What MAS first CEO says?


When Yg Bhg TAN SRI ABDUL AZIZ ABDUL RAHMAN retired as the CEO/Managing Director of MAS, he left MAS with RM5 billion cash reserve. During his tenure as CEO, MAS employees have been paid yearly bonuses.  He served MAS from its inception in 1971 as its company secretary and director of legal affairs.  He served as CEO/Managing Director from 1981 until his retirement in 1991.

Yg Bhg Tan Sri (Dato’) Dr Abdul Aziz is a Fellow of Chartered Institute of Transport, United Kingdom, Fellow of Institute of Management Malaysia, Fellow of Institute of Directors Malaysia, Fellow of Institute of Public Relations Malaysia and Fellow of Asian Institute of Management Science. At present he is an active advocate and solicitor. He has more than 35 years experience in managing public and private corporations. He started by serving the government for 15 years, the first 7 years as an administrative officer and for 8 years he was in the judicial and legal service of the Federal Government.

He served as Magistrate, President Sessions Court, Federal Counsel and Assistant Parliamentary Draftsman. His last government appointment was as Federal Counsel and Legal Officer of the National Operation Council (NOC) during the Emergency of 1969.  Of course, he is an “Anak Kelantan”.

Yg Bhg Tan Sri Abdul Aziz Abdul Rahman is synonymous with MAS. That is why his heart strings are tugged whenever the word MAS is mentioned, MAS which was once the pride of the nation is gradually sliding into the deep end and will fade into oblivion if no efforts are made now to save it, wrote AINUL ASNIERA AHSAN, the reporter from malaysiagazette.com.

During this interview with a Malaysia Gazette reporter, Abdul Aziz who is known to be vocal and outspoken just couldn’t hide his  emotions anymore. As a Malaysian citizen who was responsible in building the national carrier from scratch to the pride of the nation, Abdul Aziz bristles whenever the option of MAS filing for bankruptcy is mentioned.

For Abdul Aziz, his heart is pierced deeply seeing MAS assets being disposed one after the other as well as its overseas assets which was the toil of his blood, sweat and tears, has now changed hands. He does not want MAS to be bankrupt but wants the national carrier to soar high again, workers morale reinvigorated and MAS image revived once again.

I’d be honoured to help but not work for MAS. I just want to do national service and two years is enough to turn MAS around. With deep honestly, I really feel sorry for MAS,” he told AINUL ASNIERA AHSAN at his house recently.

MALAYSIAGAZETTE: In your view Tan Sri, should MAS file for bankruptcy?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: There is no need for MAS to file for bankruptcy. What is going on in MAS right now is that they are adopting the wrong business model for the past 15 years.

Management changes has taken place numerous times but the crux of the problems plaguing MAS has never been dealt with. Although MAS managed to make some profit at times, the problems were never solved. Will MAS really recover if all of its assets are sold to get cash?

What can MAS do to deal with its problems?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: Generally, MAS poor performance is due to its wrong business plan and the loss of flight MH370 demoralized the staff and MAS has to handle this. How to do it? MAS must change its business plan. What’s wrong with the plan? The thing that is wrong with the plan is the choice of its routes which it has been plying for the past 15 years.

Those routes are now overcrowded with all the low cost carriers. The market now wants to fly domestic and regional and 80 per cent of air travelers want to fly budget. Only the rich and the businessmen fly full service. So MAS has to do something to capture that 80 per cent market. It has to reshuffle and realign its aircraft fleet. Utilizing Firefly as the main carrier for domestic and regional. The rest, let MAS handle.

And take a second look on the use of the A380. Does MAS really need six of the super-huge aircraft. No need to file for bankruptcy. Don’t be ridiculous.

MAS – from premium to low cost?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: No. MAS has to branch out into two business divisions. First for domestic and regional it has to be budget while international and long haul it has to be full service. However, MAS also has to be wary of its competitors. What’s important is that it has to control cost effectively in both low cost and full service.

