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Sakmongkol ak 47

Friday 23 September 2011

The MAS-AA deal once again-2

Study the 3 points:-
1.         In an attempt to bolster the fortunes of the flag carrier, state asset manager Khazanah swapped 20.5 per cent of MAS stock for a 10 per cent stake in Asia’s biggest budget carrier Air Asia on August 9. 
2.         The swap enabled Air Asia bosses kemo-sabe Tan Sri Tony Fernandes and his Tonto partner Datuk Seri Kamaruddin Meranun to sit on the MAS board and will ostensibly help turn it around.
3.         Shareholders of Air Asia will get one free MAS warrant for every 10 shares in the low-cost carrier while MAS shareholders will get one free Air Asia warrant for every 30 MAS shares.

What does ostensibly mean? The usage of the term suggests, we are not sure whether this one time music company executive( who didn’t know anything too about running airlines) and an accountant( also zilch at running airlines) can help out MAS or not?

If we are not sure then why were the two given the chance to own 20% of MAS? Because the two had the benefit of luck on their side- when they took over the bankrupted AIR ASIA, with no experience, they had support from people- powerful people. They took that opportunity and make a successful career; hence they deserve to be given the honor of helping out MAS. Plus perhaps the same powerful people are still behind them.

The deal is founded on several debatable assumptions.

(1) The skills and business culture suitable for a business like AA can be applied without any loss in transition into a setting like MAS.

(2) a lot  hinges on the business leadership skills of Tony Fernandes. 

What are we supposed to do then?
(1) Look for a suitable business culture and a management team that supports that culture 
(2) find the necessary leadership.

This deal has been hyped up beyond what it deserves. MAS is in a sorry state. In order to sell the deal, we can muster all the resources to make it out that this deal is of strategic importance and all that. It’s easy to do that- just assemble all the CFAs who work at the various investment banks, give them a spruced up writeup and they will all sing the virtues of this CCF.

But haven’t we read and heard the same things whenever MAS was about to embark on some similar programs? When Tajudin Ramli took over MAS, the CFAs wrote the same upbeat notes. When Jala was managing, it was the same. In the end, despite the Nobel prized standard analysis of overweight, market weight and underweight assessments, MAS went downhill too.

Running MAS it seems is no longer a question of applying the technicians’ skills. We are sure MAS wasn’t short on that. Dato Tengku Azmil was a trained top accountant from Australia. I heard he was cited for excellent academic achievements in Australia. He is no mincemeat. Plus, he would have a real technical team looking out for MAS. In the end, MAS incurred further losses and he had to be replaced.

Something must be wrong in our basic approach.  Khazanah with all its constellation of cerebral stars, accountants and MBA’s cannot figure out what is the appropriate business culture that’s suitable for MAS. It cannot find leadership for MAS. So it takes the easy way out. Call in the cavalry.  

So why are we paying the people at Khazanah astronomical salaries if they can’t handle MAS? This serves to fortify my argument that we are better off dismantling Khazanah and all it investments portfolio transferred to PNB. 

Why don’t we let Azman Mokhtar take some portfolio and see whether he can operate the business profitably?

Let’s clear off one other thing. This isn’t a race issue. If it is, then we would have quarreled at Air Asia’s phenomenal success. We won’t have cited negatively the collusion between Kencana and Sapura which will effectively create a second PETRONAS. We would not have questioned Sapura’s purchase of PNB’s UMW stakes in the late 1990s. The thing is, if it were another Bumi getting the deal in this MAS-AA- we will be writing the same thing too. Probably more vehemently because such a deal would suggest a now familiar modus operandi. Reserve all the goodies for selected bumiputeras.

Let’s suggest this to Khazanah. Find someone who is musically inclined, likes wine and women, a football and pool enthusiast, likes it so much that he wants to buy a football club, likes racing and fast cars because that reflects his libido, pair him up with an accountant- hey presto, Khazanah has the perfect recipe for MAS success.  Its the perfect case study material worthy of being assigned to a HBS class. 

Will that do? No? Then having TF and KM on board will not ostensibly help MAS.

So we are not sure whether the end game of Khazanah is really to help out MAS. Because if its serious, then having TF and KM owning up to 20% of MAS share isn’t the prerequisite to helping out MAS. Not necessary even to have the two on board.

What has happened since then? Don’t feign surprise. Yes I ask what has happened and what has been publicly said in the short span? 

