MAS-AirAsia merger: Remake of hijacking of Avenue Capital 2006

There are so many talks about national carrier Malaysia Airlines merging with Air Asia on a share swap deal. A lot of people are very skeptical with this merger.

Tuesday August 9, 2011

Rivals MAS and AirAsia to become allies

By ANITA GABRIEL and JEEVA ARULANPALAM
starbiz@thestar.com.my

PETALING JAYA: National carrier Malaysia Airlines and low-cost carrierAirAsia Bhd‘s major shareholders Khazanah Nasional Bhd and Tune Air Sdn Bhd will today announce a landmark share swap deal worth just over RM2bil which will turn the long-time bitter rivals into collaborating partners.

According to sources, under the share swap deal, Khazanah will acquire a 10% stake in AirAsia from Tune Air, a private vehicle controlled by Tan Sri Tony Fernandes and Datuk Kamarudin Meranun.

As at July 6, 2011, Tune Air owned a 26% stake in AirAsia. Sources also said Khazanah was in talks to acquire a 10% stake in long haul low cost carrier AirAsia X but this would be announced at a later date.

As part of the agreement, a source said MAS would issue new shares to Tune Air which would end up with a 20% stake in the national carrier. Khazanah, which has a controlling stake of 69% in MAS, will continue to remain the single largest shareholder in the national airline after the exercise.

The source added that MAS, which was in dire need for fresh capital, would also make a rights issue very soon.

The valuation of the swap will be based on the recent share price of both companies as the exercise involves non-controlling stakes. Trading in both counters are suspended until today for two days pending a material announcement. MAS and AirAsia were last traded at RM1.60 and RM3.95 respectively.

“There is really little that’s innovative about all of this. The reality is that if you look at the big players in the industry, they have a low cost arm and a premium arm. If anything, MAS is just playing catch up only now,” said an observer.

A special executive committee comprising three to five members including MAS newly-appointed chairman Tan Sri Md Nor Yusof anddirector Mohammed Rashdan Yusof as well as Tony and/or Kamarudin will be set up to run the daily operations of the carrier in the interim while the search for a new chief executive officer will commence soon.

The source said MAS CEO Tengku Datuk Azmil Zahruddin would step down from his post to make way for these changes while Rashdan, who is Khazanah’s executive director of investments, would likely play a more active role in the airline until a CEO is identified.

“The exco will be a subset of the board, which will take over the running and management of the airline in the interim. The main decision maker at the airline will be Md Nor,” said the source.

CIMB Investment Bank Bhd has been appointed advisor for the share swap deal representing both parties.

“If you stand back and look at this deal, you can see the value it will bring to a full-service carrier (FSC) like MAS. The trend among FSCs is that they are gradually deriving a bulk of their revenue less from the airline operations and more from ancillary services such as maintenance, repair, operations (MRO) services and so forth. These services are huge profit centres. Currently, AirAsia outsources these services. With this partnership, MAS can be the outsourcing agent,” said an analyst.

“This way, MAS which has a staff strength of 20,000 can use its people more productively. There won’t be a need to lay off staff as both airlines will be run separately,” said the source.

The deal’s defendants say this deal marks a “great opportunity to create Malaysia as an airline hub”. “The whole idea is not for Tony to run MAS. It is to realign both airlines’ interests to allow them to grow with a more clear business model MAS in premium segment and AirAsia in budget segment as opposed to being in each other’s way,” said an analyst.

A source said this deal “has been cooking for so long but in the absence of a structure that could work and concerns over a clash of cultures, it had failed to take off.”

********************

Probably Malaysia Airlines would benefit AirAsia aggressive marketing program and approach from this merger. But then again, where is the real beef for Malaysia Airlines in this share swap deal?

Compare to Air Asia, Malaysia Airlines is an asset backed corporation. The paid up stands at RM 3.384 billion, where it is represented with a fixed asset value of RM 8.4 billion. The net asset is at RM 6.962 billion, where cash constitute RM 2.086 billion.

AirAsia is debt laden company with borrowings stand at RM 7.7 billion where else it cash position is only at RM 1.7 billion. Apparently even though voted as the best low cost carrier, AirAsia is said to be a bad paymaster. At one point of time, they owed Malaysia Airports over RM 65 million and whenever actions wanted to be taken against them, they run to their patron, then PM ‘Flip-Flop’ Dato’ Seri Abdullah Ahmad Badawi.

