AirAsia sucks with SHEMALE Crew and downstraight Zero Compassion Policy!
AirAsia has SHEMALE Cabin Crew!
Sir Richard Branson; the owner of Virgin Group had become the first SHEMALE Cabin Crew for AirAsia X. He has cross-dressed from a Gentleman to an ugly Shemale Cabin Crew in AirAsia’s red uniform and with heavy make-up. We presumed he has pathological implication of gender and became the first shemale Cabin Crew ever found on this planet.
Oh Gosh! Look at him..he’s neither male nor female. Richard – you are very offensive to the sense of beauty in this red uniform and heavy make-up!
Richard Branson had operated AirAsia X’s Perth flight to Kuala Lumpur and had served AirAsiaX’s passengers including the fatty CEO (budget) – Tony Fernandez. On that same flight; Richard Branson were weathered in because of the jet streams but he took the opportunity spilling drinks on Tony Fernandez where later Richard was fired before the flight landed into Kuala Lumpur LCCT.
AirAsia sets Downstraight Zero Compassion Policy!
Yesterday AirAsia X – AK1455 from Ho Chi Minh to Kuala Lumpur abandoned two of the passengers citing an infant has chicken pox condition which under AirAsiaX’s policy it is prohibited for the mother and the baby to boarding the airplane.
A regular doctor traveling as passenger announced to AirAsia’s ground staff of the baby’s condition that is safe for traveling had fallen on deaf ears. AirAsia’s ground staff continued acting as medical personnel and had the mother and her child quarantined; grounded in Ho Chi Minh city for another 5 days. Below is the statement from its CEO – Aireen Omar.
A very unfortunate encounter with AirAsiaX for this family. Twelve (12) members of this family traveled by AirAsiaX to Ho Chi Minh city but only ten (10) members were allowed to board AK1455 returning home to Kuala Lumpur. The mother and her child were abandoned by AirAsia’s ground staff cited the aviation policy prohibited from carrying a passenger with infectious condition.
Is this necessary?
And what Tony Fernandez say about this?
If really following the book; AirAsia’s plane should have been overhauled every 30 days instead of every 45 days which AirAsia is presently practicing. Heyy..Tony Bastard; stop being so inhumane to your fellow own Malaysians.
The National Carrier – Malaysia Airlines have extended assistance to the mother and her infant above on a compassionate ground. Now Everyone Knows AirAsia is Brutal!
Stay tuned to Malaysiaairlinesfamilies and we’ll be back for more stories on MAS stupid middle management!
Malaysia Airlines have defective management skills – Episode 1
This week we would unveil the rooted foundation of the failing management in Malaysia Airlines.
We would begin unveiling the wicked structural planning by Ahmad Jauhari; episode-by-episode containing the factors corrupting Malaysia Airlines for Tony Fernandez.
This first episode distress one of the leads we believe is Hayati Dato Ali.
A double degree holder graduated with BSc in Finance and a BA in Economics from California State University before proceeding with an MBA from the same university. She started her career in Malaysia Airlines as Market Planning Analyst in Corporate Planning Division in 1986 after a brief stint at a local bank.
Correction : Her father; was Dato’ Ali Ahmad; the late Minister of Agriculture that perished on that ill-fated hijacked plane in Tanjung Kupang, Johor, Malaysia on December 4th; 1977. (Thank you to our readers for correction)
Do we remember Danny Rashdan? The former MAS deputy CEO who was asked to resign after he illegally upgraded his nanny to MAS first class cabin; has a cousin-sister i.e. Hayati Dato’ Ali; still working for Malaysia Airlines.
Miss Hayati Dato Ali has been a circulated object serving as Executive Vice President for MAS In-flight Service since September 2006 and was removed from In-flight Service to Airport Operation in 2011 where she previously had served before as Assistant General Manager of Airport Operation for MAS.
Our reliable sources affirmed after Danny Rashdan tendered his resignation; Hayati Dato Ali pursued her appeal to Ahmad Jauhari to get transferred back to MAS In-flight Service where she could carry on what’s left designed by Danny Rashdan; which is to reduce manpower in Cabin Crew by means of forcing the senior staff to voluntarily resign under extreme pressure.
During her short stint with MAS Airport Operation; she had introduced ‘OUTSOURCING’ as way out supposedly for cost efficiency but ended with double costing for Malaysia Airlines. She had caused MAS Airport Operation incurred higher cost with inconsistency services where massive delays in delivery were the end of her career with MAS Airport Operation.
Knowing Hayati Dato Ali has defective leadership skills; Ahmad Jauhari the clueless MAS CEO went ahead approving her running MAS In-flight Service division only with “this time” she is mission-ed to depress and contaminate the entire MAS division.
MAS in-flight services have been the main attraction for frequent travelers of Malaysia Airlines. By contaminating the main services; it would destroy the entire company where-thence a prescribed alternative will be to OUTSOURCE the entire In-flight division gradually which is already in process with one of the vendors designing MAS Cabin Crew’s roster is India-based company owned by Tony Fernandez.
Miss Hayati Dato Ali is famously known for her intoxicating conversation – an orthodox idiotic streak. She has the quality of being down straight idiotic, very intellectually challenged chosen as the representative of the middle management for Malaysia Airlines by Ahmad Jauhari – The Greatest Con-artist.
Her recent decision for reviewing all contracts with MAS long-term suppliers has cause an internal upheaval boycotting in beverages supply for both MAS First and Business Classes. It looks like this could be the latest inclination from Miss Hayati Dato Ali that is to sabotaging MAS loyalty program via the shortchange for the In-flight service that MAS is well renowned for.
Either Miss Hayati is planning to sabotage Malaysia Airlines or she is down straight intellectually challenged.
Our readers have informed Malaysiaairlinesfamilies that MAS loyal travelers were amazed when being served with those beverages ordered for Economy class. We are informed there were no supply of higher grade wines for first and business class travelers routing to Australia and Europe. If this is true; we ask for MAS TOP MANAGEMENT to end this immediately before all loyal travelers cease their memberships with Enrich Loyalty Program.
