Malindo Airways is good for consumers

The PM witnessed the signing ceremony for the setting up of Malindo Airways.

On 10-9-2012 YAB PM Datuk Seri Najib has announced the setting up of a new low cost airline known as Malindo Airways.  Malindo Airways  will commence operation in May 2013 and be  based in KLIA-2. Read in HERE.

The launching of Malindo Airways was most timely because Malaysia needs another low-cost carrier to break the existing monopoly by one airline.  Further, we cannot allow one airline to dictate terms to the Government and/or  MAHB on KLIA-2 or for whatever matters.


It was also comforting to note that Malindo Airways has promised to charge low fare for its operations and on top of that it will also offer free in-flight entertainment, a light meal, WiFi facilities and use the aerobridge in KLIA-2.  There will also be no imposition of hidden charges like Convenience Fees,  Counter Check-in Fees and etc on its customers, like in HERE


Now we have witnessed a real collaboration between National Aerospace and Defence Industries Sdn Bhd (NADI) and Lion Air of Indonesia in the setting up of Malindo Airways where there was no share swap and/or interference in the management of either company.  Hopefully the little Napoleon in Khazanah would learn something from the spirit of this collaboration for whatever deals that it is going into in the future on behalf of the GLCs.


Malaysians should support the entry of Malindo Airways into the low-cost carrier market as competition can only benefit the consumers.   



  1. MAS is truly screwed. All their Asean flights will affected. Low yield will be the order of the day. The proposed benefits of Mro is also not forthcoming to MAS.

  2. Sebagai rakyat Malaysia yang prihatin saya bersyukur dan berbangga kepada PM kita kerana melancarkan penerbangan tambang murah yang kedua di Malaysia Malindo Air.

    Sudah tiba masa nya kerajaan membuka mata apa yang telah di lakukan olih Air Asia. Sebenar nya saya tidak anti Air Asia tetapi agak kecewa dengan sikap bongkak dan lupa diri pihak atasan Air Asia yang lupa diri bahawa Air Asia tidak akan berjaya ketahap sekarang sekiranya tidak mendapat sokongan dan bantuan dari pihak kerajaan Malaysia.

    Seluruh Malaysia tahu Air Asia terlalu bongkak dan sombong sehingga tidak menghormati badan kerajaan seperti Malaysia Airports, Jabatan Penerbangan Awan, dan lain lain lagi.

    Secara terang terang nya mereka bergaduh dengan Malaysia Airports hanya kerana tidak mahu menuruti kehendak mereka. Apa yang ada pada mereka ? Kerajaan bersusah payah membina KLIA2 dengan belanjawan yang tinggi khas buat operasi Air Asia dan apabila sudah hampir siap dengar ura ura yang mereka tidak mahu menggunakan KLIA2. Di mana kah sikap kenegaraan dan kebanggaan sebagai syarikat kelahiran tempatan ?

    Degan bongkak nya mereka berpindah ke Indonesia dengan mcm mcm alasan yang tak bolih di terima pakai olih rakyat. Apa salah nya meneruskan Regional Office di Malaysia ?? Apa kah kelebihan yang ada di Indonesia yang tidak ada di Malaysia ??? Air Asia patut berbangga dengan apa yg mereka kecapi sekarang dengan mendapat sokongan dari pihak kerajaan. Setinggi mana kita berjaya ingat lah orang yang membantu kejayaan kita. Jangan lah jadi sepert melepaskan buaya tersepit. Ini lah sifat sifat yang ada pada Air Asia.

    Yang hanya mereka tahu mahu bargaduh dengan badan kerajaan tertentu hanya kerana tidak memenuhi kepentingan mereka. Benar benar Air Asia seperti kacang lupakan kulit !!!

    Saya amat berharap Malaysia Airport menutup saja LCCT sekarang bila KLIA2 sudah beroperasi tahun hadapan. Tunjuk pada Air Asia siapa yang lebih berkuasa. Sudah tiba masa nya Air Asia diberi pengajaran yang sewajar nya.

    Terus terang saya kata kan saya amat membenci Air Asia dan amat jarang sekali saya menggunakan penerbangan Air Asia. Waluapun jika tiket MAS lebih mahal dari Air Asia akan tetap saya gunakan MAS atau Firefly.

