Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
LondonCity
Topic Author
Posts: 1069
Joined: Wed Nov 19, 2008 12:57 pm

MAS Overpaid Suppliers By Up To 25%

Fri Jun 10, 2016 3:43 pm

One of the reasons for Malaysia Airlines poor financial performance a few years ago, was its bloated workforce and the fact that it was overpaying its suppliers by 20 to 25 %.

Interesting interview with CEO Christoph Mueller on English language dw.de


http://www.dw.com/en/malaysia-airlin...a-19321136?maca=en-Twitter-sharing
 
GuyBetsy1
Posts: 810
Joined: Thu Aug 16, 2001 4:00 am

RE: MAS Overpaid Suppliers By Up To 25%

Fri Jun 10, 2016 3:47 pm

Yes. Whoever heard of a 25 year old catering contract. Well MAS did. As well as different suppliers for different items. eg Paper cups, one supplier, Napkins, one supplier, Toilet Paper, one supplier. Kudos for Mueller to sort things out but alas he said that he had to leave for personal reasons... wonder what the real reason is.
 
aloges
Posts: 14807
Joined: Tue Jan 17, 2006 3:38 am

RE: MAS Overpaid Suppliers By Up To 25%

Fri Jun 10, 2016 5:50 pm

Quoting GuyBetsy1 (Reply 1):
Kudos for Mueller to sort things out but alas he said that he had to leave for personal reasons... wonder what the real reason is.

How's Malaysia for businessmen whose extra special friends might remind someone of the benefits of a 25 year old catering contract in the strongest possible terms?
 
bennett123
Posts: 10869
Joined: Sun Aug 15, 2004 12:49 am

RE: MAS Overpaid Suppliers By Up To 25%

Fri Jun 10, 2016 6:30 pm

Some of these people must have been pretty annoyed when the good times ended.
 
infinit
Posts: 1058
Joined: Thu Jul 31, 2008 1:12 am

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 12:05 am

Quoting GuyBetsy1 (Reply 1):
Kudos for Mueller to sort things out but alas he said that he had to leave for personal reasons... wonder what the real reason is.

No offense to the Malaysians here, but that's because it's Malaysia, and because it is run by the Malaysian government, MAS and now MAB is never going to become a major airline. It will be a matter of time before they fall back into mismanagement and they are now essentially a regional airline with only a few long haul routes.
There was a reason Singapore left the Federation...
 
Planeflyer
Posts: 1528
Joined: Fri Mar 14, 2014 3:49 am

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 2:23 am

Malaysia certainly has a reputation for corruption. This certainly looks like a textbook case.
 
321neo
Posts: 590
Joined: Wed Apr 10, 2013 9:20 pm

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 5:47 am

Quoting Planeflyer (Reply 5):
Malaysia certainly has a reputation for corruption. This certainly looks like a textbook case.

Apparently the 747 being painted in the retro livery and returned to service was not approved by Muller, but signed off by other execs.
 
blueflyer
Posts: 4352
Joined: Tue Jan 31, 2006 4:17 am

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 6:00 am

It's an encouraging sign that the government let him cut the workforce and drop more than half of the suppliers without (much) interference. The next challenge is to ensure that the "good ol' days" do not return as soon as he leaves.
 
smi0006
Posts: 2640
Joined: Wed Jan 16, 2008 7:45 am

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 7:00 am

Quoting 321neo (Reply 6):
Apparently the 747 being painted in the retro livery and returned to service was not approved by Muller, but signed off by other execs.

That would make sense, he is a man of discipline. And the livery and 744 don't really make sense for MH. If I were him, I wouldn't be willing to put my personal reputation on the line. Reforming a company, and organisational culture is a challenge. Reforming a culture so engrained as MH has- not impossible but worth risking your reputation for?
 
alyusuph
Posts: 186
Joined: Mon Apr 14, 2008 9:38 am

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 7:23 am

Christoph Mueller seems to enjoy taking up challenges. He should volunteer to become the CEO of the likes of Air Tanzania, Air Zimbabwe, Air Nigeria or even Kenya Airways. Let him chose any.

[Edited 2016-06-11 00:30:56]
 
321neo
Posts: 590
Joined: Wed Apr 10, 2013 9:20 pm

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 7:56 am

Quoting alyusuph (Reply 9):
He should volunteer to become the CEO of the likes of Air Tanzania, Air Zimbabwe, Air Nigeria or even Kenya Airways.

What about AF, probably an even greater challenge than the above.
 
User avatar
KarelXWB
Posts: 26968
Joined: Sun Jul 15, 2012 6:13 pm

RE: MAS Overpaid Suppliers By Up To 25%

Sat Jun 11, 2016 8:20 am

Another stunning quote from Müller:

http://www.dw.com/en/malaysia-airlin...e-to-break-even-by-2018/a-19321136

Quote:
Despite all the announcements by the government, a turnaround wasn't initiated by the time I became CEO. Many of the 20,000 employees who worked for the airline had nothing to do. In fact, when I walked through the hangars, people were sleeping. That's why I had to radically cut 6,000 jobs.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos