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Sakmongkol ak 47

Monday 8 August 2011

A Sting job in the air?

I have another  installment of my session with the Oracle to write. But that has to wait because I have been itching to write something on the surprise share swap of MAS shares with that of Air Asia. Surprise to whom may we ask? To the unquestioning public and easily duped masses, comes the answer.

You see Malaysians are easily duped into believing that something of this magnitude suddenly crops out. As if, yesterday those people in Khazanah and the current CEO of MAS who is so forgettable in accomplishments, woke up and realize hey man…..MAS is in a mess.

The mess my friends were created a long time ago, the origins of which can be traced when that ex Shell man took over MAS. He quickly undertook a scorched earth policy, selling off assets and whatever else was salable to clean MAS books. They have a refined term for it- asset unbundling which in reality is just asset stripping.

If you allow us a little permission to shout out loudly, we will say FU!.

Yes, the subject did crop up when I was with the Oracle. I asked him what does he make of Fernandes’s posturing to move Air Asia’s whatever office to Jakarta. In Jakarta the situation is even more chaotic, so that if ever Fernandes thought of the idea of moving there, he must be examined in the head. There is absolutely no commercial justification of moving to Indonesia.

Now with these maneuvers Fernandes has proven one thing. Any peddler of pirated CDs can also run an airline. You got chance, ma…….

When I asked the Oracle about this, he said, watch the next moves. There must be something behind the threats to move out to Jakarta. Has Air Asia settled its debts to MAB? Maybe in return to being coaxed and persuaded not to move out to Jakarta, the PM authorizes the writing off of AA’s debts to MAB or forced MAB to take a haircut maybe even a crew cut ?

Two, the threat was the harbinger of what is now taking place- in order not to move out to Jakarta, the Khazanah Mafiosi, headed by the capo dei capi, Amokh, recommended that Fernandes's Tune Air Sdn Bhd be given a sweetener in the form of ownership and possibly the running of our national asset MAS.

Now let’s ask a stupid question? Can a CEO of your rival company be given a chance to take up position in your company and asked to manage your company at the same time? Isn’t there a conflict of interest here?Or is Fernandes being prepared to take over MAS itself?

The move or its threat to move to Indonesia can be regarded as treasonable or at the mildest, putting the country at ransom. These robber barons aided by the comprador capitalists masquerading as consultants and economic experts, residing temporarily in Khazanah are pushing this country to its limits. The majority shareholders of Air Asia are who? Khazanah and EPF? These are government entities.

So how can our government, kick itself in the groin by allowing Fernandes to even make that statement in the first place? Or was it part of an elaborate set up of mind conditioning? That statement was later attributed to the silliness of the journalists quoting Fernandes or something. That also tells us the mental capacity of the journalists we send to cover stories about corporate moves.  If they don’t understand, don’t waste your money sending them.

What happened to MAS actually?  I asked the Oracle. The oracle asked me whether I know where Munir Majid, connoisseur of Dom Perignon, appreciator of paintings by the masters spends his time? Most of the time he is in London running MAS from there perhaps.

The Oracle was quite direct when he pointed put, perhaps the sales people in MAS are corrupt people. Those stationed overseas who are supposed to sell seats, especially the 1st class seats which would subsidize those traveling on Y Class are not doing do their jobs. They have been at these places for donkey years and where their children practically grow to adulthood there. The Oracle was quite caustic- you don’t sell the 1st class seats, you don’t make money. You make money only if planes are in the air.

We could have been forgiven to believe that after Jala cleaned house, MAS would be in fighting shape to make profits. That only goes to show, the management team which succeeded Jala is useless after all. Or, we can also be forgiven to believe that actually what Jala did was all sleight of hand con job.

If after Jala has cleaned house the succeeding management can’t get the house in order, the first order of the day, is to give them the marching orders.

Let’s look at what MAS has done? While it is now clear, MAS was making losses, can we find out whether during that time, the MAS big shots together with the endorsers at Khazanah ordered new planes? If yes, then maybe we should send the MACC people to investigate whether the book orders were graced with potential massive kickbacks.

The Oracle says, there’s nothing to making orders for the newest and most expensive planes. It’s a well-known secret in the industry; that massive kickbacks follow such orders. And by extension, there is nothing extraordinarily spectacular when the bosses at Air Asia ordered the latest and most expansive planes.

We shall be writing more about this in the coming days. 


Anonymous,  8 August 2011 at 10:17  


Pls clarify this

‘The mess my friends were created a long time ago, the origins of which can be traced when that ex Shell man took over MAS. He quickly undertook a scorched earth policy, selling off assets and whatever else was salable to clean MAS books. They have a refined term for it- asset unbundling which in reality is just asset stripping.’

Yes, MAS is in trouble, the moment it was formed & run nationalistically.

There was nothing wrong with the national part. What’s wrong were the people put in place to run the show (izznt it a show?). The rot was planted there & then.

Tajuddin just hastened MAS marched to the death, no thanks with the help of yr idol, DAIM! Ha, Talk about govt interferences with market dynamic.

If u referred to Jala as that ex-Shell man who undertook the scorched earth policy, then u r not fair.

WAU was the true scorched earth policy initiated by the head honcho of the current Khazanah for MAS then. The currently appointed chairman, Mohd Nor, was the then MD who carried out the task, that turned MAS, over-nightly into snort-term profit, with very uncertain future!

So history repeats itself? Unless Azman & Nor r all ex-Shell?

OneMalaysian,  8 August 2011 at 11:07  

Dear Sakmongkol

You seem very upset that Tony Fernandez is getting 20% of MAS while Khazanah is going to get 20% of Air Asia. You seem to think he is “stealing” a national asset. And that he got to do this by twisting the government’s arm by threatening to decamp to Jakarta.

I actually think the reverse. I thought he had got soft in the head. How could a clever operator like him be duped into exchanging a gold bar for a brick? Look, MAS is into its third or fourth rescue; I have lost count. If MAS were a normal private enterprise it would have crashed and burned up a long time ago. Other airlines would have bought over their planes, airbrush a new logo on the tail and made money flying them.

Compare MAS with SIA and Cathay Pacific. They fly the same skies, have the same sexy young Asian girls, and serve the same type of Asian food. Yet CX and SQ make tons of money, and MAS is the perennial money loser. No financial genius or turnaround artist can do the job. Khazanah threw it a few, and they all tripped up on the MAS system. Why? It is because a government cannot run a private enterprise. It is as simple as that. MAS is somewhere between a full-scale government department and a badly run private enterprise. People who work there think like that. Corruption? Well, one shouldn’t be surprise at all. MAS people don’t need performance because no matter what happens the government will find a way to keep it afloat, sorry, airborne. Who needs to sweat performance?

Now when I think of this “merger” I think of 2 badminton (can also be tennis) players. One is a match-winning singles player (A), and the other (B) is someone who should be doing something else – a good for nothing. Now the coach comes along and say, well maybe A and B ought to play doubles together. My bet is that this AB pair will win nothing, and A’s reputation will soon be in tatters. The correct decision is to retire B off. You simply cannot combine a full fare/full service airline with a low-cost one. The mind-set, the corporate culture, the operational set-ups are all different. A gourmet restaurateur cannot operate a fast food joint. The people who make Myvis cannot make BMWs. In this merger, score 1 for Khazanah and 0 for Tony Fernandez.

Frankie 8 August 2011 at 11:31  


While MAS is languishing in the doldrums and facing potential bankruptcy, SIA is making tons of money. How can a tiny little red dot (according to Mahathir) across the causeway be so successful when the malaysian national airline has became a national disgrace?

Could it be that SIA is more transparent and managed by capable professionals regardless of their nationality, race and creed? Cathay Pacific is also managed well with real capable professionals of different nationalities. Both these companies do not care a hoot whether the people at the top are red, green or blue skin or whether they are eskimos or mongolians just as long as they are the right capable people for the job of making money for the company. And of course the chairmen of both SIA and Cathay as not seat warmers who prefer fine paintings, champagne and wine instead of returning value to their shareholders.

Both Singapore and Hong Kong also have reputable anti-corruption agencies and transparent governments which do not condone corruption nor mediocrity. I think it is fair to say that Singapore and Hong Kong government are true practitioners of Performance Now philosophy unlike 1Malaysia's slogan of "People First, Performance Now" bullshit. What say you?

Anonymous,  8 August 2011 at 11:59  

Let's have another Mahathir bashing session. Remember Mahathir's analogy of having to stand on a soap-box to be heard and seen when questioned about the need for Petronas Twin Towers ?

So he also needs towering Malays to prove that his Malay-centric polices do work. Here's where Tajuddin and the likes of him came in. MAS was given to Tajuddin on a silver platter. After he grounded it nice and proper, the government bailed him out by giving him a golden platter.

Then came BinaFikir's Azman Mokhtar and Rashdan with their WAU (wide asset unbundling) to make MAS financial papers look sparkling clean. Jala was roped in to ensure the surface remains clean irrespective that the rot underneath it becoming more putrid.

For their brilliant moves, Azman and Rashdan were given Khazanah while Jala became the Pemandu. Poor Tengku Azmil was left holding the baby. It was just a matter of time before the pus starts seeping up onto the surface.

Now, let's see what Fernandes can do or a more correct question is how much he will be allowed to do ? What sleight of hand will be employed this time around?

By the way, Jala is a bumiputra albeit a christian. UMNO can even accept him into its fold. But Fernandes... where is PERKASA when we needed it?

Anonymous,  8 August 2011 at 12:23  

Time is running out for almost everything in this country, real sad story.
But liars are everywhere from the top to the bottom of the nation and so what's next?
Probably the best thing is to join Munir Majid in London or whenever people are staring at you then pretend like him-or have you seen him?
Muka poker face! so you know la...

Anonymous,  8 August 2011 at 12:36  

"If yes, then maybe we should send the MACC people to investigate.."

Sir, you must be joking.
If MACC had been doing its job, Munir would probably be in jail today. In fact, the whole gang holding high MAS positions would have joined him.
In this country all GLCs untold role is to make losses so that interested parties can inflate their personal bank accounts.
GLCs losses run into billions and MACC is still asleep.
This country is being ruled by thieves, kleptomaniacs, robbers, buglers and scoundrels.
Funny, all the muftis, ulamaks, Perkasa and Islamic NGO have nothing to say about this daylight robbery.

Anonymous,  8 August 2011 at 12:38  

Whatever it is, nothing seems to be going well with Malaysia. Everything seems to have a hidden agenda. Only a clean PM who is sincere in making things right will makes things right. Do we have any in our midst that can be such a PM?
Pak Tua

Anonymous,  8 August 2011 at 12:47  

The extravagance that we see has alot to with the Malay mindset - "style mahu kalah tapa".
Just do a study of those who are in charge of zakat distribution and rumah anak-anak yatim and you will see how big chunks of money that should go to the poor being spent on refurbishment of posh aircon offices, travelling claims, expensive vehicles and entertainment.
Perhaps former Perlis Mufti, Dato Dr Asri should know more.

Quiet Despair,  8 August 2011 at 12:57  

I was sad when I read the story yesterday. Our pride in the sky has come to this.
I agree whole-heartedly with you on this take-over.
Let's wait for the full details that will emerge with the signing of the deal tomorrow.
I do admire Tony Fernandez but I don't think he should be the one running MAS.
Of course it's a conflict of interest. He's got a child - Air Asia. Do you expect him to provide better for the newly adopted child.
His people will be appointed to replace the MAS CEO.
I am most worried about the fate of the MAS employees. Will there be down-sizing resulting in retrenchments and VSS?
I think this should be handled the right way since MAS employees, majority are Malays.
To critics of UMNO and BN, I like to ask this: "So you still think UMNO is racist? Giving on a silver platter our national carrier to a man from a minority race."
Sak said anyone can run an airline. I think Sak is capable enough with his economic credentials.
The way I see it is Ka-Ching for Tony, Kalimullah and his ilks.
Air Asia's tag-line is anyone can fly. Now can anyone fly on MAS???

Anonymous,  8 August 2011 at 13:01  

If the share swap happens, then the govt is also on the hook for the humongous plane orders that Tony F ordered from Airbus recently, no?

Now, Tony F also want to buy into QPR?

Just you wait, next time, he'll be given Lotus/Proton as well, as part of his F1 Malaysian rebranding.

Richard Cranium 8 August 2011 at 13:06  

Pak Tua, yes we do.

But the majority Malays cannot accept her.

Anonymous,  8 August 2011 at 13:24  


You shouldn't let yourself be duped into this. All these conspiracy theories must have been cooked up by DAP whose aim is rule Malaysia.

Anonymous,  8 August 2011 at 14:31  


'To critics of UMNO and BN, I like to ask this: "So you still think UMNO is racist? Giving on a silver platter our national carrier to a man from a minority race."'

Yah-loh, after the silver coated platter turned tin & the national carrier has been blundered thriygh & through by their own kindred!

Moreover, how many of yr kind COULD turn over MAS? MAS was skinned & robbed & raped, how many time by yr kindred?

Should thanks Tony for taking up this 'national service' to save the jobs of the majority Malay M'sian employees. It's a no thank job & commercially he is at the losing end!

Wondering whether Tony has put in a race-blind caveat for strong medicine in management overhaul. Otherwise, he would just ended up like Jala, as a convenient scapegoat.

Anonymous,  8 August 2011 at 15:07  

One such GLC - NINEBIO Sdn Bhd

nick 8 August 2011 at 15:33  


You and I know pretty well what is the root cause of these "sting jobs", con jobs or slight of hands as you call them now. During the 80',90' and the new millennium, the same thing albeit in different scenarios and stages was happening all over Malaysia!

Did you forget PERWAJA? What about Bakun? The Bank Negara forex debacle? The sale of a shipping company to Petronas? The billion RM patrol boat contract screwed by PSC? PKFZ? PLUS? RENONG much anyone? There are other such con job in the past that listing them all would require the writing of a book. But wait a minute! Someone DID write about it and guess what? The government banned it's sale!

These "clever" and undercover con job of siphoning the wealth of the nation begun nearly 30 years ago. And interestingly enough why did anyone would ever think for a second that with his retirement (you all know who I'm alluding to), all these con job, siphoning, stealing, pirating, plundering and "I take all the profit and push all the debt to the gomen" magic trick would STOP??? Wasn't Daim part of the gang of "smooth operator"? He should know the details of these thing better than anyone or maybe with the exception of one person.

All of the despicable "going on" are all but the symptom of the cancerous disease plaguing this nation. Without curing the disease, these "symptoms" will crop up and no matter how much medicine is poured to cure the "symptom", new and more terrible ones will appear.

So Dato', don't be too surprise about these thing. It would be much more beneficial for you to double your effort in bringing down the government which is the main cause of these "things" (even if it ultimately mean "wiping off and burying" your beloved party). There's no point in sidestepping the real issue. And the REAL ISSUE is that UMNO IS DESTROYING THIS COUNTRY AND IN ORDER TO STOP IT, UMNO MUST DIE IN THE NEXT GE!


GOD BLESS Malaysia!

telur dua 8 August 2011 at 16:08  

It is s sting job that stinks.

With all these political interference, MAS will remain the same in a hundred years.

kucingkurapan 8 August 2011 at 16:26  

MAS is being managed by the corrupt and incompetent. The problem is why UMNO is not doing anything about it. The only conclusion I can make that the top most UMNO leaders are the real hands in managing MAS. UMNO let corruption to take root in MAS and still continue doing it. MAS is nobody's business anyway. UMNO can always use the tax payers money, PETRONAS or the EPF money to pour into MAS and nobody can do anything about it. Malaysia after all is very rich and we all can affort the waste and luxury. That's why UMNO is still in power despite so many failures.

Anonymous,  8 August 2011 at 16:27  

What can I say...... our country is a blessed country.....full of con-man running all our GLCs and other essential services.

AripSon 8 August 2011 at 16:56  

aiyaa... this story makes me angry! abih pahala posa aku...

Anonymous,  8 August 2011 at 16:56  

lies lies lies!!

we all know , its the jews/americans that is the root cause of all evils in malaysia.

our government is perfect, and if you say otherwise , you are not PATRIOTIC! KELUAR SEKARANG!!!

Babi punya pasal, Sapi punya nama,  8 August 2011 at 17:01  

Tony F!#% is exhibit for con-art, who might well be a real con-artist, inconsequential poster boy.

But all these shit must culminate to the point - the big bang!

My wild hunch is they might appear to want to make MAS not worth a bird of plucked feathers which later is all roasted and toasted ready for picnic or long journey to nowhere or Shangrila.

Who needs to take the rap? Melayu for not being proud Melayu and Islam. If the halal/haram and church raid are not enough what else? Why can't Melayu UMNO have the will? Least of course is take the walk with Bersih, a lame and tame affair which gets things going.

Hopefully, we can stop EC and their henchmen come GE.

Anonymous,  8 August 2011 at 17:20  

Dato Sak,
Obviously your writing are an eye opening to the whole episode of our ongoing rotten society. It is entirely different of what we had experiences in the past, where all people in the top are with superb class of brain with high responsibilities and a no nonsense order of discipline. Nowadays we hardly ever be able to find one if there is any left with that tract of conscience in their approach to all thing, ever.
This happen slowly after Mahathir taking over and with the length he stayed in office, thing were seen going down the hill and deteriorating further by the days. There is nothing left untouched by those culprit which was taboo at all during the first 3 Prime Minister before Mahathir days ( TUNKU, TAR & THO). Nowadays, never we heard with good audacity of what happen in the past of individual with authority who are rarely not being accused and tainted with stains of various reason.
I am of an opinion, these were the result that goes with the major privatization policy and the emergence of GLC and with people who were creating their own piggy bank to benefit from the opportunity whilst they are officially being appointed to administer on behalf of the GOM (Gov’t Of Malaysia). Non were seen to really actually working and performing a National Service to the nation, whilst they are being empowered to do so, but aside, they were actually tunneling below the bottom to steal and plunder what they are being supposed to be honestly taking care off and one example is MAS by TRI Resources. Do we have to wait anymore longer before we initiate all the stop gap to all these travesty to the Nation, please.

walla 8 August 2011 at 17:22  

The share-swap will just allow Khazanah to sink more teeth into AirAsia via its MAS and TuneAir holdings so that if the deal goes through, the government will increase the size of its pillow as bedfellow.

And that is troubling if you would care to remember why Aziz had to resign from MAS many years back - he was commanded by unseen government hands against his better counsel to buy airplanes of three different engine makes. Unseen but identities known.

One hopes the old axiom no longer operates these days. Namely, what the gomen touches soon turns to dust.

So why? It can't be price leveraging on suppliers. Unless it's about consolidated purchase of jet fuel, MAS is basically Boeing while AirAsia is basically Airbus but if it's jet fuel, why not both sit together under one umbrella entity in the bilik nego? And do include Firefly; it's soaring.

On which point, it also hasn't said anything on Firefly so how the route re-rationalization will pan out remains to be seen. Hope it won't be another cordon sanitaire on the third player.

In any case, people who fly no-frills class aren't any time soon to indulge in caviar in the next cabin so what benefit will MAS derive from having boardroom access to AirAsia's customer base?

Maybe it's just a way for MAS to discard its social service by giving its dry routes to AirAsia while morphing itself into some new gilt-edge carrier. Longer stretch space, premier class exclusively, sauna in the air etc? Which means it needs less planes which means it needs to sell the surplus to AirAsia but that would mean AirAsia will have two types of engine with all the massive inventory holding costs. Just go into that MAS Subang warehouse and check those IBM storage disks. So, right, reactivate Aziz.

But then if they consolidate their routes, passengers will be left again with basically monopolies who can then dictate harsher pricing outcome of their mutual non-competition pact from this sister-companies deal, no?

But that however won't affect AirAsia's money sheets directly because it's between its shareholder TuneAir only and MAS, so the ringgit rumbles won't reflect in AirAsia's accounts directly. Indirectly through the bourse, maybe.

walla 8 August 2011 at 17:23  


As has been more smoothly argued above in lesser words by other cyberspace luminaries of the first rank, MAS can't duplicate AirAsia's success just by swapping around (cough).

Let's see. The gomen and MOE are finally remorseful they didn't appoint the ex-CEO of SIA when he was just a Malaysian professor of mathematics in UM before leaving because of some quota-marking standard to take a bus down to that dot?

Perhaps his specializing in probability theory had something to do with that dot's subsequent global success as the air carrier with tight kebayas. His expertise must have sharpened their optimizing routes and loads. Like Fernandez's reservations software.

Success in big companies is built by best of class professionals who know how to balance reward and risk by expansion and contraction.

If Khazanah were to put for instance ex-TMB now-MBB Wahid into MAS, would anything improve?

Best of breed, and no other reason. The country is long past arguing this point now.

It's all about global human capital. Even that young Garuda pilot had landed the Boeing at Hatta-Soek so smoothly no one knew the bird had landed.

Global human capital, not local window-frame changing.

Which comes lastly (mercifully) to this mega screw-up about the low-cost terminal. Is it at LCCT (and please clean up all the road signs to say clearly for once where is that terminal) or at KLIA-3? Now that MAS will need to use less planes, what of those it has ordered (hah! the share swap is knee-jerk then?) and what to do with KLIA now that it will have even less traffic? Costs RM1 Billion to subsidize every year. Should turn half into convention centre.

Just put all hubs in one place so that they won't be inconvenienced by having to wait for shuttles, so that they can have flexibility of cross-channeling, so that bigger critical mass means more sales for those anemic retail outlets. Re-partition to maintain the ambience for richer passengers. Put in aerobridges for poorer passengers. They're also human beings. Clears faster, saves more money than cost of renting aerobridges.

I'm done.

Anonymous,  8 August 2011 at 17:27  

Or could it be MAS is making money and not airasia?reminded me of bank was painted as loss making and the 'real-umno-man-behind' bought over easy and cheap...suddenly with the same operatus the now CIMB is making profit!Throwing a stone killing two birds,not only that 'RUMB'got hold to the nation's prized assets private at cheap-dirt but also sweep all the shits in bank bumi and now MAS under the carpet!So could it be Tony is just another fronting?

bumi-non-malay 8 August 2011 at 17:30  

Boycott MAS and Air Asia....let them both die....Win-win... Boycott Proton, Boycott Perodua...let them both die....then we can buy BMW 3 series for $50,000 ringgit. Thanks to UMNO myth, Hoax and dream Malaysia truly PARIAH!!

Is this a distraction from the lack of MUSLIM Condemning Syria Atrocities to their own people like in Libya?? Is this a mind game to make sure muslim mind their own business unless Isreal is involved.?? Is Malaysia Police and Army readying for the slaughter of the citizen and hope no one intervene and help the rakyat?? Get ready Rakyat Malaysia!!

