Khazanah: What actions are to be taken on the losses of RM1.17 bil by MAS?

MAS losses for 2013 RM1.17 billion!
MAS losses for 2013 was RM1.17 billion!

En Ahmad Jauhari Yahya (AJ), the Group CEO of MAS, announced yesterday that MAS chalked up RM1.17 bil losses for 2013!  In August 2013 AJ had told the nation that MAS will be on track to profitability by the end of 2014 as his Business Plans of 2011 was gaining traction, in HERE. With the losses of RM1.17 bil for 2013, it will be a miracle if MAS could turnaround as predicted by the end of 2014.

It is most disheartening to learn that with the eight “Hollywood and Bollywood” in the top management team of MAS that cost MAS many million of good Ringgit to maintain them, MAS could only increase its load factor at the expense of yield.

Dr Hugh Dunleavy
Dr Hugh Dunleavy, MAS Director for Commercial . He was made redundant in Westjet.

Does MAS really need these eight “Hollywood and Bollywood” to produce such a miserable result of RM1.17 bil losses?

Previously there were only three booking codes in MAS.  F for First Class, J for Business Class and  Y for Economy  Class.  Now MAS seems to have a new Class known as Z Class. Perhaps the “Hollywood and Bollywood” might want to shed some light what is so special about this Z Class and with the Z Class in place why is MAS still bleeding so badly.

Quite frankly, even an idiot could increase the load factor by just reducing the fares with no concrete plan to proportionately increase the yield at the same time.

In view of the magnitude of the reported losses, all is not well in MAS!  The pertinent question is: What is Khazanah going to do with the top management of MAS?

48 thoughts on “Khazanah: What actions are to be taken on the losses of RM1.17 bil by MAS?

  1. oxfart

    Totally agreed, YBerkhidmat. After more than 2 years service, no slightest improvement seen and no signs of recovery in sight, the top mgmt should be sacked pronto.

  2. MAS staff

    Recovery is something AJ does not understand. He remains as clueless as ever. The 8 idiots should be sacked. There are enough local talents available in MAS. It is time for the government to take drastic actions against the management now. The losses of RM1.17 b speaks for itself.

  3. Lim

    What more can the TOPless managemt got to say about RM1.17 bil losses. The most honourable way out is to resign. It is also applicable to the incompetent and clueless Hollywood and Bollywood.

  4. Dah lali dah...

    Business as usual, nothing will happen. You protect my backside and i protect yours (you cannot say that with Anwar though). Honorable gang of robbers and penyangak with datoship and tan sris as title. Rakyat kena scam kawkaw untuk kali yang ke 1,236 and counting…

  5. ThirtyFiveThousandFeet

    While the company is losing more than RM100million a year, the goons at non- Strategic (Mis)Communications went ahead to host a lavish luncheon at a Five Star Hotel in the city.

    Only the Senior Editors/Managing Editors of the mainstream media were invited to “celebrate” the further demise of MH.

    I’m no PR guru, but common sense (which isn’t very common amongst the mis-mgmt team at MH) would tell you the interest of the airline would be best served if they had the working journalists there instead.

    During the Q&A session with the editors, AJ was spinning himself into a corner, with his bullshit he himself wouldn’t believe! He couldn’t even decide on the positioning of the airline. One minute we’re a 5-star carrier, the next minute we’re slashing fares to compete with Pariah.

    AJ Bangang, you compete with the likes of CX, EK, SQ la, not the pariah.

    The Head of the Non-strategic mis-communication department at MH should also be sacked for his stupidity in organising such insignificant sessions and wasting company money barely 24-hours after the airline announced record losses!! What’s so strategic about that?. All he’s good for is to PR himself at events and to gain coverage for himself in Tatler etc. Send him back to NTV7 to handout assignments to journalists. He can take his bad grammar and half past six Comms skills with him! He’s an embarrassment to the position!

    Eh, Naj, Kalo hang tak erti komunikasi koprat and Bahasa orang Putih ni, jangan memalukan MH la. Dah lah kena tendang dari Celcom dulu Kerana berlagak pandai Dan Cuba upstage DS Shazally. Lepas tu pulak, merugikan berbillion ringgit masa kat Kontena Nasional. Sekarang ni, Kat MH!