Of course Malaysia Airlines’ wealth is actually its network and position in the Tier-5 airline market. Having a series of awards marked to its service standards. Malaysia Airlines’ annual operating turnover is RM 12.98 billion versus AirAsia’s RM 3.948 billion. That is three times more sales for year 2010. Malaysia Airlines’ operating revenue from airline operation is at RM RM 11.649 billion against AirAsia’s RM 2.839 billion.

This merger is exactly like when ECM Libra ‘took over’ Avenue Capital Resources Bhd. in a very controversial takeover laced with manipulation and failure of disclosures, where the latter is valued four times more than the former. Avenue Capital’s intangible assets amounting to RM 296 million were irregularly impaired so that the merger value gap is being narrowed. The minority shareholders were denied of the rights to a Mandatory General Offer.

The ECM Libra – Avenue merger was full of irregularities and manipulation.

The culprit who are thought to be behind this is Rashdan “Danny” Yusoff and Datuk Omar Ong. Rashdan, who was then a partner in Binafikir Consulting which offered the ‘Wide Asset Unbundling’ (WAU) scheme to rescue Malaysia Airlines a few years ago is now a Director of Malaysia Airlines. Omar recently was appointed to the BOD of AirAsia.

It is expected that the outcome of this, would be share swap deal where Khazanah Nasional Bhd. relinquish 17% of its holding to Tune Air, the parent company of AirAsia and AirAsia X.  In return getting Khazanah would get 20% in AirAsia and 15% in AirAsia X. Of course it is rumoured that CIMB is the adviser to this deal.

The clear winner of this deal is Tony Fernandes. As a single largest shareholder in Tune Air, he would earn a seat in Malaysia Airlines Bhd. He would have a say in how, what, where and how much of Malaysia Airlines’ strategic business decision. With Omar on his BOD and being so close to Prime Minister Dato’ Seri Mohd. Najib Tun Razak, all strategic decision involving air travel and airline business would be unequivocally favourable to Fernandes’s side.

AirAsia could now expect to get a national carrier status.

It is AirAsia X’s dream to be a major intercontinental carrier. Getting landing rights would be a G-to-G arrangement and national carriers usually get the first right of refusal. Now AirAsiaX is accessible to  lucrative landing rights and destinations.

Malaysia Airlines did her fair share of national service and many Malaysians benefitted from this at the times where communications were poor or non existence. In 2005 when PM ‘Flip-Flop’ Dato’ Seri Abdullah Ahmad Badawi agreed to ‘Level Four Boys’  concocted ‘Airline Rationalisation Plan’, where Malaysia Airlines to run the ‘trunk route’ and feeder to the international destination where else AirAsia got the rest. This include heavily subsidized Rural Air Service. The most important element of the plan was Malaysia Airlines were prohibited to lower down its fair.

Fernandes took those routes to build up AirAsia’s capacity and also the numbers. The heavy subsidy was proven beneficial to his business model too. The moment the numbers went up substantially, Fernandes gave back the RAS away and Government insisted that Malaysia Airlines took the service back again, for the sake of Sabahans and Sarawakians.

Danny and Omar is about looking at numbers. Nothing else. And Khazanah MD Tan Sri Azman Mokhtar is all for that. Azman and Danny were the partners who told Malaysia Airlines to strip off her assets back in 2002 under the WAU scheme. If Malaysia Airlines needed marketing and work process boost, stripping the corporation and offering it to vultures like Fernandes is not the solution.

If this part of PM Najib’s Economic Transformation Plan, then probably majority of Malaysians may not be with him. The Malays still have not forgotten the how Shamsul Azhar brought in Wee and promoted Non Malays are Vice Presidents of Petronas, at the expense of the Malays who in past proven their abilities.

*Updated 345pm

Sources within said Malaysia Airlines MD Tengku Dato’ Azmil Zaharuddin was ‘shown the door’ minutes ago. He is going in Khazanah as Executive Director (Investment). Fernandes is said to have called all the executives for a meeting tomorrow.

*Updated 420pm

The new indpendent-non-executive BOD members for Malaysia Airlines are Tan Sri Wan Azmi Wan Hamzah, Tan Sri Tan Boon Seng, Dato’ Rohana Rohzan and David Low. DannyYusof  is now ‘designated’ Executive Director of Malaysia Airlines.

Fernandes and Dato’ Kamaruddin Meranun non independent and non exective directors with effect on 11 August 2011.

In interim, the corporation would be amanged by an executive committee chaired by Tan Sri Mohd. Nor Yusof. Members are Dato’ Mohamed Azman Yahya, Danny, Fernandes and Kamaruddin. They will oversee operations until new MD is appointed.

It is expected the new MD would be someone ‘Not unfamiliar to the company’.

