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| Amok: MAS continues to elude his Midas touch |
From Bina Fikir to Khazanah Nasional. I've known of Tan Sri Azman Mokhtar since I was a reporter at Business Times and he a haversack-ed young analyst with Solomon. His rise, guided by Nor Mohamed Yakcop who then had the ears of the Prime Minister, was meteoric. In him the Government first placed the trust of restructuring a post-Tajudin Ramli MAS.
On his way up, Azman was made Khazanah Nasional boss overseeing the government's strategic investments and GLCs, strategic and otherwise.
Today, many years after Bina Fikir's failed restructuring of MAS, Azman Mokhtar announced drastic measures that WILL save the national carrier, including replacing AJ the CEO and cutting some 6,000 jobs.
"The combination of measures announced today will enable our national airline to be revived." Azman Mokhtar in MAS to trim staff, routes in reform plan, AFP Friday 29/8/2014
You will excuse me if I have my reservations about Azman and Khazanah's latest plans. Don't get me wrong. I wish he would succeed because I want MAS to fly high again and make us all proud but I believe the time has come to take the airline away from the wizards at Khazanah and let a proven entrepreneur or a group of them save it.
Maybe Tan Sri Azman Mokhtar is cursed where Mas is concerned.
ReplyDeleteKhazanah has done ok with others except for Mas and Proton.
How come?
Amokh gemuk is the real reason why MAS failed miserably. The motherfxxxxx should go to jail.
ReplyDeleteAlamak, Latuk, you mahu Syed Mokhtar ambil MAS, ke ? Actually the plan Amok announced is kinda stupid. You inject 6 billion of shareholders funds. You cut staff and place them with other GLCs as national service. Then you cut unprofitable routes and re-negotiate existing contracts for better terms.
ReplyDeleteAny monkey can also make this work. I can do this for RM 2 billion. Please tell your boss.
Godfather
Insanity is doing a thing over and over again expecting a different result - Albert Eimstein.
ReplyDeleteThis is totally insane....
cutting some 6,000 jobs?
ReplyDeleteI AM 100% agreed with you Rocky. Each time to rescue MAS there will be jobs cuts affeting thousand when Billion losses not due to workers but mismanagment from the top management. What happen to the Football club? I wish Najib can be replace when he keep on trusting such failed people to turn around MAS.
I think he's gonna appoint Harun Johari,his MCKK buddy as CEO of MAS.
ReplyDeleteSdr Rocky
ReplyDeleteSo, the people doing the "mother of all restructuring" for Malaysia Airlines are the same people behind the failed WAU in the national carrier's first restructuring plan back in 2002.
Amok was then MD of Binafikir. Md Nor Yusof was MAS' MD. Now, Amok heads Khazanah, which owns MAS, and Md Nor is the airline's chairman.
Are they trying to mend what they have failed to do earlier?
Only, the mechanics seemed the same, with the NewCo (before, they set up a special purpose vehicle called Penerbangan Malaysia Bhd), but the only difference is now they will introduce another layer of bureaucracy called the Aviation Commission.
I wish them well to turn around the company yet again but seriously, I think they have to acknowledge that this is way beyond what they are capable of doing.
I agree with 5.52
ReplyDeleteAnon 5:52pm
ReplyDeleteCan you name any of Khazanah's big success ?
But long list of failure for sure
ReplyDeleteIf Najib is very sure ,then Azman Moktar will be very-very sure.
Khazanah has turnaround UEM.
ReplyDeleteLong list of failed unlisted start companies
Only frost and sullivan think mas in good hands with khazansh but argued their listing of overpruced apollo.heslthcare and slitting of telekom and aviata as success.
This ppl failed in understanding business operations.
Done ok with others?
ReplyDeleteIt is a right time to appoint Mr Stingy aka Tan Sri Khalid IBrahim become Khazanah Chairman or at least MAS chairman!
ReplyDeleteSudah cukup 3 orang (Najib, KJ dan Azman) untuk dijadikan alasan lingkupnya UMNO pada PRU14 nanti!