    Isn’t there any capable communications person in this country? Why did we have to hire this donkey!

    1. TB

      35000 feet, It is clear that u r not comms. Guru as claimed. If you pause there and let yr brain to compute before saying all this rubbish about the management of MAS, you definately relize that the problem of MAS are not entirely a leadership fault. I wud agree with TF fr once, its the aviation policies. The government must review the policies. Especially in the area of competition among our local airline’s operators in Malaysia. Priority shud be given to MAS. Let the competition be among the airlines outside NOT internal.budget airline operators having premium routes. 35000 feet! Try to be more objective abt this and guess who is the real donkey.

      1. ThirtyFiveThousandFeet

        TB, TB, TB or should I say Naj, stop talking from the wrong end of your body. Why blame the government for all of MAS’ ills.

        It WASN’T the government who gave away one of its highly coveted Sydney slots to one of TFs budak suruhan after a weekend together in Sydney.

        It WASN’T the government who ended FYs profitable jet operations which ended healthy competition and paved the way for the pariah to have a monopoly of key routes.

        It WASN’T the government who sacrificed its popular routes in ASEAN and handed it on a silver platter to the pariah in the name of route rationalisation

        It WASN’T the government who hired the Bollywood and Hollywood rejects, and their equally moronic half past six con-sultants to get MAS to adopt a load heavy, yield passive strategy as part of its spin around strategy. An STPM economics student would be able to tell you given MAS’ high operational costs, the only option it has is to generate profit is to attract high yields. The keralite from Revenue Mgmt should be hung out to dry for going on record to say yields are not important to MAS!

        And it certainly WASN’T the government who decided to send its air crafts to Hydrabad for maintenance and checks, paying premium charges, just so AirAsia can send its planes for MRO (after being told to bugger off by SQ Engineering and recently Lufthansa Technik) at a much much reduced cost.

        Any airline executive worth their money will tell you if you can fill the front of the plane with with high yielding fares, the back will fill itself. Get your product and positioning correct and the rest will follow.

        So Mr Naj, I mean, TB, go and wet your ears a few more years in the airline biz before you spew hot air about policies etc. The govt has protected MH enough. It’s donkeys like you and your boss that have betrayed MAS.

    2. Maslover

      You seem to know a lot aa? Can talk only lah you. Stay there at thirty thousand feet meh. Dont come down. We all faithfull and loyal MAS staff. NoT like you. If u r MAS staff laa. If not dont sibuk2 here.

    3. TB

      you are real paranoid type 35000 ft arent you? Who is naj? Najmi? Najlah? And this linda also. You seem to know alot abt MAS arent you? If you are Mas staff or probably pilot or steward and Probably, if you hv lots of brain coming out fm yr head, Than offer yrself to be their management. Or u cud only talk?

  6. fbo

    After two years, the results have shown. MAS revenue increased by 9.4% where as EBITDA improved by 36%. (RM817 million from the RM 1.17 billion losses actually derived from non cash expenditure, in the form of depreciation). Forex losses (due to weakening of Ringgit) of RM194 million, is the other big ticket item.

  7. GE Man

    AJ , Bo(otak) head Azhari and all the hollywood and Bollywood goons are TF remnants of the share suap and bravo …its mission accomplished by making MAS loose another MYR 1.3 billion for FY 2013.

    MAS will struggle to remain competitive…

    TF boosted that AA makes money , slam MAS and MAHB for loosing tax payers money , lets see if AA really makes money if MAHB starts collecting AA long dues on landing fees and airport charges ….

    and MAS engineering starts collecting maintenance charges dues for maintaining AA A320 and AAX A330 since last year , of course Bo(otak) Azhari wont dare to open his mouth asking his ex boss and his master about it.

    During last week Singapore Air show , AJ and Bo(otak) head Azhari as engineering boss force MAS to swallow another poison pill by signing a 10 years engineering contract for its Airbus A330 NG engine PW4170 power by the hour agreement ( PBTH) worth a whooping MYR 1.8 billion , a direct negotiation without going for an open tender which is against MAS strategic procurement and GLC red book .

