Tony said “AirAsia is not sending its aircraft to MAS for maintenance”

AirAsia A320 undergoing maintenance works in MAS Hangar No: 5 in KLIA

AirAsia A320 aircraft undergoing maintenance work in MAS Hangar No: 5 in KLIA now

“Air Asia will start sending their A320 to MH engineering for hangar check effective 1st July 2013. Let the rape & plunder of MH begin!!!” 

The above was the comment dated 30-6-2013 posted by a reader in the posting in HERE.

Before yours truly proceed  further, please read the background below:

Background

After the MAS-AirAsia share swap was reversed on 3-5-2012, in July 2011 Tan Sri Tony Fernandes (Tony) of AirAsia had told the press that AirAsia will not be sending its aircraft to MAS Engineering for maintenance and/or other works.  This was part and parcel of the termination of so-called co-operation between MAS under the “Comprehensive, Collaborative Frameworks” (CCF), which was hatched presumably by the “aviation experts” in Khazanah, in HERE.

This was what BK Sidhu of the Star asked Tony in interview on 15-6-2012:  “Are you sending your aircraft for maintenance to MAS?”

Tony’s answer: “No, we have not done that. I don’t think it will happen. I think it will be a headache for the management. If you read some of the comments it is like, we are benefiting, so we are not sending.”, in HERE.

In June 2012 Tan Sri Tony Fernandes also announced that AirAsia will move the AirAsia headquarters to Jakarta, Indonesia, in HERE.

Presumably the writer of the above comment is one of the members of staff of MAS Engineering and he must be upset with the sudden turn of event.  He may have his justification for his concerns due to un-aswered allegations of special discounted rates for maintenance charges given to AirAsia by MAS Engineering during the MAS -AirAsia share swap/Comprehensive Collaborative Frameworks (CCF).

TF’s U-Turn or Change of Heart

Tuan Azhari Dahlan, the highly qualified engineer in MAS

CEO of MAS Engineering Tuan Azhari Dahlan, the highly qualified engineer in MAS

Actually this should be a good development whereby MAS Engineering got extra business.  This extra business had to be through the special relationship of  Tuan Azhari Dhalan, who was the head of Engineering AirAsia before he joined MAS after the infamous MAS-AirAsia share swap, with Tony and AirAsia.  Tuan Azhari Dahlan had put his special rerlationship to good use for MAS. What an asset to MAS!  For the background please read in HERE.

For the sudden change of heart or U-turn on the part of AirAsia should be applauded as it has created a “win-win” position for MAS and AirAsia! It should be welcome.

Prior to this, AirAsia had to send its aircraft to Singapore for maintenance at a much higher rate and cash on delivery basis. With this u-turn, AirAsia will no doubt save a lot of cost in terms of fuel, crews and other charges as it no longer need to ferry its aircraft to and from Singapore.

MAS will no doubt be getting extra revenue through this new development as MAS Engineering will have to be charging current market rate  for all the maintenance works.  This is good business sense.

It must be Tony’s patriotism and special love for MAS that have prompted AirAsia to have a change of heart to SUPPORT MAS at a time when MAS needed additional revenues to turn around. With this new development, with this new business development the KPI of Tuan Azhari Dahlan must be at its peak and top management of MAS will be pleased as the sudden u-turn by Tony will translate into more revenues for MAS.  With this new business development MAS will show more profit in its account for the next quarter. The share price of MAS will also increase.

Tuan Omar Ong, Chairman of Ethos & Company, Director of AirAsia Bhd

Tuan Omar Ong, Chairman of the famous Ethos & Company and Director of AirAsia Bhd. 

Rumour has it that Tuan Omar Ong, who is a director of AirAsia, Treasurer of UMNO Gelang Patah and one of the key players in the BN War Room for the recently held 13th GE,  had played a significant role in advising and persuading Tony to embark on the sudden u-turn and gave AirAsia engineering business to MAS instead of Singapore Airline. If this was true then MAS staffs must say a “BIG THANK YOU” to Tuan Omar Ong for his sound advice and power of persuasion.  Therefore, Tuan Omar Ong’s appointment to the Board of AirAsia is not only very beneficial to AirAsia but MAS too!