The first thing dear Danny boy did was to spend money. So, all these years, MAS was losing money because people don’t know what MAS is. It’s now time to make MAS a brand name. MAS which is losing money and which does not need brand identification sponsors jersey for QPR. Having MAS name emblazoned across the QPR jersey will translate into greater awareness of MAS and make it profitable?

This is the problem when you put in place technically competent young punk but who is one dimensional in thinking do his thing on MAS. The first thing he thinks is football. After football pub-crawl.

The plan is to glorify the idea that MAS operates as a premier full fare airline doing the long haul routes. That will make the giving up less painful. The fact is, the long haul routes have not been profitable in the first place with the given business culture that has been infused in MAS. It’s going to bomb right from the start because the one factor that is killing MAS-its business culture that breeds the wrong kind of management thinking hasn’t been sorted out. That one factor has not been excised. It’s going to succumb.

It’s forced to give up the profitable regional routes which will be taken over by Air Asia.  You are going to force MAS give up its profitable business sector arguing urging us to believe that’s it’s good that way. MAS with its debilitating business culture and fucked up management can now compete in the premium market and somehow be successful? What kind of warped business reasoning is this?

You want us to believe that MAS has been unprofitable because it contains incompatible business units within it system and by forcing it to give up these, the same business culture and management practices that have bankrupted MAS will miraculously turn MAS into a profit making airline?

But wait Dr Pangloss- the circumcision is not completed yet. There’s still a lot of foreskin left. MAS has a LCC business unit right? - Yes that one named after the fly that emits its own natural LED? No problem, confine it to run to the routes which Air Asia didn’t want in the first place maybe to places like Tebedu, Pos Betong and other god-forsaken places requiring turbo propelled planes. Yes the planes that once confounded some people to curse how and why the hell some stupid engineers designed planes with fans outside when they should be inside in the first place. 

Sap sap sway ma…Form a new business unit called Sapphire that evokes some glitter in the name to take over profitable Firefly’s business. We don’t get any Nobel awards for guessing who will be the major stakeholders in Sapphire.

It’s already happening. Personal business agenda nurtured from a different business culture is already being applied to MAS. We can see the writings on the wall, but incompetence on the part of government regulators and the almost reverential tolerance and rationalization of rapacious greed all seemed to make this deal, an above board and personal deal. The deal is further supported by the nauseating analyses by CFAs. It’s all bull.

The 1-2-3- reasons above have been touted as the rationale for the MAS-AA deal. So ok, the deal has already been done. The idea is to allow someone who is an expert and successful in that industry take over the helm.  I say ‘person’- to avoid treating this as a race issue. 

We have had similar experience in the past. A person, a Malay was given control over MAS and when MAS business got mixed up with his own personal business interests, things went awfully awry. What happened when Tajudin Ramli helmed MAS hasn’t been clearly laid bare for the public to understand. The government has to buy back the shares from that person by absorbing the huge losses.

But this time it’s different, comes the protest. It’s rah rah Tony. He is successful man- surely he can do miracles to MAS. All the others are fucked up subsidy fed Bumis man. Non bumis can do better brother, tamby. This person is a terrific businessman with a proven track record in this industry.

The principle is the same- personal business interests get mixed up with the business interest of MAS. The presence of the same personal interests makes this deal inherently wrong. As a single largest shareholder, TF will be calling the shots as well as aligning and re-engineering the business, but never jeopardizing his own personal business at AA. Unless sometime in the future he has been promised, he can have his cake and eat it too.  The future of MAS therefore is dependent on the skills of TF and AA business model.

How then do you guarantee that MAS will be successful? You get the guarantee if MAS becomes a low cost carrier itself. Then that would only require the transfers of the business culture and personalized business acumen of TF which has worked wonderfully for AA to make MAS successful. Simple what? - graft the culture at AA onto MAS. 

But let us humor those who want to turn this deal into a race issue- we make it race issue simpliciter- since AA business is successful because Tony the non bumi is there, let MAS be taken over by him.Setuju?

At some point in time, you have already told everyone, you want MAS to operate as a premier full fare airline. So ask yourself, will the AA business culture and personalized business experience and acumen that make AA successful can and will  also be compatible to make MAS profitable as a premier airline?

You have two clashing cultures that would immediately make you suspect, MAS is already doomed from this deal.