Hmm..is this what Malaysia Airlines made of with such a quality management for an Executive Vice President? Or could this be one of the destructive plans driving away MAS loyal travelers?
The Oneworld strategic planning for its alliance is QUALITY TRAVELING EXPERIENCE and there you go Malaysia Airlines with the dumbness running to reducing the quality in-flight service for it; we doubt the alliance with Oneworld would be of LONG-TERM planned.
From our gathering sources, Hayati Dato Ali has two daughters whom she intends to recruit into Malaysia Airlines to carry on her legacy contaminating the entire division.
We hope Malaysia Airlines will be stringent in screening cronyism and nepotism from being carried on to the next MAS generation.
We appeal to our readers to come forward with more internal true stories exposing the intellectually challenging middle management of Malaysia Airlines.
On our next episode we would expose Miss Hayati Dato Ali’s cronies from the opposition party and their failure in coordinating MAS In-flight Service division. Get ready to unveil more of Hayati’s impaired coordination / sabotage inside Malaysia Airlines.
Stay tuned to Malaysiaairlinesfamilies for best insight true stories!
Airlines see ticket sales in Malaysia upcoming General Election
By Jason Ng – Wall Street Journal
Airlines are hoping to cash in on the huge interest in Malaysia’s upcoming May 5 elections by offering discounts and promotions to entice Malaysians living abroad to come home to vote.
Reuters reported AirAsia hopes Malaysians living abroad will seize its special promotions to return home to vote on May 5.
“Fly Home to Vote” kicked it off, with cheap tickets offered by discount carrier AirAsia Bhd.
“We foresee many Malaysians will be making travel plans to return to [home], and we hope that our low fares will help provide convenience for people to fly back for the elections,” Aireen Omar, chief executive of AirAsia, said in a statement.
Malindo Air and national flag carrier Malaysian Airline System Bhd followed with their own enticements.
There are over one million Malaysians living and working outside Malaysia, according to MyOverseasVote, a group set up to campaign for the right of Malaysians abroad to vote. Roughly 40% work in Singapore and 20% in other Asian countries, the group said.
Electoral watchdog group Bersih says it is important for overseas Malaysians to cast their ballots given persistent charges of voter fraud and the public’s lack of confidence in the electoral system.
“We’re urging people to come back to vote and be sure that their votes will go to their preferred party because we’re gravely concerned about the possibility of fraud,” Bersih co-chairman Ambiga Sreenevasan told The Wall Street Journal.
National flag carrier Malaysian Airlines System Bhd isn’t offering any special fares, but it will allow Malaysians to change their flight schedules to around the election period free of charge, a company spokesperson said. Some travel will be domestic, as people work in one place but vote in another. The company’s low-cost offshoot, Firefly, is offering one-way fares of MYR66 for all domestic destinations.
Malindo Air, which received approval to begin commercial operations in February, said it will extend its special fares for travel around the peninsula and the two states in the Malaysian Borneo island.
Malaysiaairlinesfamilies comment “However, passengers should bear in mind that the recent plane crashed was a budget airline “LION AIR”; had injured many although there were no death”.
For those Malaysians living abroad to flying home on the election day should be wise in choosing a safe airlines other than a budget airlines with older air planes that may be delayed due to air plane technicalities particularly Air Asia – Cheap fares plausible delays and non-refunded tickets LOW CASTE BUDGET AIRLINES.
Malaysians living abroad should learn staying safe when flying with responsible airliners other than Air Asia – CHEAP airfares that comes with lots of air plane technicalities is getting everybody nowhere.
Air Asia has new concept – NOW Everyone is going NOWHERE.
Stay tuned for more information from Malaysiaairlinesfamilies and AirAsiafamilies
Story about Tony Fernandez; infamous budget CEO – Episode 2
The hard-work saving Air Asia has had Tony Fernandez resorted from budget airlines to swindling airlines earning him a title – Tony Fernandez the flying plunderer.
Tony Fernandez was born on 30 April 1964 from a very poor family whose mother was a single mother and a Tupperware entrepreneur who sold ice to Eskimo. Guessed that’s how Tony Fernandez learned his dexterity from his mother – Ena Fernandez.
Saving AirAsia was a sudden twist of business strategy deplorably transformed the infamous Tony Fernandez The Flying Plunderer into swindling the public of their hard-earned money via AirAsia misleading concept on NO-Frills Low Cost Airfares that can cost even more than an ordinary airfares of any Full Service Airlines.
After wrapping up a deal with Arun Bhatia and TATA group; Tony Fernandez went ahead to close another deal with Philippine counterpart just to save his little Air Asia from the tale of shrinking tower that everybody is talking about in Indonesia and Malaysia. Tony Fernandez in his tweet above admitted how amazing he has survived so far!
For Tony Fernandez who did not even know his own biological father became cruelly ambitious has been carefully editing and re-editing his latest information made available on his Wikipedia section erasing his previous unsuccessful collaboration with Malaysia Airlines to cover his blow-back and continue the investment opportunity with TATA group in India scamming his next survivability using TATA group’s most influential investors and resources.
TATA group is known of its very influential public figure, a very generous employer and an important investors in India who have every power to kick start another aviation for India.
Today, TATA group has landed with the conman of AirAsia infamously known as Tony Fernandez The Flying Plunderer will take off with AirAsia X for Chennai based.
TATA group has no idea how Tony Fernandez can swindle in and out with his sweet-talks taking the advantage to penetrate into TATA and its empire if Tony Fernandez has successfully owned AirAsia X by another 20% to 30% of holding shares.
It is evidently related that Tune Group is sinking when Tony Fernandez is eying at TATA’s empire knowing TATA group have very kind and generous employer – which mean easily conned and swindled over through a closer partnerships.