ReplyDeleteWell, restructuring is a must but not in that pool again.
ReplyDeleteSince PM already announced that there's no bail out, for that 'new billions' is an investment, where every single cents must be recovered back. Exactly is a 'Business Talk'. Cutting cost. Afresh indeed.
My view, MAS is already in business. Being competitive is a must. The best is to strengthen the business under a Consortium. The CEO reports to the party. Then the capital injections too. Everybody plays important roles for MAS to prosper again. Our gomen be the manipulator. Won't it be right ?
More than a decade. It was the manipulator's job that made MAS redundant.
As the layman says it, "fly your wau (kite) ".... wow factor ? neh, its gomen anyway...
Anonymous 5.52pm
ReplyDeleteYou meant Khazanah had robbed millions without problems with other companies and why can't they do the same with MAS and Proton ? .. hahahahaha
They are total failure, starts form Idris Jala, the then CEO of MAS. We all know these fools are of to no good. They are not creative, they're reactive .. ooopss .. too late. Bye bye 6000 MAS workers whome will blame the BN gov, BN, you are so stupid to believe these goons from Khazanah and PEMANDU .. oh wait, they're on this together!!! No wonder Anwar and Guan Eng is so power crazy they forget the word 'Nepotism' in their 'tolol' culture.
Why doesn't the government recruit the honorable Mr. Wee Choo Keong who seems in his blog to be very well-informed and astute about the going-ons of the airline industry?
ReplyDeleteHonestly, this Tans Sir sound very stupid. He said Khazanah will inject up to RM6.0 billion, in stages and with conditions. Khazanah will be managing the MAS newco. If it failed subsequently as it moves forward, it is Khazanah fault which then Khazanah need to inject additional fund. So Khazanah set the condition, Khazanah failed, Khazanah inject additional fund. BODOH TAK? This Tan Sri gets fat salary cheque and yet so bloody stupid. Though there will be a CEO, still this CEO will report to Khazanah via-a-vis Tan Sri. BAGANG
ReplyDeleteIronically, Bru - this is exactly what commentators in Singapore are saying.
ReplyDeleteRead the recent reports on MAS in the Singapore Business Times paper, for instance.
The comparison with Singapore Airlines (SIA) is stark.
The bottom line is that the turnaround of MAS has to be backed by political will from the very top if it is to succeed.
Which means taking on and facing down unions, special interest groups and vested interests.
And let's not be distracted by that canard of "special interests" and "agendas".
These were applied before in MAS.
Where is MAS now?
Bro Najib....,
ReplyDeleteI suppose you confused between bailout and investment on the RM 6 billions issue...!
Remember...When you invest RM 6 billions, it means you enhance the business operation and size...!
But when the money is used to clear debts, pay to existing staff as compensation and restructuring an under performing business, in business term you should call it as bailout...!
Hope you understand this simple terminology....!
By the way, this RM 6 billions will disappear without any progress because I find no one seems to know the 'real' problems including you and your government...!
Look at your Transport Minister, what he knows about aviation except the Moon Cake...?
Look at MAS management, there is no single person with proven aviation industry credential....!
But I don't understand what made you guys think that Khazanah is capable to create miracle....! - See more at: http://www.themalaysianinsider.com/malaysia/article/rm6-billion-to-mas-an-investment-not-bailout-says-najib#sthash.Km91JI0M.dpuf
The WAU introduced by Azman Mokhtar and his "I-know-everything" partner Rashdan Danny during their BINAFUCKER day obviously destroyed the future of our national airline. The 2 fuckers should go to JAIL!!!
