Tuesday, November 15, 2011

Shooting down MAS and AirAsia

Something is wrong somewhere. AirAsia and Malaysia Airlines issue flares again and this time the Umno MPs slammed Khazanah chief Azman Mokhtar and AirAsia's Tony Fernandes over 'a cahoot to cheat the rakyat' over the share swap deal.

Many have supported the 'merger' while not few opposed it on the ground that Airasia, being a private-owned airline, will dominate one of the government's largest GLC. If the swap deal was everything proper, there won't be any opposition.

And what matters most now is for full investigation be conducted on the deal, including the brains behind such a 'complicated and intriguing' business agreement.

The Dewan Rakyat felt the heat yesterday when Kinabatangan MP Bung Mokhtar Radin called on 'Amok' to be investigated by graftbusters after the state investment agency exchanged 20.5 per cent of the national carrier for a 10 per cent stake in Asia’s top-performing budget airline.

“The Malaysian Anti-Corruption Commission (MACC) must call Tan Sri Azman ... all of them ... if there is any misappropriation, stuff them into jail,” the Barisan Nasional (BN) backbenchers deputy chief told Parliament. “How can Khazanah be fooled? Azman Mokhtar, how can he be so stupid, to be ‘tuned’ by Tony Fernandes. If I was in such a position, I would resign rather than troubling others.

“Maybe they are not stupid. Maybe they get huge profits by squeezing and grabbing money from the public,” he said, referring to the AirAsia CEO’s company Tune Air which now owns a fifth of MAS.

Sri Gading MP Mohamad Aziz also accused AirAsia of 'clearly cheating the public and now trying to cheat MAS'.

“If this kind of man (Fernandes) can control us, God forgive us,” he said while debating Budget 2012.

Accusing the government of being scared with Fernandes, Bung Mokhtar said: “Whatever he wants, we give. He wants to overcharge for excess baggage and suck the blood of poor villagers. Now I hear he has a plan in the future to take over all domestic flights and MAS will only have international flights. If we give this to him, the country will be in ruins. It will be the end of the world for us,” he said.

And if the government could not provide a satisfactory answer, it meant that 'government officials colluded with AirAsia and has vested interests'.

The MAS-AirAsia swap has come under fire from both sides of the political divide as well as employees of MAS who believe the deal will affect their careers. The Finance Ministry said earlier this month the deal is being investigated by Bursa Malaysia and the Securities Commission for insider trading despite the swap being agreed on three months ago.

MAS’s poor financial performance of late had resulted in the share swap with AirAsia on August 9. This allowed Fernandes to sit on the MAS board, ostensibly to help turn the ailing airline around. However, both airlines have separate advisers.

MAS had announced in August a net loss of RM527 million for the second quarter of 2011 due to higher fuel costs despite recording a better yield and a nine per cent growth in passenger revenue from the same period last year.

This brings total losses in the first half of the year to RM769 million even as the airline said that profit outlook for the second half of the year appears bleak.

Critics have accused the budget carrier’s boss of taking advantage of the loss-making national airline to fuel his personal ambitions, the latest being the acquisition of English Premier League club, Queens Park Rangers (QPR).

The national carrier will sponsor QPR’s home jersey for the next two seasons, while AirAsia’s logo will be emblazoned on the team’s away and third kits in a 'multi-million pound' deal.

Fernandes also revealed on Monday a plan to start a new super-premium regional airline in partnership with national carrier Malaysia Airlines.

"Here is another idea that has come out of AirAsia which will create more more value, more jobs and more business. If an idea like this does materialise... it will definitely involve Malaysia Airlines," he told reporters.

Fernandes said the proposed short-haul carrier would cater largely to business travellers, among others, who need to travel across the region quickly. "For me as a traveller, time is very precious. If you can create a product where you do not need to wait one hour before you check in and fly out and Malaysia can be the home of this idea."


