|Quoting PezySPU (Reply 27):|
Not really. They already have a few short-haul ventures under different brands, three I think. So, their plan is to incorporate all of them under a single one. Although I don't see why they need to divide the company so badly, but fine.
No, you are totally missing the point.
The key issue of the share swap between MH
and their proceeding Comprehensive Collaborative Framework (CCF
) is to incorporate more of AK
's LCC elements into MH
's management style especially in terms of manpower (non unionised pilots, first officers, cabin crews et. al.) and cost control. Already internal talks have taken place to transfer 80% of MH
's current total manpower (reportedly to be 21,000 headcount) into the management of Sapphire/MAS/yet to be named short haul airline, which will be operating under a clean slate of paper copying some of AK
's successful management styles. This split (of the current MH
into 2 entities) is what this share swap and CCF
are mostly all about. Almost all key personnel under the previous MH
management have resigned or asked to resign (including former CEO of FY, former CEO of MAS Kargo, Head of Finance, Head of Corporate Communication et. al.) and a throng of imports (lots of Caucasians) all of whom directly or indirectly associated with AK
's Tony Fernandes (particularly the new Head of Route Management and Head of Finance whom was previously the CFO of AirAsia X) have been parachuted into the airline.
It is not that complex really. The current MH
will become a split operating entity of long haul destinations matching its long haul aircraft and short haul destinations matching its short haul aircraft, like TG
was like in the past:
- operating only long haul routes with the current MH
's 9 B744s (which will be phased out completely once all 6 A380s have arrived), 17 B772s, 3 A332s, 16 A333s and the upcoming 6 A380s and the balance of 15 A333s on order.
2. Sapphire/MAS/yet to be named airline - a new entity of MH
that will operate all of its 37 B734s and 10 B738s (plus another 25 B738s which have yet to be delivered). This airline will have lean management with non unionised pilots, first officers, cabin crews et. al. just like AK
and it is expected that a lot of staff will be made redundant after the manpower transfer hence, it is much easier to lay them off if they were a staff of Sapphire/MAS/yet to be named airline. It is rumoured that Sapphire/MAS/yet to be named airline will wear the same newer livery as unveiled in this thread but theirs will be red in colour. That is the symbolic of the split of the current blue and red livery of MH
There is no secret that QF
are in talk to form RedQ or whatever name it has evolved since then, another premium short haul airline pretty much like Sapphire/MAS/yet to be named airline but whether RedQ will be another separate entity or QF
will acquire stakes in Sapphire/MAS/yet to be named sort haul airline (hence RedQ is Sapphire/MAS/yet to be named airline) is remain to be seen.
is also in talks to dispose off MAS Kargo. While we are at it, it is also rumoured that MH
has decided not to take the 4th and final A332F which MAS Kargo ordered and that aircraft was take by Etihad Airways instead. This could relate to the sacking of the former CEO of MAS Kargo (for failure to match requirement against demand and ordering a wrong type of aircraft which contributed a large chunk to the biggest ever loss made by MH
in its corporate history in its Financial Year 2011 [MH made a provision of impairment of its very new 3 A332Fs totalling MYR
314 million or USD 104 million following Airbus P2F program for the A330 aircraft].
It is true that MH
also have subsidiaries that operate under a different brand that is Firefly (FY) [community airline operating a fleet of 12 ATR 72-500 hubbing at SZB
] and MASwings (MH3XXX) [operating rural air service in the jungle of Borneo with a fleet of 10 ATR 72-500 and 4 Twin Otter] but both these propeller airlines are minuscule and almost irrelevant in the general picture, as far as MH
are concern. FY was quite significant before but that is before its B738s operation hubbing at KUL
was slaughtered to make way for the share swap and the CCF