Tony Fernandez is a drug addict who relies on the drugs to deliver his goals and without it; Tony is not 100% functional. He thinks by speculating the partnerships whether he can eat you to the maximum. The partnerships that will not be successful with Tony Fernandez is when you slice him slowly and alive. Before the end of the partnerships; Tony Fernandez will fly out faster than you can imagine.
His first con-step is always manipulating the stock markets like how he rigged MAS’s shares where MAS shares plunged whilst AirAsia rose overnight.
Before he ventures into getting TATA and Arun Bhatia closed up a deal with AirAsia; Tony Fernandez engaged in his QPR games tried getting his acquaintance to bet on QPR whilst he bet the opposite knowing QPR is premier losing league. Each QPR lost game helped Tony Fernandez topping up his shares and rose as high as RM3.00 to win TATA group and Arun Bhatia’s or his next victim’s attention.
Once the deal is wrapped up successfully; AirAsia shares usually may drop to RM2.68 and lower with lowest hit was RM2.21> followed by his tweets announcing falsely on quick-growing of Air Asia’s domestic market shares. At the time of his announcement via his tweet; AirAsia’s shares was dropping quick.
Do stay tune to Malaysiaairlinesfamilies JV AirAsiafamilies for more stories on Tony Fernandez’s scammy business.
Story about Tony Fernandez; the infamous budget CEO – Episode 1
A story about the BUDGET CEO – Tony Fernadez goes to a Budget Pub…
“Spare a thought for Uncle Tony Fernandez, Chief Executive of Air Asia”……
Arriving in a hotel in KL Sentral he went to the bar and asked for a pint of draught Guinness. The barman nodded and said, “That will be RM1 please, Uncle Tony.”
Somewhat taken aback, Uncle Tony replied, “That’s very cheap,” and handed over his money.
“Well, we try to stay ahead of the competition”, said the barman. “And we are serving free pints every Wednesday evening from 6 until 8. We have the cheapest draught in Asia. Now Everyone Can Drink!”
“That is admirable and your drink a remarkable value”, Uncle Tony comments, smiling delightedly.
“I see you don’t seem to have a glass, so you’ll probably need one of ours. That will beRM3 please.”
Uncle Tony scowled, but paid up. He took his drink and walked towards a seat.
“Ah, you want to sit down?” asked the barman. “That’ll be an extra RM2. You could have pre-book the seat and it would have only cost you a Ringgit.”
“I think you may to be too big for the seat Sir. Could you sit in this one please?”
Uncle Tony attempts to sit down but the seat is also too small and when he can’t squeeze in he grumpily complains “Nobody would fit in that little seat!”
“I’m afraid if you can’t fit in the seats we have you’ll have to pay an extra surcharge of RM4 to sit in one of our adjustable luxury hotseats, Sir.”
Tony swore under his breath, but paid up.
“I see that you have brought your laptop with you” added the barman. “And since that wasn’t pre-booked either, that will be another RM3.”
Uncle Tony was so annoyed that he walked back to the bar, slammed his drink on the counter, and yelled, “This is ridiculous, I want to speak to the manager!”
“Ah, I see you want to use the counter,” says the barman, “that will be RM2 please.”
Uncle T’s face was red with rage.
“Do you know who I am?”
“Of course I do. You are Mr Fernandes.”
“I’ve had enough. What sort of hotel and bar is this? I come in for a quiet drink and you treat me like this. I insist on speaking to your manager!”
“Here is his e-mail address, or if you wish, you can contact him between 9 and 9.10 every morning, Monday to Tuesday at this free phone number. Calls are free, until they are answered. Then there is a talking charge of only 10 sen per second provided you use our Hotel Tunes Talk. Using any other mobile carriers would incur our normal charges of 30 sen per second.
“That’s preposterous! It’s impossible to even complain like this! I will never use this bar again.”
“OK Uncle, it’s up to you. You are free to use or not to use this bar. But remember, we are the only bar in Asia selling pints for RM1. Now Everyone Can Drink”.
Now here is the story of Tony Fernandez cheats his potential investors published in our next Episode – Stay tuned for exciting news and secret recipe of Tony Fernandez’s success in his scams saving his little AirAsia from bankruptcy status.
NUFAM brewing plans for MAS Cabin Crew – Part II
This week would see a disastrous opportunity for Mr. Lipas man a.k.a. Mr. President of NUFAM on annihilating a group of innocent MAS Cabin Crew whom have zero ideas of what NUFAM is brewing. NUFAM IS A HOAX. A strategy formed by Zahrah Zaid – MAS Human Remains Director to destroy the workers’ in entirety. Zahrah Zaid works secretly for Tony Fernandez – Malaysia Airlines must be cautious with her movement and planning for its workers due Zahrah’s action may destroy MAS images.
Our previous posting here – Part I provided some insight on NUFAM plans on cheating MAS Cabin Crew via its so-branded “NUFAM SECRET BALLOT“.
NUFAM – National Union Flight Attendant Malaysia is brewing plans sabotaging huge employment opportunities for many innocent MAS Cabin Crew who only seek decent employment and security with Malaysia Airlines.
The planning between Zahrah Zaid and Mr. Lipas man were cooked on getting rid of 500 to 1,800 cabin crew in Malaysia Airlines and reducing their benefits; terms and conditions altogether.
Malaysia Airlines has been serving the public as National Carrier for the past 40 years. We find it very cruel to have such a huge organization allowing the imported proxies of Tony Fernandez sitting on top of the management ruling the workers who have contributed their entire life building this National Carrier whilst the imported proxies are tasked to cease the workers’ tenure of employment with Malaysia Airlines.
This week, Nufam, in a notice posted on its website and a copy made available to StarBiz, said: “Nufam will stage a full public protest against the Human Resources Ministry over the delay of the MAS Nufam secret ballot.” The day has been set for March 28, the time; 1pm, and the place; the entrance and courtyard of the Human Resources Ministry. MORE read HERE.
