Sunday, 18 August 2013

MAS ADMITTED TO ICU


TERKINI: 19/8 : Malaysia Airlines will not be privatised, says PM Najib- Bernama. 


FROM THE STAR 
Published: Sunday August 18, 2013 MYT 6:05:00 PM
Updated: Sunday August 18, 2013 MYT 6:29:50 PM

Dr M: Privatisation can make MAS profitable


Dr Mahathir and Tun Dr Siti Hasmah Mohd Ali receiving guests at their Hari Raya open house on Sunday
Dr Mahathir and Tun Dr Siti Hasmah Mohd Ali receiving guests at their Hari Raya open house on Sunday
  
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KUALA LUMPUR: Privatisation could be the answer to Malaysia Airlines' profitability after efforts to turn it around had been unsuccessful, said Tun Dr Mahathir Mohamad.

He said through privatisation, MAS' management would have to be serious in finding ways to make profits, whereas, as a government-linked company, the perception was that it was alright for MAS to even record losses.

“There are people who think that GLCs are meant to provide employment opportunities and not to make money for the company or the government.

"Privatising MAS may change this and the airline can probably make money instead of losses,” he said, adding that his experience with Proton was a good example where after the national car manufacturer was privatised, the management was more conscious about the company’s profit and loss.

The former prime minister said there were sufficient local talent to manage the airline should it be privatised, instead of selling it to foreigners.

Talk of the sale of MAS resurfaced recently, with several parties believed to have sent in proposals to the Government to buy over the loss-making airline.

Minister in the Prime Minister’s Department Datuk Seri Idris Jala had said that the government did not have any plans to sell MAS and was implementing the recommendation to rationalise its role in business under the new economic model.

MAS ADMITTED TO ICU
Sunday, August 18, 2013
KOMEN: PM IS NOT SLEEPING
MAS Board of Directors need to issue a white paper after their investigations into the deplorable financial woes in MAS.PM is not sleeping as the investigations from an external team is going on and hopefully an appropriate statement will be issued by Khazanah Nasional in the coming weeks. Please do not embarrass the prime minister when things go wrong in an any of the GLCs.The Chairman and Board Members will be responsible for any rakus in the public listed GLC companies. MasAgung Kuala Lumpur on MAS ADMITTED TO ICU


FROM OutSyed The Box

GLC Management's Kill Again - MAS Admitted To ICU

Folks the conclusion first : Malaysia Airlines is in trouble again. There is only one way to turn MAS around - stop the stealing.  People who have been reading old books about Wall Street raiders are now planning to rip off MAS.

Here is the story. MAS is actually quite a jewel in the crown. Here are some really positive things about MAS. 

  • MAS provides excellent service
  • an excellent fleet of airplanes
  • an almost 100% unblemished safety record
  • good routes and most vitally, 
  • strong passenger loads.  

Here is more about MAS from BK Sidhu of The Star :

  • airline reported its highest ever load factor of 84.3% for June 
  • carrying 47,000 passengers every day 
  • Last year daily number of passengers was 37,000.
  • flies 17% more flights per day 
  • managing 340 flights per day, 60 destinations. 
  • “RM3bil cash in the bank
  • rural routes being fully subsidised by government


Other airlines around the world which enjoy the same ingredients are able to make profits. 

May I add something else - MAS also has a near monopoly access over the most favourable airport services and ground handling services in Malaysia plus strong Government support. 

And yet MAS is in trouble again. They are making losses.  Now they are saying that they want to sell off MAS.  

You mean this is what all the 'con-sultans' can come up with? This is the GLC management expertise? Sell off MAS? This is the "nenek tua" style of management again.

Folks, do you know that Malaysian Airlines share price is now down to just 33 sen a share? A roll of toilet paper costs more. We are talking about our national airline. Apa sudah jadi? 

The corporate raiders are now drooling at MAS. Old crooks have learnt new tricks. The stealing is going on. The Prime Minister is sleeping.

Imagine you were a crook. Then you were put in charge of this huge and wonderful asset called MAS. You cannot steal the airplanes - they are too big. Someone else has already stolen the food catering business. 

So what would you do? How would you steal? It is a listed company. You push down the prices of the shares. You push it down to almost worthless paper. You float all sorts of negative news about MAS as well. 

Then you call up your fellow crooks. They come in as "white nights" and say 'We have come to save you. We will buy over MAS and save it"

So they buy over MAS at 33 sen a share or less. Then they break up the company and sell off its core businesses and assets. This is called asset stripping.  

The accounts say MAS has 56 sen worth of assets per share. The share price is 33 sen per share. Each share therefore already has a 23 sen 'buta premium'

Or they can push the share prices down even further - to toilet paper level. At such low prices, of course they can buy it cheap and then "miraculously" boost the share price up again. They will make some bombastic announcements. The share price goes up, maybe even doubles or triples. Or more.  

Then they unload their shares, make a neat profit, pay themselves off and exit the scene. MAS will fly into more turbulence again. Then another rescue package will be put in place yet again. 

5 comments:

  1. MAS Board of Directors need to issue a white paper after their investigations into the deplorable financial woes in MAS.PM is not sleeping as the investigations from an external team is going on and hopefully an appropriate statement will be issued by Khazanah Nasional in the coming weeks, Please do not embarrass the prime minister when things go wrong in an any of the GLCs.The Chairman dand Board Members will be responsible for any rakus in the public listed GLC companies.

    ReplyDelete
  2. I thought MAS is run privately. It is run like Government Departments, asking for more money from government to keep going year in year out. But MAS has income. I think the spend more. But, I am sure they know what they are buying. After all, look at their job titles. One soldier writing a report, passing the report to an officer to another, eventually after 4-5 officers, the , report will climb down to the soldier ( junior staff ) to amend.

    Or MAS is shortchanged in every way there is.?

    ReplyDelete
  3. Natul Tan Sri . Najib is not sleeping. But he is sleepy or kind of in between. May be he is still holding the auto pilot type of management that handed over to him by previous baru terdedar dari tidor PM Badawi?

    ReplyDelete
  4. Brothers and Sisters,
    Our economic crisis with the collapse of the currency due to currency speculators George Soros has gave birth to our own products 'Corporate Raiders' or 'Penyangak Ko(e)parat'. They even pirate their own GLC. They graduated from great universities and learn how to rob the shares of listed companies.
    Today we do not need the expertise of George Soros because we have our own boys that are able to do it.
    Now they rules the economic not event elected thru election but by special appointment.They are the key people that advise The Minister Of Finance in parallel the PM himself which got not enough time to think because PM is wearing so many hats. So "lu pikir laa sendiri...."

    ReplyDelete