Although Tuan Omar Ong is rumored to be very close to the Khazanah’s “aviation experts” and top management of Khazanah, it is believed that Tuan Omar Ong did not play any role in the infamous MAS-AirAsia share swap that was hatched out of the blue on 9-8-2011 in HERE.

Co-Incidentally Tuan Omar Ong is also the Chairman of Ethos & Company, the famous consulting firm in Malaysia. Since the inception of Ethos in 2002, it has  served more than forty GLCs, MNCs and Government institutions, many of them repeatedly, in HERE.

Ethos & Company was incorporated around the same time as Binafikir.

AirAsia has been allotted Hangar No. 5 in KLIA

This Hangar No. 5 is normally reserved for maintenance check for MAS B737-800 aircraft. It is now allotted to AirAsia A320 aircraft.

MAS had to now ferry its aircraft from KLIA to its  hangar in Subang with additional costs like fuel, crew and etc. If one were to go by the maxim of “Customer comes first” then this is the right approach as AirAsia is its PAYING customer. A sacrifice that MAS should make for its customer like AirAsia.

It is not known whether AirAsia is paying the market rate for all the maintenance works. Perhaps Tuan Azhari Dahlan and/or MAS staff could shed some light in the matter.

MAS Market Rate

Yours truly has been informed that in 2012 the cost of D Check averages about US$800,000 to US$1.1 million depending on the work package.  This is just an estimate and its include MPD D, CPCP, structural inspections, direct replacement of components and routine material but does not include material for rectification, labour, aircraft re-painting, cost of components and cabin refurbishment.

A comment from a reader in 2012

On 21-11-2012 GE Man has posted a comment with his predictions in HERE. Below is the excerpt of the comments: 

“ … This next year alone, 50% of AA total fleet i.e. about 30 aircraft of AA (A320) is due for heavy maintenance (HMV) checks.

HMV is due every 5-6 years of aircraft life in services, if we are to look into all of AA A320 that is currently in service, about 30 aircraft will be due for HMV. Please surf for AA fleet infohttp://www.planespotters.net/Airline/AirAsia)

With this numbers due, where on earth will the pariah send his A320 for HMV? ST Aero, Singapore won’t be able to do it, SAE, Subang does not have enough hangar space or manpower.

This is one of the reason this tak tahu malu bo(otak) still around in MAS Engineering. Now MAS Engineering commercial office almost unmanned so all marketing activities suspended, bo (otak) head Azhari is chasing away all third party customers. The Indon, Chinese, Aussie airlines have all been chased out, even MAS own FireFly ATR’s chased out to SAE to do their maintenance. The strategy is simple, no more third party work, less job for engineering, hangar space being under utilized (apart from EOL and MAS aircraft).

With no work insight or in the pipeline, faking to save MAS Engineering from going under, this bo(otak) head Azhari will become a hero by bringing HMV maintenance work from AA !!! Since bo(otak) is the one who will call the shots, how much will MAS Engineering charge? Will it be on market price (USD 42 per man hour) or bo(otak) will charges peanuts to AA? Hope it wont be another AA – MAB saga on the airport charges.

What ever is it, the Pariah axxx.. is saved by bo(otak) head. With an approximate cost of USD 2 million per HMV per A320, it will cost AA a whooping MYR 180 million next year with many more millions of revenue loss due to grounding of half of AA fleet unless MAS is almost exclusively used by, bo (otak) head Azhari to save AA from its downfall (severe disruption of AA flights and loss of customers confidence due grounding of 50% of their fleet).”  

Yours truly hopes that the sudden change of heart by TF will benefit MAS and contribute enormously to its turn around by 2014 as promised by the top management of MAS in 2011.