ReplyDeleteHow much more money and time must be extended to MAS to come right ? If MAS was deemed to be a commercial proposition it would have been written off years ago thus saving the people billions of ringgits. There was nothing to impede this Tan Sri as, the boss of the major shareholder from implementing. Or is he only now trying to shut the gates after the herds have run out
ReplyDeleteAfter all if Air Asia can turn a company Tony bought from the government for one ringgit and is now the envy of many countries. Why can't this Tan Sri with all the support and finances at his disposal put MAS right ? What is going to happen to the 6000 employees that are due to be made redundant ? Couldn't the Tan Sri stop them from being employed in the first place as the major shareholder ?
mas did not reduce cost of goods sold by 10% and increase sales by 10%.if this is done,the turnaround is 20%.
ReplyDeleteI sincerely hope that the restructuring of MAS is successful. I have doubts though since the plan is so similar to a standard text book formula to restructure a company. Any MBA student doing a term paper on the subject would have come up with a solution similar to that.
ReplyDeleteWe expect something more from those in Khazanah as they are supposed to more more brainy than us.
"the time has come to take the airline away from the wizards at Khazanah and let a proven entrepreneur or a group of them save it."
ReplyDeleteBut are the Khazanah Chairman and that Deputy listening?
These fellows do not know how much taxpayers' money has been pumped in?
Is that the way to manage the country's finances?
Sad!
PARAMESWARA
and silterra
ReplyDelete
ReplyDeleteits just an accounting makeover like WAU.
ReplyDeleteMAS don t have clear market segments. it is a premium airline but competing in a budget environment. sure to loose one.
it has to clearly set it roles and stay focus.
syabas dato rokcy, akhirnya menyuarakan juga apa yang perlu tetapi sekian lama terpendam.
ReplyDeleteTotally with you Dato'. For ten years Azman Mokhtar only made MAS worse than when he started. Why should the Country still rely on him now?
ReplyDelete....It will be the same CLOWNS but different CIRCUS !!
ReplyDelete"Khazanah has done ok with others..."
ReplyDeleteReally? For example?
Wasn't this Tan Sri around during all these times, when he as the MD of the major share holder could have prevented all the money losing projects are being implemented ? Therefore what can he do now only after the 6,000 innocent employees are being held responsible for the shambles of that MAS are. Or is he going to come up with the excuse that he wasn't responsible for the day to day operation of the company ? Isn't he as MD of the major share holder supposed to keep an eye on what is happening and wasn't he responsible for the appointment of the CEO for MAS, or is it because his hands are tight to nominate who the CEO for MAS was and still is ? Just come up with the truth and shame the devil, enough is enough. The nation cannot afford to keep coming up with billions to cover up the losses of MAS. There is no salvation for MAS in sight and the only solution is to sell off this loosing proposition, one cannot especially the government of Malaysia themselves is already in deficit and heavily in debt.
ReplyDeleteWill Najib and his team of experts or this Tan Sri be around in three years time to answer for more questions when this new exercise fails ? Let this be a lesson learnt and stop this Wasn't this Tan Sri around during all these times, when he as the MD of the major share holder could have prevented all the money losing projects are being implemented ? Therefore what can he do now only after the 6,000 innocent employees are being held responsible for the shambles of that MAS are. Or is he going to come up with the excuse that he wasn't responsible for the day to day operation of the company ? Isn't he as MD of the major share holder supposed to keep an eye on what is happening and wasn't he responsible for the appointment of the CEO for MAS, or is it because his hands are tight to nominate who the CEO for MAS was and still is ? Just come up with the truth and shame the devil, enough is enough. The nation cannot afford to keep coming up with billions to cover up the losses of MAS. There is no salvation for MAS in sight and the only solution is to sell off this loosing proposition, one cannot especially the government of Malaysia themselves is already in deficit and heavily in debt.
Will Najib and his team of experts or this Tan Sri be around in three years time to answer for more questions when this new exercise fails ? Let this be a lesson learnt and stop this hamorrhage Wasn't this Tan Sri around during all these times, when he as the MD of the major share holder could have prevented all the money losing projects are being implemented ? Therefore what can he do now only after the 6,000 innocent employees are being held responsible for the shambles of that MAS are. Or is he going to come up with the excuse that he wasn't responsible for the day to day operation of the company ? Isn't he as MD of the major share holder supposed to keep an eye on what is happening and wasn't he responsible for the appointment of the CEO for MAS, or is it because his hands are tight to nominate who the CEO for MAS was and still is ? Just come up with the truth and shame the devil, enough is enough. The nation cannot afford to keep coming up with billions to cover up the losses of MAS. There is no salvation for MAS in sight and the only solution is to sell off this loosing proposition, one cannot especially the government of Malaysia themselves is already in deficit and heavily in debt.
