Turbulent times for MAS??? YAU MOU GAU...CHOR!!
THE 15%-30% pay cut that Malaysia Airlines (MAS) has suggested for its senior managers is not going to save the airline millions of ringgit or give a major boost to the national carrier’s bottom line.This is because the number of senior executives involved is said to be about only 10. But, according to an industry source, the move does send a strong signal to all employees that the culture is moving towards performance and there is little room for those who have become “too comfortable and not doing their bit for the airline’’.
MAS passenger yields per revenue per kilometre is 18.5 sen, that of rival Singapore Airlines (SIA) is 23.2 sen; Thai International 27.1 sen and Cathay Pacific 23.3 sen. There is much room for yields to grow and MAS should stop flying to areas where yields are low and concentrate on areas where it can get higher yields, said an expert.
In terms of costs, fuel cost is beyond its control but what it can do is manage its hedging policy better. To the expert, if AirAsia, Cathay and SIA can do it, what is stopping MAS?
YAU MOU GAU....CHOR!! MAS should learn from AirAsia the little Brother lah!! VVS or Cut cost only for Temporary......in another words Please go to see DOCTOR to solve the problem rather than take a PANADOL as solution. Do you agreed, Any comment??
Check this too (today's news): MAS Union said DON'T Punish Staff
More click this--> MAS news
Official Website: http://www.mas.com.my/
posted by SEE FU at 9:10 AM
3 Comments:
The management stupid sh*t 1,
no cure for them already...sack them all and change new 1 inside
Did you read the news today?
The Union said is true, management mistakes don't transfer to Workers.
PETALING JAYA: The losses incurred by Malaysia Airlines has nothing to do with the size of its workforce, the 9,000-strong airlines employees' union said.
It was the result of bad planning and decisions by the management, Malaysian Airlines System Employees' Union, Peninsular Malaysia (Maseu) president Alias Aziz said.
Among the plans or projects that the union felt the national carrier had spent its money on unnecessarily were a sponsorship programme, the renovation of aircraft cabins and the order for six Airbus A380 planes.
Each A380 costs RM1.2bil while the on-going cabin renovation works cost RM700mil, Alias said.
He said MAS also spent a huge amount on the sponsorship programme, which included sponsoring a local singer and an entourage of musicians and dancers to perform at the Royal Albert Hall in London.
“These are examples of bad decisions and planning by the management that ate a huge chunk of MAS' money; and when the company reported losses, the blame went to the workers.
”Why punish the workers (through a Voluntary Separation Scheme) when it was the management's bad planning?'' he asked at a press conference yesterday.
Alias said the scheme would not in any way move MAS out of the red.
YAU MOU GAU...CHOR!!! Another example of POTONG management failure in Bolehland!!
If you all have time, it is worth to read this article.
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An Email from inside MAS
13 November 2005
THE NEVER ENDING PROBLEMS AT MAS
AN internal memo circulated by MAS chairman and acting managing director Munir Majid has made it to the press. The memo laments the ongoing problems faced by MAS. Recently MAS announced losses of RM280.0 million for the 1st quarter of 2005. Well the second quarter lossed (to be announced soon end November 2005) was another 260.0million. That is RM560.0 million losses in six months.
Conservatively, MAS can be xpected to make losses totalling
RM1.0billion for its financial year 2005/2006. MAS has serious
problems ahead.
Internal cash flow projections indicate that by June 2006 MAS many
not have cash to pay fuel bills and meet operational requirements.
When that happens what it means is that the planes will be grounded.
But MAS has contingency plans. They plan to sell the MAS building
in Sultan Ismail to raise cash. MAS is hopeful of selling the
building for about RM350,0 million but the very old building is only valued at about RM250.0. And you cannot sell a building like
that in one or two days. The bigger question is who is going to
buy the building, even for RM250.0 million?
Petronas already has enough unused building space at the Twin
Towers. KTM also does not need a high flying building. Maybe the
REITs (real estate investment trusts) will be asked to do national service?
Many things in MAS are now being set aside pending the arrival of the new MD Mr Jala from Shell Sarawak. A lot is expected of Mr Jala, who sings and plays the guitar. Recalling his Dayak heritage, Mr Jala has suggested a 'long house' type management technique. This means MAS employees may soon share smoking a native peace pipe or worse eating lunch from a common bowl in the cafeteria.
All of MAS' collective agreements have expired and are up for renegotiation with the Unions. All salary increments for staff have
been postponed pending the arrival of Mr Jala. But the pilots have
been given a salary increment of 25%, even before the arrival of
the new MD. The Unions are complaining about this.
What will really happen when (not if) MAS runs out of cash by June
2005? MAS will most likely go to the Government for emergency funds to meet operational costs. This is bad, really bad. MAS has
undergone almost everything that a turnaround situation would
warrant including restructuring, outsourcing, streamlining, financial reengineering etc. The only thing that has not been done yet at MAS is brain surgery on the people who run the airline.
