In PART 1 we stopped at the sorry state of Rural Air Service (RAS) and Fly Asian Express Sdn Bhd (now AirAsia X) where six aircraft were grounded due to un-airworthiness and another one was cannibalised for spare parts, and how MAS was left to pickup the pieces thereafter. Suddenly there was a change of heart by Mr Mueller two days ago, he spoke at GADAsia 2015 that he rules out any merger with AirAsia. He cited reasons like collaboration is unhealthy, HERE.
Of course, it is unhealthy and MAS was fined RM10 million by Malaysia Competition Commission for entering into the MAS-AirAsia share swap, HERE.
In any event, the intention of a collaboration must have existed otherwise Mr Mueller would not have spoken to the press last week. Even though Mr Mueller has now ruled out any collaboration with AirAsia, it is necessary for Mr Mueller to read this posting. We do not want to see any party including the little napoleons in Khazanah to cannibalise MAS in the future. Yours truly sincerely hopes that Mr Mueller will read Part 1 and 2 of this posting.
It will be incomplete when discussing about collaboration between MAS and AirAsia without examining WAU/BinaFikir Sdn Bhd and the MAS-AirAsia Share
SUAP Swap, which was secretly hatched by the little napoleons in Khazanah, and forced down the throat of MAS. When it was announced by the MD of Khazanah, Tan Sri Azman Mokhtar aka Amokh of BinaFikir Sdn Bhd fame, the then MD of MAS, YM Tengku Azmil, was not even aware of the MAS-AirAsia Share Swap. He had to resign as the MD within a day or two of the announcement of the said share swap. The said share swap was hatched in utmost secrecy as though it involves our national security!
The notorious MAS-AirAsia Share
It will also be incomplete if we don’t appreciate the contribution by the BinaFikir Sdn Bhd, which was co-founded by two important personalities in Khazanah. They are Tan Sri Azman Mokhtar, the MD of Khazanah and En Mohamed Rashdan Yusuf aka Danny, one of top executives of Khazanah.
After the inception of BinaFikir Sdn Bhd in 2002, in the same year it was handpicked as the consultant to come out with plans and ideas to rescue or revamp MAS. In 2002/2003 the powerful Tan Sri Azman Mokhtar (Amokh) and Rashdan aka Danny came out with the great plan under the name of WAU, Widespread Assets Un-Bundling. Please also read HERE.
In short the main objective of WAU was to make MAS lighter so that it could fly very high. What a brilliant idea! That is the reason why GLCs under Khazanah love to appoint consultants and consultants to think for them and pay million of RM.
If it interest you to know, in a short span of 5 years, BinaFikir Sdn Bhd had grown so big that Maybank Bhd happily bought it for RM8 million, which was believed to be dirt cheap because of its famous founders i.e. Amokh and Rashdan/Danny and their influence. When BinaFikir was sold to Maybank Amokh was already appointed MD of Khazanah and Danny was still in BinaFikir. Within a short period, Rashdan was thrown out of BinaFikir for reasons best known to him and the staffs in Maybank.
By the way, the little napoleons in Khazanah were trying hard to withheld the BinaFikir’s consultancy fees for WAU by citing confidential or non-disclosure clause. Yours truly had to relentlessly press for answers in Parliament, it was finally revealed that it had cost MAS a whooping RM1,697,027.77, HERE.
The Disposal of the equity in MAS Catering Sdn Bhd
In order to make MAS lighter, the management led by Tan Sri Md Nor Yusuf, the current chairman of MAS, had to dispose of assets.
In 2003 MAS was WAUed where 70% of its equity in the the crown jewel of MAS, MAS Catering Sdn Bhd, was sold to a company under the control Datuk Haji Ibrahim Bin Badawi, the brother of then PM, Tun Abdullah Badawai.
Before the ink could dry up, Tan Sri Md Nor Yusuf signed a lope sided catering agreement with Brahim Catering for 25 years with a total value of RM6.25 billion! No other airline in the world would sign a catering agreement for 25 years. MAS had to pay about RM260 million annually for the catering bill. It was an open secret that the prices are high and non-negotiable. A stick of satay cost about RM3.00 and this is the price bulk purchase! For the lope sided 25 years catering agreement and the share swap, please read HERE.
After a few months of selling off the equity of MAS Catering Sdn Bhd, the name was changed to LSG Skychef – Brahim Sdn Bhd. Due to the matter was debated in Parliament, Lufthansa could not withstand the fame and sold its equity to Brahim’s. Now the name was changed to Brahim’s Airline Catering.
When the secretly hatched share swap was announced, Amokh the MD of Khazanah also announced that COMPREHENSIVE, COLLABORATIVE FRAMEWORK (CCF) was part of the said share swap and the appointment of En Mohamed Rashdan Yusuf aka Danny, who was a former business partner of Amokh in the famous consultant firm of BinaFikir Sdn Bhd, to be the man in charge before the appointment of the Group CEO of MAS.