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29 thoughts on “Tony said “AirAsia is not sending its aircraft to MAS for maintenance”

  1. Petronius

    I am curious. How do people know that ST Aerospace does not have the capacity to carry out heavy maintenance on AirAsia’s A320 fleet?

    Are they privy to the internal workings of ST Aero and do they have insider knowledge of it’s capacity constraints, if any?

    It would be interesting to get comments from the Airbus regional office in Singapore.

    Reply
  2. Petronius

    Is the market convinced by MAS’s turnaround strategy?

    Analysts in Malaysia may be convinced.

    What about analysts in other countries?

    What is special about MAS when the economics of the global aviation industry haven’t changed, despite the latest optimistic forecast from IATA?

    Closer to home, MAS is facing competition from regional behemoth SIA which is rapidly bulking up by announcing billion dollar orders for Airbus and Boeing aircraft.

    Compared to which, MAS’s own re-fleeting plans look distinctly pigmy-sized.

    Reply
  3. Mokhtar MAS

    YB you hit the nail on the head again. Thank you for keeping us MAS staff informed of the new development. We will resume to keep an eye on the Botak head – the only one shit left in MAS. Al-Ishal Ishak had left after changing MAS logo from blue and red to just pale blue. Enough of the AA remnant in MAS.

    It was clear why Tony had to eat up his words where said AA will not send its plane to MAS for maintenance. The same goes when he said that AA will not move to KLIA2 when it is completed. then moving AA HQ to Jakarta because AA was buying up Batavia Air of Indonesia. It was all about spinning or bullshitting at best.

    The issue now is MAS top management must examine all contracts signed by the Botak with AirAsia with regards to maintenance and ensure that they are based on current market rate and that using the hangar not in detrimental to MAS own interest.

    Reply
    1. Anonymous

      Of course, he is the number 1 Spin Doctor with the help of the BK Sidhu of Star. He has been caught many times for saying one thing and do something else at a later date. He is relying on bullshitting to get by. Lets see how long he can carry on spinning.

      We must keep an eye on the movement of Botak and see what he will do.

      Reply
  4. Adnan

    Since the pariah had to eat the humble pie to come to MAS, it must pay the market rate for all maintenance works. MAS must impose the same conditions as in Singapore with no discount or credit term. It must be treated like any customers. AJ must get a auditor in to audit the Botak. We know who is Botak. We must prevent the Botak of taking us for a tide.

    MAS must not be stupid like what had happen ed where the brainless AJ sign an agreement to ferry AAX passengers with below market rate for the fares. MAS cannot be stupid twice.

    Reply
  5. Nelson

    That Omar Ong is one of the main players under Tingkat Empat. He is appointed as AirAsia director not for nothing. You can see AirAsia has safety issue with DCA and Air Operation Certificate was given for 6 months only. What happen after that? All is well.

    This Tingkat Empat boy must be wiped out from the political as they have done too much damage. Why is Najib keeping this Omar Ong? The earlier he get rid of this fellow the better for the PM.

    Reply
  6. Kamarudin MAS

    Every interview, announcement and statement from the pariah must not be taken seriously. They were made for expediency at that particular moment only. Just a hype. As we can see from YB’s posting that AA will not send its aircraft to MAS for maintenance, AA will not move to KLIA-2 and AA will buy Batavia Air and move its headquarters to Jakarta. He is becoming a joke.

    Unfortunate he has good friends like Omar Ong and the like in Khazanah to help him. Fortunately Chan Kong Choy is no longer the Minister of Transport otherwise MOT will be his second home. Omar Ong looks handsome and very Americanised. Hope that he has no connection with NED.

    Reply
  7. GE Man

    A malay proverb said ” berok di hutan di susukan , anak di rumah mati kelaparan ” , this is what this parasite bo(otak) head doing .

    Oh yes , after all MAS is “anak tiri” to him , he dont care if it ” dies” , as long ” berok” TF ni hidup .