What is it that you want to do with MAS? I thought we have gone through so many downsides when people with vested and personal interests get involve in MAS business. We are not disturbing Tony in his business of making money at Air Asia. He is rewarded for his acumen and skills in the business field he has chosen. That is his personal interest. He does it by the AA model.
Will he apply the same model on MAS? That would place MAS on collision course with AA and if AA is TF’s first love, how will he do justice in his role in MAS to assist our national airline become profitable?  If he does that because of patriotic reasons, then that would place him in direct conflict with his interests in AA.

He will therefore expected do several things. First ensure MAS will not compete with AA. So he says, off with Firefly because FF is in direct competition with AA.  That’s done. Next, take out MAS from competing with routes AA wants. So he counsels the government its best MAS concentrate as a premium full fare airline doing the long hauls.

Can the culture that makes AA successful as a LCC be applied to MAS so that it can succeed as full fare premium airline? You have a directly opposing culture capable of making a success out of a LCC but which will be impossible to produce success in a premier airline. Simply because MAS will need to operate on a different business culture and business regimentation.

AIR ASIA and the practitioner of its culture is the wrong model and person to lead MAS. This is not a question of opposing the deal because it gives a non-Malay benefit and profit. This is primarily an issue of doing the wrong thing to save MAS.

addendum: TG Azmel did not graduate from Australia. Instead he graduated from Cambridge U with a First. He is a BA(Cantab). A reminder to those UMNO politicians who like to parade their purchased degrees that a person who graduates from Cambridge has a Cantab and a person who is from Oxford has an Oxon. I know of an UMNO political operative who proudly writes B.A( university of oxford) and another University of Cambridge.


bruno,  24 September 2011 at 00:41  

Dato,first of all why the top goons of Kahzanah came up with the idea of a share swap with AA is anybody's guess.Maybe they were instructed by some powerful hidden hands to do so.And not many pro Umno and Umno paid bloggers made a lot of noise about this MAS/AA deal.Maybe they know that there are powerful Umnoputras behind TF.

And if there are powerful hidden hands behind TF and AA,why would they want to swap AA with MAS shares from Kahzanah.That is if AA is such a very profitable low cost carrier.There is no way Kahzanah can tell TF to swap shares with them if Umnoputras are behind TF.What if it was the other way around.TF's backers asking Kahzanah to do so,for whatever reasons known to them only.Maybe it is AA that needs to be prop up,is in trouble and needs urgent financial infusion,or in another words need a bailout.

Anonymous,  24 September 2011 at 02:47  

those 2 clowns love music, fast cars, and football lately even though they play no football before. u see tf is fat, flabby, short, hell he surely cant play football and play only with kids and such. meranum meanwhile is taller, love music, maybe played a little bit of football during school time, but one thing is sure they are both look likes retard.

so they previously were employees of some sort of companies, they were no businessmen, they just like many in bolehland, living a life by being suckers. so one day they sucked some right people on the right time and then ya be da be do they won a jackpot.

nick 24 September 2011 at 07:29  


Didn't you get the memo? Khazanah and all GLCs are all gold mines and treasure trove to be looted! That is why Khazanah and all GLCs are filled to the brim with pirates and privateer in the employ of UMNO warlord and blue bloods. For the past 3 decades, the looting and piracy have been going on and guess what? It's not going to stop as long as the warlords and the blue bloods are still running and controlling of this country. Transparency, patriotism and accountability? Those words are but mere jumble of alphabets found only in dictionary and not in the hearts and minds of these pirate (and privateers)and especially not on their masters black hearts, who are charged to take care of this country (who will not doubt "take" everything and anything worthwhile and "care" none about the fate of this country and it's citizen).

You were a part of this Dato', before being sidelined and discarded, surely you knew what was being done and what it takes to put a stop to the looting and pirating. Talking about curing the symptom is not the same as finding the cure to the illness that produce those symptoms. MAS is but a mere symptom of the disease (or illness) and we all know what the disease is! And the cure, for that matter!


Anonymous,  24 September 2011 at 09:39  


In a few years time, you can boldly blogged "I TOLD YOU SO" when the government of that day (almost 99% sure it will still be the same UMNO government) has to bail out MAS yet once again so that the cronies associated with the MAS-AA deal will get another huge payout.

When the above happens, I too can boldly comment "I COMMENTED SO".


Anonymous,  24 September 2011 at 09:43  

Salam Dato',
Semoga Allah berkati perjuangan Dato' in your own way... I've been following your writeups on this and others over the years... one clear conclusion came to my mind: we have "sick" & greedy bunch of people running this country, right from Putrajaya to Khazanah and all the ministries & agencies in-between... and the rakyat have been paid lip service by the politicians (from both sides of the political divides) and all those entrusted with the amanah to do so... many of the rakyat are suffering directly and indirectly due to this and they feel so hopeless (of course the GE can make a difference in government, but we have the same set of actors trained in the same lines of greed, etc.)... I got this eerie feeling that all these injustices will create "bala" that would befall all of us one fine day...


Anonymous,  24 September 2011 at 10:12  

"The fact is, the long haul routes have not been profitable in the first place with the given business culture that has been infused in MAS. It’s going to bomb right from the start because the one factor that is killing MAS-its business culture that breeds the wrong kind of management thinking hasn’t been sorted out. That one factor has not been excised. It’s going to succumb."

BINGO Dato', and that is the main objective of the Barbarians.

Anak MAS

Anonymous,  24 September 2011 at 10:21  


On the surface, the solution to 're-invent' MAS is NOT race-based.

But...but.. a deeper analysis would tell that the core of MAS problem is indeed race-based.

The SOLE problem of MAS chronic debacle is people orientated; ie how to manage/motivate/enhance human capital.

Here we come to the RACE part.

Years of race-based management selection in all levels of MAS hierarchy has single-highhandedly created a mono-cultured organisation, run/manage just like all the current government departments - mana ada system.

Why - mana ada system? Simply bcoz human learn fast. The moment a group of people is being promoted/favoured based other than merit, the culture of entitlement set in. Yr words, the putra before the bumi syndrome.

Add to that to the constant propagation of mythified subjugated bumi issues within the context of M'sia, suddenly this group of people becomes nu-touchable.

Anyone who has a sense of simple management concept would tell that MAS is overly bloated with unnecessary personnel. & that comes with a huge operating cost. Moreover, it carries with it the sickness of inefficiency, wastage, pilferage due to set-in jealousy.

Any person, outside that privilege race, who dare to touch MAS, would be crucified just like Jala, even though a good motion has been set to get the company out of the financial mayhem.

The MAS is structured just like the current M'sian Govt setup - 1.2M taxpayers supporting 1.3M civil servants. Bravo - a world 1st!

So any wonder, why MAS is a race problem?

Good luck to JA. He needs the stamina & toughen mindset to face up to that title of penghianat bangsa, when he takes the khife to trim those fat within MAS. That's iff he ever dare!


Anonymous,  24 September 2011 at 10:34  


This is mis-information.

‘As a single largest shareholder, TF will be calling the shots as well as aligning and re-engineering the business, but never jeopardizing his own personal business at AA.’

Khazanah is the largest shareholder of MAS, holding also the golden share on behalf of the GOM.

TF is NOT running the show at MAS. He might be ‘advising’ the BOD, but his decision is NOT the holy grail.

MAS is still been run by AJ from the privilege race. Period.


walla 24 September 2011 at 10:38  

It has been said there are four factors to business success (i am inventing all this as i type).

First, triggering things to happen by organizing best-available resources;

Second, shepherding the concern to make things work sustainably to some continuously improving set of standards;

Third, passing the baton of credible legacies in management, resources and branding locked in by unflagging focus on success factors against potential threats, and last but not the least,

Fourth, pure animal luck.

The problems of MAS didn't just appear yesterday. They have been around for a long time.

If you care to look at the other GLCs, including the state-owned corporations, the same history of not having credible support for the first three factors above runs across their respective corporate lifecycles. It's all apanama tidakapa.

With apanama tidakapa, you can only get at best fifty percent of the fourth factor of pure animal luck.

To run a flea, that's ok; close one today, reincarnate another tomorrow. But to run an elephant, that's not ok; you only get one shot one kill.

The MAS of today has lost that shot. Some analysts have said its share price will head further south soon because all have concluded it will be sandwiched between high cost low yield. That means it will have to eat reserves it doesn't have. Like flying a plane on vapourware.

Any national airline is immediately a multinational because to make money you have to fly heavies from one latitude to another longitude.

And that is the overarching focus that MAS missed. Its mindset was national when the challenges were international.

How many of the big Fortune international corporations remain today in their original forms? What's the average retention span of their CEOs?

walla 24 September 2011 at 10:39  


Which comes to Ahmad Jauhari. Would he be able to do-it in the manner of a Louis Gerstner? Make the elephant dance? At best he is a corporate hatchetman when the challenges need both cultural re-attunement and strategic hardware redeployment of what is basically a SERVICE company.

Plausibly Jala would be better but it would be too much to ask him to go back after the fuel hedge fiasco.

Wan Azmi? His recent interview on the E&O fiasco was a merry-go-round of self-enamoured words reducible to one painful conclusion for all minority shareholders of the world.

Reminds one of the speech given by CM Taib many many years ago at the tourism centre opposite the renaissance hotel in kl; just chuckling to himself his wordplay so much so one hardly knew whether the resulting tummyache was caused by the contaminated milked tea served or his v.....s/

There, we have sent two to the barber who will be attending the next MAS board meeting. Tighten the screws, batten the hatch, lubricate your all. The pressure cooker's just starting to whistle.

Let me cut to the chase on the matter.

You can assemble the best hardware in the world in this country. But if the software is wrong and doesn't run well, you will only open the system to viral attacks.

And what is the system? Mahathir will tell you it's to use political power to crowbar more economic power. Test it. Ask him now if there is say someone other than a local malay who is more equipped with a plan to lead MAS out of its morass today, would he endorse the appointment?

Every GLC and what-not you see today has been from day one helmed by ceo's appointed by political anointment with commercial fit made a secondary concern. Which ceo of a large agri concern didn't know accounts? Which ceo of the central bank didn't know banking? And so on.

This overall thing to insert a representative of the race into national concerns with international exposure has been tested too much too often too long.

Perhaps that's why we are now reduced to fighting what is right or wrong today on the deal. And there will be many such deals ahead. Just wait and wonder.

Aren't the folks in firefly also malaysians? Doesn't the EPF own 11 percent of MAS? And if Rais can show a tv movie (Behind Enemy Lines) in which was said the F-18 Hornet that was shot down was a USD40 million plane (say, RM120 million), how can Zahid Hamidi declare the Eurofighter is RM1 Billion apiece?

There, three hidden nuggets to make your weekend.

Anonymous,  24 September 2011 at 10:44  

All these cannibalisations are to fill up the war kitty for GE13 and their own pockets just in case they lose.

These crooks BN politicians and corporate people never learn from GE12 , the Ghaddafis, Mubarraks etc, do they?

The only difference bet us and the North Africans and Mid Easterns is we have powerful Bloggers and Rakyat.

Think, Najib and DUMNO , think deeply... and answer these 2 questions.

How come the whole government machinery , Police, AG , MACC cannot handle RPK alone?

Do you think you can handle pissed Rakyats (such as in Bersih rally)?

If PM cannot answer, first solution
is to sack PM advisors before the Rakyat sack all UMNO Rep.


Anonymous,  24 September 2011 at 11:07  

just a digression. felda sue others for defamation. now, if govt agencies can sue can we not sue board of MAS and Khazanah for dereliction of duty? or for selling out MAS which belongs to the people technically?

Anonymous,  24 September 2011 at 22:01  

The beauty of it all is "nobody gets punished for stupidity.In fact they get promoted."
Azman Mokhtar plain stupid assetlite,sell ur kitchen WAU cost the govt billions i.e at MAS n PMB.Nobody will ever know how many billions tho.Azman is Khazanah CEO earning millions.Danny is in MAS spending millions.
Then,we hv Jala n his oil hedge losses.Again its only paper losses storyline bars us from the truth.Paper losses gets translated to realised losses but PM is dumb enuff to buy Jala intense bullshit.Conveniently tg azmil becomes the scapegoat.Will the true oil hedge losses be exposed.No way Sir cos Jala is now running the country.
So,u don't exposed or punished nor loses money. . .wat the heck?why bother?Play the game n keep raking millions.

Asam Pedas,  25 September 2011 at 00:51  


I think the problem is more than MAS problem. While LCCT is buzzing the majestic Klia is dead quiet with only MAS planes parked at the terminal. Didn't see any foreign planes parked at Klia when I was making a trip recently. Hardly see MAS plane taking off or landing.

It raised a question, what happen to the great plan to make KLIA as international hub? It just confirmed it was RM 8.5 B  gamble of tax payer money to construct KLIA and see it turning to be white elephant.