Perhaps this is an option the Government may want to consider.
Another problem that MAS has to contend with is that the company now reports to Tan Sri Nor Mohamed Yakcop, the Second Finance Minister.
If King Midas turned everything to gold with his golden touch,
everything Nor Mohamed touched went bust. He put Bank Negara into technical bankruptcy with his forex deals which caused RM17 billion in losses that are still not understood even by himself, let along the average Malaysian. After Bank Negara, Nor Mohamed worked for Anwar Ibrahim who got him a job at Rashid Hussein Research. Both Anwar Ibrahim and Rashid Hussein went bottoms up, Anwar quite literally. Then Nor Mohamed became Chairman of Abrar which not only went bust but was wound up. During his tenure as Chairman, Abrar bought over Mun Loong Berhad which went bust and became a PN4 company and lost its identity completely. It is now known as Kamdar Singh Textiles. Then Nor Mohamed worked for Tan Sri Ali Abul Hassan who lost his job. After that Nor Mohamed worked for Mahathir Mohamed who has also stepped down. Now Nor Mohamed works for Abdullah Badawi and has the country's economy in his hands. Just because he is Finance Minister Two now, can we expect Nor Mohamed to have miraculously developed an ability to avoid disasters? I shudder to say this but shall wait and see?
The appointment of Mr Jala also shows more short sighted thinking.
Why appoint an oilman? The simple reason is because 40 per cent of
MAS' operation costs are fuel bills - aviating fuel. It is hoped that Mr Jala's experience as an oilman will help MAS do a better job in buying aviation fuel on a futures basis (futures contracts). The same futures markets that caused Bank Negara's RM 17.0 billion debacle. But the fuel problem is not specific to MAS alone. The whole industry suffers high fuel costs. MAS has other serious problems which may not be in Mr Jala's domain or job description.
MAS suffers significant waste. For example the Prime Minister's
brother is a shareholder in SkyChef - a joint venture with Lufthansa - which has taken over the job of MAS Catering. This is a very lucrative deals for SkyChef but a bleeder for MAS.
Even if the flight to London is half full, SkyChef puts on a full load of food on every flight. At the end of the flight, the extra
food is thrown away. MAS to pay for that wastage. Each meal in a
plastic try can cost more than RM25.00. How is Mr Jala going to deal with that?
SkyChef has also negotiated the catering contract such that a full load of mineral water is put on all flights that adds to the
airplanes' weight and burns more fuel. When the plane returns, any unopened bottles of mineral water are put back on the flight and
charged to MAS again. A net way for SkyChef to milk MAS.
MAS serves salads in its meals, which were made using lettuce grown
in Cameron Highlands. Two months ago MAS stopped buying letruce from Cameron Highlands and opted for very expensive imported lettuce
from Australia. No one (other than certain folks at the Purchasing
Department) seem to know the reason for this expensive switch.
In Engineering, MAS may have three test pads to check out avionics -
two in Kuala Lumpur and one in Penang. Because all avionics are
tested out in KLIA, the test paid in Penang is never used. Each costs
over RM200,000 a piece.
When MAS presented its quarterly results, they carefully avoided any mention of Professional Services. This means 'consultants'
MAS has employed more than 17 different consultants and are still employing more consultants. There are so many Australian and British consultants that the MAS office in Subang looks like an orang putih outfit. One consultant is paid RM5,000 per day. Other consultant sare paid in excess of Rm 2.0 million per year. Considering that the company's total losses are increasing, no one seems to know just what is the positive impact of all these consultants.
The latest addition to this list of consultants is a lady hired from Citibank Singapore who is paid RM60,000 per month. The headhunters who hunted her down were paid RM180,000. This lady is in charge of Services - to handle the outsourcing of MAS support services like IT, ticketing, administration, etc. Outsourcing has been quite disastrous for MAS too because it has cost the company even more money.
After outsourcing IT, response time to fix computer glitches at the non front line departments have been slowed down (two to four days).
Some of these outsourcing contracts are also been eyed by companies related to Directors that sit on the Board or MAS. One of them is the Symphony Group that is controlled by Dato Azman Yahya
(formerly of Danaharta) who is a MAS Board member.
To bringing the company around Munir Majid has asked senior
executives to take voluntary pay cuts up to 30 per cent. This is
childish and not even foolish thinking. As a good example Munir says that he has not taken his acting MD allowance for the past month.
MAS folks say Munir's comments are justified because he is not fit
to be an MD.
But Munir's financial loss is consoled by the fact that despite the company making so much losses, he has recently bought an oil painting for over RM1.0 million using company funds that hands in his office. What have financial losses got to do with appreciating
art?
The people who know exactly what is wrong with MAS are the rank and
file. At meetings with the management they have voiced their opinions but to no avail. The ringgits involved in MAS are huge. Many hands are in the cookie jar
Ends
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YAU MOU GAU....CHOR!! Enjoy reading!
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