan, the Amok’s most trusted crony, and the other little Napoleoans in Khazanah. The above airfares charged wot AAX must be part of the big Business Plan of AJ to gain revenue for MAS where he and Rashdan was burning midnight oil, in HERE.

MAS staffs should ask AJ to give what is the total revenue gained/lost by MAS for uplifting the 35,000 AAX passengers. If MAS is breaking even with those prices  that will in itself be a gain. No doubt, there will be opportunity lost for MAS as it will not be able to accommodate its own passengers who will be paying a much higher fares for all the destinations stated in the tables above.

Yours truly believes that the above answers were drafted by the Little Napoleons in Khazanah for the Minister of Finance to table in Parliament.  The Minister of Finance should be extremely careful from now on especially getting answers prepared by the Little Napoleons in Khazanah as they have been proven to provide misleading answers like the above which will cause unnecessary embarrassment to the Minister. The Little Napoleons did not answer the questions at all. Nothing was mention about why MAS did not terminate the Re-Accommodation Agreement when AAx Sdn Bhd did not pay up the RM31 million on 31-3-2012.

Surely, the singing of the so-called Re-accommodation Agreement could not have been executed between 12 midnight to 12:26 am of 28-3-2012!

Can someone in MAS help with information whether the so-called RM51 million paid to MAS was sufficient to cover the cost of uplifting the said AAX passengers and what are the problems faced by MAS in all the destinations where MAS could not accommodate its own passengers due to the seats taken  up by AAX passengers.

For background information please read inHERE, HERE, HERE, HERE & HERE.

38 thoughts on “Questions Time 13-6-2012: MAS uplifted the 35,000 AAX passengers at very low fares

  1. Johari

    The answers provided were bullshit. Just an eye wash by the Little Napoleons in Khazanah. They are insulting the MAS staff and other Malaysians. Those who are in the MAS Commercial Department knew what Shane Nollan did and withthe blessing of AJ and Rashdan. They were all out to help the Pariah. No airlines would have uplifted another airlines passengers with such low cost fares inclusive of ALL taxes and without any security.

    Ptui! to the little Napoleons, AJ, Rashdan, Rozman and Shane Nollan.

  2. Ilham Putra

    YB, please tell the Finance Minister to be more professional in his reply. Don’t just reproduce the draft by the little Napoleons and present to this august house.

    Don’t digress from the question. Your question was why MAS accepted such a low fare rate for the RA. Please tell what is the RA rate MAS has with other airlines with regards to uplifting of passengers, just as comparison.

    Bear in mind, on AAX the fare does not include meals, drinks, blankets etc etc but when MAS uplift them, all those are included in the fare. Shouldn’t AAX be more humane to MAS?

    Or is my concern here is to ideal when the pariah is actually not humane!!!!

  3. Antigajibuta

    I think this Finance Minister is 1 of the most stupid ministers that Malaysia have at present. Is this the kind of leader we need in the future?? Its about time to change the MINISTERS!! In order for that to happen, im surewe know what to do….

  4. Anon

    The AA uplifted pax were like uplifted from jungles all over the world. They kept eating non-stopped and mas continues bleeding feeding these cheapskate low cost ticket with full services and extra food. One had to eat two meals but didn’t pay for the meal. Who pay for the meals? it was MAS and the uplifted pax were so busy eating all the way till landing in London and orly. They drank all beers, wines and anything that were supplied onboard. How MAS not bankrupt with uplifted pax?

  5. Save AirAsia

    MAS definitely didn’t use the excess capacity for the RA uplift. A very good evidence will be the extra flights created with flight number MH8xxx to fly the AirAsiaX passengers to Bombay.

  6. Xplorer

    where’s the hell is internal audit. if the same scenario being executed by a lower rank staff i’m sure he will be issued by an infringement letter.