Now we are told MAB is constructing a new LCCT at a cost at least RM 2B for new LCCT. If my math is correct, we will soon see 2 empty terminals....if we don't count hardly used Bunga Raya terminal for VVIP. Even Heathrow do not have a special terminal to accommodate their Royalties/Lords/Barons.

What we seeing set of mentality have no sense of accountability as far as airport management is concern. And the problem is getting bigger by the day.

Going back to MAS problem, by appointing Ahmad Jauhari as new MAS MD which is more known as financial cum administrator in corporate circle we can interpret that govt is not really serious in resolving MAS business mess. My prediction is we will hear within next 1-2 years, the continuing saga of MAS/AA/TF which could be more explosive than what we hearing today. Fortunately for TF, he already has one leg in Jakarta being his new airport hub.


walla 25 September 2011 at 11:03  

One analyst projected that with its passenger traffic, KLIA could be an asean hub.

However, those numbers are deceptive. If you were to go to that airport, you will find many of those passengers are actually foreign workers either landed or embarking to go home.

It must have been a syndicated arrangement that they use KLIA and not LCCT more.

That means the passenger traffic at KLIA is materially less to account for the fact these are one-off passengers every two contract years; they're not like the regular business/tourist passengers at Changi, for instance.

So, that's something of enormous concern because right now KLIA/MAHB is floating on government subsidy, read your money, at RM1Billion/year to platform foreign workers.

Which makes it hard to understand why in the construction of KLIA2/LCCT2, there has to be one long passenger bridge so that 'people walking on it can see a plane move underneath them'. That bridge would have cost a lot to construct so you wonder what function it actually serves.

If you just disembark from a long-haul route, you would want to quickly clear immigration and customs, get into a clean taxi, and reach your hotel/home in a fuss-free and one-piece manner; at most, stop for some duty-free purchases where the credit card connection works quickly.

Not have to walk some distance, go around some jungle display, and then take a wobbly train ride while viewing a near-empty tarmac just to rush to the carousel.

And if you're waiting to embark, you have only burgers. What if the passengers are high net-worth non-Muslims? Why should they pander to local preferences and sensitivities? Who made the decisions? The same mindset as those in KLCC?

There is no focus on:

(a) streamlining;

(b) international;

(c) cost.

Cost is a big factor in all our GLCs. It is an inflated factor. Let me correct that. It is a politically inflated factor. Perhaps Datuk K (not T) can elaborate.

As another instance, you may remember that Sapura had got the direct non-nego TAMS contract worth RM400 million many years ago. At today's price, that would have been RM2 Billion. For that, it is understood they supplied off-the-shelf items, not customized. There was talk it was replaced some time back. So, you ask what happened, why and the other usuals.

Sapura is a Mahathir crony. Now it gets another RM2 Billion communications contract and is also about to co-elbow Petronas.

So here we are talking about nationalism and there they are creaming off the coffers to leave behind (a) outdated business models, (b) bleeding humungous corporations, (c) demotivated but still starry-eyed for gains staff, and (d) an angry mass of rakyat who will have to (e) bailout those crony projects with money they don't have, while (f) sold the beauty of the present government (g) which no one trusts.

Anonymous,  25 September 2011 at 11:15  

This is actully the story of MAS. When Malaysia Singapore Airlies Split our blue -eyed boys gave up all the long haul routes to Singapore in exchange for for the short haul route which was creamed by Singapore Airlines in just 10 years. At one time in 1986 MAS had only three flights a week to Jakarta, despite or claimed special relations with indonesia and Seoul while Singapore Airlines had 7 flights a week to both destinations. Today, Please correct me if I am wrong, MAS has seven flights a week to Seoul and Singapore Airlines has three flights a day to Seoul. Jakarta you can find out yourself.With all that money spent on advertising Malaysia Truly Asia and MAS on the back of QPR MAS has only been abel to holds onto the short end of the stick.

We need a good cat to cath the rat. The colour of the cat does not matter. But certainly we do not want the cat to own a football club because in the history of aviation no CEO of an airlines owns a football club.

Anonymous,  25 September 2011 at 13:49  

Agreed with Nick 07:29, MAS issue are sysmptoms of a disease. Khazanah is sick because the Board members are suckers of rakyat's blood.

sang kancil 25 September 2011 at 14:24  

Only Liars Thieves and Scumbags are allowed to share the wealth in Bolehland.