*Updated 600pm

Announced by Bernama.com, Tune Air is to take 20.5% of Malaysia Airlines and Khazanah is buying in 10% into AirAsia. Khazanah now will have a net holding of 49.27%.

The “Thirteen Million Ringgit Plus” question is that how the hell could Khazanah give away 20.5% of a company’s holding with bigger network, higher standard of service, three times more operating revenue, stronger assets, lesser debts, more cash and better paymaster track record to another company with lesser track record, just because they make so much net money in shorter time?

By the way, will the new Malaysia Airlines BOD work with that ‘mix and match’?

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Published in: on August 9, 2011 at 14:57  Comments (62)  

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62 CommentsLeave a comment

  1. Macam ini baik jual sahaja kerajaan Malaysia kepada YTL atau Genting atau Usaha Tegas. Menteri-menteri Bongok dan Superbodoh tak payah pening kepala menipu rakyat lagi.

  2. Biggie,

    This is utter disappointing!

    The remnant of ‘Level Four Boys’ is back in play. I saw your tweets. Yes, you’re bloody right. It is a lethal combo between AirAsia, Binafikir & Ethos.

    Neither any of them have any airline experience. I’m talking about Tier5 airline. Not some EasyJet wannabe!

    Azman & Danny crippled MAS the first time around. Now, they want MAS to be cannibalised for Tony Fernandes’s sake.

    I’m willing to bet, besides Tony, Omar Ong, Danny & Amokh, Riong Kali is also having his hand behind this.

    I hope this ‘Someone not unfamiliar to this company’ is NOT Bernard Francis. He has had senior management experience in both AirAsia & MAS.

    • Aku musykil betul. Apasal org ada pengalaman dlm industri cam Tan Sri Bashir Malaysia Airport atau Dato’ Kamaruddin tak jadi pengarah??

      Tony, Keling! Bernard Francis, Keling! Omar Ong, Cina!

      Danny Yusof ni Melayu tak sedor diri. Tukang arrangenya; Nazir Razak pun sorang lagi Melayu tak sedor diri!

      Bagus sgtlah tu!

      Lepas ni Agenda Melayu MAS hancus!

      Ceo Melayunya kena hamput keluo tak sampai 24 jam………

      Tengku Azmil ni 2 tahun jadi understudy Idris Jala. Tentu dia boleh buat mcm mcm kalau diberi peluang.

      • Boss,

        Tan Sri Basir dah meninggal. Tak tau le Dato Kamaruddin.

        Nazir Razak orang l i b e r a l kononya. Tak tau le abang die.

        Melayu bagi nak mampos cuba berniaga, dengan tak ada budaya atau pengalaman berniaga dalam tamadun kita, hanya budaya berdagang secara tukar barang barter trade, tidak ambik risiko, tidak berniaga cara ambik untung dan kumpul harta. Diaorang pulak tak pedulikan kita, ada pulak yang ketawakan Melayu tak pandai berniaga.

        Mana boleh.

      • Wan,

        I think this Anak Watan Malaya is talking about Tan Sri Bashir Ahmad Abdul Majid, now MD of Malaysia Airports Bhd. He was a former EVP of Malaysia Airlines.

        His wealth of experience and still active in the airline scene should earn him a BOD job with Malaysia Airlines. After all, KLIA is the homebase for the airline. Look at the facts. No one in the new Malaysia Airlines BOD is actually an experienced airliner, especially a Tier-5 airline.

        I am in total agreement with your thoughts on Nazir and Melayu mampos bila nak berniaga. Biasalah, Bank Bumiputra yg diujudkan utk bantu usahawan Melayu sekarang dah jadi CIMB. Nazir pi lulak longgok segala banker Cina dalam tu. Macamlah takda banker Melayu!

      • Point taken, BD. We’ll keep on “unravelling” the pengkhianat Melayu in the country. The Sodomy II fellow no need to unravel much anymore – he has already unravelled himself!

      • AWM, masa Tajuddin Ramli rembat MAS kamu da buat bising ke?

        MAS sudah berkali-kali hampir kiok akibat mgmt terok dan berkali-kali kena diselamatkan kjaan dengan duit rakyat. Tetapi tiada kritikan dpd orang pro UMNO

        Namun, bila orang macam Bernard, Krishnan, Idris dibawa masuk membantu, itupun orang dah melatah, melontar kata ‘keling’ pulak. Pandai betoi, ye?