ZAHRAH ZAID the evil woman has another anti-union double agent – Mohd Fauzi Mahayadin aiding and abetting her in assisting NUFAM providing Mr. Lipas man the most confidential document belonged to Malaysia Airlines whilst instigated NUFAM to protest outside Ministry of Human Resource before the upcoming General Election is held to embarrass the Prime Minister.
This planning was reported already in the pipe-line laid by all NUFAM Executive Union Officers collaborated with Zahrah Zaid and her double agent last year in 2012. The staging of protest is to push for the Ministry of Human Resource particularly its deputy cougar Minister Maznah Mazlan for her gavel to end the conflict on NUFAM secret ballot for MAS Cabin Crew.
Despite knowing the wrong is with the deputy Minister of Human Resource – Maznah Mazlan when approving NUFAM; there’s nothing much for the Ministry of Human Resource to correct the wrong doing conducted by his deputy.
As a matter of fact; Mazlan Maznah who have been reportedly meeting Tony Fernandez have been providing assistance to NUFAM for its attempt penetrating into Malaysia Airlines as stakeholders representing Tony Fernandez’s views and policies.
One of the policies from Tony Fernandez is to cease all traveling privileges for MAS workers in exchange for the workers to opt for Air Asia staff and family scheme and all MAS terms and conditions would drastically be arranged in parallel to Air Asia’s present terms and conditions for its Cabin Crew if NUFAM is to take the lead in negotiation for MAS Cabin Crew.
Whilst MASEU the in-house union for MAS Cabin Crew might not keep too quiet about NUFAM interference in its negotiation process; have ignored the whine and cry that does nothing for MAS workers.
We are updated NUFAM have no track records on achieving improvement for MAS Cabin Crew accept for disuniting among its members and non-members. Of late; NUFAM have been forcing some young MAS Cabin Crew harassing them for signing up as members and paying upfront of up to RM400 per sign-up for two memberships fees.
NUFAM have also sought the assistance from the Director of Trade Union Affairs – Mustafar Bin Ali and Roslee Sabaruddin for special advice on staging the picket outside the building of MOHR at 1 pm on 28th March 2013.
This warning of protest by NUFAM only serves as drama for doing something for its NUFAM members. Our reliable informants alerted Malaysiaairlinesfamilies that the protest by NUFAM on 28th March 2013 is a hoax as it will be cancelled on that morning due all NUFAM Executive Union Officers will be providing excuses away for work and running errands; on sick leave or in hospital seeking treatment or even “late attendees” their name should be.
In the meantime, we are well-informed NUFAM “trashing forum” would be updating all lies and flies buzzing around the bush to keep its members spirit high and strong. Strangely, how is it possible for a National Carrier to have employed such crooks sabotaging Malaysia Airlines’ images particularly when Malaysia Airlines has just joined ONEWORLD ALLIANCE.
Stay tuned to our updates from Malaysiaairlinesfamilies. We are currently investigating more stories on Tony Fernandez and his scammy businesses and his conceiving tactics luring investors into buying his bankrupting business – Air Asia.
A tale of two airlines in Malaysian skies – Episode 2 “Exposing Against Tony Fernandez’s proxy”
He who has the history of bankrupting and DE-listing a private corporate company – Malakoff Corporation Berhad; who successfully and viciously terminated thousands of workers during his tenure with Malakoff Corporation Berhad; and he who had declared for Malaysia Airlines the first massive losses of RM2.52 billion during the share swap and collaboration framework with Air Asia.
WE believe MAS present CEO is either incompetent or intentionally collaborating with Tony Fernandez of Air Asia to save Air Asia from bankruptcy at the expense of Malaysia Airlines by giving away MAS routes to Air Asia terminating Johannesburg that generated 80% of revenue for Malaysia Airlines; Dubai that generated almost 95% of revenue for Malaysia Airlines and Haneda that merely started to generate revenue for Malaysia Airlines. He fails in his fiduciary duty recovering the loss of MAS routes from Air Asia. The longer he sits as MAS CEO position; the more routes will be lost to Air Asia through his plannings. His claims were those routes were not profitable and bleed MAS to dry and by contrast he has granted Air Asia many opportunities to open new routes into those routes MAS had lost under the corporate leadership of Ahmad Jauhari – a.k.a. The Clueless CEO. The truth is Ahmad Jauhari secretly approved the giving away of Johannesburg, Dubai, Haneda and Taipei for Air Asia.
Ahmad Jauhari has been lying to his workers of the performance of Malaysia Airlines and we caught his evil collaboration with Tony Fernandez and proxies i.e. Azahari Dahlan and Zahrah Zaid for fixing up the workers from the inside of Malaysia Airlines.
Let us brief the public the ingredients to destroy Malaysia Airlines by Tony Fernandez’s proxies;
- Ahmad Jauhari’s special skill is to shrink the operation; DE-listing the corporation like what he did to Malakoff Corporation Berhad and planting more corporate espionage of Air Asia into Malaysia Airlines establishing the platform of insecurity for the workers. His plans were to DE-list Malaysia Airlines and possibly bankrupt it at one ringgit value for Tony Fernandez to buy over. His best performance is playing PRETENTIOUS GAME with MAS workers seemingly portray a good man with vision to save Malaysia Airlines. Time for Ahmad Jauhari to tender his resignation as soon as possible or face the invincible wrath – FIRED and HUMILIATED.
- Azahari Dahlan will work on recruiting Air Asia’s loyal workers into Malaysia Airlines Aerospace Engineering with intention to sabotage Malaysia Airlines’ aircraft where he successfully responsible for engines on fire and emergency landing. His further mission is to ensure Air Asia’s aircraft could be serviced for FREE on the house when Air Asia sends all of its Airbus aircraft for major overhaul maintenance this coming August 2013. The last head of division in MAE had responsibly asked for CASH TRANSACTION from Tony Fernandez; was terminated by Ahmad Jauhari.
