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LAXintl
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MAS restructuring "deemed a failure"

Mon Sep 24, 2018 4:38 pm

Parties including former MAS CEO Abdul Aziz Abdul Rahman say the carriers now 5-year RM6 billion turn around plan from 2014 has been "deemed a failure." Plan called for carrier to achieve sustained profitability by the end of 2017

Abdul Aziz says rather than moving towards making a profit, the airline recorded large losses for three consecutive years including a record RM1 billion loss.

Abdul Aziz said the airline bled due to high operating expenditure on the back of things like high salary cost. Another was poor fleet choices such as the Airbus 380 aircraft, which he regarded as a bad investment, causing extreme cash outflow. “We've got the wrong aircraft. It is not for us, in Kuala Lumpur, to use A380."

“The government's money is the people's money. The capital given to MAB is the people's money and can be questioned. In terms of losses, this turnaround (plan has) failed,"


https://www.thestar.com.my/business/bus ... s-ex-boss/
http://www.theedgemarkets.com/article/c ... -out-woods

=

Can't say its a shock. Not sure MAS ever made the tough decisions needed to restructure. Instead, all the problems were hidden behind the sovereign wealth fund curtain. Still curious as to the real story why Peter Bellew really left MAS to go back to Ryanair
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janders
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 5:07 pm

The trio of GA-MH-TG sure seems to be the sick children of the region.

I wonder how they would get on if left alone without government interference?
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Antarius
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 5:18 pm

janders wrote:
I wonder how they would get on if left alone without government interference?


Likely better, but not necessarily successful. The region has enough high quality airlines leading the pack and a horde of LCCs capturing the price conscious segment. MAS is stuck in the middle wanting to be like SQ but try as hard as they may, KUL is not SIN.

The government getting out would help in that the measuring contest purchases may end. MH has no business even dreaming about a380s, let alone ordering them. TG seems to want to operate one of each aircraft type ( for fun?) while GA is undergoing the same squeeze that MH is - Lion Air is a tenth of the price and CGK does not have the premium O&D traffic for high F and J configured aircraft.

Long story short, without government interference, they may not succeed, but they would also be allowed to shut down - sometimes that's for the best.
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 5:24 pm

I have no issues if the government want to pour piles of money into their airline, but yes ultimately they need to be accountable to their own citizens.

The A380 at MH was a total prestige play. The envy of watching their cousins in Singapore lead a successful global airline was too much to bear. KUL is indeed not a SIN and the passenger and revenue profiles are vastly different which should have been obvious when considering the types business case.
Add in the massive strength of LCCs like home town AirAsia and MAS has a pretty marginal deck of cards left to play.
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usflyer msp
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 5:27 pm

But the A380s did not have anything to do with the restructuring. That management team admitted that they did not need them but the 2nd hand market was so bad that they could not get rid of them.
 
winginit
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 5:39 pm

Is anyone surprised by this? While the background is obviously quite a bit different given MH's incidents, the restructuring strategy and outcome here are reminiscent of what Air Berlin went through and what AZ will inevitably go through. State officials need a good lesson in when to let airlines perish and liquidate.
 
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 6:47 pm

Antarius wrote:
janders wrote:
TG seems to want to operate one of each aircraft type ( for fun?)


I read somewhere about it in the past about why TG operates many different types of aircraft from Airbus and Boeing. It's all about the government relationships between the France, Germany and USA.
 
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 8:33 pm

Having positioned many times on MH, I see them in many ways as being out of touch with local market realities.

One side they try to be a top 5-star like airline while the market cannot support that. Unlike neighbor SQ, premium cabins are more full of leisure or transit passengers, not seemingly the single male businessman one sees in and out of SIN. Then on the shorthaul front including domestically, they fly lower density 737s with 2x2 seats up front while carriers like Air Asia run circles around them.
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ScottB
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 9:00 pm

usflyer msp wrote:
But the A380s did not have anything to do with the restructuring. That management team admitted that they did not need them but the 2nd hand market was so bad that they could not get rid of them.


In the end that's part of why the restructuring was unsuccessful. If they couldn't remove aircraft which were unsuitable for their operation, then they were destined to continue making losses with those aircraft in the fleet. Instead of writing down the A380s and ending the operating losses, they continue to lose money while operating them and will likely have to write them down eventually; the secondhand market for A380s doesn't show much potential for improvement.
 