31 comments:

eye for an eye said...

jai,

wck also blogged about it.

if umno backbenchers start to make noise, then obviously there is something very wrong with the swap deal. how could tony's co is allowed to take such a big share in the national carrier?

we want the whole truth about the deal. bring out those responsible for it and if they fail to give satisfactory explanation, take them to task. i does not matter who they are!

black tuxedo said...

investigate first.

if azman was the culprit, he should resign and go to jail!

penangan said...

salam,

hairan juga kenapa persatuan kakitangan mas membantah perjanjian tersebut.

mesti ada sesuatu yang tak kena dengannya... ada udang di sebalik batu kot!

sirap dol said...

azman has been there for too long, and that makes him less clever. m not saying he is stupid but his mind is saturated.

after all, it was paklah who appointed him to that post.

and its time for him to quit and the govt should get a better person to replace him

cikgu pencen said...

memang benar. kalau takda angin, takkan pohon bergoyang.

kalau ada yang tak betul, takkan ada mulut yang potpet2.

SC kena siasat betul2. SPRM juga ada peranan dalam kes ni.

taukeh lim said...

clear cut case.

the govt is selling malaysia airlines to tony.

that also u dont know aaaarr!!!

short and sweet said...

why not let airasia takes over mas completely... call it a privatisation project. mas is not making profit of late, so take this as a salvage effort by tony fernandes. he meant no harm, i suppose. so, pls stop misunderstanding his noble intention. he is a true malaysian, anyway!

si pitak said...

jai, kan ke amok ni kawan kau. dah berapa lama kau tak jumpa dia. gi la jumpa, mana tau dia bagi the right version of the story.

ahli parlimen yang hentam mas dan airasia pun mungkin main bantai je, tak tau kisah sebenar.

jadi, elok kalau kau sendiri jumpa amok atau tony. kita perlukan kedua-dua syarikat penerbangan ini kerana ia adalah kebanggaan kita semua.

lainlah kalau kita ada lagi airline yang berwibawa!

Anonymous said...

najib should get rid of abdullah badawi's people at khazanah!

do it now before its too late to control!

cock pit said...

if tony forms a new airline and takes control of domestic flights, then may as well mas close shop!

said DO said...

betul ke kakitangan kesatuan pekerja mas akan mogok hujung bulan ni?

kenapa perlu mogok?

berhenti je beramai-ramai!

fly robin fly said...

malaysia airlines must always remain as the govt-controlled company. although the share swap is seen not to be in its favor, at least tony got just the right idea how it can benefit both airlines.

the opposition for the swap has been expected long before it was signed.

however, azman needs to be more careful with it. the biggest demon could be in the details!

Anonymous said...

this 2 that UMNO should lock them up and trow into the sea... what do i care if i can fly with cheap airfare compare to last time where flying an airplane is a LUXURY..

Anonymous said...

When Fernandez and Pahamin Rejab went to see Mamakthir about buying AirAsia from HICOM, Mamakthir was impressed. Here is one Indian who can sell ice to eskimos. Mamakthir instructed that AirAsia be sold to Tune Air for RM10.

Of course Fernandez begged, borrowed and stole to get AirAsia off the ground. He grumbled about MAS, he grumbled about MAB. He ended up not paying MAB, and kept using the Mamakthir connection to defer payments.

When Khazanah started the idea of a share swap between AirAsia and MAS, the AirAsia share price was ramped up to RM 4 per share, while MAS share price was at RM 2 per share. When it came to pricing the share swap, it became very easy - the ratio of 2:1 was agreed. Who benefitted from this lopsided ratio ? SC said it will investigate, but it will as usual be a case of NFA.

In the meantime, Fernandez has won the monopoly for Malaysian skies. He is about to kill off Firefly. He will price AirAsia fares around 20 pct below MAS fares. Used to be 50 - 80 pct below MAS fares, but not anymore. Fernandez cheats by making it difficult for people to avoid paying for baggage, paying for seat allocations, paying for insurance, even paying online using credit cards. That's the guy selling ice to eskimos.

Anonymous said...

Just let Tony take over MAS or sell it o Tony, he'll definitely take care of the rest and also take care of the MAS staff as well

Ibnu Sina said...