- Zahrah Zaid’s mission is to crush the workers’ rights and fixing the workers for fast termination. She is to break up all MAS unions and associations before her contract ends with MAS. Whilst she sat as the director for MAS Human Resource Division; she quickly fixed the remuneration for the top management using the budget that was meant for the workers and today she had her salary hiked up 150% from RM40,000 right up to RM100,000. Read here for more information on Zahrah Zaid’s infamous history.
The TRIO have planned well for fixing all the workers using their available sources, relatives and connection. Especially Ahmad Jauhari – he has a relative working as Deputy Director of Anti-Corruption Agency to frame up those who were against the collaboration with Air Asia with the help from NUFAM, NUFEM (that is yet to be formed) and NUFOAM (that is under way to be formed).
Tony Fernandez desperately wanted Malaysia Airlines more than any other businesses. He sees MAS as a very SEXY LADY and wishes to re-marry MAS through the Malaysian tycoon – Syed Mokthar Al-Bukhari buying over Malaysia Airlines. Syed Mokthar Al-Bukhari does not have the expertise to run Malaysia Airlines and we believe he is being used by Tony Fernandez to purchase Malaysia Airlines from the ladies in RED.
However, in this Episode 2; you will learn the comparison on the performance between Malaysia Airlines and Air Asia where Malaysia Airlines’ shares is expected to rise up to RM8.50 than of Air Asia’s shares which has more limitation in ratio of profit to value and cash return on investment.
MORGAN & STANLEY analyzed on prospective F2008 P/BV, both MAS and Air Asia are trading at undemanding multiples of 1.2-1.3x, comparable to the Tier-1 airlines multiple of 1.3x. We do not look at P/E multiple as Air Asia’s earnings are boosted by deferred income tax credit, and contribute to the low artificial P/E multiple.
Investment Conclusions. Morgan and Stanley conclude with three investment observations.
- Closing the Efficiency Gap. We believe MAS has successfully restructured its business model and has a new business transformation plan to grow operating revenues. By focusing on delivering value to passengers and cargo/MRO customers and taking out non-essential costs, MAS is building a lean cost structure to compete more effectively with low-cost airlines and the regional network airlines. Air Asia, which viewed MAS as a non competitive threat in the past because of its gross operational inefficiency, is now re-defining its product to create added-value services to compete with MAS. The net impact is the operational efficiency gap between the two airlines has narrowed significantly over the past two years, as highlighted by the operating and pretax margin trends (see Exhibit 2).
- Sharp Divergence in Cash Position. MAS raised its cash reserve through a rights and loan stock issue last year and had accumulated a cash position of RM5.3 billion at December 2007. In a very tight liquidity credit market, MAS had net cash of RM4.4 billion while Air Asia had net debt of RM3.3 billion at December 2007. As funding costs start to rise with increasing credit default risk, we think Air Asia’s plans to seek to fund its aggressive capital expenditures of RM2-3 billion for the next five years might encounter difficulties in a tough credit market. In F2008, we estimate Air Asia would need to raise about RM3 billion to fund the estimated capital expenditure of RM2.8-3.0 billion, whereas we estimate MAS’ capital expenditure would not be more than RM1.0 billion.
- Potential Derivative Losses. We are particularly concerned about Air Asia’s fuel hedging position. We view the directional bet on oil positions via its sold call options – currently exposed on its F2009 and F2010 oil positions – as potential derivative losses that could severely undermine the company’s cash flow to service both the interest and fixed contractual payments. If WTI oil prices remain above US$90/bbl for the next two years, the underlying operational losses, and more importantly, reduced cash flow generation for Air Asia could have a substantial impact on its franchise value. In contrast, MAS has adopted a conservative fuel hedging strategy whereby it will benchmark its hedging ratio to the average hedging ratio of the Asian airlines to reduce oil volatility.
On a risk-reward tradeoff for the Malaysian aviation sector, we believe MAS shares offer much better risk-adjusted upside potential than Air Asia shares, and we recommend investors switch from Air Asia to MAS. Given MAS’ franchise value of less than 1.0x EBITDA, we believe MAS is attractively valued for deep-value investors.
Buy MALAYSIA AIRLINES And Sell Air Asia
Morgan Stanley research on Air Asia
Investment Thesis
- Tough corporate restructuring builds a strong platform for MAS to compete effectively with the top airlines in Asia.
- Active yield management drives up operating revenues and enhances operating margin.
- Falling oil prices boost near-term earnings and contribute to positive earnings surprises.
Key Value Drivers
- Network rationalization enhances operational efficiency and load factors.
- Focus on profitable routes and maximize yield to enhance value for shareholders.
- Surplus cash reinvested for earnings growth to enhance shareholder value.
Potential Catalysts
- Yield surprise. Higher fares achieved despite lowering fuel surcharges due to active yield management.
- Positive earnings surprise could arise from Airbus compensation, falling oil prices, or higher yields.
- Jet fuel prices below US$95/bbl would lower MAS’ operating costs to 31% vs. 34% currently, and substantially improve net earnings.
Key Risks
- Slower global GDP growth. If US and global economies slow significantly, the weak global travel outlook would be negative for the carrier.
- Threat of low-cost airlines. If LCCs aggressively lower fares to increase market share, MAS and other airlines would likely cut their own fares to protect leisure passenger segments.
- Strong competition from Gulf carriers. Gulf carriers are expanding their fleets aggressively to take advantage of open skies in Asia. Long-haul routes at risk for MAS.
Investment Thesis
- Low-cost airlines (LCCs) in Asia have the potential to increase passengers at a CAGR of at least 20% for the next five years, by our estimates.
- Air Asia has the first-mover advantage in the LCC industry, and the carrier has built a proven and successful LCC business model in Asia.
- If WTI crude oil prices stay above US$90/bbl in 2009 and 2010, Air Asia would be exposed to substantial derivative fuel contract losses and lack of cover for the high jet fuel prices, and this could lead to negative earnings surprises.
