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.
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?