Terlajak Boeing boleh di undur.

frequent flyer said...

yes. mas is one of our largest glc. the swap is a good deal but mas seems to be at the losing end. it somehow gives tony a 'majority' holding in it - operational and financial.

when was the last time we had a deal like this? none? if there was any, the controlling stake of the glc was retained.

the sc and macc should conduct a thorough investigation, regardless of who were behind the curtains, playing smart yet stupid to allow such a business deal to happen.

Anonymous said...

the manner in which the deal was concluded was similar to that of MAS and SIA in the late 70s... SIA won most of it!

suci dalam debu said...

mestilah ada yang tak kena.

kalau tak, takkanlah ahli parlimen umno sendiri tibai benda ni.

aku pun setuju dengan beberapa komen bahawa azman dah lama sangat kat khazanah, dah takda idea dah.

eloklah berenti dan bagi orang lain pegang jawatan tu!

sunny said...

the deal is ok.

what's not ok is those stupid MPs who made a lot of noise at the dewan rakyat!

careless whisper said...

we should support the move as it will benefit both airlines in a long term. being a glc does not mean mas is properly managed. unless there was hanky-panky in the deal, then it would be open to investigation, however, this deal is the best so far for mas to revive its performance, esp financially

musalmah said...

apa la yang dua ekor ni bising kat dewan rakyat. bagi pembangkang je bising, dah la. nampak sangat kolot pendirian mengenai perjanjian usahasama mas-airasia ni.

atau... nak join pembangkang pulak kot?

Anonymous said...

azman mokhtar must quit... being to long there makes him feel like a king...and kingmaker!

petty trader said...

i read wck blog. he got a lot of points to dispute the swap deal. it makes sense too.

however, i dont think azman and tony meant any harm to both airlines.

if its for the betterment, why not and whatever way!

Anonymous said...

kepada ibnu sina,

lu memang best. terlajak boeing boleh diundur, terlajak sain perjanjian boleh tergadai mas!

di pinggiran said...

saya yakin perjanjian itu adalah untuk kebaikan bersama malaysia airlines dan airasia.

sejarah korporat negara sudah membuktikan banyakn kejayaan dicapai dalam jalinan kerjasama GLC dan pihak swasta, seperti TNB dan telekom yang mengikat kerjasama dengan pihak swasta bagi meningkatkan hasil dan menambah keuntungan.

saya tidak rasa yang azman dan tony bermaksud lain, selain daripada mencari yang terbaik untuk gabungan strategik itu.

t kasih

jackpot said...

leave it to them la. we have yet to see results.

should anything go wrong, then we have every rights for their heads!

let them proof something before we open up our mouth!

Anonymous said...

this two umno MPs should be taken to task for what they said.

they are just troublemakers at the parliament!

stupid!

Anonymous said...

hati2lah dalam apa juga urusan. kerajaan berniat baik, tony juga berniat baik...

Anonymous said...

Pandai cakap sangat, pi la semua yang pandai sangat cadang beli MAS tu kat Khazanah. Berani ke?

Tiap-tiap tahun asyik rugi saje dan rakyat kena tanggung. Simpan buat apa? Glamor untuk siapa?

MAS tu dah lama sangat kena kontrol oleh lintah darat kat dalam yang hisap darah MAS setiap tahun. Ni bisisng-bising bila dah tau akan kena pecat tak lama lagi, ni.

Biar MAS mampos pun bagus, asalkan duit rakyat dapat bagi lagi kat budak-budak sekolah dan bukan menabung lagi kat MAS.

Anonymous said...

Ok to all Air Asia backer,
Azman and tony meant to give MAS a life recovery, very nice for their good intention. Just answer these first, why :
1. Ask Firefly to immediately stop a full load flights as though as the Firefly bankrupt and placed under receivership or Chapter 11 overnight due to unsettle bills to various agencies. ( Any supporting P & L to proof that.)

2. Took over immediately MAS, KUL Bandung KUL ,a profitable routes. ( MAS is bleeding this money making routes could reduce the losses, so why Air Asia need to grap this from a sick man.)

3 QPR sponsorship for 18 mil paid by MAS , the ailing airline and jersey won bearing AIR ASia logo.

4. many more to list lahh.