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 9:31 pm

SQ made a smart move capturing a significant core of SIN LCC traffic with Scoot. MH's attempt with Firefly hasn't done much of anything while Air Asia has steadily captured marketshare. MH's domestic marketshare has collapsed and is pretty irrelevant now. AirAsia is approaching 70% domestic market share at KUL. And MH isn't doing much better on the international front.

I'm not sure how MH solves this problem. One of the restructuring options was to convert MH into an LCC and just focus on lowering cost and accepting lower yields in the marketplace. That option was not pursued but I think it was the best of a series of bad options.
 
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LAXintl
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 9:37 pm

Personally having done business with MH in the past, I have long felt the airline plays a big role as nations flagship and a PR instrument in the government's eyes. As such, regardless of its poor financial performance, I can't see airline being left alone to face market realities.

Regarding the A380s keeping 6 of them around with minimal revenue generation as monthly bill continue to arrive will definitely burn a whole in the pocket. In hindsight writing them down and walking away 4 years ago would likely have been the smartest move.
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Planeflyer
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Re: MAS restructuring "deemed a failure"

Mon Sep 24, 2018 9:47 pm

The airline is a microcosm of the country.
 
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mercure1
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 3:13 am

Suppose one question is how much patience and money does the new Malaysian government have to support MAS?

They have already frozen/ canceled bunch of projects such as HSR to Singapore on account of watching the budget.
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juliuswong
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 4:35 am

This is nothing but an old man trying to milk the glory days of MH. He has forgotten his era and the current aviation market are very, very much different. In Malay language, we call him nyanyuk.

The restructuring initiatives after being taken private was one of the toughest already taken by MH after the MH370 and MH17 tragedies. They have cut 6,000 staff, closed down all EU routes but London, offloaded several B738 and brought in A332 for high demand mid-haul routes, initiated several cost saving initiatives internally. However MH like what many have mentioned here is perceived largely as a premium carrier not as LCC so they can't opt to convert for LCC completely else all hell will break loose. Before the infamous MH-AA. MH actually came up with the "Sapphire" project whereby short haul route and domestic routes were to siphoned off to a separate subsidiary, and painted in current A380 livery but in red. There was to be another entity handling solely medium to long haul routes. It was at the same time when Firefly started flying jet services. However Tony Fernandes went ballistic and came up with the crazy idea of merging MH-AK for the sake of "cost saving" and "sharing expertise" During that short period, he did nothing to help MH but to siphoned of Narita and Sydney slot for his own benefit, closed down FY jet service which was threatening his AK Group.

In today's local papers, the current MH CEO paints a different picture: https://themalaysianreserve.com/2018/09 ... -deployed/
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WPvsMW
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 5:01 am

Thanks for the link to the TMR article, which appears to have been ghost-written by the MH CEO, since extols expending the recovery money, but doesn't disclose a competitive strategy (other than platitudes) to provide any ROI, doesn't state what the "improvement in performance" is, and avoids the elephants (A380s) in the room. Suggestion: Sell Khazanah to Tony Fernandez.
 
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 6:13 am

LAXintl wrote:
... former MAS CEO Abdul Aziz Abdul Rahman ...


Okay, I first had to look the guy up, because that was a little bit before my time. So if anyone is wondering, he served with a large number of state-owened companies in Malaysia from the late 1960s to 2006 in different managing functions.

From 1971 to 1992 he was at Malaysian Airlines, back then still Malaysian Airline System MAS and was the last 10 years of the tenure with them the CEO of the airline, back then laying the foundations for growing them to their 1990s size and developing their large MRO facilities.

Beside critisising the past turnaround plans, he also says a few other things in the article...

A380

“We've got the wrong aircraft. It is not for us, in Kuala Lumpur, to use A380. The first production (of that aircraft) is still (ar the) experimental (stage). That's why we are saddled with a lot of problems,” he said.
Read more at https://www.thestar.com.my/business/bus ... ETxopU2.99

MRO

"When I retired in 1991, we have a world-class MRO (where airlines from) the US, Canada, Australia, New Zealand and Singapore sent (their aircraft) to us (for MRO services).

"We're famous for MRO (then), but now we (almost) closed shop," he said.
Abdul Aziz said MAB should explore the huge opportunities in the cargo business and widen its business portfolio to the vast China, India, Taiwan, Hong Kong, Australia and New Zealand's markets.
Read more at https://www.thestar.com.my/business/bus ... ETxopU2.99

And of course, on him RETURNING to MAS...