  7. EconomicalWithTruth

    Dear YB : Khazanah definitely not answering your questions. What you should ask what is the load factor for all the route before this RA? For example I always got difficulty to get a seat on KUL-Lon-KUL sector on my chosen date. This shows the load factor for this sector is near or consistently close to 100%. By giving these seats to AA, MAS will Reduce their overall revenue since the price charged is very cheap as they cannot sell these seats to full paying passengers like me. Continue to push for an answer – the answer provided was definitely was prepared by Khazanah and this just to cover their back sides- and what a stupid minister just to read the prepare answer without getting the clarification. If the standard of our minister is this low, my son of 7 years old could has done a better job. After all, you just have to read from a prepared statement and he started to read very well since he was 4 years old!!!

  8. vinnie

    YB Wee,

    U have won the battle since Tony F leave Malaysia for Indonesia. It seem that he can’t stand with your constant effort to bring justice to MAS staff and for the rakyat benefit. Garuda must be very-very careful now.

    1. anti-betrayal

      Let’s not be too contented as for me we should watch up TF as he actually he will affected not only Garuda but also will intrude MAS routes eventually.. See what he has done in Oz!!. In Thailand, he’s struggling with Bangkok Airways!! In Japan & China, I guess we all aware about the competition among international airlines. Giving up MH domestic routes to AK was really heart breaking and there were also attempt by the to steal MH international routes!! Literally transferring to Indonesia; he actually has been ‘upgraded’ to lead from national to regional market!! He is capable of anything as Rafidah is behind him to support and buck up!!!

  9. Pak Azmi

    Aj please use your OTAK a little bit. With such low prices and the extra food that have to be supplied to those 35,000 passengers of AAX and not bale to accommodate MAS own passengers, how to make money. At the same time, the staffs and unions are constantly blamed by the top management headed by you and with the help of the Star of course for the losses.

    Decisions are made by you and staffs had to carry it out. You are just not fit to be group CEO. You are wasting MAS revenue – gaji buta. Just pack up and go to AAX, that is the right place for you.

  10. Nor dari MAS

    Aj oh AJ tak malu lagi kah? Nak blame blogger khasnya YB Wee lagi kah mengenai masalah awak tak layak jadi CEO MAS. Letak jawatan sahaja jika ada maruah! No one respect you in MAS, How can you still head an organisation when people feel so disgusted with your presence.

  11. TRE

    If Shane Nollan decide in the cost of uplifting AAX passenger for MAS, should not that be abuse of power, because he is from PlaneConsult and it is also the consultsnt for AA?

  12. Kulaan Sugih


    Approximate calculation on the cost of flying MAS B747-400 aircraft either from Kuala Lumpur to London or London to Kuala Lumpur (one way ) is :

    The flight hour is approximately 13.5 hours one way .

    On ball park figure , cost of fuel , catering , ground handling , navigation fee , landing fee , aircraft cost (maintenance/insurance/lease) , crewing/staff cost all in per flying hour is USD 20,000.00 .

    Flight cost to fly from London to Kuala Lumpur is USD 270,000.00 ( USD 20,000 x 13.5 ) or MYR 864,000.00 (exchange rates of 3.2 ).

    MAS B747-400 can accommodate approximately 380 passengers and we divide it by (cost) MYR 864,000.00 .

    As you can see each passenger MUST pay at least MYR 2273.00 for a ticket (one way ) for MAS to break even !!!

    How on earth MAS can make money if the RA per passenger is only MYR 1.111.00 , sure RUGI PUNYA lah, bayar duit minyak pun tak cukup !!!

    AJ if you got balls, please terminate the RA now or you terminate yourself if you don’t have ball’s to do so , kalo sudah tau meniaga rugi , lebih baik tutup kedai lah…

  13. Kulaan Sugih

    MAS 20 years old B747-400 will guzzled 10 ton or 13,000 liters of Jet fuel per hour .

    For Kuala Lumpur to London or London to Kuala Lumpur (one way) of 13.5 hours flight , its guzzle a total 175,500 liters of Jet Fuel .