    Tahniah dengan pelancaran Malindo Air. TF dengan bangga nya menidak kan bahwa penubuhan Malindo Air tidak akan menggugat Air Asia. Ada kah kita rakyat malaysia akan terus di perbodoh kan oilh dia. Cuba lihat share air asia semalam di dalam berita bahwa share air sia terus menjunam 17 sen selepas saja penubuhan Malindo Air. Ini yang di kata kan olih TF bahwa Malindo Air tidak akan menggugat Air Asia ????? Tidak benar sekali and YOU ARE WRONG this time.

    Ini belom lagi dengan bermula nya operasi Malindo Air pada 1 Mei 2013 nanti. Sudah pasti akan menggugat operasi Air Asia sebab penumpang mempunyai pilihan selain Air Asia yg bongkak dan sombong.

    Sebagai rakyat Malaysia yang prihatin mari lah kita berdoa akan kejayaan Malindo Air dan juga MAS supaya dapat memberi saigan yang sengit pada Air Asia. Teach them a lesson this time !!! Let them respect the government and the people.

    Taniah PM dan kerajaan Malaysia kerana akhir nya menubuh kan Malindo Air. Semoga berjaya Malindo Air.

  3. The way I see this as another airline that will compete with and take away MAS passengers.

    Just like how Air Asia in the early days, professed that they are not competing with MAS; they are targetting a different customer set……

    I am still going to say, watch what you wish for. For you may not like the final outcome. This is a perfect example.

    • It’s 2 different class bro. You cannot compare Malindo, Air Asia with MAS. Open up your eyes and live in reality world.

  4. Supporting Malindo blindly may be a mistake. Lion Air has a very dodgy record at best, details of which are readily available online.


  5. In that case also revive firefly. Why kill our own and popular FireFly but let others compete instead. This is how this stupid government of ours screws local companies.

    • Whats not so well known is the fact that Firefly were in advanced talks with Lion Air about such a partnership…guess that was quickly kicked aside once Tony and his friends kicked Firefly into touch alleging huge losses blah blah blah. Lucky for NADI that Lion Air turned to plan B.

      Its obvious that no one gives a toss anymore about Firefly, including those in charge of it!

      • Anon66, I agree fully with you. What MAS should do now is collaborate with Malindo Air (without the need for share swap) and provide the connectivity for the passengers of Malindo Air for their onward journey not serviced by them. Plan B is indeed a good plan that TF never envisage would happen. Serve him right for his bad intention on Firefly and MAS.

  6. yes this is it Malindo go for it …. I read on today that Fenandexo wants to give Malindo a run for its money …………. wiht people power and consumers supporting Malindo lets all say Fernadexo you will run out of money!!!!!!! this way Feranadexo will learn what his parents taught him HUMILITY first Fernandexo >>!!!!!! there is nothing genuine in what Fernadexo does its all copied from others ……… his times up !!!!! I only really hope Fernandexo is not behind Malindo too…….!!!!!

  7. with more competition, how is the airline you are championing for (MAS if you care to know) is going to survive the onslaught?
    unless the staff in MAS changes the way some things are done and work ethics are improved, it really does not matter who comes on board the management team to turn around the airline. MAs will take the full brunt of the storm come 1 May 2013. Who knows how many more regional players will be coming?
    MAS used to be the envy employer in days gone by because of good governance and good team spirit and staff unselfish duty to the company and her paying customers, but is that still evident? Sigh….I love MAS but at the same time, I loathe the situation it is in now.

    • Totally agree with you. The quantity is not important, it is the quality and efficiency that matter.. I think this is another project to rip off tax payer money and to kill MAS by the same group of people. Not only we gaji buta, mata pun dah buta. Hopefully hati tak buta. Bye bye MAS, you deserve it!

  8. Satu perkembangan yang baik untuk perkhidmatan pengangkutan udara negara. Saya pernah menggunakan perkhidmatan Lion Air dari Jakarta ke Bali dan memanglah dari awal penempahan lagi semuanya jelas dan terang. Janji Lion Air untuk menawarkan harga lebih murah dari LCC yang ada harap- harap tidaklah janji manis sahaja. Penawaran inflight entertainment & light meal sangatlah dialu-alukan. Lion Air ialah full service airline tambang murah sedangkan MAS ialah premium airline. Diharap Malindo Airways berada di tahap antara keduanya. Yang penting pengurusan Malindo Airways akan lebih mesra pelanggan, tidak mengeluarkan kenyataan2 yang angkuh, bongkak dan sombong. Tidak sewenang-wenangnya mengugut mana-mana pihak lain seolah-olah tiada siapa yang lebih penting darinya.