“If it is feasible, then I am willing," he said, adding roughly about RM5 billion is needed to make the cargo, MRO and catering business a success on top of returning MAB to profitability.

“I'm not condemning anyone. I just want to help the government take action and make a study as soon as possible so that we can upgrade our national carrier into a world-class airline," he added.

(That said, he is 85 years old.)

Some info on the man: https://www.bloomberg.com/research/stoc ... Id=4508920
 
StudiodeKadent
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 6:29 am

janders wrote:
The trio of GA-MH-TG sure seems to be the sick children of the region.

I wonder how they would get on if left alone without government interference?


Okay man, no offense intended but presuming that you're an American (going by your avatar), you seem to be thinking in US-centric terms of a "wall of separation" between the public and private spheres and where any interference by the former into the latter = DEATH.

The reality is these South-East Asian airlines are mostly government-ran programs to increase national prestige. They aren't capitalist enterprises. Nor are they "socialist" in the technical sense... they're Economic Fascism or Corporatism or Economic Nationalism. Government running a state-managed enterprise without monopolizing the entire industry.

Now, here's the bad thing: this doesn't always suck. Singapore Airlines and Emirates are good examples (especially SQ, which is majority-owned by the Singapore government's sovereign wealth fund).

GA, MH and TG could all thrive quite well if managed by good managers. In essence, we need a "government-owned business that's managed like a publicly-traded corporation" (which is essentially where Emirates and to an extent SQ are).

Now, I prefer pure laissez-faire free markets to either socialism or corporatism. But basically if you treat a government as "the shareholders" and get the airline managed AS IF IT WERE a private business, you can get good results. And I don't like admitting it, but the stunning economic successes of many parts of Asia (which generally adopted the corporatist model) make this clear.

GA, MH and TG operate in a world where political considerations matter. Laissez-faire is not on the table, and so the choice isn't "laissez-faire vs. Stalinism."

Rather, the choice is between exceptionally-crappy government control or managing-a-government-asset-like-a-private-business. And whilst I'd prefer laissez-faire, the second-best choice is managing-a-government-asset-like-a-private-business.
 
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 6:48 am

mercure1 wrote:
.......The envy of watching their cousins in Singapore lead a successful global airline was too much to bear. ......

Malaysians, particularly those condescending wannabe-high-officials & two-cents politicians, view the relationship not as cousins but more of abang-adik or big brother versus (wayward/breakaway) little brother.
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 7:11 am

Honestly, Aziz is way out of touch. His opinions should be taken with a barrel of salt.

In any case, if there's someone that should bear the responsibility for the morass that is MH, it's the current Malaysian Prime Minister Mahathir Mohamad. The root of all MH's problems lies at his feet - including the A380 order (ordered in 2000 when he was PM even though MH's route planners have stated that it's not suitable), including flying all the way to Buenos Aires even though demand was basically zero, including privatizing MH in the 1990s (which is a political move). Heck, I've heard stories about how Mahathir forced MH to accept the Boeing jets they ordered prior to the Asian Financial Crisis despite the market basically collapsing simply because of national pride! That idiot had his hand in the pie and ruined it. MH's problem is Mahathir's fault 110%.

juliuswong wrote:
However Tony Fernandes went ballistic and came up with the crazy idea of merging MH-AK for the sake of "cost saving" and "sharing expertise" During that short period, he did nothing to help MH but to siphoned of Narita and Sydney slot for his own benefit, closed down FY jet service which was threatening his AK Group.


I think you meant Haneda.

Don't forget how Tony managed to get MH to repatriate D7 customers to London after they cancelled their London service, AND have MH sponsor his own football team!
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 7:54 am

junlinwong94 wrote:
Antarius wrote:
janders wrote:
TG seems to want to operate one of each aircraft type ( for fun?)


I read somewhere about it in the past about why TG operates many different types of aircraft from Airbus and Boeing. It's all about the government relationships between the France, Germany and USA.

But they don't have to buy that many different types. Just the same final total numbers across less models will do the trick.
As an example, look at SQ group. Their current and on-order fleet are spread roughly evenly between A and B but not practically each of everything in the OEMs' offerings.
SQ, current: A=60. B=58.
SQ, on-order: A=45. B=63.
Scoot, current: A=27. B=18
Scoot, on-order: A=39. B=2
Silkair, current: A=11. B=22
Silkair, on-order: A=0. B=32.
Total, current: A=98. B=98.
Total, on-order: A=84. B=97.
Grand total: A=182. B=195.

note: Silkair will soon be fully merged into SQ whilst Scoot & Tiger has completed their process, leaving only two operating airlines; one full service and the other LCC.

