Early this month, the new MAS CEO/MD has held his first town-hall session with MAS workers and 2 of its new MAS Board of Directors who are also the current BODs and CEOs for Air Asia and Air Asia ‘x’ that were Tony Fernandez and Kamarudin Meranun.
During the town-hall session, Tony Fernandez and Kamarudin Meranun were invited to the Q&A segment and questions were raised to AJ whether MAS would merge with Air Asia but Tony Fernandez answered it to the audience with the statement below.
“We are very against the merger. We think shareholder and employees’ value would be destroyed. What I see in SIA is making a very big mistake, Long Haul, Short Haul and premium airlines. If you look at our history, we started Air Asia and years later with Air Asia X. We also talked about whether we merge it or keep it separate. In fact, we separated them completely. The best scenario to raise capital and finance the game is to focus and less complexity. If you put AAX and AA and MAS there, it will be a terrific recipe and in the end, it will bear result.
In terms of revising lots of routes – whereas people would like to fly MAS to LHR etcetera but we never interlined. We never collaborate at that end and we keep it separate and keeping our measurement voice focus on doing the job, it becomes easier. So the only way we could do this so that not one shareholder from the other is benefiting. So let’s do the shares swap! If we don’t do the shares swap, there will a merger. By doing the shares swap, the economic interest is aligned in terms of both parties benefited. If MAS does well, AA does well and so are both the shareholders. So that’s the idea. So we the shareholders are very against the merger and we think that will be wrong. Airlines are very destroyed of its capital because of doing so many things not using the equity wisely.
Before the collaboration, we were competing. Obviously, we were the ambitious LCC but we were thinking about doing full service carrier and if we keep competing with each other, we both end up losing money.
The collaboration is where we can cost save and buying things together and collaborating in certain areas in terms of interlining etcetera. And we can focus on our specialty, which are 5 star and 3 star.”
The statement above made by Tony Fernandez proved his ability going against the antitrust regulations reducing the competition between MAS and Air Asia within the framework of CCF.
The statement above also proves Tony Fernandez and gang is leading the transformation in Malaysia Airlines through CCF. Under CCF, MAS Chairman and CEO/MD are puppets that are being paid to carrying out the planning designed by Air Asia CEOs converting Malaysia Airlines into a holding company without staff and assets.
Malaysia Airlines’ workers must NOW stand up and start calling off the CCF immediately before your staff benefits are signed off by Tony Fernandez to the similar package that has been in practice for Air Asia’s workers.
We have reason to believe MAS unions are collaborating to cease CCF at all levels including meeting with Prime Minister to stop the collaboration. We believe MAS workers shall unite together and act in fraternity supporting MAS unions especially MASEU the main union.
Isn’t that Tony Fernandez really an asshole?
The people who have acquainted with Tony Fernandez are branding him “an asshole”. His statement about “cost saving and buying things together” sounded a mere interest in dumping his large order of Airbus aircrafts into Malaysia Airlines via the joint purchases deals under CCF new business planning; probably to increase his commission earning as Airbus part-time salesman. We only see a “shopping spree” for MAS in this collaboration with Air Asia.
American Airlines has gone into bankruptcy due to its accumulative huge debts and we believe the similar trend is affecting Air Asia very soon. Malaysia Airlines is very safe because it has no accumulative debts but loads of cash flows accumulating from its daily sales.
Nowadays, the trend is to spend frivolously before declaring bankruptcy. Is this happening in Air Asia now?
Whatever Tony Fernandez is involved, we bet there’s always an ulterior motive and whatever he does is only for his pocket to grow fatter. He uses MAS advertising fund to sponsor his QPR club for two years because he has no more money to spend on QPR after he and Kamarudin Meranun spent 1 billion ringgit invested in MAS shares. The people know he has large borrowings and debts around the world including huge fine imposes by Airbus Company for deferring aircraft deliveries.
Stay tune for more insight news.