        Ingatlah, MAS perlu orang yg bijak & telus bagi selamatkannya, bukan orang yg hanya tau fikir atas dasar kaum aje

  3. At the end of the day, it just show that non Malay is a better businessman compare to Malay. After so many times of bailout of MAS, the gov is not run out of money and have no choice but to beg Tony to save the ailing national carrier. Tony, it is time for you to show the 1Malaysia spirit.

  4. Airasia maybe debt laden company but this is good debt which generate positive cahsflow and good profit quater after quarter. MAS may have more asset but they have hugh losses and if nothing is being done, they may have to sell those asset to survive. Unfortunately Malaysian gov under UMNO has no more money to help them.

    • All opinions. No facts. Make you look a dull boy, innit?

      Do like BD does above la. Give facts and figures, give sources of information, quote authorities.

      So that people who do not know much about economics or accountancy like me cannot be cheated by cheap opinions like yours.

      What “good debt” are you talking about? What “generate positive cash flow”? Who says “good profit quarter after quarter”? Others don’t seem to be impressed with Air Asia. And they give facts and figures, quoting sources of information. Like Warrior 231 in http://jebatmustdie.wordpress.com/2011/08/07/taxpayers-money-used-to-enrich-airasia/#comments.

      Go read that one as well to see how people argue or discuss. Instead of stating mere opinions trying to put the Government and UMNO down, sicko.

      • I beg to differ, Haba. This lgloo88 chap isn;t dull, he is just dumb.

  5. Dr M seems to agree with this swap deal. Maybe it is time for you to change the stand since your master said so.

    • Betul tu. Tun dah kata ok – Wahai Big Dog kao jgn menderhaka kpd Tun,

      • Kau pun lagi satu, jenis yang nak menuduh, keluar 1-2 ayat, hit and run saja.

        Kau kena cari tempat nak “poke” kau punya “mon” la, wei. Kat sini, orang berdiskusi. Bukan saja tembak sana tembak sini.

        Kau faham ke apa makna “diskusi”? Kalu tak faham tengoklah Kamus. Kalau tak, orang ketawakan kau saja.

        Haba haba pokemon baba.

  6. One mistake bro. It is Rohana Rozhan not Rohana Mahmood of Ethos. Rohana Rozhan is from Astro. Daughter of the late Tan Sri Rozhan Kuntum

  7. from experiance….long past experiance….what mahathir comment in public is always opposite in meaning…..especially if he said it with a cynical grin…..

    • Jgn nak mengspin. Kalau Tun setuju siapakah kamu untuk membantah? Adakah kamu ni lebih pandai dari Tun? Jangan nak mengspin kata Tun untuk mengukuhkan pandangan serong.

      • Quote: “Jgn nak mengspin. Kalau Tun setuju siapakah kamu untuk membantah? Adakah kamu ni lebih pandai dari Tun? Jangan nak mengspin kata Tun untuk mengukuhkan pandangan serong.”

        Pokemon, you and the likes are the ones who have always been spinning Tun M’s words to fit your purposes. Educate yourselves on sarcasm or that you pretend not to understand what Tun M actually means when he said so.

  8. i have no details about the deal. However, based on the explanation above and from the business perspective, i would say that the deal is not bad and it would give a benefit for both parties. Which parties is going to benefited most is very much depending on the outcomes (profit, business expansion, knowledge sharing, benefit to the employees and etc.) in the long run.

    • What is said to media and what happens behind the scene or ‘under table deals’ are usually two worlds apart.

  9. GREAT ANALYSIS , SIR.

    FOR FURTHER INSIGHTS, READ

    http://www.rockybru.com.my/2010/08/why-sia-is-worth-s187-b-and-mas-is.html

  10. BigDog,
    The way i see it, AirAsia is like a Ponzi Scheme…it must keep on expanding.Buying planes expanding routes and alliances at the rate even the very people who handle the their finance a big headache to analyse and keeping tract of thing.

    It has all necessary ingredient.
    First you have the unrealistic claim…the biggest,the most no of passengers,the most rapid expansion, the widest coverage….all these drive the share up.
    (Pyramid scheme sells the best cure all medicine,best water Oxymoron water filter or best 28 hrs erection money back guarantee pill in the market….all are irrelevant)

    Second….you must keep on expanding .The one who benefit the most is the earliest birds..but expanding you must .The idea is to create hype,utter confusion and buzz in the market.The whole idea is to make bank to loan more money or the share to go up higher (the gullible public as usual)

    Third….when the share and the hype goes nimbusic level ,the confuse Binafikir boys and ex no higher than level one level 4 boys (whose sole god is the index composite ) start questioning their narrow greenbamboo brain , and start to think that Fernandez is The new God…..