Key Value Drivers
- Factors driving the high LCC growth are liberalization of ASEAN and Asian skies, doubling of aircraft orders by Asian LCCs in four years, and low market penetration by LCCs in the Asia/Pacific market.
- High operating earnings CAGR supports high EV/EBITDA, and is a key support for Air Asia’s share price, in our view.
Potential Catalysts
- Fast track in ASEAN aviation liberalization.
If ASEAN skies are liberalized ahead of the 2008 deadline, we see additional regional cities as an upside option for the carrier.
- Network route rationalization.
We see significant incremental growth potential from the domestic and international routes, particularly from capacity expansion to India and China, two of the fastest-growth aviation markets in the world.
Key Downside Risks
- Restructured and recharged Malaysia Airlines (MAS).
We think the revamped national carrier could prove to be a formidable competitor to Air Asia. Impact of high fuel surcharges on underlying fares. The higher ticket fares, which incorporate the increased fuel surcharges, could have negative implications for passenger travel.
- Inflated equity.
We think net equity for Air Asia was inflated by 30% at June 2007, and possibly by about 35-40% for the next 2-3 years, due to mounting deferred tax credits and deferred associate losses on the balance sheet.
Malaysiaairlinesfamilies will continue to expose Ahmad Jauhari’s illegal activities inside Malaysia Airlines – so Ahmad Jauhari better equip with battalion or leave before your are fired and arrested. You shall continuously declaring profits for Malaysia Airlines and promoting MAS shares transparently.
Stay tuned for more updates on Tony Fernandez is making a comeback to Malaysia Airlines using MAS gullible workers and the billionaire tycoon.
How Tony Fernandez uses Mittal to luring Rattan and Arun into investing in AirAsia X – India?
In early 2011, AirAsia’s Tony Fernandes was waiting to meet officials in the civil aviation ministry in New Delhi for talks on starting flights to India from Kuala Lumpur. On the wall of the room he was waiting in was a poster of J.R.D. Tata, founder of Air India. He says he sent a text to Tata group chief Ratan Tata: “This is a sign, let’s do it.” Fernandes had met J.R.D. Tata’s successor as Tata group chief at a Formula 1 race in 2005.
Fernandes recalled, in a phone interview from London, the events that led up to Wednesday’s announcement about the joint venture plan with the Tata group and Telestra Tradeplace Pvt. Ltd. Edited excerpts:
What was Ratan Tata’s reply to the text message?
He was very keen about it. He knew AirAsia, he saw what we had done in the market. He obviously had a passion for aviation and all the stars aligned at the right time.
Both partners have a sporting background also. I met Mr Tata through the Formula 1 business. When Tata was a sponsor, Narain and I made contact with Mr Tata (Tata group sponsored race driver Narain Karthikeyan for F1 in 2005). When the Indian government started liberalizing, I talked to him straight away. I said, look it’s time we look at this and I can’t think of anyone else I would like to do this with. That was six months back.
In the last six months since the government opened up foreign direct investment (in India’s airlines by overseas carriers), you made several trips to India and tweeted about your excitement regarding the Indian market. How did those trips go?
All the times I have come to India, I was kind of teasing a bit because at all times you were in discussion on this. And the driver (he hired in India) made the biggest impact on me.
This man took 40 hours to get from Madras to Delhi in a train and we were talking about fares (as he drove him around for meetings in Delhi) and how much he would pay to fly and that gave me the confidence to change many people’s lives in India and really create a product which could really be low-cost and make an impact.
Did you meet Ratan Tata at Bombay House?
I have met him in various places and yes Bombay House is one of them.
But yes, when I finally presented it to the Tata Sons board, it was in Bombay House. It was about two months ago.
There’s some speculation that since L.N. Mittal’s family is connected to the Bhatias of Telestra, the deal was sealed when you were at the World Economic Forum meetings in Davos.
No. It was sealed before. It was a pure sporting deal. Its QPR (Queens Park Rangers, the UK football club that Fernandes owns) on one side Caterham (British sportscar maker and F1 team owned by Fernandes) on the other side. Both were the links to my partners in India. (Arun Bhatia’s son Amit Bhatia is the son-in-law of ArcelorMittal’s L.N. Mittal and serves on the board of directors at QPR club alongside Fernandes.)
And you are not buying Kingfisher?
No. My whole life has been about organic growth. Never say never, but we have generally grown organically because of cultural reasons etc. So, Kingfisher definitely not, I mean (it’s) too far down the wire, I think.
How has the reaction to the announcement been?
We have got an amazing response. The Indians are very excited about it. It’s something I am very proud of, it’s something that’s been long in the making. Obviously, I am of Indian origin so it makes it that much more special. My father, Stephen Fernandes, was an Indian from Goa and mother Ena Fernandes was a Malaysian from south India. I think we couldn’t have found better partners, which is the most exciting thing of this venture. To partner with the Tatas and to partner with the Bhatia family is something very special, I think. We have studied this market for a long, long time so this is not something we have jumped into and I feel we can produce a product at the right cost structure which will then give the right fare to really stimulate the Indian market and create some real economic growth in the Indian market.
When is AirAsia India likely to start services?
I think it depends on all the approvals but I hope sometime this year.
What’s the vision that you and the Tata group have for the airline two years down the line?
I am never good at that. If you would ask me a few years ago, when I started AirAsia, we had all these planes, we just ploughed on. But vision? Take India, one step at a time. It’s important. India is too big a country to try and do everything. We will take India one step at a time. We will do region by region. Our main vision is a lot of new routes, a lot of connectivity that’s not been done before.
That’s only flights within India?
Yes only within India. We are not allowed (to fly on international routes) until the laws are changed, so we will be only focused on domestic. (Indian rules require an airline to complete five years of domestic operations before starting overseas flights.
Will AirAsia India have only Airbus A320s or ATRs also?
No ATRs. Only A320.
So it will be a pure-play, low-fare airline?
Yes, it would be.