Red Alfa 8 August 2011 at 17:37  

Salam Dato'

I get sick reading the growing spinning/refraining with "it would be better now that the competitors will be working together to the benefit of Malaysian aviation industry and the travelling public"

This oxymoron of a statement will be repeated in the many permutations and combinations of apple polishings and ball lickings by all the pro-government media and business analysts that will try to make morons of us and unaware of the Facts:
1) Yet another major monopoly/oligarchy is being created. And the flying public will benefit?!
2) notwithstanding the profitable air asia, Tony Fernandes is going well over extending himself rolling out his megabyte projects and by most accounts we should soon be seeing one huge of a corporate failure coming very soon but now he's already getting a bail-out well in advance. Why is he being spared the big fall?

Anonymous,  8 August 2011 at 17:51  

When I first heard of the swap deal, my first thought was a conflict of interest as you have stated above. And there's certainly more than meets the eye. This is a bad deal that will go amok in time to come. And the losers as always, will be the rakyat. It's just like letting Utusan run all the editorials in all the mainstream papers.

Donplaypuks® 8 August 2011 at 18:08  


I was the first to predict TF’s eventual involvement in MAS in mid-2007. Refer

Please let me attempt to answer some of your leading questions:

“Any peddler of pirated CDs can also run an airline.”
No, this can no more be true than a statement that anyone can run SIA, Microsoft, Google etc. and still make real profits.

“Has Air Asia settled its debts to MAB?”
Yes. There was a statement to that effect some months ago by a Minister or Deputy Minister in Parliament. There was a "haircut." But, whether current charges have been settled, I don’t know.

“Now let’s ask a stupid question? Can a CEO of your rival company be given a chance to take up position in your company and asked to manage your company at the same time?”
Yes, It’s possible if you have a person of integrity and your company has no 1st class CEO or Management. AA and MAS, while operating in the same industry, operate in different segments of the market and as SIA has shown, it’s possible to make money in a niche segment. Many fashion houses own and run the high end boutiques as well as the mass market lower margin chain stores and department stores. There is then no conflict of interest under one CEO.

“Or is Fernandes being prepared to take over MAS itself?”
Eventually, I suppose, yes. Otw, it would make no sense. I mean why would TF buy a 20% stake in MAS if not to have management rights? If he wanted to plonk a billion or so ringgit for purely investment purposes, he would not buy such a big stake in a government losing concern where the losers call the shots; there are far better and surer investment opportunities all over the globe.

“The mess my friends were created a long time ago, the origins of which can be traced when that ex Shell man took over MAS.”
No, the entire mess started with Tajuddin Ramli, compounded by Daim bailing him (and UMNO) out by paying RM8 a share when the market price was below RM4, all with M’sian Taxpayers’ money. The rot further set in subsequently when Khazanah/PMB wrote off anywhere from $5-10 billion of MAS’s re-structuring losses.

The message was clearly sent to MAS Chairman, CEO, Management and staff that whatever happened, the Taxpayer would pick up the tab! How’s that for a blanket cheque for looting and plundering? Little wonder Azmil switched policy to buying airplanes instead of leasing them from PMB!

However, I think Khazanah should bite the bullet and headhunt internationally for another proven CEO from the airlines industry and abortthis deal with TF/AA. After all, that's exactly what the Govt has done with the LRT project by hiring a Singaporean. Ditch this unwritten policy that only a Bumi can head MAS/GLC's.

With TF and AA, the writing is on the wall that a MONOPOLY will result and that can never be good for the consumer, though it may be smashing for the bottom line!

I have also been warning for some time the propensity for our GLC's to indulge in creating accountinng, especially the tendency to hide massive Operating Losees with convenient and mysterious $billion "R&D Grants" from MoF (a la Proton).

we are all of 1 Race, the Human Race

Anonymous,  8 August 2011 at 18:09  


This is my first time to your blog. You sir, come across as another racist.

I would prefer that you think along these lines:-
"The world is changing at warp speed. There really is no room for incompetence or buffoonery. Either you can cut it, or you can't. If the next man on the street can cut it, while you can't stand stright without your tongat after 42 years, then you have no business talking about "MARUAH".

The chinaman came to this part of the world in search of lifelihood. And by some twist of fate has managed to carve out a counry called 'Singapore'. And is running it brilliantly. His SIA is the No. 1 airline in the world. It's annual profits run in the billions. While our nincompoops here can hardly keep MAS airborne.

My friend, it is no more a question of race. We probably hv another 30 years left. By which time petrol would have run out, FDI would have trickled to a virtual halt, the industries we are involved in would have become obsolete, our population would have swelled by 100%; placing a humungous strain on our resources . By then, if you 'HAVE WHAT IT TAKES' you are safed. If not, you are screwed.

Does not matter if you a Malay, Chinese, Indian or Iban.

Having said that I too do not believe it is a good idea for Tony Fernandes to buy into MAS. But, not for the reasons you are insinuating.

It is like a great chitnese food chef being asked to handle an indian or malay kitchen.

An Indian

Anonymous,  8 August 2011 at 18:17  

Cos of deal done based on mkt price of the shares as traded on Bursa(weighted or otherwise) tony swapping one of his plane for two of MAS.Similarly,Tony is giving 50 sens whilst receiving Rm 1 of monies in bank,fd etc.

Reason being AA enjoys higher PERs thus PBV is double MAS.

Simply,genuine biz guys don't do share swaps when their share price is under valued.And certainly not when the other party is on a high.

I would think that this deal would fail the smell test.But this is 1Msia the land of milk n honey for the select few.We the rakyat is toast w/out kaya but buttered for a Last Tango in Paris full assault.Smile my friends.

Anonymous,  8 August 2011 at 18:30  

Do you remember FAX, the rural / domestic air service in Sabah Sarawak that Air Asia set up a few years ago, claiming that they will do better than MAS ? Well, they requested "compensation money" from Govt for doing this "national service". Once they got the money, they folded FAX and MAS had to re start it again with MASWings.
I have my reservations with this whole deal....

Donplaypuks® 8 August 2011 at 18:31  

"In Jakarta the situation is even more chaotic, so that if ever Fernandes thought of the idea of moving there, he must be examined in the head. There is absolutely no commercial justification of moving to Indonesia."

If you have ever wandered down to LCCT in Sepang, you would have noticed that at any given time of the day, at least 50% of those milling about the arrival and departure areas are Indons!

Also, besides the 4-5 million Indon citizens/PR/workers/illegal immigrants here, there are 350 million Indons there vs 28 million Malaysians here. Where do you think the future of low cost carrier business lies?

If only 10% of Indons travel by LCC, that's already more than our entire population!!

Nuff said!

we are all of 1 Race, the Human race

Anonymous,  8 August 2011 at 18:32  

reply to tennis we say,you are as strong as the weakest link.

we are all sceptics.but what the hell,give it a shot.maybe this time it will better!

Anonymous,  8 August 2011 at 19:51  


in a corrupt system you may put the most brilliant guys or whoever even aliens from mars or maybe the three stooges the result would be the same.

the rich become richer and the poor become poorer.

dahserikngankeris 8 August 2011 at 20:25  

a great big monopoly, heck if its cheap, i say go for it, doesnt matter if the share holders or the one who have silverspoons gets knackered in the arse, its not my concern, just let me fly cheaply and safely.

all the glc's are tumbling down thanks to mahathir? heheheheh i dont think he deserves all the credit, three cheers for sleeping beauty and the 1st husband of malaysia!

Anonymous,  8 August 2011 at 20:35  

Will those who have plundered and looted (that includes Tajudin and Daim ) ever be made to pay for their crimes and sins? They seem to be leading a charmed life up till now, enjoying the luxuries of ill-gotten gains.