    MAS KLIA Hangar 5 , Line 3 to be occupied by AA A320 under anak berok instruction , MAS got no choice but to send own aircraft to other facilities .

    Who is in a right mind would send own aircraft for a 2985.45 km journey to do maintenance checks ?

    Yes , only anak berok bo(otak) ni will do it .

    Due to impending arrival of AA to MAS Hangar slot , MAS own B737-800 registration 9M-MLJ had to be send to GMR Hydrabad , India to do a week long maintenance check there !

    And on the table more B737 aircraft will follow’s.

    MAS got to fork out for the cost of 4 hours 25 minutes one way ferry flight Kuala Lumpur to Hyderabad (a total of 8 hours 50 minutes V.V .)

    With fuel burn off at 2.6 metric tons per hour , it will make a big hole in MAS pockets paying jet fuel at USD 925.20 per metric ton .Easily will cost MYR 70 K of fuel per ferry flight , belum termasuk crew cost , lost of aircraft utilisation ….

    AJ and BOD , please wake up ….dah 2 tahun masih tido lagi ke ????

    Reply
    1. Kamal

      Thank you GE Man. Good show. Now over to the Botak and AJ to answer. I am sure that the two brainless will not be able to reply.

      Reply
  8. Sticky beak

    Hey guys, when are you guys going to kick the ass of that Botak Head out from MAS. He just sits there an good for nothing. How can MAS let Air Asia in to it’s home again after what that bloody Pariah Anjing … did to MAS. Pariah, you think you are Donald Trump of Malaysia???? Fat hopes, looking at you face on TV make me vomit.

    Botak Head is killing MAS by the day and all he does is going for duty travel but nobody knows actually he really goes on duty or to play golf like what all top management are doing.

    YB Wee, thank you for keeping an eye on MAS and being concern for it’s staff even though you are no longer the MP. Keep it up, you will always be in the heart of MAS staffs.

    Reply
  9. TL Man

    All of you can spin all you want. The fact remains that KLIA was built to help MAS to develop its spokes with KLIA as the hub. But what has happened is that foreign Airlines moved out of KLIA to make Singapore as hub while SIA developed the spokes. Why did this happen MAS despite open-ended support by KHAZANAH?

    Reply
  10. Husni MAS

    Omar Ong and his good friend and fellow directors in AirAsia are seemingly politically sound by Pemandu. Both being appointed as special External Penalist to give their view on the political situation after GE13. What these two fools know about politics?

    If Omar Ong knows about politics the War Room would have got at least 70% of its predictions corrects but the War Room has failed miserably. How about the pariah? How could he be relied on when a person kept making statements after statements and many proven to be different from what had happened afterward. just a publicity seeker and a spin doctor.

    Pemandu under Idris Jala must be damn stupid to get these two idiots to give their views.

    On the issue at hand, it is ok for MAS to maintain AA aircraft provided that AA pays the MARKET RATE and COD. MAS must not be suffer in any way in term of taking up the maintenance work for AA aircraft bearing in mind that the Botak Head had turned away Firefly and other work previously.

    MAS CFO should issue a memo in an email via “VOICE” to allay the concern that AA may have been given special treatments on the maintenance work. But knowing MAS and AJ nothing will come out until it is exposed.
    .

    Reply
  11. MAS Guy

    GE Man

    Spot on! MAS had to send its planes for maintenance in other country at extra costs and AA has been given priority. WTF is going in the P… Brain of the top management? AJ: are still still honeymooning or asleep? Please check on the Botak before things getting worst for your so-called turn around plan by 2014. Or you are waiting for 2014 to come so that he can retire and wash your hand.

    If what GE Man said were true then Aj’s turn Around Plan will be DOWN THE DRAIN soon. AJ please wake up and don’t follow MAS’s Adviser who has the habit of sleeping on his job. Start checking on the Botak now before it is too late.

    Reply
    1. Petronius

      Oh, really?

      I thought that MAS was/is self-sufficient in both MRO and heavy maintenance capabilities and capacity for all it’s aircraft, including the A380s?