Since year 2006, Air Asia has already started making demands to the Malaysian government to “take over” all parts of domestic sectors commercially operated by MAS and leaving MAS only with a fewer routes operating to Langkawi, Penang, Kota Kinabalu and Kuching.
Henceforward, MAS has become the ‘punching bag’ for Air Asia and its invisible cronies whenever they fail in profit making. The invisible cronies involved that we believe are Mahathir and Daim.
The MAS/Air Asia Comprehensive Collaboration Framework is actually a “driver” to rescue Air Asia and to hand over all of Malaysia Airlines international routes to Air Asia “x”. This is similar to the strategy driven by Air Asia group that had taken MAS domestic routes during the trunk and non-trunk program.
During the trunk and non-trunk program, it was clearly stated that Air Asia will not be operating international flights but this promise was not kept by the bureaucracy that has always assisted or helped Air Asia to achieve what they want even by means of collaborating or conspiring.
A reliable sources has revealed that the Comprehensive Collaboration Framework is a conspiracy plan to “take over” Malaysia Airlines. The emergence of this conspiracy plan had taken place in London after the former MAS CEO/MD, Tengku Azmil declared his new direction of business structures and trend with capacity to generate a yearly profit of RM300 million to RM1 billion from 2012 onwards. The new business trend will also oversee the competitive synergy for Firefly that will be based in KLIA2 to compete with Air Asia.
These competitive measures were strategically projected for the interest of the public in terms of safety and security of the passengers.
The bureaucratic conspiracy plan has been formulated and their “first step” taken by this group of people who are inclined towards Air Asia was to “sabotage Tengku Azmil’s strategic planning”.
We believe they hired a brokerage firm to initiate “insider trading”. The brokerage firm orchestrated the shares by synchronously propelling Air Asia shares and plummeting MAS shares that then paved a foothold for the share swap opportunity, which has yielded a 20.5% of stakes in Malaysia Airlines for Air Asia group.
Based on the insight information as per par value, MAS shares were worth of a higher value that was RM1 different than Air Asia shares before the commence of insider trading.
In this case, the 20.5% of MAS shares that Tune Air group swapped with Khazanah is actually worth only approximately 7% of the total actual swapped value.
The tuning of shares swap were a deceit for their “second step” to the riddance of MAS former genius CEO/MD (Tengku Azmil) and had catapulted more people who are inclined towards Air Asia on becoming the new MAS Board of Directors. As it is currently, the new MAS Board of Directors forms a majority of a group of people who are inclined towards Air Asia for accomplishing the collaboration plan in a conspiracy pattern.
The strategic planning by Tengku Azmil was leaked to Tony Fernandez, the CEO of Air Asia. We have reasons to believe that it is the ulterior motive for Tony Fernandez and Air Asia Board of Directors (mostly the former ministers) to have secretly executed the collaboration framework inside MAS and Air Asia through Khazanah to suppress Malaysia Airlines from expanding and gradually, as a rule will not be benefiting for MAS staff. However, we have no further information if the current Prime Minister is also involved in this bureaucratic conspiracy.
The recent Profit & Loss as declared by MAS can be disputed for the reason that the former MAS CEO/MD, Tengku Azmil had already taken fundamental measures minimizing the overhead cost to a monthly loss of not more than RM100 million.
When MAS new management claimed a loss of RM570 million, 2 months right after Tengku Azmil resigned in protest to the collaboration framework with Air Asia, MAS workers knew the siphoning money off Malaysia Airlines had been repeated once again exactly like what had happened before during Tan Sri Tajudin Ramli’s era with both Mahathir and Daim orchestrated behind the curtain. We perceive this was their “third step” of the bureaucratic conspiracy planning.
We have many reasons to believe the money that has been siphoning off from Malaysia Airlines was used to rescue Air Asia in the moment of urgency probably to pay for its workers’ salaries. So, we have also heard Air Asia management has been cutting its staff wages at their whims and fancies under union-free concept whenever its financial status is in peril.