Patrick 8 August 2011 at 20:48  

I look at this from a purely business angle. I think that there are much more details to this deal that is not revealed to the public yet. Hence, we can speculate, conspire till the lembus caome home. We may never know the true intentions of this swap deal. Looking back at AirAsia's history and TF's character, I doubt that this is a bad deal for him. There is still a very big gap in the deal that the public doesnt know yet. After examining the business angle, I tend to feel that the missing link is the political angle to this deal. We have to remember that no matter what happens, MAS will always stay with the GOM. And a Malay will always helm the company, unless in dire need and the need outweighs pride, as in Jala's case. But noticed how quickly they switched back to a Malay helming the company.

I feel that the reality of economics of the day actually made AirAsia decide on the Indonesia move and was promptly announce. TF/AirAsia dont put out press release unless it is approved and is verified. The market potential in Indonesia is humongous, as was pointed out earlier in this thread.

Only 1 person can approve of any entity buying into MAS. And its the PM. If business was purely transparent, KHAZANAH would have did the deal ages ago. For want of face saving, NAJIB would have instructed the deal to take place, on TF's terms. For any profitable company to swap with a loss making entity, its definitely a white knight. Only problem is, the public is not privy to the actual terms of the swap. Hence, I strongly feel that AirAsia has got the upper hand, but cannot be revealed. Yet. I suspect it has a lot to do with lucrative landing rights.

If MAS improves, AirAsia comes out winner. If MAS remains in the doldrums, AirAsia still dont lose. It can increase its stocks to dilute KHAZANAH anyday, if necessary. AirAsia has massive war chest and has access to massive war chest, if it desires, anytime. Now AirAsia has grown into a man and will be playing the man's game. I see MAS as the ultimate loser, if the GOM mishandles this deal.

Donplaypuks® 8 August 2011 at 21:21  

Just a couple of points on various comments here.

1. I read on MI or somewhere TF has a put option againsts Khazanah. Meaning, if MAS tanks, Khazanah will buy back his shares at a fixed price which surely cannot be lower than the price pegged in a share swap deal. So, TF will come out smelling od roses either way!

3. There is no White Knight here. As far as we know, TF/Air Asia are not paying cash and premium for MAS shares or injecting cash/assets to re-vitalise MAS bank balance and balance sheet.

I suspect it will be savvy management talent in exchange for opening up air routes and code more sharing, especially places like Sydney.

The way I read it now, based on very limited information, Khazanah is hedging its bets, hoping profits from AA will more than off-set MAS operating losses.

That's where the gist of the problem is with so many things in M'sia. The Taxpayer, having been so many timees fleeced by MAS, Bank Bumi, Maybank etc., is yet again not privy to the details of the full deal. Which means the Govt and Khazana are hiding some serious mismanagemend issues and/or fraud!!

we are all of 1 race, the Human Race

jamesjoshua 8 August 2011 at 21:24  

Dear Dato - Some facts for you:

1. MAS is the only privatised entity that had to compete without extensive Government favours, price fixes or ability to foist anti-competitive behaviour in the Mahathir/Daim era. And it failed because it was not left alone to succeed with a competent management in place.

2. When MAS was 'sold' to Tajuddin Ramly it was doing ok. It was sold at the suggestion and manipulation of your hero and friend Daim Zainuddin - who also signed a very bad deal with LKY in Singapore over KTM. The deal needed to be done – only the terms were badly negotiated by your friend – so much so his own mentor and school mate – one Dr. Apa Nama - shelved the whole thing and rails against Singapore to this day for all the wrong reasons. Apparently felt slighted by Singapore early in his premiership

3. Tajuddin Ramly Inc. went about STRIPPING MAS of its assets. An author in response to your meandering, speculative which suffers from convenient amnesia article here suggested that asset unbundling done by ECM Libra is the same as the asset stripping carried on by TR and family group of companies. That is not true. While the asset unbundling was in itself a stupid and self-serving exercise, in no way did Idris Jala asset strip - which is done usually by leveraged funds to so call 'unlock hidden assets' but what went on post MAS' sale was asset looting. Simple and period. All documents etc. involving this fiasco has either been hidden or destroyed by those involved. But the results are now plain for everyone to see.

4. Then the Government bought back an ailing and money losing MAS – having been asset stripped and looted of its core assets (even the aircraft purchases and, even catering supply contract, were structured to favour the then majority owners) for – get this – THE SAME PRICE IT WAS SOLD TO TR. I would also love this kind of ‘risk-taking’ risk profile and deal. Same deal and I am game. I will apply to Talent Corp to come back to Malaysia immediately. Dear YAB Dato Seri NAJIB - this is an irrevocable offer. Please sir, I really would. Terima Kasih.

5. Fact: the only privatised airline in the world to do better under State control then under its privatised ownership structure (when Govt had majority control) or under complete private ownership (Tajuddin Ramly Inc.). This by the way is a world first! Malaysia boleeeeeeeeeh-lah!

5. Tajuddin Ramly is current being pursued by MACC – that august body we all trust. Don’t we?

6. There seem to be some racist, nationalistic tirade in response to this posting. Stick to the facts and truth people

7. So Dato while the Internet allows you some extended time to your life to muse about the going-ons in a country we all love but for the sake of our kids some of us had to leave (since they mucked about and bodoh-fied, and kept politically meddling and changing and undermining, what was once a world class education system) and brag about your close relationship to Mr Daim - let me say this: what did you do to fight the corruption and incompetence which went on? I tried and failed but never made money from my access to the top Malaysian leadership. What did you do?

8. The 23 years of Mahathir/aim and yes even Anwar era destroyed the future promise and potential of a young and remarkable country, trampled on the constitution repeatedly and undermined EVERY Institution – esp. the independence of the courts and judiciary in Malaysia. Whatever Anwar’s shortcomings his Sodomy Trial I and now II – is a travesty to justice and rules of evidence and fair play. If we still had appeals to the Privy Council the entire system would have been shown up for its corruption, incompetence and bias. How some AGs, court officials and judges (serving and retired) can live with their conscience is beyond me. Climb down from your high horse Dato.

Quiet Despair,  8 August 2011 at 21:59  

Anon 13.01

I have never flown Air Asia before. But people who do told me you have to pay for food and drinks. No frills to the max.
But my skirt-chasing friends said they fly for the flight attendants. Sexy-maxy it seems.
I am wondering what will happen to MAS Fire-fly and the small aircraft serving Ba' Kelalan and Sabah hinterland. Air is the main form of travel for them with their chickens and farm produce.
Will Tony, the high-flyer care for such small unprofitable services.
He is imitating his tight friend Branson who is addicted to accumulating, accumulating and accumulating.
I agree with you he will get the Lotus Proton and the F1 projects.
BTW former MAS chairman Aziz Rahman is unhappy with the merger.
He does not agree with the taking of outsiders.
He said MAS has people in place who can do the job.
I agree.
Surely there are other Tonys who can steer MAS back to its glory days.
Share the wealth. But I forget, if it is a Malay man, then many here will be screaming unfair.

Anonymous,  8 August 2011 at 22:22  

Salam Dato

Pening kepalalah membaca komen/teori konspirasi yang ditulis tetamu dato tetapi yang nyatanya takkan ada apa-apa perubahan.

Tak kiralah siapa di atas, Tony Fernandes ke, John Slosar ke, Goh Choon Phong ke, MAS akan kekal ditakuk lama selagi 'tangan-tangan politik' di belakang pentadbiran MAS masih orang-orang yang sama.

Tak gitu Dato

Anonymous,  8 August 2011 at 23:01  

1.As of the 1st Quarter of 2011, Air Asia (AA) debts amounted to 7.7 billion with cash balances amounting to 1.7billion.

2. In August 2010. AA announced a deferment of their proposed aircraft purchases but sometime in June 2011 they reversed their decision and proceeded to place an order for an additional 200 new aircrafts at the Paris Air Show.