    Today we are into 4th Level of Pyramid Scheme

    This when a bigger player start to join in ( the stage when PakMan Telo manage to convince a Dato,Acountant and DO to join in) thus making to snowball bigger and bigger.

    My prediction…among all the disasters of MAS ,this will be the worst of them all.

    RJohan

    • Bloody good interpretation, bro. I like it. Ponzi Scheme.

      I only wish when the bubble explodes it’d be like Bernard Madoff who made off with US$50 billion (rpt billion) of his fellow Jewish money and he is languishing in prison for life now.

      • Best of luck to your wish.

    • @ RJohan

      Interesting theory, and I have seen this also on another blog. So, yes, time will tell if you’re right….let’s wait and see.

      Another reader posted this link in an earlier comment and I was wondering if you had some feedback apart from your theory.

      http://www.rockybru.com.my/2010/08/why-sia-is-worth-s187-b-and-mas-is.html

      BD may have missed out on the figures found in the below article :

      http://www.btimes.com.my/articles/20110616175329/Article/

      Quote

      MAS reported a pre-tax loss of RM238 million for the first quarter ended March 31, 2011 compared with RM320 million in pre-tax profit recorded in the same quarter last year. Revenue stood at RM3.19 billion, down from RM3.3 billion, registered previously.

      Unquote

      BD’s question:

      how the hell could Khazanah give away 20.5% of a company’s holding with bigger network, higher standard of service, three times more operating revenue, stronger assets, lesser debts, more cash and better paymaster track record to another company with lesser track record, just because they make so much net money in shorter time?

      My question:

      How the hell did this company go from RM 320 million pre tax profit to RM 238 pre tax loss in one year?

      • My PONZI scheme Theory

        Tony Fernandez is a Malaysian version of Mr Madoff…and this is coming from one without any financial background.

        My advantage is that I see the forest and not the trees as most financially tune minds would just bogged down by sheer numbers and lost the whole plot.

        Simple plan… The only money they can have and enjoy are not from businesss model but from the share market hype,which in turn drive the share market up if you cook the figure well.Once the share and ‘audited’ report plus future earning Forecast(this is pure marketing hype)look very good , the bank and investors are willing to pump in more money in order to be in the same wagon with TF.

        As Member of public lovingly indulge in cheap travels (as any reasonable money cautious person would) we ,inadvertantly become part of the hype that drive up the ticket sale of AirAsia that eventually gave MAS the kiss of death.

        With ,ticket sale up,share price up and the name up…TF need t o continue expanding as he need to show to shareholder the ‘bright’ future as the actual return from share holding is not much to shout about.

        Imagine somebody that is not from Airline industry bloodline,who was already awed with superlatives of TF achievements,and asked to look into TF’s AirAsia routes,schedules,fuel hedging,international flight arrrangements and rules,pilots and staffs international requirements etc ….he would just continue to be awed and took everything TF has to offer hook,line and sinker…he is after all the man with the golden dick…whatever he sow become a mountain if not the goldmine itself.

        Have you notice TF’s urgency to expand.???

        It has to be done urgently as the pyramid need to expand bigger and bigger to pay for the earlier investors .

        In any business that depend greatly on training and especially public safety ,your desire to expand the business must be at tendem with your staff capabilities ,but this is not the priority of
        AirAsia.

        SunTze in his Art of War (basically a sensible business model) wouldn’t expand his reach or even any attempt to go to war if his soldiers are not trained,food supply inadequate or his domain unsecured fr foreign invaders…but not TF!!! His security is to continue to promise the grand plan and continue expanding …

        This is a long story, but in reality TF is playing ‘silapmata’ just like Maddoff…when the music stop ,MAS will be the only one left standing .By then, the only memory of MAS is the kite flown by Kelantanese boy in a sawah called Waubulan.

        RJohan

      • Many comments, some saying a lot, some saying nothing at all, but, no one attempting to try to answer:

        How the hell did this company go from RM 320 million pre tax profit to RM 238 pre tax loss in one year?

        Any ideas?

      • obviously you forgot to mention AirAsia,s RM 7.7 billion DEBT~

      • @ Average Joe 18:49 / 11-8-2011,

        If you take the time to read BD’s posting carefully, he has already mentioned the RM 7.7 billion Air Asia debt as per the below sentence.

        Quote
        AirAsia is debt laden company with borrowings stand at RM 7.7 billion where else it cash position is only at RM 1.7 billion.
        Unquote

        I don’t need to repeat what BD has already mentioned. It’s not that I forgot to mention it.

        Apart from that, do you have anything else to add? I see that you don’t have a response to my question, but, thank you for your kind feedback.