    Semoga perkhidmatan Malindo Airways ke Sabah dan Sarawak dapat dipercepatkan.


  9. The Pariah has put up a brave statement to spin. As usual he has no fear of a new low-cost airline and yet immediate after the share swap the Firefly was killed by his friend, the Nanny Danny. If the pariah has no fear of new airline, why killed Firefly, which was was no threat. Yet, Firefly was killed.

    Now that Firefly will resume its jet services, this is the best news for the public. We have had enough of the Pariah. I hope that the pariah will get the taste of his medicine in Jakarta. If the pariah is back with his tricks in Jakarta by owing airport then he will will be in deep shit as the Indonesian authority is not going to be friendly like the Slumber Jack government.

  10. I hope Malindo Airways will service KL-Bandung route to break Airasia’s monopoly on this route. Yes, if the fare is right, they would take away some of MAS’ passengers but AK more of AK passengers. AK passengers are price-sensitive passengers, they will go to airlines offering cheap airfares. Lion Air has now transformed to a better airline compared to last time. The aircraft they use for KL-JKT vv are all new aircraft. Only the timing and frequency for this route need to be changed/added. With NADI being the major shaeholder in Malindo, we hope Government can give full support to them so AK can feel real competition this time.

  11. Thank You PM .

    Haaa haaaa , Look like AA monopoly of the low cost no frill air travel will not last long .

    The pariah and gang under the nose of clueless AJ immediately kill Fire Fly jet services when the share suap taken place , killing the only AA low cost travel competitor at that time .

    Thank you PM for giving the blessing for setting up Malindo Air and the rakyat have a choice now .

    Lebih meriah if Fire Fly jet services is put back in to service.

    We will see the pariah will run for his money this time and this will keep his big mouth shut.

    With NADI / AIROD now diversifying its military MRO business  into civilian aviation business MAS MAE will soon loose out from first class world MRO to 3 rd class MRO under bo(otak) Azhari .

    Many MAS MAE top “general” ex MAE CEO Roslan , ex SVP Tan WL , ex VP Kosnin whom with more then 30 years experiences in MRO business is now running AIROD civil aircraft engineering ,in just few month setting it up , they manage to wrestling and  secure few 3 rd party MRO contract from MAS MAE ( Batavia Air , Lion Air……) and bo(otak) head Azhari is now sitting duck , don’t know what to do since many experienced senior marketing and engineering people had “forced” to leave MAS , the senior people who had already forged a long term link and net working  with 3rd party customers world wide will now entice them to come to AIROD instead of MAE .

    MAS MAE had loose its own Fire Fly ATR 75 maintenance contract to SAE too who had also sign a 10 years contract with AA A320 .

    Some critics said “previous”  MAS MAE management also had bad track record in managing engineering but at least all this exMAE CEO , SVPs , VPs who had left or who had been “cold storaged” by bo(otak) Azhari had at least MAS IN THIER HEART but ini bo( otak) had pariah in his heart .

    Si tak malu bo (otak) head ni , we dont need you here , you are a pariah’s tikus cuba membaiki labu .

    What inside MAS MAE hangar now is KLM and Virgin Blue aircraft under maintenance which contract was secured long before bo(otak) ni parachuted in .

    Now even few EOL (End of Lease) B737 aircraft which is in the hangar pun bo(otak) head ni cud not handle , at the end this bo(otak) under clueless AJ buy this B737 back at USD 6.4 million , while the market price is USD 3 million each , paying double the market price !!!

    MAS is going to spend a whooping MYR 120 million in buying back this 6 units EOL B737 just because MAS MAE under both bo(otak) head Azhari and Aminudin Zakaria and of course that clueless AJ could not comply with the EOL terms and owner wanted to sue MAS , takut kena saman , MAS bought it back at double the market price , what a scandal !!! 

    Bo(otak) head wanted to clean up engineering konon , if true all MAS engineering staff is corrupt as you mention it again again in the meeting’s , please call in the MACC lah , don’t just base on hear say saja .

    Clueless AJ , the two bo(otak) head Azhari and Amin , you shud join BT Air in Indonesia which your master pariah just bought.