Stay tuned for more updates from malaysiaairlinesfamilies who were once the victim of Tony Fernandez and airasiafamilies who are the worst paid workers in Malaysia, Thailand, Indonesia and Philippines. In AirAsia, the workers are far treated like peasants doing all dirty cleaning for Tony Fernandez for free. Read here on how Air Asia treated its workers.
Why Tony Fernandez bought QPR and How will Air Asia pose threat to the Indian Civil Aviation Industry?
The imminent threat of having Tony Fernandez around you is “YOU” would not know when “YOU” will be eaten alive by him.
The actual truth of Tony Fernandez having bought and owned Queen Park Rangers is to get close to the world’s richest Asian descent i.e. Lakshmi Niwas Mittal.
Lakshmi Niwas Mittal is an England-based Indian steel magnate. He is the chairman and CEO of ArcelorMittal, the world’s largest steelmaking company. Mittal owns 41 percent of ArcelorMittal and holds a 34 percent stake in the Queens Park Rangers F.C. football team.
Mittal is the richest man of Asian descent. Despite being the wealthiest man in Britain, he does not hold British citizenship. He was ranked the sixth richest person in the world by Forbes in 2011, but dropped to 21st place in 2012, due to having lost $10.4 billion the previous year. In spite of the drop, Forbes estimates that he still had a personal wealth of US$16 billion in October 2012. He is also the 47th “most powerful person” of the 70 individuals named in Forbes’ “Most Powerful People” list for 2012.
His daughter Vanisha Mittal’s wedding was the second most expensive in recorded history.
Mittal has been a member of the board of directors of Goldman Sachs since 2008, and is also member of the board of directors of the European Aeronautic Defence and Space Company. He sits on the World Steel Association’s executive committee, and is a member of the Indian Prime Minister’s Global Advisory Council, the Foreign Investment Council in Kazakhstan, the World Economic Forum’s International Business Council, and the Presidential International Advisory Board of Mozambique. He also sits on the advisory board of Northwestern University’s Kellogg School of Management in the United States and is a member of the board of trustees of the Cleveland Clinic.
In 2006 The Sunday Times named him “Business Person of 2006″, the Financial Times named him “Person of the Year”, and Time magazine named him “International Newsmaker of the Year 2006″. In 2007, Time magazine included him in their “100 most influential persons in the world”.
As Mittal is one of the most important business men in India; Tony Fernandez has planned ahead to use Mittal in expanding his Tune Group empire into India by luring two Indian rich investors i.e. Ratan Tata and Arun Bhatia to invest in Air Asia X – Chennai based India.
As AirAsia seeks approval to start operations in India, it can pose a threat to local low-fare carriers. AirAsia Bhd has submitted an application to the Indian government seeking approval to start domestic operations.
How will Air Asia’s entry affect Indian aviation?
After establishing joint ventures in Indonesia, Thailand, Japan and Philippines, the Malaysia-based AirAsia Bhd has submitted an application to the Indian government seeking approval to start domestic operations. As per the proposal, the airline’s investment arm AirAsia Investment Ltd will hold 49% in the proposed Indian joint venture with Tata Sons Ltd (30%) and Arun Bhatia of Telestra Tradeplace Pvt Ltd (21%). This move comes in the backdrop of the September decision by the Indian government to open up the aviation sector to foreign direct investment from foreign airlines.
How big is the threat?
Apart from AirAsia being the leading and largest low-cost carrier in Asia, the cost structure of the airline is the lowest in the world. According to local airlines’ representatives, AirAsia’s cost is at least 30% lower than Indian low-fare carriers because of low-cost terminals in other countries, cheaper jet fuel and other advantages.
With this huge cost advantage alone, AirAsia can give local low-fare carriers—IndiGo, SpiceJet Ltd and GoAir—a run for their money. Full-service carriers such as Jet Airways (India) Ltd and Air India will also feel the heat. Also, AirAsia chairman Tony Fernandes is known for unleashing Rs.1 fare from Mumbai to Kuala Lumpur.
J.P. Morgan Securities Singapore Pvt. Ltd’s analyst Corrine Png, in a note on 21 February, wrote AirAsia’s India entry is negative for Indian airlines, especially SpiceJet, given its major presence in Chennai and exposure in smaller cities. “With traffic under pressure, it would be challenging to sustain higher yields. The entry of new players could put pressure on pricing,” Png wrote.
On a conference call last week, Fernandes said it would not opt for 70-seater planes at any point and it will stick to Airbus A320 planes that have around 200 seats each. India has around 40 runways where such big planes can land. This would mean that AirAsia’s proposed Indian venture would add pressure to crowded routes, although the carrier is known for flying to smaller cities.
What can go wrong in AirAsia’s strategy?
According to a note by consultancy firm CAPA, the AirAsia brand has entered nine Indian markets since late 2008 but has had to drop three, including Mumbai and Delhi, because of lack of profitability and high airport costs in India. But AirAsia’s Fernandes is unperturbed. He says he has done his homework to stay low cost before finalizing the proposal.
So how immediate is the AirAsia threat?
AirAsia has plans to start operations with three to four planes. The smallest low-fare carrier GoAir has 13 planes. So it will take some to scale up. More importantly, AirAsia has just applied for the permission with Foreign Investment Promotion Board.
It has to seek an air operating permit. The aviation ministry is in no mood to give permission to import planes, so issuing a fresh licence would take some more time. The ministry is also concerned about the financial health of domestic airlines as two of them—Kingfisher Airlines Ltd and Paramount Airways—were grounded. This would mean it will take around a year for the threat to materialize.
Next – How AirAsia luring Tata Group and Arun Bhatia and struck the deal in Bombay?
Stay tuned to Malaysiaairlinesfamilies JV with AirAsiafamilies for more information on Tony Fernandez the Scumbag – The King of Drug lord and The Pirates.
