Tuan Azahari Dahlan, who was formerly the Regional Head of AirAsia Engineering and parachuted into MAS Engineering during the infamous MAS – AirAsia share swap, is the most qualified person in MAS Engineering to hold the post of the CEO. Rumour has it that he manages MAS Engineering like a well maintained engine and has also gained lots of respect within MAS Engineering for his great leadership. The pertinent question is, had MAS Engineering, under this highly qualified Tuan Azahari Dahlan, learn the lesson from all its failed joint ventures over the last two decades?
As it appears, MAS Engineering has a joint venture company known as GE Engine Services Malaysia (GEESM) for more than twenty years where it core businesses is just to service MAS engines as a monopoly without fair competition.
When YM Tengku Azmil took over as CEO of MAS, he took the decision to ensure that all work done by GEESM and other Joint Ventures are based on fair competition and no more exclusive right to maintain MAS aircraft by virtue of a MAS JV partner. Unfortunately, to date no serious attempt by the top management of MAS to re-negotiate let alone terminate the 25 years exclusive one sided catering contract with LSG Sky Chef – Brahim’s Sdn Bhd that cost MAS RM6.25 billion (RM250 million yearly)!
Once MAS decided to follow the transparent business model as practiced by all major airlines it adversely impacted all the monopolistic JV’s including GEESM, Honeywell (APU) and Hamilton Sunstrand (component).
On 15 January 2013 SR Technic issued a press release announcing the setup of a component repair shop in Kuala Lumpur to supplement the company’s existing repair network in Switzerland, Spain and Abu Dubai. For it full press statement please see below.
It was very co-incidental that on 18-1-2013 MIDA also flashed a statement in its website as follows:
“Aerospace industry development was one of the strategic and high technology areas identified by the Government. It include activities that directly and indirectly contribute to the design and development, construction, operation, maintenance and disposal of aerospace related products (spacecraft, aircraft, missile/rocket/launcher, and communication, navigation and navigation systems (CNS)).” For MIDA’s full statement please read HERE.
It would be helpful to the MAS staff and the nation if Tuan Azahari Dahlan, the famous expert who was hand picked by certain quarters to be the CEO of MAS Engineering, could shed some light whether MAS Engineering has any intention to set up a component shop under JV with SR Technic or any other companies. If there was such an intention, how such joint venture will help MAS to turn around when it is still bleeding and will it cost MAS more than RM300 million?
Perhaps MAS staff could help also help to shed some more lights on above. Thank you