3. As of 31 March 2011, based on data from their 1st Quarter report, AA’s capital commitments stood at RM 19 billion. With the above announcement, an additional RM 54 billion will be added as Capital Commitments as implied in this article:
the proposed CC of roughly 75 billion will be spread over a 15 year period ending 2026. In other words,AA has to ratchet up its earnings to an average of 5 billion per annum to meet its future dues. From 2006 to 2010. AA’s revenue grew by 10 fold from 110 million to roughly 1.1billion, an average growth of RM 200 million per annum.

4. Its cash trove rose 6 fold from approximately 300 million to 1.7 billion but its debts skyrocketed from 1.05 billion in 2006 to 7.7 billion in 2010, an increase of 700%. One gets the ghastly feeling that this is a debt burden that is spiralling out of control.

The schedule for the aircraft delivery is as follows with the Neo being received from 2016 onwards:
2012 = 14
2013 = 13
2014 = 18
2015 = 19
2016 = 19 (4 Neo)
2017 = 14
2018 = 18
2019 = 19
2020 = 20
2021 = 21
2022 = 23
2023 = 24
2024 = 24
2025 = 24
2026 = 9

To compound the issue, the world economy including Asia’s will be into another maelstrom and air travel will invariably be hit:

and we probably will have a white elephant in NS soon give or take three years and another one of my dire predictions I made in when commenting on AA in 2009 materialises.

Of course AA can cancel orders but contract penalties will be onerous. In any case, TF is betting on the assumption that being a big borrower will shield him from foreclosure as banks will be leery of bearing heavy losses! bUt then a sizeable chunk of those loans are being held by Malaysian banks and in the worst case scenario, the government and the taxpayer will have to pick the tab to avert a financial meltdown cascading down the AA slope.

Warrior 231

bruno,  8 August 2011 at 23:10  

Dato,it has been a trend since the days of Dr Mahathir to milk the GLC cash cows.Place your cronies there,milk one GLC's at a time,then go to next one until it comes back full circle.It is the most convenient way to loot,plunder and launder the rakyat's hard earned money.And it's legal and tender.

All the money looted,plundered and laundered into the offshore bank accounts of these politicians.Then the Umno GOM pumped truckloads of the rakyat's hard earned money into these looted GLC's.And they called this bailouts.It is the legalised way of commercial corruption.All the money looted are in black and white in the balance sheets.The only thing is that the money is safe and sound in the piggy banks of these robber barons.

ON and off we hear of bailouts of this GLC and that GLC.Or that plantation GLC lost billions in a hydro-project that it shouldn't have gone into in the first place.Then we have Maybank trying to buy Temasek's stake in an Indonesian banking giant by overpaying by 2-3 billion.Overpaying by 2-3 billion for an Indonesian bank.By overpaying 2-3 billion for HSBC makes more sense.At least we know that in the long run they can get their money back.

Then we have an GLC money manager which ventured into commercial fishing losing a couple hundred million ringgit.A money manager turned commercial fisherman.The last time it was reported that the boats and nets were found abandoned by the beaches.

GLC's are supposed to have an advantage over other private and public companies.Yet these other companies don't need bailouts and most are profitable.Then the supposedly better advantage GLC's are run into the ground needing bailouts.

Let any business level minded Chinamen,Malaymen and Indianmen or Serani or any race to run these GLC's and they will be laughing all the way to the bank.Any one except these pariah Umnoputra robber barons.

Anonymous,  8 August 2011 at 23:12  

I totally agreed with "One Malaysian" who commented the following: Quote "Compare MAS with SIA and Cathay Pacific. They fly the same skies, have the same sexy young Asian girls, and serve the same type of Asian food. Yet CX and SQ make tons of money, and MAS is the perennial money loser." Unquote: They are many Malaysian who could eaily run MAS and make profit just like SIA and Cathay,but they were no given the opportunity to do so just because of the STUPID policy of the Government that MALAY first, other races last! Who sold off the money making MAS Flight Kitchen and not to mention many others???

Anonymous,  8 August 2011 at 23:25  

Siapa di belakang Tony Fernandez sebenarnya? TF hanya proksi. Kabarnya Najib & Co pun ada share.

Anonymous,  8 August 2011 at 23:59  

WAU is Azman Mokhtar's scheme.Losses incurred at PMB operations level is still an unknown.
However MAS current valuation is back to the pre WAU turnaround.In a nutshell all the money govt poured through WAU (indirectly thru PMB) & rights issues has all disappeared.

WAU is a`lameduck piece of financial Engineering.

Next came Jalanomics.All assets sold..everything stripped cos of the dire need for cash (so he says)..
Than he entered into a singularly big gamble of an extended hedge at USD 100.Obviously he is not much of a trader cos oil plunged to USD 40...big loss.Captured undered FRS in balance sheet (but not in P&L).Thus over the hedge life gains/loss will be recognised.But its tough to track.Fortunately was told to look at Cumulative realised losses..when Jala came in it was RM 1.7 its RM 5.6 billion.Thus Jala lost 3.9 billion after any gains on sale of assets.

Rakyat needs the full much did GOVT/Taxpayers lost out thanks to Azman Mokhtar & Idris Jala?These same guys are the key operatives in Najib's economic plans.Mana ada credibility?

So..simply..appoint an independent forensic auditor supervised by a Parliamentary Select Committee to run through the MAS accounts..and tell us how much is actual loss.

Hold the swap until this is done cos shuffling shit under carpets is not hygienic esp if the carpet is an astute business man.

OK..lets push govt to do this..collectively ..and with singular purpose of getting the truth out.

TQ..Dato..hope you can champion this.

Anonymous,  9 August 2011 at 00:14  

Air Asia does not have massive war chest.
Last audited annual close to RM 8 bil and cash of RM 1.5 bil.
Shareholder Funds is abt 3.6 bil.

MAS on the other hand has borrowings of RM 3.7 bil and cash of RM 2.1 billion.Shareholder Funds is abt RM 3.5 billion

Based on above I would guess MAS is on stronger financial footing(thanks to recent rights).
On asset value..they are about same same.However,cos MAS performance has not been good their shareprice is half of Air Asia,

Swap will be done on share value..thus I think Tony have got himself a very nice deal.Its almost I give you 1 give me two. 1 for you,two for me school of mgmt?

Ha3..we get clobbered daily.Smile and enjoy it

Asam Pedas,  9 August 2011 at 00:15  


For ordinary folks like me it is mind boggling why  folks in Khazanah are more interested to do financial engineering to fix MAS problems again and again. They have failed many times before. What make them so sure this time it will work? Can we have they sign with their blood in return of hefty paycheck they take home.

 Why can't these smart folks instead focus on viable biz plan to make it a sustainable company. We can only guess they have been taught by Ivy League schools that it is much easier to tinker with the numbers than immerse themselves to operational problems. Oh....we should be reminded they are our Knights in Shining Armour and should be treated as special people.

TF is given special treatment because of what he has done to AA. Is it possible those follies in Government and Khazanah  are the reason TF looks very smart than he deserve?Maybe TF is just smart enough to take full advantage of this situation. Same mentality when KTM letting go prime estate land to Singapore. TF is now the Special One to the eyes of Malaysian govt. 

What I can see TF may have Robert Murdoch(RM) biz instinct. RM sold profitable News of the World paper to avoid being liable to hacking scandal in UK. He said he did it because of his conscious.  In 1980s he took US citizenship just to be allowed to buy media company in US. Do we still want to believe RM took chinese wife purely to be his soulmate? Last time we saw RM wife was very good with kung fu moves on her husband attacker. Anyway with this deal to take MAS, TF can now claim he just doing his national service like select few before him.

Maybe with TF in helm of MAS, we all can fly on A380 planes when they take delivery of the planes next year. It will be world first. After all company won't make money flying empty.

