The highly acclaimed journalist Ms BK Sidhu, who has just being promoted as the new Editor of StarBiz, had quoted an unknown source that the AirASIA X IPO SHARE will be over-subscribed by 3 to 4 times which later turned out to be FALSE. Maybank Investment Bhd, whose CEO is YM Tengku Zafrul Aziz, had to pumped in RM39.688 million to stabilise AirAsia X IPO share price of RM1.25, in HERE.
Yesterday (14-8-2013) that highly acclaimed News Editor of StarBiz and her reporter wrote an adverse front page article in StarBiz headline: “No Fire Sale of MAS”. The said adverse article started off with “Talks about the sale of Malaysia Airlines (MAS) has resurfaced, with several parties believed to have sent in proposals to the Government to buy over the loss-making airline (referring to MAS), industry sources said.”
She quoted YB Daato’ Seri Idris Jala, the Minister in the PM’s Department, at the Global Malaysia Series Forum with AirAsia Group CEO Tan Sri Tony Fernandes, to have said:
“the Government should stay out of the airline business although he added that MAS should not be sold at a loss.”
“I think we should (stay out). What the Government should do is not sell it at a loss. If you want to sell it, it must be at a right price because public money is involved as well as it is a public listed company. There should be no fire sale.”
YB Datuk Idris also said that MAS should have been sold when he was at its helm, as the share price then had risen from RM3 to RM6.20.” in the same article, that highly acclaimed journalist BK Sidhu praised YB Dato’ Seri Idris Jala sky-high:
“Idris was appointed CEO of the national carrier on Dec 1, 2005 to steer the company out of turbulence. MAS posted 10 consecutive quarterly profits during his tenure as the CEO between 2006 and 2008.” Yours truly isn’t sure whether the disposal of prime properties of MAS in Malaysia (Menara MAS in Jalan Sultan Ismail), London and other countries during his tenure as CEO of MAS was one of the main contributors to the said 10 consecutive profits posted then.
Of course, that highly acclaimed journalist BK Sidhu of StarBiz couldn’t resist to include the statement from his idol cum director of the Star, Tan Sri Tony Fernandes, who have said:
“that the Government should play the role of a facilitator to businesses rather than have direct involvement or ownership” “He would not buy MAS.” The said full adverse article is in HERE.
Unfortunately, that highly acclaimed journalist chose not to include the glaring facts concerning the concessions and facilities that the Tun Abdullah Administration had granted to AirAsia and its outfits, namely:
the building of the warehouse liked LCCT costing about RM250 million (including subsequent renovation) by Syarikat Fajar Baru (REMBAU) Sdn Bhd HERE;
under the so-called Air Rationalisation Programe of the Tun Abdullah Administration, MAS had to hand over more than 90 routes, the majority of which were profitable, to AirAsia for picking HERE;
the immediate lump sum payment totaling RM250 million subsidy was paid to Fly Asia Express Sdn Bhd (aka FAKS) now known as AirAsia X Bhd to operate the Rural Air Services (RAS) in Sabah and Sarawak and within a short 8 months out of 14 aircraft 6 were grounded due to un-airworthiness and 1 was cannabalised for spare parts and yet Air Operation Certificate (AOC) was extended when FAKS changed its name to AirAsia X Sdn Bhd in HERE, HERE, HERE & HERE;
After the failed RAS, the Tun Abdullah Administration directed MAS to take over and as a national airline MAS had to carrying out its national duty and coughed out RM35 million to make the 14 RAS aircraft airworthy and AirAsai X was allowed to keep the subsidy (this happened when Dato’ Seri Idris Jala was the CEO of MAS);
AirAsia was allowed to owe Airport Tax, which was paid in advance by passengers, to the tune of RM132 million and when it was pressured to settle the Airport Tax debts, AirAsia was granted by the Tun Abdullah Administration a handsome discount of RM25 million when interest should have been charged for utilising it in HERE;
soon after the MAS-AirAsia share swap was reversed, Tan Sri Tony Fernandes had said that AirAsia will not send its aircraft to MAS Engineering for maintenance but in June 2013 AirAsia started to send its aircraft to MAS Engineering for maintenance HERE; and etc.
To that highly acclaimed journalist, the above facts were not relevant to her as far as “professional balance reporting” is concerned and to Tan Sri Tony Fernandes the above were how Tun Adbullah administration was acting as a “facilitator” to AirAsia’s business model. It would be most fitting if the Tun Abdullah Administration was running the country with the slogan “Now Everyone Can Start A Low Airline With Government Help”. By the way Tun Abdullah Badawi was appointed Adviser to MAS a few weeks before the infamous MAS-AirAsia share swap and he must have been advising MAS on its numerous Business Plans .