Alright, better stop here before further derailing the OP topic. Back to MAS restructuring please.
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neutrino
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 8:02 am

TheFlyingDisk wrote:
That idiot had his hand in the pie and ruined it. MH's problem is Mahathir's fault 110%.

You are being too kind to that old snake. Should be 1,000% or more. MH is likely to be currently profitable if not for him.
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terrificturk
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Re: MAS restructuring "deemed a failure"

Tue Sep 25, 2018 8:04 am

Planeflyer wrote:
The airline is a microcosm of the country.


And that puts the entire discussion in one sentence.... most airlines, infact, are such a microcosmos of the nation they represent.

The country always forgot that the catch-up game with their tiny island brothers is flawed from the start, as one is a city state without hinterland and a natural blessing of a location and (in the past) quite smart moves... the other is none of all these.

A lot of what is wrong with the airline, can be seen as to what is going wrong in the country... and when you help them, like the past two foreign CEOs, you push them out at the earliest opportunity...
 
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Re: MAS restructuring "deemed a failure"

Wed Sep 26, 2018 4:05 am

Well no doubt business and politics can be murky in Malaysia.

Seems the recent change in government is another variable that will effect the outcome of any restructuring at the airline.
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NZ321
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Re: MAS restructuring "deemed a failure"

Wed Sep 26, 2018 11:50 am

juliuswong wrote:
This is nothing but an old man trying to milk the glory days of MH. He has forgotten his era and the current aviation market are very, very much different. In Malay language, we call him nyanyuk.

The restructuring initiatives after being taken private was one of the toughest already taken by MH after the MH370 and MH17 tragedies. They have cut 6,000 staff, closed down all EU routes but London, offloaded several B738 and brought in A332 for high demand mid-haul routes, initiated several cost saving initiatives internally. However MH like what many have mentioned here is perceived largely as a premium carrier not as LCC so they can't opt to convert for LCC completely else all hell will break loose. Before the infamous MH-AA. MH actually came up with the "Sapphire" project whereby short haul route and domestic routes were to siphoned off to a separate subsidiary, and painted in current A380 livery but in red. There was to be another entity handling solely medium to long haul routes. It was at the same time when Firefly started flying jet services. However Tony Fernandes went ballistic and came up with the crazy idea of merging MH-AK for the sake of "cost saving" and "sharing expertise" During that short period, he did nothing to help MH but to siphoned of Narita and Sydney slot for his own benefit, closed down FY jet service which was threatening his AK Group.

In today's local papers, the current MH CEO paints a different picture: https://themalaysianreserve.com/2018/09 ... -deployed/


Some airlines like NZ have learned how to compete low cost short haul but offer a premium product long haul. This has helped NZ tremendously. I wonder why MH doesn't go for a similar model? NZ use a space plus seating arrangement on short haul and trans-Tasman and low yield flights to the islands and supplement this with their full product to meet the needs of business travelers. I can't see why this model is not adaptable to MH. They could claw back domestic market share and compete far more effectively.
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NZ321
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Re: MAS restructuring "deemed a failure"

Wed Sep 26, 2018 11:57 am

The reading of this attached article infers a tale... of political interference. I really hope this is not the case and that MH can overcome this and find it's way back to the top drawer of airlines. I agree a plan to bring in external expertise could be helpful. Go, MH.
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ODwyerPW
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Re: MAS restructuring "deemed a failure"

Thu Sep 27, 2018 9:44 pm

neutrino wrote:
TheFlyingDisk wrote:
That idiot had his hand in the pie and ruined it. MH's problem is Mahathir's fault 110%.

You are being too kind to that old snake. Should be 1,000% or more. MH is likely to be currently profitable if not for him.


Ummmmm, you can't take more than 100% responsibility for something. Something that is 100% your fault is totally your fault. There is no other blame remaining to redistribute to someone else or bare yourself if you have already accepted 100% of it. (I think this all started with meat head atheletes who said 'I give my all, 110%!' Ummm, did you steal 10% of someone else's potential? Anyway, I digress).

It's a shame to see airline's acquire assets and enter markets just to feed the ego of those who sit at the helm. I was hoping the airline would start to make progress.
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jfk777
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Re: MAS restructuring "deemed a failure"

Fri Sep 28, 2018 12:22 am

Aren't the six A350-900 supposed to be the savior of Malaysia Airlines ? They even ordered them with a First Class cabin. Why ? So Government big wigs can go shopping in London. These new planes should have Business Class, Premium Economy and Y, but they don't have Y+. The A350-900 now ply the double daily London route but the A380 still appear when demand calls for them.
 
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neutrino
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Re: MAS restructuring "deemed a failure"

Fri Sep 28, 2018 7:17 am

ODwyerPW wrote:
neutrino wrote:
TheFlyingDisk wrote:
That idiot had his hand in the pie and ruined it. MH's problem is Mahathir's fault 110%.

You are being too kind to that old snake. Should be 1,000% or more. MH is likely to be currently profitable if not for him.


Ummmmm, you can't take more than 100% responsibility for something. Something that is 100% your fault is totally your fault. There is no other blame remaining to redistribute to someone else or bare yourself if you have already accepted 100% of it. (I think this all started with meat head atheletes who said 'I give my all, 110%!' Ummm, did you steal 10% of someone else's potential? Anyway, I digress).

It's a shame to see airline's acquire assets and enter markets just to feed the ego of those who sit at the helm. I was hoping the airline would start to make progress.


However, 1000% in a literal sense means to multiply by 10. It's used as a metaphor , meaning very high emphasis on the matter. In this case, that old man's fault is certainly beyond a whole magnitude more. Of course he would never admit it. Its always somebody else when something goes wrong.
I agree on the 110% though.
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peterinlisbon
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Re: MAS restructuring "deemed a failure"

Fri Sep 28, 2018 9:32 am

It's not all bad news for the country. Malaysia now has two airlines - MH and AirAsia. The incredible success of one has led to the relative demise of the other. Air traffic has increased enormously over the last 10 years at KUL, which is at least 4 times as big as Subang. I was in Kota Bahru 20 years ago and there was just one flight per day. Now it has a new terminal and 20+ flights per day.

I think the government should support MH because it provides the country with international connections that AirAsia cannot or doesn't want to provide. Some long-haul routes are not very profitable but they are important to the country.
 
MaverickM11
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Re: MAS restructuring "deemed a failure"

Fri Sep 28, 2018 9:36 am

Typical state backed “turnaround”: they want to make money, but they also want to fly 380s with first class and not cut anything unprofitable.
I don't take responsibility at all
 
NZ321
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Re: MAS restructuring "deemed a failure"

Fri Sep 28, 2018 2:46 pm

Yes, a leaner fleet of the right equipment, a product review, elimination of first class and an upgrade of their business product and introduction of premium economy would go some way IMHO. But I am not holding my breath.
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ScottB
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Re: MAS restructuring "deemed a failure"

Fri Sep 28, 2018 5:30 pm

StudiodeKadent wrote:
Now, here's the bad thing: this doesn't always suck. Singapore Airlines and Emirates are good examples (especially SQ, which is majority-owned by the Singapore government's sovereign wealth fund).

GA, MH and TG could all thrive quite well if managed by good managers. In essence, we need a "government-owned business that's managed like a publicly-traded corporation" (which is essentially where Emirates and to an extent SQ are).


I'm not sure GA, MH, and TG could all thrive even with good management simply due to the size of the total available market and the level of competition from each other as well as players like Air Asia, Scoot, and the ME3. Well, not without substantial cutbacks in size and product. We're seeing something similar with EY's retrenchment -- the market may not be large enough to support four players (EK, QR, TK, EY) with similar business models competing for the same set of passengers.

StudiodeKadent wrote:
Now, I prefer pure laissez-faire free markets to either socialism or corporatism. But basically if you treat a government as "the shareholders" and get the airline managed AS IF IT WERE a private business, you can get good results.


It's certainly possible, but it seems like this is better-enabled when the government ownership is more at arms-length and the corporation is expected to make a profit. When the government starts meddling in company affairs (appointing managers, directing aircraft purchase decisions, dictating routes) things tend to go downhill.
 
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Re: MAS restructuring "deemed a failure"

Mon Oct 08, 2018 1:58 am

MAS chairman says he is stepping down by end of the year to focus on other business activities.