Anonymous,  25 September 2011 at 16:02  

Dear Walla,
I like your blunt words on Wan Azmi's self-talk on the E & O interview, "a merry-go-round of self-enamoured words....". Precisely so.
Wonder if it was a deliberate distraction from the gaping wounds inflicted on E&O's minority shareholders. Or, because one is so much in love with one's own words, there's no distinction between the real and unreal? It wont be the first or the last fiasco, the most recent being the ESSO tale of sorrows.
You talk sense and so does Sak.
Let's leave out the non-essentials to stew in their own juice.

cucu nenek,  25 September 2011 at 23:09  

Dato, do you think the new Malaysian Competition Commission (MyCC)will be looking at MAS-AA since "The public could use this media to channel information and complaints on any market manipulation and cartel activities. Such information is crucial for MyCC to act effectively"....?

They want to show the nation, and the world, how serious and committed the government is in championing principles of healthy competition and creating a “level playing field” for businesses....


Anonymous,  26 September 2011 at 14:23  

Dato, dont be so critical yet. Just let them try. We see the results. If they perform like what you have predicted, then we can hantam them kuat kuat lah.... Sometimes, miracles do happen. Have faith in the system....

Anonymous,  26 September 2011 at 16:31  

dato', have u heard of houdini, the famous magician? Could they be doing a 'houdini' on MAS very soon? With AA taking over everything, MAS would no longer appear on the earth anymore, let alone malaysia. And all the UMNO warlords would have a share in AA.

Anonymous,  26 September 2011 at 17:50  

Let me own up.. I am a simpleton who sees black as black and red as red. There are lots of learned guys at Khazanah. There are lots more intelligent guys advising the PM. Yet, no one sees things as clearly as you do. (Or they see it clearly than you but think the rakyat are stupid)
I know Dato' that this is not a racial issue. But don't tell me none of the guys mentioned above see this wammy. I strongly suspect all these are done with the full blessing of the PM. Why is a national asset need to be privatised for the benefit of a few. Is the PM serious in ensuring the nation is not raped economically. May be he is too busy planning for a motorbike expedition next.

Airil Haimi Adnan a.k.a. Teech 26 September 2011 at 18:56  

"A reminder to those UMNO politicians who like to parade their purchased degrees that a person who graduates from Cambridge has a Cantab and a person who is from Oxford has an Oxon. I know of an UMNO political operative who proudly writes B.A( university of oxford) and another University of Cambridge."


To be fair to UMNOnites, I know of several of your members with so many suspect qualifications.

One dude from our time in England actually FAILED to get a degree. On his name card with the UMNO logo proudly there, dia dapat LLB (Hons)... dari langit mungkin.

* Sorry out of topic sir, just quite interesting that you have chosen to focus on that small bit at the end.

KEEP UP THE GOOD WORK (post scriptum: Please run for PM, I will personally vote for you sir, Insya Allah).

Anonymous,  28 September 2011 at 01:55  

How much did MAS lost thru the Idris Jala inspired oil hedge 2008?

MAS decided for an early adoption of FRS 139..

Thus,they hv to mark to market the balance of hedge on quarterly basis,The actual for the Quarter is carried to the P&L.

MAS adopted FRS 139 when oil prices was at its lowest..thus they had to "balance sheet" about 4 billion loss then.

Subsequently the prices went up to the 80s.As a result MAS had a billion dollar oil hedge profit in 2009.But the actual cumulative losses was still about 3 billion.

In 2010 n 2011 todate there were again minor oil hedge profits.As it the loss is still about 2.5 bil or so.The hedge closes out end of 2011 thus ultimate losses seems to be between 2-2.5 bil.

Correspondingly cashflow is certainly constrained necessitating a rights issue recently.

The crux of the matter is "Should Khazanah/MAS declare to the rakyat the extent of the loss (or gain if our computations are wrong)?A declaration will close the unfortunate chapter.

Of cos its all pubic info if u dig hard enuff in the AR.But an official declaration is ...official.Digging is ...not.

MAS hv been unfortunate but we the rakyat is even more unfortunate.

We can only watch rescues upon rescues from the sidelines without even a shred of knowledge of the magnitude.

By right before each "rescue" govt shld give us the total picture.

So whats the WAU financial implications?Whats the Jala's oil hedge?

Hope someone can help us to understand,

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