I am saying this because I read in the papers that the ASK cost is 22.05 cent  and revenue is 17.02 cent. So every ASK is already registering losses.  We have to analyze this because other wise it will be a perennial loss. Today MAS is bleeding RM4 million a day,  RM2 million pay the interests, total debts has already reached RM11 billion, operational cost RM2 million a day. If it were another business, they would have closed shop already.

The government and the private sector must help MAS, trim liability and devise a new business plan. If these two plans are implemented, insyaAllah (God willing) MAS will turn around.

So the government must not shirk away from its responsibility?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: No it cannot because MAS is the National Carrier. What does the National Carrier mean? National Carrier is the global representative of the country and the people both in the skies and on the ground. The government I believe is not letting go. Just fed up maybe. It has done so much but it has come to this.

If that is the case, then how can we overcome MAS problems?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: The Prime Minister has to take a look at this problem. Khazanah Nasional Berhad (Khazanah) is just the strategic equity holder. It is the government which is the policymaker. I am the one who started MAS under the directive of the government to ensure MAS is the flag carrier.

If the government wants to maintain as the national carrier, the government has to continue to invest in MAS. But if the government has no money or is fed up, the government can work with a local company on condition that the company preserve MAS with the national carrier status. The firm must work together with the government.

Are there any companies out there willing to develop the business model?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: There are companies but while it controls MAS it must also obey the government at the same time. Lets say the company wants to  revamp the sterwards and the stewardess attire, the government can intervene if it finds the attire not suitable as MAS represents Malaysia.

It is not easy to solve MAS problems but it can be done. MAS image must be defended and we have done it before. MAS biggest problem is its huge debt and it has to be restructured as no company would want to take over a company which registers losses of RM4 million a day. If MAS is restructured, even though it still has a lot of liabilities, it can still register profit.

What if MAS is declared bankrupt like Japan Airline?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: Japan carries a different set of laws and they carry it out drastically such as laying off thousands of workers. In MAS we have to be  careful as it is said that MAS is overstaffed. Is this so? I’m saying this because there are many who complaint that MAS has few cabin staffs, engineers to the extent it has to cancel flights.

Maybe in some departments there are a surplus of workers but we have to look at it in totality. We can’t lay off 5,000 workers out of the 20,000 employees which MAS has. It does not have to lay a single worker if it is restructured properly. But we have to take a look  at the salaries of some of the management team of which I was told touch more than RM100,000 a month.

Why must they be paid such a huge amount at a time when MAS is in the red and why do you axe workers with low salaries? I question how the board of directors can approve such a huge salary. How did it come to this?

Note:  In MAS 2011 Annual report, two executive directors salaries and benefits cost MAS RM3,775,000.00 a year.  This note is from yours truly Sir Wee Choo Keong.

Have you ever written to the Prime Minister to discuss over MAS?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I did write to the PM when MAS wanted to merge with AirAsia of which I was against. Other than that, I’ve never written to the PM on other issues. I don’t like to be a busybody but I’m telling you because you ask. I read in the papers that an individual suggested that MAS be shut down and start anew. To me that person knows nothing and is talking nonsense. I question why MAS use the A380 which is hardly utilised but cost millions to operate.

Why do we need the six air-crafts? That is one out of a thousand and one issues plaguing MAS. MAS also wants to sell the MRO and the person who proposed it does not know anything about the aviation industry. Engineering plays a huge part in the MAS makeup and plays a vital role in safety, efficiency, integrity and operations.

MAS has to fully control that business and if properly anaged can become an income earner. During my time, MAS maintains and services aircrafts from the US, Australia and Canada. MAS made money out of this division. So why do you want to hive off this division to another company and then buy back the service from the very same firm? MAS will bleed even more just like the catering business.  Although MAS has a 30 percent stake, it has to pay a high price for the food. MAS can sell a small stake but make sure it still controls MRO. Don’t sell the entire stake.