    If it had open this tender to all licensed service provider for this engine , MAS would had save up to MYR 450 million ( @ 25 % cheaper ) !!!

    MAS will be feed poison pill again and again as long as TF remnant still around…and no way it will be competitive and goes back to black in the near future….

    1. Hanif

      The Botak is the last remnant of the Pariah’s mole still holding on. there should be an investigation whether all services provided by MAS for AirAsia have been charged with market rate and paid for.

      This Botak must be shown the door as his loyalty to MAS is very questionable.

    2. Resign, Resign, Resign!

      GE Man

      I will not be surprised if the service and maintenance charges rendered by MAS for the low caste airline have not been fully settled. We all should know why was the Botak handpicked to head engineering. That bloody Botak is another gaji buta and good for nothing. There are more qualified person in Engineering than him but he was handpicked to head it. No wonder MAS is losing RM1.17 bil in 2013. If MAS has a principled CEO, he would have tendered his resignation and accept responsibility for the losses. But the brainless blame the losses to market conditions, competition, fuel costs and others as though other airlines are exempted from the problem. AJ just resign for your own sake before you are thrown out like a pariah.

  8. mas staff

    it is an open secret , the same clueless brain was transfer around within the department , a very good example the A/O n FMB , all the bodek culture what more can you expect , AJ ( government ) have no ball to make a decision to make MAS a profitable company again , the promotion was made like his father own MAS , I just don’t understand why AJ have to follow the advise from the same people that was there before n making the mistake all over again , the classic A/O the same boss that only good in talking not in making decision the so call session to meet wiz MD is just wasting money n time , they force the staff to attend n to hear all the bullshit

  9. CON Job

    With the Hollywood and Bollywood, yet MAS had to appoint con-sultants to do their job. No wonder some of them have been made redundant by Westjet. It would appear that Dr Hugh Dunleavy’s contract has been extended by the clueless AJ.

    I cannot understand why MAS needs to pay good money for these useless Hollywood & Bollywood. If MAS were to sack them or not to renew their contract, MAS would have been able to save a lot of money and it can go toward cost saving. What do you expect from the clueless?

  10. Justsee

    The Chinese are good at making money. I strongly feel that all the current management should be replaced with a team consisting of shrewd Chinese professionals – empower them to make money for the company.

    Get an Indian to head the Internal Audit bcos by default (sorriiiiii) Indians are bean counters & they are very good at keeping books & no hanky panky from them etc. Satyam was an exception.

    Lastly, give the Chairman’s post to a Malay – he can read the Annual Report at the Press Conference – figures delivered by the Chinese & maintained by the Indians.

    I have seen this happening – while all other stockbrokers make tons & tons of money during the hey days, eg RHB Securities, BBMB Securities was always bleeding like how MAS is bleeding.

    If all this fails, ask SIA to buy over MAS – for old time sake & see how they turn around the company!

    1. muzakarah

      Im not sure whether those who claimed themselves as MAS staff whom had posted all the negative comments here about MAS is real staff or not. If you are, you ought to be ashame if yrself. The god hv given you the rezeki via yr job in MAS and this is the way you repay him n yr company. Eventhough im not MAS staff, but i feel fr MAS BCOS I ALWAYS TRAVEL WITH MAS. I love MAS and dont spoilt the company. I know most of you

      hidding behind all the names, some must be air hostess and some must be from the technical area. Shamed on u. U all seems to know a lot abt MAS.

  11. Brainless Management

    I have read the NST today. I agree fully with YB’s view that the lope sided catering contract worth RM6.25 billion and contract with consultant and the Hollywood/Bollywood must be terminated. MAS is suffering from this catering contract as well as salaries and perks paid to the topLESS management.

    The huge losses speaks for itself. If they are any good, MAS will not be suffering from such huge losses. Get rid of the topLESS management including Tan Sri md Nor who was responsible for signing the 25 years contract with Badawi’s brother company – Skychef Brahim.