To the credit of the Minister, YB Dato’ Seri Idris Jala, after he uttered the above damning statement MAS in the Tuesday (13-8-2013) morning, he had rush a statement out on Tuesday night (13-8-2013) to say amongst other things that the Government had no intention to sell MAS. Please do not misconstrued the Minister’s evening statement as damage control. As a Minister in charge of NKRA and KPI, he has the reputation of not “shooting from his hip”. In May 2010, he had warned the nation that if the Government does not cut subsidy, the country will go bankrupt by 2019, in HERE. Yours truly wasn’t sure whether or not a subsequent statement was rushed out to the press.
Further credit must also be given to the said Minster because he had to also rush a written note to the Group CEO of MAS, En Ahmad Jauhari Yahya (AJ), which has prompted AJ to issue a statement via an email to all MAS staffs where he said amongst other things:
“I am encouraged by a note that YB Dato’ Seri Idris wrote to me today in which he again clarified the actual context, situation and his comments made yesterday. Unfortunately, an important lesson was learned – that some people, either deliberately or genuinely, confuse scenario discussions with actual plans going forward.”
The AJ’s said email is reproduced in verbatim below. With the paying of top money for the special “Tracking Programe” , which may be part of the grand Business Plan of AJ, to track the flow of information including emails, the top management will definitely be able to discover how the the said email was out in public domain. Most probably, the witch hunt within MAS will begin in full swing soon.
How we wish the top management of MAS will go all out to find ways and means to review the lope sided 25 years catering contract involving LSG Sky Chef’s Brahim Sdn Bhd, a company controlled by Tun Abdullah Badawi’s brother (Datuk Hj Ibrahim bin Badawi). Yours truly is quite sure that Tun Abdullah Badawi, as the very learned Adviser of MAS and fully alert, he would have been advising the top management of MAS to find ways and means to termiante the one sided catering contract as it is a yearly financial burden to MAS for 25 years and the inflight foods can not match other airline like Emirate, SIA and others. But it would appear that the top management of MAS is sleeping over the matter.
Yours truly is sorry for a little bit of digression for the sake of completeness.
From: YOUR VOICE ONLINE <UVOICE@malaysiaairlines.com>
Date: 14 August 2013 05:42:26 PM GMT+08:00
Subject: Circular from GCEO: Media Reports on Malaysia Airlines Today
(FOR INTERNAL USE ONLY)
CIRCULAR FROM GROUP CHIEF EXECUTIVE OFFICER
To : All Staff based in Malaysia
Date : 14 August 2013
By now, many of you would have read the news reports today that referred to supposed comments by YB Senator Dato’ Seri Idris Jala on the Government’s involvement in the airline business and that MAS should not be sold at a loss. Also reported is YB Dato’ Seri Idris’ clarification, made soon after, that the Government does not have any plans to sell MAS.
I believe the media took his comments on selling MAS out of context.
More importantly, I want to assure you, my fellow colleagues and team mates, that we have to rise above all of this noise and keep focused on our Business Plan to strengthen Malaysia Airlines.
We have made much progress to-date since end of 2011 and still have lots to do. Do not let the noise distract us from our work and ‘journey’ to turnaround Malaysia Airlines, for our guests, our Nation, and ourselves.
I am encouraged by a note that YB Dato’ Seri Idris wrote to me today in which he again clarified the actual context, situation and his comments made yesterday. Unfortunately, an important lesson was learned – that some people, either deliberately or genuinely, confuse scenario discussions with actual plans going forward.
It is also important for you to know that we continue to have the full backing and strong support from our major shareholder, Khazanah Nasional Berhad, for our Business Plan and initiatives to turnaround Malaysia Airlines.
Whilst we are still not yet out of the woods, our financial and operational performance is significantly better than 18 months ago. This is shown in our improving uptrend in monthly statistics, as I wrote to you on the June numbers recently. This is an important fact, and the strongest motivation that WE – you and I – as a team, can and will make this Business Plan work.
We have had detractors in the past, now, and possibly in the future. But let the results speaks for themselves and how our Company is improving.
Stay focused. Stay strong. Stay together.
Ahmad Jauhari Yahya
When AJ took over as Group CEO of MAS, he had promised to turn around MAS during his contractual period. MAS share is currently hovering around 31-34 Sen. By the way AJ tenure as Group CEO of MAS will expire in September 2013.