A few days after the announcement of the said share swap, Rashdan aka Danny flew to London to secure a fantastic QPR Jersey Sponsorship for 18 million Pound. MAS logo appeared on the QPR jersey for home game only and AirAsia for away game. By the way, it was by chance the owners of QPR were and still are Tony Fernandes and Kamaruddin Meranun, both are from AirAsia. The said sponsorship was terminated after a short time after it was exposed. Please read HERE.
Thank God that MAS had terminated the said sponsorship otherwise MAS logo will be on the jersey of a team that had been relegated recently.
Tony Fernandes & Datuk Kamrudin Meranun were appointed to the Board of MAS
In a matter of a few weeks, Tony Fernandes (Tony) and Kamaruddin Meranun both from AirAsia were appointed to the Board of Director of MAS. From hereon, it was party time! This must be the beginning of Comprehensive Collaborative Framework (CCF), a term synonymous with Amokh.
On 15-9-2011 En Ahmad Jauhari Yahya aka AJ was appointed group CEO of MAS and Rashdan aka Danny the Deputy Group CEO.
The Appointment of Planeconsult, a world famous aviation consultant
In October 2011, PlaneConsult was working in the background in MAS. It was officially appointed as the consultant of MAS from 16-1-2012 to 30-4-2012. Its scope of appointment was to revamp MAS. AJ and Rashdan were responsible for the said appointment. This was the beginning of Amokh’s CCF. The consultancy fees for PlaneConsult was RM2.8 million plus other expenses, HERE
PlaneConsult’s background was restricted low cost airline. Before we go further, we have to know who is the key man behind PlaneConsult.
PlaneConsult’s chairman is Mr Connor McCarthy. It is also by chance that he is one of the founders (together with Tony Fernandes and Kamarudin Meranun) and director of AirAsia.
The above is the cover page of PlaneConsult so-called programe to revamp MAS. Its first task was to head hunt “local individuals who have been identified” to head important departments in MAS. It was also by chance that all the so-called identified local individuals were all from AirAsia. Perhaps these individuals from AirAsia were the most highly qualified professionals in the aviation industry in the world.
The revamp commenced with the appointment of Rozman Omar as CFO of MAS and thereafter, Azhari Dahlan as Head of MAS MRO. Then came the biscuit lady, Zahrah Zaid as Head of Human Capital. Please read HERE.
The appointment of the shameless Shane Nolan as Commercial Director
Shane Nolan was part of PlaneConsult. Shane Nolan was appointed as the Director for Commercial from January to 30 April 2012.
Shane Nolan was instrumental in terminating MAS routes (Bandung, Surabaya, Rome, Dubai and etc). Of course, the said terminations must have been agreed upon by AJ and Rashdan aka Danny. Two years later, AJ had employed Seabury Consulting to help him to think and it recommended to reinstate Dubai route. Please read HERE.
In February 2012 AirAsia X terminated its flights to London, Paris and Mumbai. AirAsia X had to find an airline to re-accommodate about 50,000 of its passengers, who had already paid for their fares in advance. Of course, AJ and this shameless Shane Nolan came to the assistance of AirAsia X.
Before signing any formal agreement to re-accommodate passengers of AirAsia X (AAX), MAS was forced to uplift the 50,000 AAX passengers. When the matter was exposed in yours truly blog, AJ and his cronies worked over time to do damage control and/or cover up. MAS had to send out e-mail at 12:26 am on 28-3-2012. An excerpt of the said e-mail is reproduced below:
From: YOUR VOICE ONLINE [mailto:UVOICE@malaysiaairlines.com]
Sent: Wednesday, March 28, 2012 12:26 AM
Subject: Malaysia Airlines enters into re-Accommodation Agreement with AirAsia X
28 March 2012
Malaysia Airlines enters into Re-Accommodation Agreement with AirAsia X
Malaysia Airlines has entered into a Re-Accommodation Agreement (“RA”) with AirAsia X effective 27 March 2012 to re-accommodate the latter airline’s passengers on four routes cancelled using excess capacity on Malaysia Airlines flights. The four routes involve Mumbai, Delhi, London and Paris.
Economy and premium class passengers holding confirmed AirAsia X tickets issued before 13 January 2012 on the four routes would be transferred for travel on Malaysia Airlines between 28 March and 27 October 2012.
Foe the full e-mail please read HERE.
The affected AAX passengers, paid low cost fares, and were uplifted by MAS with food and other full services. The fares charged by MAS was below market fares. It was also during this time that AJ was in great pain to tell the staffs that MAS was bleeding. But when it comes to helping AAX, MAS blindly charge fares below market fares. The uplifting of 50,000 AAX passengers was done when Shane Nolan was the Director for Commercial. Please read HERE & HERE.
Shane Nolan had caused damage to MAS financially and its image. Please read HERE.