Note: When Tan Seri Md Nor Yusuf was the CEO of MAS, MAS sold 70% of its equity in MAS Catering Sdn Bhd to the company controlled by Datuk Hj Ibrahim Ahmad Badawi. On the same day, MAS sign a back to back catering agreement with MAS Catering Sdn Bhd for 25 years worth RM6.25 billion.  It was a lope sided agreement.  Subsequently, the name of MAS Catering Sdn Bhd was changed to LSG Skychef Brahim’s Sdn Bhd.  MAS catering bill comes to about RM250 million yearly.  

The sale of the equity MAS Catering Sdn Bhd was done during the famous “Widespread Assets Un-Bundling” a.k.a WAU, the brainchild of BinaFikir Sdn Bhd, whose founders were Tan Sri Azman Mokhtar, the Managing Director of Khaznah and En Mohamed Rashdan Yusuf aka Danny. By the way, En Mohamed Rashdan Yusuf was the Deputy Group CEO of MAS and one of the architects of the infamous MAS-AirAsia share swap, which was a case of “Bina” first and “Fikir” later.  This is from yours truly Sir Wee Choo Keong.

During your time, MAS had a lot of assets but after 15 years all of it has been disposed. What is your comment?


TAN SRI ABDUL AZIZ ABDUL RAHMAN: I am saddened when all of the assets were sold off jsut like that. Extremely sad. MAS assets were sold as it does not have enough  capital, weak cashflow to sustain operations. Why? Because MAS is registering losses. The sale of MAS building was the saddest moment of them all ex-employees were all saddened by it and I was against it. The MAS training building in Subang was also sold and then rented back to MAS.

Its buildings in Jakarta, Singapore, New York, London, were all sold. All these assets are not easy to get back. When we bought MAS, it was not rich but prudent. MAS was not big at the time and the government was not rich. Selling all the assets is not good for MAS image.

What are your comments on MAS turnaround plan which has entered its third year?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I really don’t know and I really don’t understand. I don’t see what MAS is doing. They made losses last year because they changed the business plan. MAS didnt reshuffle the routes but competed head on with  the low to even lower cost carriers. MAS forgets about its cost. MAS managed  to achieve 85 percent load factor but they made huge losses and didn’t get the yield.

During my time, 85 percent means huge profit. Previously, MAS still get profits at 70-75 percent load factor but now it still make losses at 85 percent load factor. The business model is wrong.

Even this business model is hard for MAS to implement?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: Maybe they were in a rush trying to prove something. Maybe they believed that that was the best approach and got a shock when they see the results. Maybe now they are devising a new business model. MAS has been in trial and error mode for so long. It has been in trouble since 1995 and the government started to intervene in 1998. Since then, management lineup changed six or seven times but still there is not turnaround but instead it is headed for destruction.

The MAS Employees Union wants MAS to be led by an insider and not an outsider. Do you agree Tan Sri?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I agree but the person has to have leadership skills. MAS has a lot of talent who have served tens of years and there must be a capable leader. If there is none, you can take outsider but he must be loyal and understand MAS. MAS is a business which is laden with legal issues and you have to understand the international environment and the routes inside out.

The aviation industry business is so complex and its not just about competition. As an example, MAS right to fly to London, you must have a prior agreement. Must understand fully negotiations with Britain and know what we want. At present, MAS A380 cannot fly to Australia but AirAsiaX can fly there. Is the government involved in negotiations? MAS should give advice to the government.

Note:  The government has reserved an additional KL/Sydney route for MAS to fly with its A380 but En Ahmad Jauhari Yahya, the Group CEO of MAS,  gave it to AirAsia X.  This note is from yours truly.

Is the government being fed with the wrong information on MAS routes?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I believe there is nobody at MAS giving advice to the government. Maybe when other airliners ask for the routes, the government gives the go ahead. Things have changed nowadays. Previously, the government would always refer to MAS for advice whenever they want to do anything in the aviation industry. When the government inquires, MAS has to back it up with facts if it does not agree.