      • Am I or do anyone else OBLIGED to answer whatever you asked, mr. tiredofhypocrites? increasingly, you’ve become hypocrite as well.

      • @ tiredofhypocrite

        “I see that you don’t have a response to my question, but, thank you for your kind feedback.”

        Am I or is anyone here OBLIGED to answer whatever you asked, mr. tiredofhypocrites? increasingly, you’ve become hypocrite as well.

      • @ Average Joe,

        If you don’t have an answer, it’s quite alright, the question is not an easy one and I understand if it is beyond your capabilities.

        p.s. please look up the meaning of the word hypocrite before you decide to use it in your comments.

      • @ hypocrite tiredofhypocrites

        “If you don’t have an answer, it’s quite alright, the question is not an easy one and I understand if it is beyond your capabilities.

        p.s. please look up the meaning of the word hypocrite before you decide to use it in your comments.”

        well, obviously you don’t have any concrete answer (apart from the your so-called “answering with questions” tactics and quoting here and there without properly interpreting them) for questions raised by Hizan or Ruslan or the very BGDC either. Perhaps their questions are WAY beyond your mental and analytical capabilities, too? and you conveniently ignored the fact that MAS have its assets mostly paid for whereas AirAsia is DEBT-ridden. it’s not all about profit-or-loss alone. the company’s balance sheet (assets vs liabilities plus owners’ equities) provides stronger indications for a company’s financial standing. perhaps you didn’t learn basic accounting during your high school? it doesn’t take a so-called economist to tell us that AirAsia’s RM 7.7 billion of debt is a real, real liability, and is much worse in comparison to MAS’ RM 238 million loss with much less debts.

        there’s no need for me to look up for the meaning of the word “hypocrite” since the examples are clear before my very eyes!

  11. Yeah a lot commentators here are another clone that cling to the puppet master.

    Be realistic about it. What Tony could do is to spin Air Asia from no assets to big assets even before IPO. That’s day light robbery but in Malaysia bolehland anything could happen.

    Now with MAS he could be as you said ‘multitasking man’ what? Excuse me, could he turn around MAS instead he claim to have his own (current LCCT) hangar that bring Malaysia backward 50 years since he said KLIA is very expensive! But now he has his luxury hangar again not that expensive with RM2b budget given by the Government! So KLIA still not enough with 35m pax per year capacity running at 18.3 pax per year currently! At the end now Tony has his own 35m pax per year with KLIA2. Another spinning master of Tony.

    Surely Tony doesn’t work alone, he has the help of that Azman Mohktar, Rashdan Danny, Omar Ong (who mastermind Wee, a civil engineer from Shell to head E&P Petronas – never happen in history of oil company – a competitor to lead another?) and of course with the ‘Yes’ of our beloved Dayus PM Najib – all done. Nobody to argue how could the equation of 20.5% be equal of 10% exchange? How about mismatch business culture. What synergy? There will be no equilibrium in bringing-in full service and no service!!! It is just how you are branding it. A perception of shot memory of a normal human being – nothing more and nothing less!

    Please all Malays either UMNO or else don’t elect again this Dayus PM Najib. It is simply that this Dayus PM Najib and old gangs of Md Nor Yakcob are all essentially anti-Malay professionals! Think Muhyiddin is much more Malay loyal…..

    • I like your last sentence, though incomplete! I don’t mind your last para though a lot of Dayus-ing. But wat you mean your 1st para, bruder?

      And wat you tink can be done, about the situation in your last para, Mister. I’m interested to hear.

    • So,

      DS Najib is a “Dayus” PM according to you, and Tun Badawi was a “flip-flop” PM according to BD. And, we have Malay businessmen/millionaires who are essentially anti-Malay professionals, this is what I am reading from your comment.

      So, what is your proposal?

      What happens when we have Malay leaders who do not seem to be fighting for the rights of the Malay majority population?

      Quite embarrassing don’t you think?

      What does this say about those in UMNO who elected this “Dayus” to lead the party?

      • So, what’s YOUR suggestion? Oh I forgot, you previously said you are a Christian, didn’t you, therefore a non-Malay. You wanna gloat over it?

        When we talk about Malay weaknesses and you join in as a non-Malay, are you looking at it from the race angle? If not, what?

        When you are are passing snide remarks about UMNO leaders, are you minding their business or promoting the Opposition business? Difficult to tell isn’t it?

        So, do not ask questions when you don’t know the answers, m’boy.

      • @ hizan,

        No intention to gloat about anything here.

