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.