Malaysia Airlines Chairman Plans Departure by Year-End
https://www.bloomberg.com/news/articles ... y-year-end
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MillwallSean
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Re: MAS restructuring "deemed a failure"

Mon Oct 08, 2018 2:30 am

Issue with MAS is that despite its turnaround, which was pretty ambitious, they are to linked to the government. The government of that day kept their main suppliers, their cronyism and their influence at various levels and hence they couldn't achieve half of what they set out to.
The managers who was brought in unfortunately never understood what it is like to manage in Malaysia. They had what probably is a better oppurtunity than any other managers have had and they still screwed it up mightily. And yes managing means handling all stakeholders. One decided to sleep in too many wrong beds and the other never understood the context he was managing in. Networks, relations matter in most parts of the world.

MAS again has a chance to do something, many of the old political uncles are now doing their best to jump ship and latch onto the next gravytrain. With a bit of luck, MAS should be able to get rid of some of the staff that were kept on due to links. We shall see.

The MAS owned flats that Idris Jala sold off in London (at giant profits) have been replaced. Thats one example of what money is used for. Not easy to run a business when the lines between business and other things are that blurry.
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hz747300
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Re: MAS restructuring "deemed a failure"

Mon Oct 08, 2018 2:54 am

They should have sold CX the A380s when they had the chance. They still can, but at a huge discount because the big maintenance checks are going to be coming soon.

Then MH should focus on its niche, which is limited connectivity, and the point-to-point regional and targeted longhaul services for the Malaysian customer.
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Re: MAS restructuring "deemed a failure"

Mon Oct 08, 2018 3:02 am

hz747300 wrote:
They should have sold CX the A380s when they had the chance. They still can, but at a huge discount because the big maintenance checks are going to be coming soon

AFAIK, the big maintenance checks were completed in 2017 - so there are a few more years before another heavy maintenance programme is needed.
 
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janders
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Re: MAS restructuring "deemed a failure"

Fri Nov 16, 2018 7:16 pm

Malaysia Transport Minister says the government will not be protecting its airlines amid competition from foreign airlines opting to operate in Malaysia.

Instead, he says the government welcomes more airlines coming to Malaysia which promote healthy competition while increasing inbound tourism.

https://www.malaymail.com/s/1693770/put ... minister-s
"We make war that we may live in peace." -- Aristotle
 
NZ321
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Re: MAS restructuring "deemed a failure"

Sat Nov 17, 2018 11:34 am

I don't think the recently leased ex Air Berlin A332s are up to normal MH standard and they have just introduced more product inconsistency which is not what MH needed. While they may be okay for regional missions 10-11 hours on one of these jets to AKL is not an enjoyable experience and not going to help MH win customers.
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flee
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Re: MAS restructuring "deemed a failure"

Sat Nov 17, 2018 12:08 pm

MH did consider deploying the A359 on the KUL-AKL route but as the yields on that route is low, they diverted to plane to higher yielding ones. So AKL will be stuck with the A332 for some time, I am afraid.
 
mandala499
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Re: MAS restructuring "deemed a failure"

Sat Nov 17, 2018 12:18 pm

Antarius wrote:
Long story short, without government interference, they may not succeed, but they would also be allowed to shut down - sometimes that's for the best.

In the case of GA, there are investors interested in buying GA off the government... with realistic plans. However, selling GA is deemed politically unacceptable at the moment. :(

UPlog wrote:
One side they try to be a top 5-star like airline while the market cannot support that.

Sounds like GA too...

NZ321 wrote:
Some airlines like NZ have learned how to compete low cost short haul but offer a premium product long haul. This has helped NZ tremendously. I wonder why MH doesn't go for a similar model?

Those models models work, as much as we love it or hate it. However, crowd sentiment in Malaysia (and Indonesia) won't accept that unless the airline is going to go bankrupt at the end of the month. This is the problem MH and GA face. GA made its LCC, which was more acceptable to the public than GA going LCC on short haul... Unfortunately, the public wasn't ready to accept the fact that some of GA's passengers would move to the LCC... and we're in a merry-go-round... once again... I suspect the same would have happened with MH and Firefly had the latter been allowed to continue it's jet expansion.

The Malaysian public will eventually have to come to terms with the realities of MH, and reflect that politically. Until then, expect the losses to continue.
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
NZ321
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Re: MAS restructuring "deemed a failure"

Sat Nov 17, 2018 12:38 pm

Actually AirAsia have pulled off AKL from February so MH yields may recover slightly - there may be hope for A359 yet
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