If the government still wants to do it, there has to be discussions. For the past 10 years, MAS was never included in negotiations. When Malindo Airways was launched, MAS was in the dark until Malindo Airways started operations. MAS would have prepared itself if it was notified earlier. Its like in a war, MAS cannot just sit and watch. It has to get ready. MAS is a national carrier and uses the rakyat’s money so the government has to give MAS priority by informing the company.

Previously, MAS had tagged along and advised the government on traffic right negotiations and what inputs are needed in the agreement.

Why is MAS being sidelined now?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: Maybe the government has no confidence with MAS or its board of directors and the management do not dare to raise these sort of issues with the government. MAS was left own its own and the carrier in turn also kept quiet. When other people punch you, MAS just remained silent when it should have informed the government. I don’t discount the fact that the MAS management 15 years ago don’t understand the aviation industry. That is why it has come to this.

So how can MAS rise again?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: MAS has to find the right candidate to steer it ahead, focus on the liability and change the business model. That’s all.

Has the MAS management come to see you to discuss over MAS?

TAN SRI ABDUL AZIZ ABDUL RAHMANNo never. Maybe they know that I’m outspoken and I’m honest when it comes to MAS. If they come and see me I will tell them that they are useless. So why  would they come to see me and get scolded. I want to see MAS fly again and I’m angry with people who wants to declare MAS bankrupt.

They don’t know that MAS in the 1980s flew to San Francisco and Hawaii because the Americans thought that Malaysia is part of Congo. They don’t know that Malaysians can pilot planes and that was why I negotiated for the American traffic right which was not easy to get as we had to compete with Taiwan and Tokyo.

How do you feel seeing that the MAS you nurtured crumbling today?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I’m very sad especially for staffs who are still in contact with me. They always talk about MAS including the retirees.

If you were asked to help turnaround MAS, would you want to?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I’m honored to help but not work with MAS. I just want to do national service and two years is enough to turn it around. Honestly, I feel sad and sorry for MAS.

Why don’t you inform the Prime Minister directly?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I’m also busy as a practicing lawyer and am always at the courts but I always follow the developments at MAS but will allocate the time if the government wants me.

Given the chance to meet the Prime Minister, what would you tell him?

TAN SRI ABDUL AZIZ ABDUL RAHMAN:  I just want to ask that MAS be given the right in the aviation industry policy. MAS is the national carrier and should not be sidelined in favour of other airliners. When  AirAsia and AirAsiaX were formed, MAS was in the dark and its routes was taken away.

Note:  During the Badawi’s Administration, 96 profitable routes of MAS were taken from MAS and given on a silver platter to AirAsia. Further, at that material time MAS had to abandon its Super Saver Promotion because the Badawi’s Administration prohibited MAS from selling its fares below certain level.  It was a case of MAS was asked to go into the boxing ring to fight with with its hands and legs tied. This note is from yours truly Sir Wee Choo Keong.

Personally, do you think there are invisible hands at work behind the scenes plotting the downfall of MAS?

TAN SRI ABDUL AZIZ ABDUL RAHMAN: I can’t say for sure but there is a possibility. I’m also puzzled because those days, MAS will always know every aviation policy.  Nowadays, nobody wants to hear MAS voice. Please don’t do that.


Malaysiaairlinesfamilies added “The morale of the story is DO NOT TAKE BACK IDRIS JALA who sells ROTI JALA best!”  The second morale story is the Prime Minister of Malaysia must walk his talk putting his rakyat first by removing all the moles inside MAS in order to re-shape it or revamp the whole organization to prevent a second phase of sabotage by these trios – Ahmad Jauhari, Azhari Dahlan and Zahrah the fatty boom boom!