      So, where has MAS been sending it’s aircraft for maintenance? Singapore? India? Australia? Hong Kong? The Philippines? Indonesia?

      And, btw, what’s the story on MAS’s turnaround strategy? I read about SIA bulking up with billion-dollar orders for A350s, A380s, B777s and B787s.

      MAS? It’s the like the poor kid who presses his nose against the glass windows of the candy shop…….

      Reply
  12. jamaludin

    GE Man

    Why you keep on pecah lubang for the Botak? Susahlah ini macam. Nak tolong sahabat karibnya tak bolehkah?

    Thank you Mr GE Man for the expose. We need more info on the botak head.

    Reply
  13. No To Botak

    Botak is playing dumb. Aj what have you got to say about this matter. Simple question: Did MAS Engineering give AA special rate or special treatments? Just like AJ agreed to give special low low cost price for AAX passengers to and London, Bombay, Paris and etc. Remember AJ, you have agreed to charge AAX RM1,100 one way to London! We do not want Botak or you to give special treatment to AA at the expense of MAS.

    AJ, please remember that you have been telling MAS staff that MAS is bleeding and we need to cut cost and increase revenue. How do you increase revenue by charging special rate to AA and ferrying AAX passengers at below cost.

    AJ you are duty bound to ensure that the Botak deal with the low caste airline at arm length and all deal must be done transparently.

    Reply
  14. Con Man

    MAS staff want to ensure that Azhari did not agree to a special rate to AirAsia for all maintenance work. Azhari is still playing dumb. Most probably he could not answer because he gave special rates to AA. This will not surprise me at all. This bugger must be kicked out from MAS if he did that.

    Reply
  15. Pak Lam

    Well done, kawan kawan. Please continue with the expose!

    “Air Asia is a hot cradle for money laundering/ponzi scheme and T.. is one cunning conman who can sell ice to the Eskimos, Disneyland to Walts Disney and Virgins to Richard Branson.

    He even said publicly in London a few years ago that he knows Malaysians very well and they are willing to risk their lives if the airfares are cheap.”

    Reply
  16. MAT OF MAS

    The Pariah only thinks of himself otherwise he will never behave insuch a matter. Say one thing at one thing and do another later. This is his principle.

    The top management of MAS had to now scrutinize the agreement signed by MAS Engineering and AIrAsia with a fine tooth comb. MAS is a our national airline and we cannot allow MAS to be used by AirAsia or any other airline. MAS must learn from his past mistakes where it entered into one sided contract in detrimental to MAS . The examples are too glaring.

    All we need to start with the RM6 billion catering contract entered into with LSG Skychef Brahmin’s, a company owned by the brother of Badawi. If you want to know more about this catering contract all you need to ask Tan Sri Nor Yakop, the financial genius!

    Another is the MAS-AirAsia share suap that was planned by the genius in Khaznah under Tan Sri Azman Mokhtar.

    AJ has been bragging about turning around MAS by 2014 by which time his contract will also be up for renewal. With the way MAS is managed and with the Botak Head in MAS Engineering, I doubt if MAS can turn around by 2014.

    I will not be too surprised if the Botak Head followed the footstep of Rozman Omar, the ex-CFO and Al-Ishal Ishak, the ex-Re-branding and Marketing VP resign after he has caused the damage to MAS.

    IT IS NEVER TOO LATE TO WAKE UP FOR AJ.

    Reply
  17. ZZZZZZ.........ZZZZZZZ

    We have heard that MAS had to send its own aircraft overseas to have them maintenance. This is an additional unnecessary cost to MAS. Why must MAS Engineering or MAS in giving priority to AirAsia. Charity begins at home. Is AJ managing MAS or sleeping on the job like the Slumberjack.

    Reply
  18. Mohd

    Why are the Aj and the other top management are keeping very quiet over this issue? We would like to know what are the terms of the contract between AA and MAS. AA must pay market rate and no priority be given to AA. Priority of maintenance work must be given for MAS aircraft before AA.