Final thought, MAS problem is relative small problem compare to global crisis that about to erupt. The best Malaysian spokesman can say that it will have little impact to Malaysia economy. Hey, can we all apply for his job. It sounds a very easy job to do.

Anonymous,  9 August 2011 at 00:15  

Lets buy out Firefly..
Why clip its Boeing routing.need someone to keep Air Asia honest.

How much you are willing to chip in?

Anonymous,  9 August 2011 at 01:56  

Mr. Jala don't do nothing during his tenure in MAS, just asset stripping and doing comestic accounting his transformation lab by selling MAS building and so forth. He then being promoted by Mr. Jibby to head PEMANDU and thus leading Malaysia to nowwhere. What a joke? Is Mr. Jibby egual to Mr. Bean. What about Mr. Jala and Mr. WAU. God know? Masyallah

teropong jauh,  9 August 2011 at 02:21  

Assalamualaikum Dato,

As an armchair critic, being in the aviation industry for more than 30 years, having monitored the development of the local aviation industry, I would like to give my 2 cents worth in this issue.
MAS has formed it's "low cost arm" in Firefly and MASWings. Somewhere along the line, the plot seems to have lost.
MASWings should be developed to operate in Sabah, Sarawak and around that region using it's turboprop ATR 72s.
Firefly should be developed to operate in Semenanjung Malaysia and the surrounding region using the ATR 72s. The aircraft is cheaper in operating cost than the Boeing 737. Firefly should remove the B737 as it has made Firefly lost it's focus.
For East - West Malaysia and South East Asia region, MAS should deploy the B737s. With the new B737-800s, this can extend to several destinations where the load is not that high but can be compensated with a higher ticket price / yield.
The A330 should be deployed for medium range destinations ( MIddle East, Korea, Japan, Australia ).
The B747 should be deployed to US West Coast, Europe and Australia ( Kangaroo route ).
Dump the A380 and B777 as these only increases MAS cost in terms of crewing, training, spare parts, etc, etc.
Consolidate the routes as MAS is going to join the airlines grouping ( I can't remember which one ). Use this alliance as hub and spoke model.
Make MAS itself as a premium service provider, with Firefly and MASWings supporting the domestic and regional operation.
Emirates Airline maintained it's premium airline status whilst having Flydubai as it's low cost arm. Flydubai is competing with airarabia in the Middle East region whilst Emirates cater for international destinations.
Trimming needs to be done in the operations and spending of all departments in MAS. Excesses in spending and manipulation of contracts to benefit some people in the airline must be stopped. We need to have people of integrity from Top to Bottom to ensure MAS is " CLEAN " throughout the system.
We don't need TF to run MAS. Let him be busy with AA and AAX. Let's even sack those people in Khazanah as they had failed in getting the right people to run MAS.

bruno,  9 August 2011 at 02:33  

Dato,if GLC's are only to be managed by Malays and Malays only than it has to be the educated Malays.Then these executives cannot be affiliated to any political parties,especially Umno.If they want to be in politics than they have no business to be in the coporate sector.

Before when PNB was formed all the managers were well educated and really smart,because then they outsmarted the Chinamen in manipulating their respective counters.Now the top guys are all politicaly well connected.Once they are well connected then they think that they have immunity form the law,and they get greedy and power hungry.

All MAS needs is a well educated business minded Malay with engineering and business background to make it profitable again.You don't need a rocket scientist,Mokhtar or Jala type to run them.These Mokhtar and Jala types are best left to apple polishing and sucking up to their masters behind.

Anonymous,  9 August 2011 at 02:36  

salam dato,

to satisfy all the non malay in bolehland why dont we appoint the self proclaimed better than anybody non malay bastards to head all the glcs, ministries and whatever they wanted to be. or maybe even as pm. they would be very very happy. all the dumb ass retard malays will surely agree.

after all bolehland's majority is the malays.

once i heard they love to talk about americunt and now singapork. americunt and uk economies are already near death and the like of them wanted to return home to bolehland for survival.

they, the type of dap twins would attack anything and everything as long there is a word associated with malays.

the chinks are playing the mind games, but the truth is they are all fucktards that need crap in their mouths. just look what happened to pkfz, handed over to them a project everything turned into circus.

in this fasting month dont forget of our brothers and sisters in xinjiang, palestine, afghanistan, iraq and so on.

dahserikngankeris 9 August 2011 at 04:21  

whoa, reading the comments gave me another conclusion.

tony wants to borrow more, gile ponzi scheme....maybe he see's something we dont see...oh well go go air malaysia! (im assuming theyd rebrand mas and air asia after the merger) lol.

c/wanlah 9 August 2011 at 06:16  

salam Dato, Soalan saya pertama...apa lah hebatnya Tony Fer.. tu? Kedua...tak ada ke orang Malaysia lain yang lebuh bagus utk diberi peluang? Ketiga...hebat ke AirAsia tu..?Check their balance sheet properly..Ingatkan Tony tu,creative account dia tu dah nak pecah...tunggu waktu je...Ramai financial analysis tahu hal ini...retak menunggu belah..

Anonymous,  9 August 2011 at 08:10  

the deal only involves shareholders thus financially not affecting either PLCs.
TF gets MAS shares whereas Khazanah gets private ltd company shares.Air Asia kaput khazanah stuck myb hv to contribute cash for rights.
This is classic frying pan to mulut buaya n tiger at same time.

Congrats to all the apple polishers who will applaud the deal with 1 bil boundaries n blue oceanajibolihditipusenang2.

Another nail in d coffin.

Anonymous,  9 August 2011 at 12:29  


It's obvious that your uninspiring admiration for all things Daim and the Oracle, though I am presently inclined to believe that he only exists in your imagination, is clouding your judgement. Besides being Daim's 'bag carrier", does the Oracle have a track record?
For that matter Dato, what is your track record?
Have you taken a few corporations, from a loss making concern, to a profit making one? Indeed Sir, have you taken at least ONE corporation, from a loss making concern, to a profit making one? Have you created economic value for any corporation? You must have Dato, after all you talk and sound, like a man having led several corporations to their success. If the answer is you haven't Dato, the reasons are obvious, talking and doing are two different things' Remember, as someone said, "those who know, go and do, those who don't, go and talk, or teach".
When you have successfully created economic value for a few corporations, well, even one, then you qualify to say all those things that you have to say, otherwise you will be, rightfully I think, be referred to as the, with all respect Dato, "a stupid arse hole".
How dare you call Fernandes as "peddler of pirated CD's".
Sheesh, you have admiration for the nations's greatest "thief", Daim, well, thieves, if you include Mahathir, Francis Yeoh, Vincent Tan, Ananda, Mokhtar Al Bukhary, etc., yet you grudge the man who bought an airline for RM1, and took it to it's present RM11 Billion, and making many bumiputra millionaires in the process.
You may want to prove to me, to us, that Daim made all that wealth, from his hard work? I challenge you to do that Dato.
Daim, Mahathir, and his fellow forty thieves, literally stole everything from the country. It was Daim had his "proxy" Tajuddin Ramli, that 'bankrupted' MAS in the first place, to the tune of RM 8 Billion, and you are kind to them, and you condemn Munir for spending a few millions.
Your condemnation of Frenandes, may have that racial element to it Dato, Fernandes being an indian and all, and that is even more disgraceful.
If this comment ever sees the light of day, I would be surprised, and I do hope you surprise me.

Anonymous,  9 August 2011 at 13:00  

I've been following your blog for a while and this is the first time I feel compelled to leave a comment.
MAS is not an organisation that runs on purely commercial grounds.
Hence, lots of "inteference" and hence, MAS has been running a deficit from those many years.
What profit made, has been due to creative accounting.
Can Tony make a difference?
I think not, as long as the G.O.D. maintains its sticky fingers in MAS.
I agree with you on the points made in your article.