Will Najib and his team of experts or this Tan Sri be around in three years time to answer for more questions when this new exercise fails ? Let this be a lesson learnt and stop this hemorrhage from going any further, to err is human and just don't repeat this painful lesson. Najib has inherited MAS from the repugnant Mahathir and as such you are not bound to keep his sick child from haunting you any further.
MAS former Engg. head has spoken.
ReplyDeleteThis is an approach that will reduce the workforce of the new MAS to 14,000 or less without having to retrench 6000 staff. 1) Spin-off MAS Engineering, Airport Operations and MASkargo into 100% owned subsidiaries of the newco, About 5000 to 6000 people will be taken off the new MAS payroll by this move. It is to be noted that these functions are still required by the new MAS in order to operate its business. These subsidiaries will have to operate at arm's lenght to new MAS and would be responsible for their P&L2) Transfer the domestic operations and some regional points to Firefly. A sizeable number of B737-800 together with technical and cabin crew will have to be transferred to Firefly, further reducing aircraft assets and related personnel of the new MAS. This is one possibility unless Khazanah is planning to hive off Engineering, Airport Operations and Cargo to other parties This type of approach has been taken by several other airlines in the past.
Further emphasized in 2009 herehttp://rockybru2.blogspot.com/2009/06/six-things-mas-must-do.html MAS responded herehttp://rockybru2.blogspot.com/2009/06/mas-responds-to-hbloggers-posting.html?m=1
Correct. Nothing happened in MAS without Khazanah's nods and approvals. Azman effectively moved up the corporate world based on the misfortunes of MAS.
ReplyDeleteFrom Binafkr to Khazanah, he and his people had been part of the MAS problem for more than a decade. And how can they become the solution now ?
Azman, Idris Jala, Tengku Azmil, Md Nor Yusof, Munir Majid what have they done all these while ? The 6000 soon-to-be fired employees of MAS did not come through the door yesterday. They were accumulated through a period where those folks were in charge.
And what about those lop-sided contracts ? Who approved them? Who brought them to the Board? Its the same people I am sure. Where was their professional judgement. Do they even know? They just continued with their usual ways and just paper over the growing cracks one after another. Apa ni ?
Now not a single one of them ada angkat tangan and owned-up to those mistakes ! WOW, these guys are on multi-million ringgit packages and none had the decency to stand up and said sorry.
All we heard then was'competition', fuel-hedging', 'open skies', 'unions' ..That's right, blame all but their own incompetence in running the business.
And what really pissed many people now is that they even had the gall to mention MH370 and MH17 as contributing to the need to do a 'hard re-set' of MAS. This is low and despicable.
The spectacular failure of MAS points to the failure of Khzanah. Many have said that place has become bloated and fat. No accountability, incompetent pompous characters full of themselves, derided by the real world, massive pay-packets, easy pickings for parasitic consultants. Rich kids from easy backgrounds. Tak ada semangat kebangsaan nak membina negara.
Selamat Menyambut Hari Kemerdekaan
ReplyDeleteDato RB , Tun Mahathir tends to agree with the plan , please give Khazanah a chance to prove itself on this , show some positive support , will you please.
datuk , tolong sokong laa , jangan jadi penhalang , ini satu usaha bersama untok memajukan MAS.
ReplyDeleteRocky has an agenda. He wants to to support crony eyeing mas
ReplyDeleteSame clowns, different circus
ReplyDeleteSuddenly Mr Wee C K who had been waxing eloquent in his blog about AirAsia and Tony Fernandes (and allowing therein vile and racist denigrations of Mr Fernandes) has apparently decided to go mum on the fraught issue of MAS's restructuring.