Shane Nolan tenure as MAS Director for Commercial was supposed to have been extended to July 2012 but it was abruptly shortened to May 2012, HERE.
En Al-Ishal Ishak specially headhunted by AJ to do rebranding
Early 2012 Al-Ishal Ishak was appointed by the then Group CEO of MAS, AJ, as SVP Marketing and Promotion in MAS. He was entrusted to do re-branding of MAS. His first and most valuable contribution to MAS was to quietly appoint Landor Associate in London to change the corporate colour of MAS from red and navy blue to pale blue and the livery for all the aircraft. Rumour has it that certain key person in the said share swap deal did not want to see red as the corporate colour of MAS because it was exclusive to AirAsia only.
Below is one of the pictures of what Al-Ishal Ishak had contributed to MAS. What a beautiful colour!
Al-Ishal Ishak and gang in MAS wanted to change all the aircraft with pale blue corporate colour and new livery for all the aircraft. But it was exposed in yours truly’s blog and the grand idea of Al-Ishal and his gang had to be abandoned. The pale blue version was used for the A380 aircraft only because it was already done and it will be too costly to change it. Please read HERE & HERE.
It was latter revealed in Parliament that the Landor Associate’s design fees cost MAS a whooping RM600,000, HERE.
In mid June 2012, Al-Ishal Ishak could not withstand the pressures and resigned from MAS to join AirAsia, HERE.
At least En Rozman and En Al-Ishal Ishak had self respect and they left MAS to join AirAsia. Azhari Dahlan stayed back until now. He is just a shameless remnant from AirAsia. Please read HERE.
Rashdan the butcher and Danny the Nanny
Rashdan’s agenda for Amokh’s CCF, HERE.
Of course, Rashdan also took actions to stifle the development of Firefly by down sizing its operations. Firefly was doing quite well and a competitor to AirAsia. hence, certain route to from Johor Baru to Kota Kinabalu was terminated to the extent of during peak period (hari raya) several Firefly flights were cancelled and its passengers were given option travel by AirAsia, HERE.
Several profitable routes like Johor Baru to KK, Bandung, Surabaya, Dubai and etc were terminated for the benefit of you know who?
The attempt to stifle the rapid growth of Firefly began, HERE.
MAS having spent a lot of money to promote its Dubai route. In 2012 AJ terminated it. In 2013, AJ had to appoint Seabury Consulting, who then recommended MAS to reinstate Dubai, HERE. MAS had to spend million of Ringgit to start a new office and to re-promote the Dubai route.
The problem with MAS was and still is TOP HEAVY, HERE.
Danny and the nanny
In June 2012 Rashdan aka Danny had to resign in disgrace because of abused of power where he had upgraded his maid to the first class cabin, HERE.
AJ, the samaritan, who gave Sydney route to AirAsia X
Under AJ, he handed over the profitable Sydney route to AirAsia and uplifted about 50,000 AAX passengers at below market fares. It was under AJ’s leadership that MAS livery on its A380 were changed to pale blue instead of its corporate colour of navy blue and red. AJ had changed the meaning of MH (Malaysian Hospitality) to Musnah Harapan, HERE.
Most unfortunately, despite being a failed Group CEO of MAS, AJ, was recently rewarded with a directorship of MAS. Please look at the newly appointed directors by the little napoleons in Khazanah then you will understand why MAS is not going to get better even under Mr Mueller. I am sorry Mr Mueller, this is the the sad truth. If you don’t believe it please ask around about the background of the current directors except Dr Don.
Dr Don – The Share Swap Was A “National Tragedy”
If Mr Mueller still has doubt about the share SUAP and still be mindful of collaborating with AirAsia at a later stage, Mr Mueller needs not go to far, just speak to Doctor Mohamadon Abdullah aka Dr Don, a committed veteran of MAS, whose blood is of red and blue, and now one of the current director of MAS.
In February 2012 Dr Mohamadon Abdullah aka Dr Don, had expressed his sincere views about the share SUAP and he described it as a “NATIONAL TRAGEDY”. The excerpt of Dr Don’s article is reproduced:
Today, MAS has engaged many foreign expertise either through direct recruit or through “Consulting” services (which result in $$$$$ outflow). Credit and recognition must be given to the pioneer Leaders who took the airline from operating BN2s, F27 and B737-200 to the modern fleet of B747s, B737s, B777s, DC-10s and Airbus series.
For Dr Don’s full article please read HERE.
Mr Mueller must be commended for having got rid of deadwood like Dr Hugh Dunleavy at the top management level. But there are still many more deadwood in MAS that had to be got rid off. Azhari Dahlan, Zahrah Zaid, the biscuit lady, are two obvious examples and there are many more at the top management of MAS that had to be out of MAS so as to enable MAS to function efficiently.
We sincerely hope that Mr Mueller will now understand “collaboration with AirAsia and/or its other outfits” is just not on. It is just the day dream of the little napoleons in Khazanah!