  12. When KLIA 2 is ready just close down LCCT. Lets see whether the pariah can dictate terms to MAHB or the government. We have had enough of his nonsense. The slumber jack era was over for a long time whereby owing airport tax was a norm and MAHB cannot take action. The Khazanah boys or the 4th floor boys in Khazanah will just close eyes and let the pariah run amok.

    The pariah has been bullshitting passengers with all kinds of publicities. Passengers have been short changed with poor bargains.

    Malindo Airways is good for the travelers. Hope the Clueless will launch the Firefly jet service. once Malindo and Firefly jet services are in operation, the pariah will have little room to be arrogant.

  13. Hello pariah toni served you right! Padan muka engkau. Next time learmble lah thumbi

    Btw, i am still waiting for my refund from your airline. Why still sitting on it? You want to earn interest on my hard earned money?

    A snake will always be a snake

  14. Match up Airod (Malindo etc) against ST Aerospace Engineering (AirAsia) etc and I’d bet on ST Aero (more experience, better reputation, deeper pockets). But that’s another topic for another day.

    I am just saying that it is not a kuching kurap outfit that is doing MRO for AirAsia’s A320s.

    Anyway, it should be noted that Pak Rusdi is not exactly putting all his eggs in the Malindo/Nadi/KLIA basket. Lion Air also has ambitions in the Singapore/Changi-Indonesia sectors (as also has Garuda).

    For Rusdi, Malindo is a just a means to the end game which is to dominate the Indonesian market for air travel. He knows that he has an uphill task there, competing against a revitalised and restructured Garuda (where CEO Pak Emirsyah is calling the shots), Tiger Airways, Jetstar Asia and Indonesia AirAsia. So he goes for the soft underbelly which is MAHB/KLIA and a MAS that doesn’t know whether it’s coming or going.

    If anything, it’s MAS that has got it’s nuts caught in a tangle, seeing as how it has to navigate between premium full-service airlines (which is not only SIA, Cathay Pacific and Thai and the increasingly aggressive Gulf airlines) and the LCC “budget” carriers. Firefly isnt going to make much of a difference in an airline industry that is driven by high fuel costs, thin margins and “open skies” (just read the recent statements from IATA).

    • Gooberman, spot on , as always, except for “MAS doesn’t know whether it’s coming or going”? – MAS is already technically GONE. Instead of MAS staff clapping hands with the setting up of Malindo, thinking AA is going to sweat, what do you think will happen to MAS with Malindo? Malingkop la.

      • hahaa.orang tak takut Allah dan Akhirat macam ini.bongkak.tony will confirm burn in hell.the lowest region in hell that is

  15. Malindo Airways will not affect MAS as much as it would for AA. Of course, the Pariah will put up a brave front as usual but he will soon be complaining about Malindo Airways. Just close the LCCT when KLIA2 is completed. Lets see whether AA will use the KLIA2. If the Pariah is a man then he should bring the whole operation of AA to Indonesia. Hopefully the pariah can owe all the airport services in Jakarta like what he did in Malaysia. Then the Indonesian authority will no doubt grant him a hefty discount for owing!

  16. With a RM57 billion debt AAsia bubble will soon burst when AAsia cannot service its loan. With it CIMBB may go down too. Will we be facing another bailout after that at the expense of taxpayers and Petronas?

  17. Hey GE Man, MAS Engineering sales and marketing team is led by new blood, isn’t it? More capable, clean and straight! Aren’t they doing just as well? Who is heading it anyway?

  18. Bo(otak) head Azhari , you better leave lah , We had lost count how many air turn back due technical defect lah , you are not fit and qualified as MAS engineering boss .

    MAS had suffered millions of ringgit due to this , God grace no aircraft and life lost yet .

    Here’s another one ;

    “”” Technical fault forces KL-Chennai MAS flight to land in Penang – Story | The Star Online
    Saturday, Sep 15 2012
    GEORGE TOWN: A technical fault forced a Malaysia Airlines flight from Kuala Lumpur to Chennai, India, to land in Penang on Saturday, according to Penang International Airport senior manager Mohd Arif Jaafar.

    He said the plan landed at 8.04 am at the airport after the pilot detected the fault.

    “The flight had just taken off from the KL International Airport when the fault was detected. We had to give clearance for the aircraft to land as the priority was for the safety of the passengers and crew on board.