    This will cost MAS on fuel alone of USD 166,725.00 (IATA current Jet A1 fuel of 95 USD cent per liters ) or MYR 533,520.00 (exchange rates of 3.2 ).

    If flight is full ( 380 passengers) , per passengers fuel cost is MYR 1404.00 , so the RA cost is only MYR 1,110.00 per passenger , duit minyak pun tak boleh cover the one way flight…………

    1. Brainless AJ

      Kulaan Sugih

      Thank you for enlightening us all in and outside MAS. I hope the little Napoleons in Khazanah, MOF and topless MAS management will read this. Fuel cost for KL – London is RM1,404 per pax for full flight, which are very usual ever since AJ did a charity promotion to help AAX.

      If this is the case, then MAS would have lost RM300 per passenger for KL – London, how about other destinations.

      No wonder MAS is bleeding due to leakage like this that caused by the stupid decision by group CEO and his mat salleh kuncu Shane Nollan.

      AJ you are just too stupid to head MAS. After this, I am not too sure whether other companies will take you. Please go to hell. MAS does not need idiot like you. MAS eill be doomed under you.

  14. jack1960

    Sheer Putar Belit

    YB/Fellow commentators,

    Unfortunate that an esteemed minister could believe what he has answered in Parliament. I do not believe he is that ignorant nor without common sense. He was just following orders.

    Who then should shoulder the responsibility in this public disclosure? At the end of the day its the PM/MOF.

    That being the case, this is an unmitigated public betrayal by an elected member of parliament of the management of a public asset.

  15. Shamsul

    The more we know about the incompetent of this AJ and the way how he look after AA X interests the more we lost our respect for him. How could a CEO agreed to such low fares to uplift AAX passengers.

    He must look after MAS interest because he is the CEO of MAS and not AAX. Better disappear from MAS to save more embarrassment to himself and his family. And yet he can send out two e-mails to praise that Nanny Danny and condemned the bloggers for exposing Nanny Danny.

    Now he should Nanny Danny to praise and defend him over the low fares under RA before nanny Danny disappears at the end of the month.

  16. hana

    AJ is a real joker. The CEO with most useless Business Plans, Organisational Charts and many e-mails on the same subject matter like the resignation of that Danny boy. ka ka ka!

  17. PTUI!

    Stupid Minister, how many people do you think believe your answer? I think even you have difficulty in believing it, if your arithmetic is any good. What “penambahan pendapatan apabila lebihan kapasiti” are you talking about? How do you explain the instances of OVERBOOKING especially from Paris (CDJ) where MAS , when it had to off load the AAX pax, had to PROVIDE transport, meals AND accomodation to them until the next available flight?. Apa “lebihan kapasiti” are you bullshitting about? Better retract this jawapan and do not tell lies in Parliament and insult all the rakyat’s intelligence. Do you want us to send to YB MORE EVIDENCE on this that will make you look like a bloody fool? AJ, take note, if you think your witch-hunting aided by the ball carriers especially the Security Head who desperately needs an extention will frighten staff, you better think again.

    1. weechookeong

      Ptui! Please send it the evidence so that the Government and other Malaysians can know truth and what have been told were all just a smoke screen. We all look forward for the evidence so that AJ, ozman and the clueless directors will open up their eyes.

      Thank you

      With kindest regards

      wee choo keong

  18. a disillusioned staff within

    The sad part about this whole fiasco ~ is that the whole wide world (the public) gets to read everyday, on everything about the sorry state of affairs at MAS and the levels of incompetency of the management that heads MAS. End of the day, only the management of AirAsia is sitting back and gleefully laughing, watching MAS slowly destroy itself from within and go down the drain.

    Everyday we would see (read about the) discontented and disillusioned MAS staff expressing their frustration and anger HERE because they are unable to express it within MAS for fear of reprecussion and retribution. Since the times of Tajudin Ramli – MAS has changed and now a punitive and vindictive one.