        I feel that my questions are perfectly valid. I ask questions because I hope that somebody here has the answers. Apparently, you don’t.

        Hizan may/may not be Malay, I don’t know, but, his comments also provide a chance for me to understand how popular the present PM is within his own community(Malay). From comments on this blog, he doesn’t look to be very popular.

        UMNO is the largest component in BN. Like it or not, what happens in UMNO / BN affects all Malaysians, including those in the minority, like me. The decisions made by the PM (Dayus/Flip-Flop or otherwise) affect all Malaysians irregardless of race / religion etc.

        So, I do have an interest in who the leader of UMNO is, and who the PM of my country is, and what the Malay grassroots are saying about him. It doesn’t matter whether I am Malay or not.

        I am not making any case for the Opposition, they have enough problems of their own.

        ” do not ask questions when you don’t know the answers”

        Really? How does that make sense? When would one logically ask questions?

      • “” do not ask questions when you don’t know the answers” –

        Surely that refers to UMNO/ Malay issues that neither you nor UMNO themselves know the answers.

        Would MCA know how they can get back the votes lost to DAP? Would DAP know why after 40 years they are still far from Putrajaya?

        Would you know why nobody can get rid of hypocrites all over the place in the whole world? How do I know you are not a hypocrite yourself?

      • hizan @ 0619,

        Thanks for your reply. You gloss over my clarifications and merely focus on the last 2 lines of my comment.

        Whether or not UMNO / MCA know why they lost the support of the voters in 2008, they should have been asking themselves the question.

        Don’t you get it?

        We ask questions in order to learn. It is in our nature to question why, and that is exactly what I am doing.

        All political parties who lost ground in the last 2008 should have been asking themselves how to reverse the trend in the next GE.

        They should be questioning what they could have done better or differently. Only then, can they hope to find the answers. They should be trying to do things differently, to engage the rakyat, and to regain the support that was lost.

        Don’t believe me? Click on the links and read…

        http://www.nst.com.my/nst/articles/16zuba/Article

        http://www.nst.com.my/nst/articles/16zabkn/Article/

        Please try to engage with meaningful facts and comments.

  12. [...] MAS-AirAsia merger: Remake of hijacking of Avenue Capital 2006 [...]

  13. [...] hottest business this week is the ‘Malaysia Airlines-AirAsia share swap’ deal. It got so many reactions despite the mainstream media playing the text-book perspective on how [...]

  14. What about staff productivity – MAS compared with Singapore Airlines (SIA)? After all, the 2 airlines were siblings in the former Malaysia-Singapore Airlines (MSA).

    (As a sidenote, it is worth asking who were the members of the Malaysian team who negotiated with their Singapore counterparts over the break-up of MSA into MAS and SIA).

    According to Wikipedia, the SIA group had a staff strength of 21,534 at the end of the fiscal year on 31 March 2011. The parent airline, SIA, itself had 13,942 staff (including 2,174 pilots and 6,914 cabin crew).

    What are the corresponding staff numbers for the MAS group and the airline MAS itself?

    Again, as per Wikipedia, the latest available financial results for the SIA group show revenue of S$14.5 billion, operating income of S$1.27 billion and net income of S$1.42 billion?

    What are the corresponding financial results for MAS for the same fiscal year period?

    From these figures, it should be easy to compute the productivity MAs and SIA based on revenue/employee, operating income/employee and net income/ employee.

    And since MAS has a current fleet sie of 100 aircraft and SIA has a fleet size of 107 aircraft, it should also be easy to compute revenue/aircraft and net income/aircraft for the 2 airlines.

    Leave aside for the moment that the government has no semblance of a national aviation policy whatsoever, unlike that of the Singapore government which has expressed unequivocally that Changi Airport will a pre-eminent air hub in the region. Quo vadis, KLIA?

    • Be realistic la. Cathay Pacific and SIA hv no domestic route. No ‘national integration’ issues, that require them to hv an extensive domestic routes to serve the rakyat.

      How many airports does Singapore and Hong Kong hv? Compare that to Malaysia. That should give you an idea that both these cos are focused ONLY on international routes and making profits where else Malaysia Airlines hv a completely term of reference and demands to meet.

      People from Jurong to Changi dont need to fly but people in Tawau or Kapit to go to Penang, need to fly. And mot people who fly between Changi and Chap Lek Kok are those who can afford to fly compared to the bloke who needed to fly from Tawau to Penang.

      Like usual, you’re not comparing apple-for-apple!

  15. So, is MAS over-staffed?

    Not according to the MAS staff unions.