The actual appointment of Danny who is predisposed to Air Asia is to oversee that the collaboration framework sails smoothly and always be on the right track to accomplish the new restructured charts laid down by the new MAS Board of Directors (who are inclined to Air Asia) and we strongly believe this conspiracy is for ensuring MAS would continue declaring loss of revenues particularly in the international sectors.
Our resources have revealed that Air Asia “x” is running at a loss despite its recent profits declaration by Air Asia group.
Since Danny were appointed to be in-charged of MAS commercial section, there were many information feedback verbally by MAS customers complaining MAS international flights were overbooked or fully booked during booking timeframe but when travelled with MAS on that particular “fully booked” sector, the customers were astonished as the flight unexpectedly carried very fewer passengers.
We have very strong reason to believe Danny is taking the “fourth step” in masterminding the axing for MAS lucrative routes such as Johannesburg, Cape Town, Buenos Aires, Dubai and Los Angeles with the aim of paving ways for Air Asia ‘x’ to gradually taking over all of the MAS international routes.
Their “fifth step” is for Danny to absorb slowly the remaining 50% of MAS shares for Tune Air group making Air Asia the “golden” shareholders where it may well transform MAS into a holding company without human capital and assets where then; the golden shareholders will have the privileges to enjoy “free MRO services” and “rescuing funds” indefinitely for Air Asia.
Danny’s next step (their sixth step) after axing all MAS international routes is to propose for Voluntary Separation Scheme (VSS) to the new MAS Board of Directors using the taxpayers’ money that will be approved later by the conspired bureaucracy to pay out for MAS staff.
Debt crisis of all airlines worldwide
The debt crisis that is affecting most western countries in the world will not spare the airlines that are so heavily indebted particularly the low cost carriers.
In this scenario, as we all know that Air Asia, a low cost carrier model is heavily burden with debts of RM7 billion up to RM11 billion that resulted in them having defaulted payment around the world will desperately need to find a scapegoat urgently to finance their debts.
And Malaysia Airlines is the rightful candidate to obtain quick funding and free services with the help of Khazanah.
Air Asia is at the brim of folding up because in no time, their investors would withdraw and leave Air Asia with no other alternative but to wind up business eventually. So it is for this reason they cooked up the idea of collaborating with MAS camouflaging their real predicament that they are currently facing.
Danny who is inclined to Air Asia would continue finding ways to declare that Malaysia Airlines is not capable to run an airline on its own to achieve profits, hence the collaboration with Air Asia inevitably becomes compulsory in their eyes of these conspirators.
Air Asia’s actual target in this collaboration planning is to conspire with MAS new Board of Directors who is predisposed to Air Asia to “kill” Firefly of which they had already done so.
The Air Asia’s “seventh step” of the collaboration framework with MAS is to break up Malaysia Airlines into pieces, aiming at having majority stakes in MAS Cargo and MAS MRO where MAS MRO would allow them to have free maintenance for all Air Asia aircrafts.
This was what Tengku Azmil actually trying to stop.
Dato Seri Tengku Azmil, the former MAS CEO & MD
Tengku Azmil had done very well for Malaysia Airlines but sadly to tell he was always surrounded by corporate espionages. We have reason to believe the former MAS Chairman, Tan Sri Munir Majid and the former Executive Vice President of MAS sales division were the culprits spied for Tony Fernandez, the CEO of Air Asia.
Tengku Azmil had done a lot of cost cuttings and had then reduced MAS overhead expenditures tremendously where he further managed to reduce the operational losses by around RM70 million to RM80 million per month.
He is a very honest man and he did a very good job for MAS which was not appreciated by former MAS Chairman, Tan Sri Munir Majid who is an dishonest person who bought exorbitant arts that cost the airlines around 2 million ringgit.
Whilst Tan Sri Munir Majid was still the Chairman of Malaysia Airlines, he abused the privileges given to him as MAS Chairman and very often he travelled to London at the expense of the company’s fund where he also contributed to the increase of airlines’ expenditure.