    We demand the answers from AJ and the other top management. Don’t just preened to keep quiet and then telling MAS staff that we need to cut cost and at the same we are helping others whip is unrelated to MAS.

    Reply
  19. arjuna waspada

    Mohon jasa baik Azran AAx pertimbangkan dan lulus kertas kerja untuk
    mohon tambah flight murah ka pulau Hainan jadual 3 kali seminggu untuk
    kemudahan untuk kumpulan bekas penduduk malaysia ,yang sekarang mohon kemaustinan luar negara.

    Ramai dan termasuk keluarga ta sabar lagi untuk meninggal malaysia, dari Petaling Jaya Utara.

    AAX hala pulang untuk membawa 40,000 pekerja untuk bina terowong ke Butterworth.
    Yang ini tambang murah dan bolih antar invois(terma bayaran : bolih ambil tanah tukar beli) kapada syraikat yang dapat 1 billion kontrak untuk buat metal fabrication terowong butterworth

    Mohon jasa baik Azran lulus kan cadangan AAX untuk tambah 9 kali seminggu ,platinium klass untuk pegawai tinggi atasan tengah juga gred rendah dari perbadanan2, syarikat, tabung2, dan juga belia belia. ke London Heathrow airport.
    Bolih antar inbois(terma bayaran jumpa …) kapada Battersbea JV partners , juga Tabung simpanan pekerja, pencen,GLC, Kementerian belia BN, 1M4U outreach, Fedla.

    Tahniah kapada Tony FFFF, atas pandangan jauh dan dapat maklumat dari bapak sekolah vernakular.
    Dia galakjamin pembelian AAX 30 buah kapal
    pesawat baru akan di isi dengan big biznesssss korporate figures dari jaringan di atas,
    juga memudah lawatan berkala ziarah anak anak yang sedang belajar ,dan sumbang tenaga OUTREACH di United Kindom
    20,000 PATI malaysia di england, juga akan dapat kemudahan dari pesawat baru dan flight tambahan.

    arjuna waspada
    changkat lobak.

    Reply
  20. MAS Staff

    Azhari and AJ, be transparent. Tell us what are the terms of the maintenance agreement between MAS and AirAsia. We do not want to see another one sided agreement like the “Share SUAP’. Keeping quiet will only make the staff angry. Why the top management of MAS is so quiet. All is not well. Once it is expose it will not be good for the image for them – the like Tan Sri Md Nor, AJ and the other directors like Dr Don and Tan Sri Azman Yahya.

    Only the brainless and those never learn from their past experience after the share suap will deal with TF/AA.

    Reply
  21. Sulaiman

    WCK..

    normal rate should be USD50/man hour.it been applied to all aircrafts eversince..please dont let botak give discount to USD42/man hour to AA..it’s a bullshit figure…and after all, AA just run away with mountain of debts to MAS. and yet again, MAS will suffer another never ending losses and again, PEOPLE hard money will be used to bailout MAS….and on and on..sighhhh..at the end, TF will laugh out load and buy another club in England…

    Reply
  22. Johari

    Shame on the Botak Azhari and his supporters in the top management of MAS. All keeping quiet about the AA and MAS maintenance contract. Even the Spin Doctor Najmudin in MAS is also keeping quiet. This is the transparency of the top management. This is how they are going to turn around MAS. Full of bullshit.

    Reply
  23. gormlesspap

    And nobody has commented on the credentials of ST Aerospace.

    AFAIK, AirAsia still has an ongoing maintenance contract for it’s A320s with ST Aero.

    Is MAS Engineering looking to compete with ST Aero?

    Aren’t they operating on different scales?

    Or how about comparing MAS Engineering with SIA Engineering? That would be apples-to-apples, wouldn’t it?

    Reply
  24. Pingback: MAS Engineering carry out maintenance for AirAsia plane in 2012 instead of ST Aero - www.hardwarezone.com.sg

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