    Everyone knows what is needed – a new board of directors that has the trust of everyone to move forward, a CEO that has the abilities and visions to change and a competent team of top managers who is willing to make and manage the changes. None exist at the moment in MAS. And until this is achieve, anything done by the present group of directors and managers would never get the support of the staff for change. In fact – only by winning the hearts and minds of the staff – would the healing start and change begin.

    1. SO SAD

      You have stated beautifully what is in the hearts and minds of many staff. Unfortunately, it is not in the hands of the staff to get the right leadership MAS deserves. Staff simply have to work with whoever is the boss/bosses, yet time and again, they are blamed for the failures. The TR era was the beginning. Yet, do we see him being held accountable? Of course not. The same will again happen. The top people come and go, get paid huge salaries and good perks, leave a mess, and nobody will be held accountable. Staff have to face the same cycle, and listen to the same scripts, yet again. Because they do not stay for very long (the CEO/MD) they will go for quick fixes and there is no priority to “win the hearts and minds of staff”. Classic example is how AJ tried to push the migration of staff from Subang to KLIA. Even with the temporary deferment of the migration (for some segment of staff), the damage is done. Staff will never trust him again. The healing of this beloved company must start with a new , clean slate. Not just the top like CEO and Board, but also senior management.

  19. Franky MAS

    The problem with stupid AJ is, he has zero knowledge about aviation and yet he wants to show that he knows a lot. He is the worst CEO we ever had. He allowed the Shane Nollan, Rashdan and the Pariah to lead him b the nose. The RA shows that he is just too stupid otherwise he would never have agreed to those fares. When AirAsia did not pay the remaining RM31 million, he should have terminated the agreement and tell the Pariah to fly kite. But he can’t do that as the Pariah is his de facto boss or he thought that he was teh CEO for AA X too.

    1. Anti Hypocrite

      yeahhh…. and now that Pariah wants to setup new airline in Indonesia. Lion Air knows it will shaken their business, but Lion will come to KLIA2 and setup their new hub here. FlyDubai will act the same. Let see hoe that TF Pariah survive

  20. Anti Hypocrite

    YB Wee, i think its time for you to tell Datuk Najib, kick that AJ from MAS. Let other people like Dr Mohamadon Abdullah lead MAS. Please YB, we really wanna see MAS back to its right track…..

  21. Anti Hypocrite

    Since Mr Tony is not around, this is best time for FireFlyz to tackle more passengers. Why dont you suggest to Ignatius Ong, fight back the lost route, get the new destinations, and win back all passengers. This can be done easily. If I were CEO of MAS, i can see this as an opportunity. But CEO of MAS is just like dumb and deaf person. HE thinks he is smart but he got zero knowledge in aviation. As I said earlier, just tell PM to change him and get the new CEO who can bring more money, profit and let turn to global player, not like a government department who always finance by the government. Persons like Syed Buhari, Vincent Tan, Ananda Krishnan, Tan Sri MOhamad Ali Hashim, and even Tan Sri Hassan Merican are those who can make money. Why appoint someone who is not eligible for that position??? PM is too blind about this? Why wasting so much government money just for the sake of MAS? Stop all the bleeding by strategise a new approach, not like spending more government’s money to protect MAS…… This is what I dont like about Malay style of business….. Always rely more on the government. Can MAS stand alone without government? Can MAS compete with other airlines?

  22. Corporate Travellers

    Alo YB,
    Perhaps it might interest you to know that even after the departure of that stupid Shane Nolan, MAS is now in full mode of closing overseas office as we speak. I was just told by some disgruntled MAS staff that their overseas office in Madrid and Zagreb has been closed and the staff there were asked to pack their things and get lost. True that MAS do not fly to this place but MAS has ticket office that sell tickets to all other European travellers that wish to fly MAS services out of other places like Paris, London, Amsterdam and even Germany.

    By closing this offices, MAS will effectively cut off their income stream. What kind of business sense does this make when you close down branches where they provided an income to the company. Bloody stupid !!!

    Interesting to know that all this exercise is being undertaken by the apparentice of Shane Nolan. Are you aware of this Mat Saleh named Huib Gorter ? He is the key person in pushing to close down all these offices after Shane Nolan left. MAS ought to remove this bloody Mat Saleh first before he close even more MAS offices overseas. Seriously MAS do not need anymore Mat Saleh like him who cannot contribute. I was told that he is on holiday to Europe when the office was closed. Another deadwood wasting company money touring Europe for his personal interest. Damn stupid of AJ in allowing all this happened right under his nose.

    Is there more to come ???

  23. Anti Hypocrite

    YB Wee, But just want to suggest if you dont mind. Why MAS didnt applied point to point flight like other airlines did. For example, Qantas QF1 fly from Sydney via Singapore to London. Why MAS did not see this as a strategy to attract more passengers. If MAS wish to fly to US, why they dont use their own base in Amsterdam, Charles de Gaulle and London to any other airports in America? If MAS can setup their research unit to study each and every part of region, season and frequency of passengers, I’m sure more profit can be made.

    1. Aviation enthusiast

      Dude…not easy as it sounds. Logically yes all airline will choose which route they want to fly, but there is such thing which called traffic rights. For eg, KUL-LON-EWR is definitely a lucrative route which definitely can make tons of money. However, MAS do not have the freedom of rights to fly such routing. It is called the 5th and 6th Freedom traffic rights. It’s complicated dude to run an airline. Too many variables and too many rules to follow.
      For normal businessman, leave the airline management business to idiot such as AJ. He only see Mat Salleh as the saviour of MAS.

      1. ex-maswingmate

        Then get engage the govt to support getting the freedoms of the air. Those rights are not for MAS to get, it’s for the governments to agree. It may not be MAS’ problem alone.

        Considering the usually full KUL-ARL-EWR vv route was scrapped because it wasn’t making profits means that unless and until the real problems in their operations and sales are addressed effectively, all the 5th freedoms to all the airports in the world won’t help them.

    2. Johnnie Thaksin

      I think mh do have the rights to ply some of these routes but again… not worth the cost to do it. Also, very hard to go against af/kl n ba shd mas decide to have a euro-hub.

    1. New CEO Please

      Please leave the CEO Maybank where he is, he is doing a fantastic job. PM Najib, since Syed Zainal has left Proton, can you please send him to be MAS CEO? From all that we have heard, seen and know of Syed Zainal, we are convinced he will do a far better job than the current clueless AJ. Besides, his people skills are a million times better, so “winning the hearts and minds of staff” will be right up his street. When staff trust you, half the battle is already won. PM Najib, we are serious on this.

  24. vinnie

    YB Wee Choo Keong,

    We need the CEO who can do fantastic job like Maybank CEO now to ensure MAS make profit during day to day operation. For sure, 20,000 skilled staff is not the burden when MAS CEO only need to plugged leakage like unfair catering agreement and unfair leasing of MAS building. To trained new MAS personnel will take more time, more money and more effort in which MAS could not able to do today. Remember this, AA bought 200 airbus 320 Neo, to save cost for training, what do u think they will do? Ex MAS staff?So,mengapa AJ berhasrat mengurangkan pekerja MAS skrg? What MAS really need is one CEO that honest, have vision to bring MAS to next level, boleh memberi inspirasi kepada MAS staff untuk bekerja dgn lebih kuat dan menentukan keuntungan diperolehi setiap hari, minggu dan bulan. Adakah anda rasa anda layak memegang jawatan CEO jika kerugian masih berlaku selepas 5th quarters? For me, pls maintain the present staff, but AJ must go.

  25. Fence Sitter Voter

    Air Asia: The World Greatest Airliner Without Working Telephone Lines. The staff confirmed they did not have a telephone line and niether their KL office at LCCT/KLIA.

    What a joke!!

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