Malaysia Airlines have been swindled too often. Malaysia Airlines and its workers; and its former MAS CEO/MD, Dato Seri Tengku Azmil are the victims of the bureaucratic conspiracy.
A reliable source has informed us TF quoted “MAS Cabin Crew are spoil brat and very demanding”.
Are you, MAS Cabin Crew? If making a comparison with so many other 5 star airlines, both MAS pilot and cabin crew are still the lowest paid in terms of their total “take home wages”.
What TF did not realize is that MAS is a union-based airlines unlike Air Asia is anti-union based airlines similar to the practice adopted by Ryanair.
A union-based airlines provide the avenue for addressing the welfare and the rights of its employees. The difference between a unionize airlines and a non-unionize airlines is the terms and conditions that set between the union and the airlines for the employees including the payment conditions are always adhered by the company.
The non-unionize airlines are unreliable and can even change its terms and conditions at anytime without consulting the employees because there is no union governing the employees’ rights.
We believe the Air Asia cabin crew are being abused of their pay. According to our reliable source, a supervisor cabin crew is paid RM14 + RM14 per hour provided if he/she has no sick leave for the whole month.
If the monthly flying hours for Air Asia cabin crew is 100 hours per month, the supervisor cabin crew would have taken home :
RM2,800 (RM14 + RM14 = RM28 per hour) +basic salary of RM1000 approximately = RM3,800 per month.
BUT……if you have submitted a one day sick leave, you would only take home RM1,400 (RM14 per hour) + RM1000 = RM2,800 after discounted from half of RM28 per hour.
If you have taken another sick leave adding to the first sick leave (2 days sick leave), the company would discount another 50% of RM14 making it RM7 per hour. So if a crewmember has 100 flying hours with 2 days sick leave, he/she would be pay of RM7 x 100 hours = RM700 + (basic salary) RM1000 = RM1,700.
We believe, if Air Asia crewmember has submitted more than 4 days sick leave, he/she would only take home with the basic salary.
We all believe such malpractice is both condoned by the management of Air Asia and the ex-governmental cronies to exploit the Malaysians’ rights. If this is true, it is even wrong practice being condoned by the current government of Malaysia.
Many forums have been discussing about MAS and Air Asia Collaboration framework but only one forum provides the solutions to all MAS internal problems and we found the MASTROUBLESHOOTERS’ blog. It explains explicitly about the direction MAS was heading before the collaboration framework existed.
What this forum would share with the public is how MAS management team burns the “capital” injected by the government from time to time.
Let’s start with MAS cargo who is headed by Roslan who provides the opportunity of “commission-based” in the purchasing of aircraft spare parts to the broker. Does anyone from the government care to audit such acts? This is an act of misconduct condoned by MAS top management. Briefly, no one in MAS even bother to audit the “commission based” policy allowed by MAS cargo HOD.
Let’s go into catering services which during Idris Jala’s time where he had signed a deal under Bodowi as MAS advisor for extra wastage on each flights. For example, in first class, if there were bookings for 2 passengers, the catering will supply first class bulk food for 4 passengers and here there goes the wastage and slow bleeding MAS to death strategy. Why has no one stopped this bleeding including AJ the new MD?
How about Airport Operations? Experience MAS permanent staff were instructed by MAS duty manager to guide the vendor’s inexperienced part-timers and as always, it ended up with MAS permanent staff did cover all the jobs for the vendors whilst the vendors’ part-time workers stood like a monument waiting for their working hours to finish up.
It is believe such outsourcing opportunity in MAS could breed corruption practice within MAS. It was reported that ex-MAS AGM in-charged for airport operation who was retiring had the opportunity to appoint a vendor (under his proxy) to cater services for MAS prior to his official retirement.