  12. Gaji Buta

    Why pay top money to the good for nothing top management and the useless Hollywood and Bollywood? They should be sacked for the RM1.17 bil losses. All the shameless are so thick skin to hold on to their incompetency is so glaring. It had to be fat salaries and perks that have made them shameless.

    1. The anti pariah

      Give to Tony, he will force MAS to sponsor QPR, change the logo/livery, Azhari Dahlan will be promoted and all good and profitable routes will be monopolised by Low Caste airline and finally MAS will not be in existence.

  13. Humble View

    i cannot understand why Q3 and Q4 losses are more than Q1 and Q2 when Q3 and Q4 are the two strong quarters (look at historical data). For this to happen, it means those in commercial do not understand the business. Why pay them so much or bother to keep them when what they have done is screwing the integrity of the airline…

  14. Sad Employee....

    Revamp and sell off Engineering. This is the money making arm and should not go down just like that!
    Bring in new guards and make every sen count! Aggressive Third Party selling is survival. Reward by performance and results, not by butt kissing.

  15. MAS employee

    MAS employees must be vigilant on what are going in MAS engineering arm which is headed by the former AirAsia officer the Botak. We all know that engineering arm is profitable and doing well. Therefore, we must make public the slightest move to dispose of it. We must put the Botak Azhari under the microscope. We must not allow this AirAsia leftover to do any damage to MAS engineering.

  16. the bollywood

    Whatever views you put here, i still say MAS will always survive this. MAS is here to stay and all of you here are just talking thru yr A**. I hv my whole family working with MAS. The government are always with MAS and all of you can talk C**k until the cow come home. The wau will always fly in the sky if the world. When you all fly with MAS remmember this, you all are bunch of hipocrit. Go n fly with other airlines. Without u all, MAS and its management wil still survive.

    1. Shahida Abdullah

      If you’re indeed working for MAS, your comment says a whole lot as to why MAS is loosing money: most of its employees are leeches that are there to bleed the company dry! After several CEOs, I’m beginning to think MAS’ company culture and workers are a huge part of the problem.

      I am a business traveler & I prefer to travel MAS because of convenience and also because I’m Malaysian but of late I have traveled mostly with SIA because SIA has better route connectivity & schedule. MAS is too busy competing for the mass travelers instead of the more profitable business segment.

  17. MAS employee

    The Spin Doctor in MAS was trying to spin here. No one is condemning MAS. We are talking about the BRAINLESS TOP MANAGEMENT or the gaji buta top management who need the half bake Hollywood and Bollywood to think for him. At the same time all of them had to appoint consultant to think for them. There is no doubt that MAS is a good company. All the losses attributed to the brainless management.

    With such huge losses, what are the directors in MAS are doing about it?

    Tan Sri Md Nor (chairman of MAS), since you were the person who signed the catering contract, you should clear that shift.

      1. Hamid

        Dia punya buntut sudah panas! Siapa makan cili terasa pedas.

        Nobody condemn MAS, the company. We are critical of the topLESS management and its half past six spin doctor, Naj. May be the spin doctor was trying to defend himself.

  18. Leong

    it is most unfortunate that the top management of any company including GLCs that never took responsibility for losses or failures of the company. The CEO of a company especially a GLC like MAS, the CEO must publicly accept responsibility and resign so that others can be appointed to do the job. I suppose AJ and the other dunggus will not resign as the salaries and perks are too good. It is about time that the government should sack these failures including those high ranking officers in Khazanah.

  19. Jason

    AJ will hold on to his his job until his last breath. Why? The salary is too good to be true (at least RM200k a month) plus perks and at the same time he has 8 Hollywood and Bollywood to hold his hand. If the 8 could no longer do the thinking then pay for CON-sultants to think for them. Now you know why MAS suffered such big losses.

    The useless management is not interested in revoking the catering agreement with Badawi’s brother company. As reported in the press, it cost MAS RM260 million a year for 25 years.

    They are just shameless. The tak malu type.

    We must watch out for that Botak Azhari Dahlan in the MRO. I heard that AirAsia is owing MAS for service and maintenance of its aircraft. AirAsia had to pay cash when its aircraft were serviced and maintained by SIA. AJ, what are you doing about this Botak?