    “This resulted in a delay in the landing of several other flights here,” he told Bernama.

    Mohd Arif said the plane was being checked and was expected to resume its journey soon. – Bernama

  19. I suppose that L… Air, by some fiscal sleight-of-hand, is blissfully debt-free?

    Has anyone bothered to ask how Rusdi is going to finance his order for hundreds of Boeing 737 aircraft? Has he got “hidden backers” or is he getting sweetheart credit facilities from the US Exim Bank?

    If AirAsia’s numbers can be subject to analysts’ microscopes, the same should be accorded to Lion Air, even if Indonesian and Malaysian accounting standards and principles, and tax treatments, could be different.

    Btw, I just read a news report that Singapore’s Changi Airport Group (CAG) posted a 64.1 per cent increase in net profit after tax to S$553 million for the financial year ending March 31, 2012. EBIDTA rose 50.7 per cent to S$930 million on the back of a 22.4 per cent revenue growth to S$1.78 billion.

    That’s not bad going for an entity with one major asset (Changi Airport) based in a country with a population of slightly more than 5 million.

    Let’s put the corresponding figures for Malaysia Airports (MAHB) latest financial results (revenue, EBIDTA and net profit after tax) into the mix, since there are those who are singing the praises of MAHB and it’s management.

    After all, MAHB shouldn’t object to being benchmarked, should it?

    Ditto for MAS.

  20. Malindo Air akan menguntungkan penumpang. Mana ada org nak jalan jauh2 dgn bag, anak tanpa aerobridge? Dulu bolehlah sebab murah, skrg Malindo Air much better. Confirm lingkup AA. Padan muka lu, si bongkak

  21. YB,
    I think its a bad idea.Something fishy going on! We don’t need another airline. Revive Firefly jet services and introduce jet services into Maswing. Our country is too small and less populated than Indonesia.We don’t have that large market. Mas had been and still is badly managed.My 2 sen worth.Thanks.

  22. Close LCCT now so that the pariah can operate from Jakarta. Don’t worry folks, it will not be too long that AA will go under. Its true colour has been exposed despite the publicities and helps from the editors.

  23. To xMas , Stan, and sales

    Those pilots taking part at the launching ceremony are x-Mas/Firefly pilots seconded to Lion Air.
    Also at the launching ceremony there were personnel from mAS in the audience.
    You connect the dots…………….

  24. its a BIG MISTAKE to close down the Firefly for Sarawak n Sabah… they make fy staff suffer until now no job..please bring back Firefly..

  25. Big Mistake

    In an arena where ballooning fuel prices prevail and magic shows by LCCs are rampant, yeilds suffer within an area of the world where the air fares are already the cheapest in the world, a new entrant means more suffering for operators. With wafer thin margins, more likelihood of operating & maintenence shortcuts. Will the government wait for a fully-laden aircraft to fall out of the sky to react accordingly & correctly. Then, it’ll be too late, lives will have been lost.

    Then whose accountable then. If the government or its leaders are so confident that this is the way forward, then all the leaders should fly by public transport & not by private jets. Take turns to fly MAS, AK, Firefly, MASwings, Malindo & what other new domestic/regional carriers which may be in the pipeline ….. Sabah Air …. Hornbill Air …. Melaka …. etc etc. Lead by example so to speak. Hope their adhoc policies mean safer skies.

    I hope KUL, BKI or KCH would not become Puduraya, where excessive number of new entrants from time to time have led to greater losses not only to the operators but also to the public at large. The sheer wastage in resources will put the country to shame.

    Days of personal interests are gone! Long gone!

  26. More than meets the eye with Malindo.

    Nice for the consumers and perhaps employment generally in Malaysia, but by TF’s lead suggesting it’s cheaper to run/manage an airline out of Jakarta why on earth would Lion want to mix it up in Malaysia whereby it is presumably a bit more expensive? If this is a sacrifice on Lion’s part then who is gaining what advantage on both sides of the fence?

    I can’t guess what the Malaysian (NADI/AIROD/etc) side is gaining from the deal (other than money obviously), but Lion is supplying a lot of assets towards this JV – multiple 737NG, potentially 787 in due course. One could reason all those aircraft Lion ordered have to park somewhere, they can’t just sit in Seattle while Lion struggles to find enough pilots to crew them, so why not park some at KLIA2 and do some work while they’re there. Good idea no – of course! You buy an asset, put it to good use. Even Tony knows this. The fleet will be Malaysian register (9M) – that’s nice isn’t it? Fly the Malaysian flag around a bit more always good for the country ya. The management will be Malaysian of course – the airline is a Malaysian entity (AOC to be issued by DCAM) after all – seems okay. So why again is Lion doing this? Because they’re feeling generous or want to give Tony the finger? (Well perhaps the latter.)