Doubling the cost for the company is now a new strategy to eat the corporate company alive and then putting the blame onto the hardworking workers for not doing good enough is the new developed modern strategy being used by the cunning and greedy CON-SULTANTs.
How will MAS stops bleeding if all of the above instruction are being passed on from one MD to another new MD?
The recent collaboration business plan includes the plan to challenge the “Convention” is most intriguing part of this collaboration framework. Has anyone ever ponder which “Convention” is CCF challenging?
The salary for a CEO in MAS is around RM100k and probably has increased since CCF starts taking place. The EVP positions are estimated around RM40k to RM70k (so claimed by ex-director Bernard F) while the manager’s salary is at least RM8k onwards and top ceiling at RM18,252.00.
The salary for non-executive starts from only RM1,000 and how is it possible that the graded staff is overpaid as claimed by EVP of HC? We have information that the EVP of Human Capital and her aids Zaiton Shaari have complained to the ministry that the MAS union is the cause for the increase of high salary for non-executive staff. So if this is right, the MAS union is on the right track complementing the Malaysia Prime Minister’s call for higher salary by year 2020.
MAS staff must take on the call for her to step down immediately because if allowing her to continues fighting with MAS unions, there will be no increment for the next collective agreement. Your rights lie within your voice by first getting to question the new CEO – AJ of such call from Raja Azura and Zaiton Shaari.
We believe your MAS union has already launched a step to meet with top management by next week before their next move to picket against the CCF with Air Asia.
We also believe your MAS UNIONS and ASSOCIATIONS are being attacked by some OFFICE BOY as instructed by Tony Fernandez and his team. Do not worry MAS Unions and Associations, keep fighting and we are here for backing you up 100%.
In Malaysia, we cannot argue about the stock market for Air Asia that is now overpriced. Its share as per par value is only worth 10 cents while MAS share is worth RM1.00.
If par value is only worth RM0.10, its shares should be approximately around RM0.367 but it has been sold as RM3.670 in Malaysia market. Crazy isn’t it? But it is not crazy and this is called “insider trading”.
20.5% of of MAS shares swapped with 10% of Air Asia shares. That clearly shows either crossed-eye calculation by the ladies in charge in “K” or “Big AngPow” resulted from share swap with one condition to collaborate with MAS because there’s a lot of goodies in MAS benefiting by simply just tying the knots with MAS.
(1) FOC tickets and services inclusive of MRO
(2) Outsourcing services whichever can increase ancillary revenues
(3) Free sponsorships at the expense of the national carrier – simply put, if MAS can sponsor RM18 million for QPR, MAS can also sponsor free bungalow for the newcomers and not to mention free scholarship for families
(4) The buying of A330 from the new BOD to make him richer and to be next trillion-aire
Long story short, all of the above cannot be done without the top gun’s approval. Simply put, only commission earner will support such collaboration plan.
MAS employees are extremely concerned of the negative effects resulting from the collaboration between MAS and Air Asia. The collaboration appears to be shrinking the strength of MAS staff particularly those who work very hard for the company.
It is believe that the company has been employing an incompetent management team to supposedly overseeing and generating revenues for the airlines. Instead of generating revenues, those incompetent management teams have created ‘double costing‘ via introduction of vendor services.
Lately, if you have checked-in at KLIA using SITA self check-in kiosk, you may find a couple of attendants dressed in white shirt/blouse and black pant serving with purpose treating you as a child when they start teaching you how to punch in your E-ticket number and how to scan your passport.
Many passengers were irritated by those vendor services that MAS have contracted out. Most passengers still prefer to do manual check-in so that they will not be irritated by those unprofessional vendors’ services. When queuing up at the check-in counter you would find one particular attendant also dressed in white shirt/blouse and black pant waiting to tell you which counter you should be going for your check-in. Is this necessary? Do you need queuing attendant at KLIA check-in counter and self-check-in kiosk?
So what purpose do they serve actually? Is it true that someone has been filling up their pockets whilst the company keeps declaring losses?