ReplyDeleteWhy the discreet silence from Mr Wee C K? Or from the cohort of AirAsia bashers who posted incendiary comments about the airline and Mr Fernandes in that particular blog?
Here's a suggestion for Mr Wee C K and the merry band of AirAsia and Tony Fernandes critics. Read, re-read and digest the Singapore Business Times editorial "MAS must be given every chance to succeed".
The editorial didn't however call for AirAsia and the other low-cost carriers to be shut down. Far from it.
As the editorial put it: "An aviation commission will be set up to regulate the industry and its competitive aspects. But what exactly it will regulate is unclear and greater clarity on the matter would be desirable..... What was left unsaid was this: MAS, above all, must be managed independently and without political interference. It must be given every chance to succeed. At the very least, it deserves that much."
What are we to make of Khazanah Nasional's stewardship of MAS since 2001? The facts are clear and undeniable:
- MAS's loss in the first half of 2014 was RM750 million
- Since 2001, Khazanah has spent over RM7 billion on MAS
- MAS has over RM11 billion of debt
- It is, by all accounts, over-staffed. By how much is anyone's guess, although lay offs involving about 6,000 MAS staff are being speculated about.
How did Khazanah allow MAS to get into this mess?
The Business Times editorial is tactfully silent on this.
MAS requires new branding in order to boost up its international image and reputation! No longer should it be: MANA ADA SISTEM (MAS) to MESTI ADA SISTEM! Hidup MAS and make Malaysia PROUD!!!!!!!?
ReplyDeleteAmokh show-off the "blueprint" to the press as if miracle will happen after burning RM6 billion of taxpayers' money. Podah! Just transfer that bugger into MAS, with all his superdungu gay friends, and see whether they can really apply their CFAs, MBAs, to the real test. Ada berani?
ReplyDeleteKasi sama tu apa nama Syed Mokhtar, semua beres kowtim!!!
ReplyDeleteNew branding? A juicy contract for "PR companies" and "branding consultants"?
ReplyDeleteWhat about going back to basics? Like earning more than you spend? Deciding what markets you want to serve. What routes are profitable? Full-service premium or no-frills?
Hello Rocky
ReplyDeleteI'm 100% agree with your argument and ask the government (the deaf and vain institution today) to listen to the people for once not the bullshit consultants! And please Rocky, change that person picture with maybe an orang utan or monkey. Me and lots of people rather see a monkey face right now than the khazanah people's!
Hey mustapha
ReplyDeleteF omar ong!!!!
While there's all this attention focused on MAS, what about Malaysia Airports (MAHB)?
ReplyDeleteIt's pride and joy, KLIA2, has been criticised as being passenger-unfriendly, with poor public transport links and facilities.
KLIA is supposed to the country's flagship airport and premier air hub.
But in terms of international connectivity and number of international flights, it has lost out to Changi Airport and Hong Kong Airport.
Yet, apart from AirAsia, no one, apparently, wants to criticise MAHB.
I wonder why?
MAS kena tukar cara berniaga. Mana2 cara yang merugikan jgn buat lagi. Bottom line - berniaga mesti untung. Paling busuk pun kena break even.
ReplyDeleteHere goes. Same shit all over again.
ReplyDeleteThis Khazanah "experiment" is doomed to fail.
ReplyDeleteNote how Khazanah has avoided the million dollar question of how MAS will face up to the competition, especially in the premium full-service segment.
Airlines such as Emirates, Qatar Air, Cathay Pacific, Lufthansa, SIA, British Airways etc are spending hundreds of millions of dollars in redoing their first and business class cabins.
MAS and Khazanah doesn't have this type of money to spend.
So, what next?
The MAS unions are good for acting as "spoilers", nothing else.
The government has no political will to do what's necessary to resuscitate MAS. It's merely waffling on and allowing Khazanah to throw good money after bad.
Where's the accountability, starting with Tun Dr Mahathir?