Another attempt to milk the cow.
Looks like the powers that be, have been instructed to "creat" more money, any way possible, as fast as possible and hang the consequences.
God save our country, the GOD cannot.
Best Regards, another concerned and sickened Malaysian

Anonymous,  9 August 2011 at 13:03  

Anonymous@9 August 2011 02:36,

‘just look what happened to pkfz, handed over to them a project everything turned into circus.’

Very prophetic, the circus part!

BTW, do u know who’s behind pkfz. The chinks u read about r just the cukongs.

Yr very kindred of the same faith is the master puppeteer of the pkfz fiasco!

Another thing, why go international, while just out of the corner of a remote Cameron Highland, there r REAL native M’sians suffering from calamity.

Is yr notion of fasting in this holy Ramadan month, only to reflect, re-think yr past deeds FOR people of yr same faith?

U r a true reject! A hypocrite in the name of Islam!

Anonymous,  9 August 2011 at 14:15  

Another whitewashing of loots and trails.....

Anonymous,  9 August 2011 at 16:16  

Dear Dato,

I'm not sure if you aware about the current situation in aviation industry before you even decided to post this.

Let me ask you something, do you know that Temasek has shares in every airlines that based in Singapore? This is including SIA, Tiger, SilkAir, Value Air and JetStar.

Temasek is another Khazanah but professionally managed. I never heard that SIA be a crying baby when Temasek wanted to start SilkAir or invested in the other airlines. This is because, SIA is well managed and they know what to do. I remember when I attended a conference in Singapore, the chief guest was Lee Kwan Yew. He said, when SIA was formed he gave them warning. If SIA cant make money he will just close down SIA and no bail out. Since then, SIA never failed in making profit. On the other hand, MAS was keep bailed out by Khazanah.

Let me tell you something that many of you dont even know. Khazanah wanted AirAsia's help badly since they cant secure financing for their new aircraft. No bank wanted to loan them money whereby AirAsia managed to secure loan for their 300 aircraft. How MAS wanted to expand when they cant even buy plane? Dont ask me how i know this but thats the fact.

Even SIA now announced to have their own low cost wing. Isn't that conflict of interest? Be matured guys. You dont see big picture. What Tony Fernandes wanted to do is to specialise MAS for lucrative International market and AirAsia will take the regional. Anyway, the majority of MAS income is from their international sectors.

Even if AirAsia dont take over MAS, they will face natured dead anyway.. SO, why are we making fuss about this? Just because he is an Indian? What if Sapura is the one taking over MAS? Will you be happy because its a Malay company?

bruno,  9 August 2011 at 23:40  

Anon 9 August,2011 12:29

For your information Daim was already an established businessman and well to do guy before he joined Dr Mahathir's cabinet as FM.
But of course he made many many times over during his tenure as FM.
All of Dr Mahathir's cronies are worth hundreds of millions if not billions.Tony is also an apple polisher too.If not you think he can be running AA.All these news we are being fed is what they want the public to know.This is what we call good chessplay.Good chessplay is because all these have already been discussed and decided at backroom boardroom meetings.Well,are you surprised to see your comment being posted.

Temuljin,  10 August 2011 at 03:55  

Just watch it. There will be a lot of asset stripping in terms of hiving off critical MAS business units.
The first will be pumping Tony's JV with CAE of Canada to take over all the MAS and A.Asia's simulators and training processes.
Then further debt forgiveness of A.Asia's debt with MAS particularly with MAS Engineering or rather the famous T.Fernadez maneuver...stretching the repayment period to say a hundred years.

Anonymous,  10 August 2011 at 07:48  

Your assertion that Daim was a successful businessman, before he joined Mahathir's Cabinet, is correct. However, do you know how Daim came to be successful?
Daim was an unknown, he had a law practice, together with an old University friend, so he wasn't starving. But he was a nobody.
Then, Dato Harun "gave" him, as part of the NEP, thousands of acres of land in Maluri, Cheras. And the next morning there were 20 bankers' waiting outside his office, to give him loans to develop the land. Even a monkey couldn't fail, with something like that. That Maluri development projects gave him the millions to be seen in the right company, and the right company wanted to be seen with him.
And by that time, Mahathir already had plans to 'steal' from the country, and so he brought in Daim, his best and most trusted friend, then, to help him do the stealing. Like all thieves, they had their misunderstandings, mostly because Daim stole from everybody, and Mahathir needed the "everybody" for their political support, but Daim didn't need political support, he just needed Mahathir. And secondly, Mahathir was envious that Daim was stealing more than Mahathir and his Mahathir's family, and people were going to Daim for projects, and not Mahathir. Mahathir was afraid that, soon, he will loose the ability to perform political patronage. And so the showdown between them. That's enough for now.
Bruno, you think Tony got where he is now, by 'apple polishing'? And by apple polishing, one can buy an airline for RM1 and take it to be worth RM11 billion, have the likes of Richard Branson, who was once Tony's number 1 boss, as business partners? Are there precedents for your claim? Has anyone ever done that before? Vincent Tan, Ananda, Francis Yeoh, Syed Mokhtar, indeed all those bumi businessmen, only succeeded because of the generosity of the Govt., not because of the business acumen, and that includes your hero Daim. Gee, who wouldn't succeed when the Govt. calls you, gives you a winning lottery ticket, and the prize pays cash for several years', and that winning lottery ticket is called "AP". Not much brains is required, is there?
Who wouldn't succeed when the Govt. calls you, and awards to your company some inflated projects, that you then sell to a chinaman, and immediately make a few hundred million ringgit, which you share with those that awarded the projects to your company. Not much brains are needed, is there?
I could go on, you know that.
Tony's business ventures extends beyond Malaysia, and he has proven a point, no, a million points.
And Tony made his money the old fashioned way, by hard work, not like Daim, Vincent Tan, Ananda, Francis Yeoh, Daim, Tajuddin, etc. who stole their money.
Yes, I am indeed surprised that my comment was posted, my previous ones', were not.
I shall be a regular contributor from now on, though it gets boring, as I don't get a worthy opponent. I can't help, but notice, that you or Dato have not answered my questions.
You do what snipers do, get my meaning?
Have a pleasant day Sir.

Anonymous,  10 August 2011 at 09:13  

In business, company generates money through services for its clients. You can do many financial engineerings to cover mismanagement, we will get back to the square one if we cannot generate enough revenue from our clients to cover our costs.This is what Idris Jala and team fail to address. There is not enouigh customers that pay for the services.

Anonymous,  10 August 2011 at 09:41  

Can't believe people are talking about this as if its some sort of financial engineering/corruption driven move. No wonder its so easy to steal from the state..Most critics don't have a clue.

MAS is facing a death sentence when the ASEAN open skies is implemented in 2015. There are at least 4 airlines in the region that is more competitive than them.

In the short-run. There is no choice for Tony Fernandes but to just improve the performance of MAS - no monkey business about it. He is an excuse to hire and fire - first the top people and then the he got to renegotiate with the union. All crony contracts out the door.

In the long run, the problem is the monopoly. After performance is improved, then you will see slow creeping monopolistic pricing. Malaysian will end up paying more to subsidize regional expansion when open skies come into effect.

The choice is not whether its Tony or hiring someone from Qatar or SIA, the issue is whether to sell to Tony or SIA or Qatar..Truth be told, it should not be Tony. Whose's fault is THAT???

Anonymous,  19 August 2011 at 20:37  

You're just plainly stupid ignorance if you think KL is a better investment place than Jakarta... Look, open your narrow mind, everybody is investing in Indonesia now...Malaysia? why should people invest in a soon to be bankrupt country? Indonesia is even competing with Thailand for becoming ASEAN automotive hub! Wake up man, Malaysia sucks! :)

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