    But has MAS benchmarked itself against it’s more efficient regional competitors liike SIA and Cathay Pacific?

    Or are the MAS unions merely protective of their cast-iron rice bowls and blissfully (or willfully) unaware or ignorant of other airlines’ productivity numbers?

    • If your comparison is on paper, of course Malaysia Airlines is over staffed. But for domestic operations, did you consider that Malaysia Airlines operate from 39 airports in Malaysia as compared to SIA only in Changi and Cathay Pacific only in Chap Lek Kok???

  16. [...] surprise appointment came after five weeks of Malaysia Airlines been under the ‘control’ of an Executive Committee which comprises Chairman Tan Sri Mohd. Nor Yusof. Executive Director Mohd. Rashdan Mohd. Yusof, [...]

  17. [...] after the successful ‘back door take over’ of Malaysia Airlines via the so called “share-swa… announced on 9 August and he and his partner Kamaruddin Meranun got themselves in the BOD with [...]

  18. [...] after the successful ‘back doorway take over’ of Malaysia Airlines around a so called “share-swap” announced on 9 Aug and he and his partner Kamaruddin Meranun got themselves in a BOD with [...]

  19. [...] all these is happening because of ‘disgruntled employees’, due to issues such as the ‘share swap’ that was inked on 9 August last year and also the CCF, which has yet to materialise and proven to be beneficial to Malaysia [...]

  20. [...] is another day of major announcement. It is expected that the Malaysia Airlines-Air Asia ‘share swap’, inked on 9 August 2011 would be unlocked. However, it is expected that the Comprehensive Collaboration Framework (CCF) [...]

  21. [...] soonest opportunity presented itself when Fernandes was appointed into BOD of Malaysia Airlines, the national carrier was ‘suckered of’ RM 18 million for sponsorship for his own [...]

  22. [...] Fourthly, AirAsia was actually an integral part of the working committee for the KLIA 2. However, Fernandes played ‘rough and extremely unfair’ to use the media which include mainstream media to go after MAHB when his whims and fancies didn’t actually go how he wanted. That is probably include getting rid of MAHB MD Tan Sri Bashir Ahmad Abdul Majid and got himself in, just like how he got Khazanah Holdings Bhd. for the eight-and-three-quarter-months short lived and now miserably failed ‘Malaysia Airlines-AirAsia shareswap’. [...]

  23. [...] Fourthly, AirAsia was actually an integral part of the working committee for the development of KLIA 2. However, Fernandes played ‘rough and extremely unfair’ to use the media which include mainstream media to go after MAHB when his whims and fancies didn’t actually go how he wanted. That is probably includegetting rid of MAHB MD Tan Sri Bashir Ahmad Abdul Majid and got himself in, just like how he got Khazanah Holdings Bhd. for the eight-and-three-quarter-months short lived and now miserably failed ‘Malaysia Airlines-AirAsia shareswap’. [...]

  24. [...] Airports, which is a GLC under Khazanah Holdings Bhd. last December. And recently in May when the ‘share-swap’ signed on 9 August last year was overturned, Fernandes threatened to take his operations to Jakarta. It is obvious [...]

  25. […] be taken with a sizeable amount of salt and knockings on the wood. At the announcement of the Air Asia-Malaysia Airlines ‘share swap’ in August 2011, he rubbished Malaysia Airports. Lucky that Prime Minister Najib saw the wisdom not to follow […]

  26. […] The so-called right wing bloggers community who are commercially sensitive with corporate con-jobs such as the ‘share swap’ because it was clear that the corporate exercise was to allow Air Asia Supremo Tony Fernandes to enter and start to devour on the national carrier using ‘Salami Tactics’, slice by slice. We were vehemently against it the moment it was announced via mainstream media. […]

  27. […] and AirAsia exactly a week ago. He is believed to be one the engineers and manipulators for the ‘Malaysia Airlines – Air Asia share swap’ under the falsehood pretext of “collaborating and co-operate to bring Malaysia Airlines to […]

  28. […] Fernandes’s ‘Share-Swap’ scheme trying to cannibalise Malaysia Airlines in August 2011 lasted barely ten and half months, before Prime Minister Dato’ Sri Mohd. Najib […]

  29. […] Ahmad Jauhari Yahya took over as CEO and he was relieved from answering to the ‘Executive Committee’ which include Fernandes and his partner Kamaruddi…, the strategy was improving on revenue and lowering cost. Since that is not much room for cost to […]

  30. Different Flight Search

    MAS-AirAsia merger: Remake of hijacking of Avenue Capital 2006 | The “thirteen million plus Ringgit” guy rambles….


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