    Lion wants to expand abroad, like AA vs MH they want to take on Garuda, but Garuda has one advantage – European landing/over-flight rights (and after JOG, GA had to battle to win those rights back). Lion’s reputation still precedes them and they still have a ways to go to be truly safe. No amount of LOSA etc is going to solve that in the short term; but hey – Malaysia has a pretty good standing globally in so far as safety is concerned. Why not piggyback back on a Malaysian operation to get what they currently can’t acquire with aircraft deals, money or politicking with the US. If this is the case, and I’m only hypothesizing, Lion gets approved one day through their collaboration efforts? Anyone think they’ll stick around in the JV? Business is business after all, costs will only continue to rise over time and Malindo will exist in a market niche which is cost sensitive. And of course don’t forget who owns the aircraft – 9M is just a registration mark. Impounding disputed aircraft still disrupts an operation, maybe grounds it.

    So MAHB gets a new friend, AIROD gets busy, MATTA has something else to sell now, etc the list goes on. Does it impact MH and/or AA? Methinks both. While new carriers generally generate new traffic for a while not all of it sticks for the long term and people will be choosey. In spite of their various benefits, passengers have much to complain about in AA and MH, that will always translate to feet heading out the door. Malindo seems to want to exist in the gap between full LCC and full service which probably will appeal to many; ranging from those who expect a little more but don’t see why they should pay fee after fee to get it, to those who are willing to sacrifice some creature comforts (but not so low as AA) to save some money and not be treated like a leper. MH should be wise for a change and Tony should shut-the-****-up saying that it won’t affect AA. Both need to wake up and smell the roses.

    • I agree with some of your comments, but not all.

      For instance, why do you think that MAS and AirAsia will be equally affected by competition from Malindo Air?

      I don’t see Lion Air reducing it’s operations at Changi Airport. And the Lion Air boss, Rusdi Kirana, is reported to be negotiating with the Singapore authorities to set up a Singapore-based LCC and to make Changi one of the airline’s key hubs.

      So, what is Rusdi’s game plan? Play off KLIA/MAHB against Changi/CAG and extract the maximum concessions from both?

      And you thought Tony Fernandes was/is playing hard ball with MAHB!

      As for MAS, it’s remaining as clueless as ever. Which is not surprising, seeing as how politics and business are inextricably knotted in the airline, and seeing as how the MAS unions are putting the government under political pressure.

      Just today, I read that SIA has announced a firm order for 25 new Airbus aircraft (catalogue value US$7.5 billion) comprising 29 A350s and 5 A380s.

      SIA already has 19 A380s in operation, and has another 59 aircraft, including 20 A350s, in outstanding orders (which does not include the latest order for 25 Airbus aircraft).

      Also, SIA’s long-haul LCC, Scoot, will be getting 20 Boeing 787s, starting from 2014. SIA’s regional arm, SilkAir, announced an order for 54 new Boeing aircraft in August.

      That’s the type of competition that MAS will be facing – in premium long-haul, long-haul LCC and regional markets.

      And, yet, there are parties who persist in seeing AirAsia as the villain in the piece, while the competition is gearing up to “bungkus” both MAS and KLIA (KLIA2 notwithstanding).

      And just how myopic is that?

  27. I believe you got the wrong informations about this because you got all the infos from Hj Malek and the gang.My friend was one of the representative from ATWUS told he attended that meeting.It took place at Holiday Villa Subang.The main agenda is MASEU try to lobby all unions and association in MAS so that Tan Sri Ahmad Johan(NADI owner) can buy MAS.FYI,Airod is owned by NADI .So who is the BACKSTABBER?Of course Hj Malek n the gang including Jabarullah who has been fired by the members during last TGM.They want to privatise MAS.Unfortunately,Jabarullah still runs the show because Hj Malek used his power to retain him.Hj Malek breaks the constituition.RTU should take look deeper in it.If this story goes to our beloved Prime Minister for sure RTU will be smashed back.