Air Asia’s Tony Fernandez found new collaboration with TATA group for India Airlines by year end
By JASON NG And SANTANU CHOUDHURY from Wall Street Journal
More than 80 years after former Tata Group head J.R.D. Tata piloted the first scheduled flight in India, the conglomerate is seeking to re-enter the sector by investing in a low-cost airline.
AirAsia Bhd, the largest discount carrier in Southeast Asia by fleet size, said Wednesday it has signed an initial agreement with Tata Sons Ltd. and another Indian investor, Arun Bhatia of Telestra Tradeplace Pvt. Ltd., to establish a budget airline in India.
Overcrowding Clouds Indian Aviation
The proposed partnership comes after a September decision by the Indian government to open the aviation sector to direct investment of up to 49% from foreign carriers.
AirAsia said the three parties have applied to India’s Foreign Investment Promotion Board–the government agency that clears foreign investments–for the Malaysian carrier to hold 49% of the proposed Indian joint venture company. Tata Sons will have a 30% stake, with Mr. Bhatia holding the remaining 21%. AirAsia plans to hold the stake via its investment arm AirAsia Investment Ltd.
If the government gives its approval, the proposed joint venture will seek an operational license from India’s aviation authorities.
Officials at the Foreign Investment Promotion Board didn’t respond to phone calls.
The venture plans to operate from the south Indian city of Chennai and proposes to link smaller cities to the metropolis.
“We have carefully evaluated developments in India over the last few years and strongly believe that the current environment is perfect to introduce AirAsia’s low fares, which stimulate travel and grow the market,” said Tony Fernandes, AirAsia’s founder and group chief executive.
AirAsia has a fleet of 118 planes with more than 350 on order. The company said it “believes Indian aviation has enormous long-term growth potential and is expected to produce tremendous upside for first movers.”
The establishment of an airline will herald the culmination of years of efforts by the Tata Group to re-enter the aviation business–primarily due to its cherished lineage in the sector.
J.R.D. Tata–who founded India’s now-state-run carrier Air India–is considered the father of civil aviation in India. On Oct. 15, 1932, he flew a single-engine Puss Moth aircraft manufactured by the erstwhile de Havilland Engine Co. of the U.K. from Drigh road airport in Karachi, Pakistan, on his flight to Mumbai via Ahmedabad.
The Indian government nationalized Air India in August 1953 and appointed Mr. Tata its first chairman.
The group’s recently retired chairman, Ratan Tata, is also a qualified pilot and flies both planes and helicopters.
In a 2011 interview with The Wall Street Journal, Mr. Ratan Tata said one of his first goals would be to get the group back into the airline business. He is now the group’s chairman emeritus.
The group with businesses ranging from salt to software had planned a venture with Singapore Airlines C6L.SG -0.27% . But, Mr. Ratan Tata said during the interview that aviation ministry bureaucrats held up his application for several years despite his constant prodding. In 1998, he withdrew the application after seven years of waiting.
The group’s plan to re-enter the business comes at a time when most local airlines are making losses, hurt by high fuel costs and airport charges as well as inadequate infrastructure.
The AirAsia announcement is the second investment proposal in India’s aviation sector after the government in September allowed foreign carriers to hold stakes in local airlines. India allowed such investments following lobbying by local carriers, which argued the entry of foreign airlines would allow them to raise much-needed cash.
Jet Airways (India) Ltd., one of the country’s largest carriers, and Abu Dhabi-based Etihad Airways have said that they are in talks for a potential alliance. Etihad plans to buy a 24% stake in Jet for about $300 million, people close to the talks had said recently.
Analysts say for foreign airlines like AirAsia and Etihad, the attraction of India is its large population and the increasing number of Indians living abroad.
The Indian domestic market for air travel is witnessing a downturn this year as airlines have raised fares to offset higher costs, amid a slowing economy. Local air passenger traffic declined 2.9% during January to November 2012–the most recent period for which comparable numbers are available–to 53.41 million, according to government data.
AirAsia currently operates flights from Thailand and Malaysia to five cities in India, including to Chennai.
The proposed low-cost airline will likely be competing with existing budget as well as full-service carriers in India such as InterGlobe Aviation Ltd.’s IndiGo, SpiceJet Ltd. 500285.BY -2.25% and Jet Airways.
Tata Sons, which controls the Tata Group, said it will only be an investor in the joint venture. “The airline will be managed by AirAsia, and Tata Sons will not have any operating role,” a company executive said in a statement.
Explaining the reason for the Mumbai-based group to partner AirAsia, the executive said: “When AirAsia approached Tata Sons with the proposal for a stake in the venture, Tata Sons concluded that given its reputed business model, AirAsia could be a relevant and successful service provider in the domestic sector.”
The executive said the Indian aviation market will grow further with the entry of AirAsia, and will lead to creation of new jobs.
Telestra Tradeplace said it would be purely a financial investor and wouldn’t have any representation on the proposed venture’s board.
It said its participation was due to the Bhatia family’s close relationship with Mr. Fernandes, the AirAsia founder who serves on the board of London-based football club Queen’s Park Rangers alongside Mr. Bhatia’s son, Amit Bhatia.
—Rajesh Roy in New Delhi contributed to this article.
Write to Jason Ng at jason.ng@wsj.com and Santanu Choudhury at santanu.choudhury@dowjones.com
In Malaysia, we all know Air Asia has difficulty in its financial capacity and seeking out a victim to inherit its debts. It looks like TATA group is not that strong after many turbulence of hijacking and sabotaging upon its administration. These collaboration will inherit all Air Asia’s debts and it will end with bitter court fight between TATA group, Arun Bhatia group and Tony Fernandez. In one way or another; the Indian society is not a big fool.
However, our advice to TATA group still – be wary of poisonous snake bites from Tony Fernandez where TATA group and Arun Bhatia may end up inheriting all debts incur by Tony Fernandez – Air Asia.
Stay tuned to malaysiaairlinesfamilies as we are about to expose Tony Fernandez’s gimmicks in Indian aviation industry to save its Air Asia that is about to go bankrupt in Malaysia.