    May be AJ is not bothered because he made MAS to carry 50,000 AirAsia X passengers with below market fares. Just imagine AirAsia X passengers fly to London at RM1,100 one way and MAS had to provide food and extra luggage allowance. This is how AJ has been managing MAS. What as cleaver AJ.


    1. Kamal

      I agree. Lets see what that useless Spin Doctor is going say later tonight.

      With such big losses, AJ has no valid reason to stay on as Group CEO. He said MAS will be in the black in 2014. That is not going to happen for sure. So just resign and FO from MAS. Tony will be glad to hire him since he has help AirAsia so much. Give MAS Sydney route to AAX. Help carry AAX passengers at below market fares. Sponsored QPR RM9 million a year.

      Just resign and join AA is the best option for AJ.

  20. Observer

    The corrupt will not take action against another corrupt. AJ knows that and he is not that stupid after all. He only cari makan in Malaysia with the whole family living happily in UK. Unfortunately in Malaysia this is working. This is not only MH problem but the nation problem as a whole.

  21. Petronius

    SIA is still making profits. How come, when they are operating in the same environment and facing the same constraints and competition as MAS?
    High fuel prices? Check. Competition from LCCs? Check. Competition from full-service airlines? Check.
    It’s all about management vision, clarity and nimbleness, with no “sacred cows” to be assuaged or preserved.
    And, yes, it’s about a government that is absolutely determined to protect and enhance Changi Airport’s premier air hub status.
    MAS? Cue in a botched privatisation attempt and a couple of bail outs using public funds.
    In Japan, the government had the guts to let Japan Airlines go into bankruptcy. Six months later it emerged from bankruptcy as a leaner, meaner and more efficient airline, with staff being laid off and routes slashed.
    Is there a political will in Malaysia to let MAS go into bankruptcy and slash staff numbers and costs?

  22. rumit

    Whatever MAS is on the right track.With all the shit that surround it and the shit inside that gobble it, the light is there…give time.
    nobody will be able to turn around MAS ..nobody .TF kah. SIA kah.. GLC kah..private kah….semua tak boleh.tak payah cuba. This industry sucks.period.

  23. Dr. Michael Smith

    First the pariah insulted Malaysians with his “I know Malaysians.. Offer them cheap enough fares and they’ll risk their lives” quote.

    Then, he lied to the OKUs.

    Now, he’s putting down the nurses! Help put a stop to this mindless and insensitive behavior!

    Enough of this bullshit. Lets put a stop to this. Say no to AirAsia!

    1. Say No To AirAsia

      That is the Pariah for you. He will insult anybody including his own mother if that will further his narrow interest. I will definitely sign the petition. YB should do a special posting on this posting to highlight to Malaysian about this pariah’s attitude. Ya we should boycott AirAsia to teach him and his goons a good lesson.

  24. kukubird

    Mr Wee.. have not read your blog in a while…to answer some of your questions… the reason why mas have a Z class is the same as why emirates have their O class… ask your relative who works in the next building.. he can explain to you that bit. These days all airlines have multiple booking classes for a single ( up to 10 in economy in case those of you in operations dont get it) even air asia have multiple booking classes ( hence the difference in pricing) . As seats on a route is considered perishable, there will always be difference in how your canned food drops price closer to the expiry date. Also, no point passing the job to tony as he is from a LCC… (same as hugh and duncan). Someone also mentioned how one quarters revenue can defer so much from the next.. i have explained this to quite a few mas staff before.. it is as simple as pushing the fuel bill to the next quarter to make this quarters figures look good… all carriers do it.not only mas. It is a sad fact that mas is in such a quandry now. But that dont mean you should ask ppl to go screaming that aj be sacked (although this MIGHT happen in the usa/eu) . His mistake might be to trust those westjet guys too much and blindly sticking to their plans. End of the day, it is sometimes a good idea to do aprice slash but when the prices go near that of a lcc, someone needs to wake up and pull the plug to such dangerous strategies. All in all… i do agree the recent super cheap price promo in business class is one of the stupidest things mas have done recently. 13k to london? All in return? Come on.

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