    This is the article from the Star

    Meeting with MAS unions and associations; is it for privatisation?
    Friday Reflections – By B.K. Sidhu

    TWO weeks ago, more than 30 representatives from the eight unions and associations at the national carrier met with the airline’s former managing director Tan Sri Abdul Aziz Abdul Rahman.

    It is unclear who called for the meeting but it took place at a hotel near Malaysia Airlines (MAS) office in Subang.

    The agenda was to discuss the “goings-on” in the industry.

    But possible privatisation of the airline was also discussed.

    The talk about MAS possibly being taken private is not new; it is a long standing rumour and several names have been linked to it including Nadi Sdn Bhd boss Tan Sri Ahmad Johan who recently set up Malindo Airways with Indonesia’s Lion Air.

    There is going to be a second meeting.

    Those who attended the first meeting have been told to keep themselves free on either Oct 28 or 29 for a second session with Aziz.

    The venue has not been decided and the agenda unknown.

    However, those in the know are saying it has something to do with privatisation.

    Officially, there is no word on taking MAS private but the unions/associations are being courted.

    Perhaps the interested parties want to make sure they have the “buy-in” from the unions/associations in the event of privatisation.

    Why the unions/associations? To recap, this was the group that objected furiously to the share-swap deal with AirAsia.

    Perhaps the “buy in” is seen as necessary but past successes did not guarantee future achievements.

    Whatever the agenda, the crux of the matter is that MAS is in a turnaround mode.

    Those in charge of the turnaround should be given enough time to make it happen so that there is tangible results and value accretion.

    MAS will be part of the oneworld alliance by year-end which promises more passengers and more routes.

    And the airline will have one of the newest fleets as it takes delivery of new aircraft, and with all the positives, there is a higher price to pay.

    From all “sell” calls on the airline, there are two brokerages – Maybank Investment and OSK Research – that have called a “buy” on the stock.

    Although the return to profitability is still distant, the break even point could well be in the third quarter of this year, according to Maybank in its report.

    Whether another privatisation is good or bad is really up to those who know what is best for the airline, but whoever is plotting the future flight path should take a page from the previous privatisation and see whether it is really a fantastic idea.

    What value can this group bring to the table and how much better can the airline be?

    Do they have the expertise and more importantly, do they have the financial muscle, or are they only interested in the engineering and maintenance units, which have all the accreditation and certifications?

    Privatisation is a nice thought but is it really do-able at this juncture and can it create value?

    That is a major consideration and whatever good intentions some may have, they have to think hard this time around.

    • Ms Sidhu’s analysis is flawed in a number of points.

      In the first place, MAS joining the oneworld alliance is not a panacea for the airline’s problems.

      The problems are well known: an uncompetitive cost base, over staffing, an ageing fleet, competition in its premium long-haul, regional and low-cost markets.

      Up to now, there are no concrete plans to resolve these problems. Another privatisation of MAS isn’t the answer.

      There is no reason for key members of oneworld, British Airways and Qantas, to restart flights to KLIA. Qantas has chosen to go with Emirates, transfer it’s “kangaroo route” hub to Dubai and maintain it’s Asian regional hub at Changi Airport where it can interline with both Jetstar and Jetstar Asia. British Airways, for it’s part, will maintain a hub at Changi, while focusing on the Middle East, the key Asian markets of India and China and the trans-Atlantic routes to the US.

      MAS could well land up feeding passengers from Malaysia into British Airways and Qantas flights from Changi.

      Yesterday’s announcement that SIA has acquired a 10% stake in Virgin Australia, where Middle Eastern carrier Etihad already has a10% stake, has the potential to fundamentally reshape the Australian airline market, and provide more competition to an already embattled Qantas. A tighter partnership between SIA, Virgin Australia and Etihad will affect MAS, the more so if Tiger Australia (where Virgin Australia has acquired a 60% stake) is allowed by the Australian aviation regulator to operate international flights in the low-cost segment of the Australia-Asia market.

      I wonder, sometimes, if the planners and strategists at MAS have foreseen all these developments or whether they are merely fighting day-to-day fires while the competitors move on.

  28. If there’s a competition,the airline companies will beginning to deduct cost of operation and management. These will risk the consumers too.since they want to offer a lower fares,they will also reduce any kind of possible cost that will result on flight cancellation,airplane failure,crash, and unwanted penalty and charges.

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