Why the rakyat in Selangor state are so angry with the Bee End Party?  It is because Tun Mahathir is the advisor for AirAsia and Rafidah the busuk is the shareholders of AirAsia and in collaboration with Tony the Pariah – the low caste seed; combined to destroy MAS from inside out with the help from Tun Bodowi.

How the Bee End can survive in the next election if these prominent figures keep playing politics manipulating MAS? Bee End members also now converting to End Bee newbies members because they hold grudge against Tun Maha-thir and his gang.

Friendly advice for Tun Mahathir that he should leave MAS alone by keeping his mouth restricted to his own personal favorite views.  Stop interfering in the business if you are not asked for.

Mr. Prime Minister must listen to Tan Sri Abdul Aziz’s statement if the Prime Minister of Malaysia has the heart to walk his talking prioritizing the people of Malaysia.  The Prime Minister must also let Tan Sri Abdul Aziz to lead MAS to a greater height and prohibit all the politicians from poking their noses into MAS’s pockets.  However, the Prime Minister could appoint Tan Sri Abdul Aziz as advisor to MAS and mandated only a couple of his ministers in the Prime Minister’s department to oversee the necessary arrangement assisting Tan Sri Abdul Aziz.

Whilst the government is contemplating the next move; we have resources confirming that Mr. Lipas man has initiated his attempt to meet with Tan Sri Abdul Aziz to garner his huge support for NUFAM to make ways into getting contracts with MAS under the pretext of representing MAS crew.

Well…well…well..Mr. Lipas man is such a desperado.  We’ll see if Mr. Lipas man could survive his next election in NUFAM.


The Con Jobs by AirAsia’s Tony Fernandez to steal MAS MRO!

AirAsia is not going to stop cheating its new customers because it has been the Low Cost Carrier’s policy aiming at cheating for surviving from the pugnacious competitions.  As times goes by; the policy became the concept for its natural survivability.

To survive in this challenging yet pugnacious transport industry; Tony Fernandez has resorted to stealing companies for expanding into his collapsing empires before his life ends after he contracted incurable diseases. For the public’s record; Tony’s life has been dependable on Ketamine pills and other supporting drugs to prolonging his livelihood.

Now that Everyone Knows Tony is dying with his empires being left without a caliber person managing it; who do we think the best suited candidate that will take over him? Ahhhh…perhaps Lim Guan Eng would do the honor!

Among all the politicians in Malaysia; only one stood up for Tony of AirAsia pushing the Government to sell MAS to AirAsia and here is the link of the clue – Seek help from AirAsia on saving MAS Dap tells Putrajaya.

Now we all know how did the share swap between MAS and AirAsia take place exactly on time in 2011 which was prepping for the lost of Bee End Party in PRU13. Unfortunately, the people of Malaysia ain’t that dumber than Lim Wants End.

So exactly how did Tony steal the company that is strengthening MAS in the past decades? For a start; he pays off the clueless CEO a lump sum of cash to recruit the CEO and his gang. The job function of that paid clueless CEO by AirAsia is to find way to get MAS MRO landed into AirAsia’s listing property before MAS CEO contract ends.

In the morning of 28th May 2012 as is in scheduled; the paid clueless CEO of MAS will propose to MAS board of directors to sell off its main core Engineering division to increase the profit for restructuring MAS from its recent first quarter losses. The CEO will make the recommendation and propose to the board to sell MAS MRO and the current CEO of MRO Azhari Dahlan as in package to a company that Tony Fernandez has 35% shares in it.

Before the board of directors make any further decisions; they should know that despite contract between MAS and AirAsia ended in February 2014; Azhari Dahlan has secretly allocated a hangar for discreetly repairing AirAsia’s aircrafts without billing AirAsia a cent.

During the secret repair of AirAsia’s aircrafts at MAS MRO area; these events were highlighted by the famous blogger “Sir” Wee Choo Keong which he wrote Mysterious Fire in MAS MRO workshop BMH192 turned back caused by Carbon Brakes and Firefly turned back.

For the public record; Carbon brakes offer a significant weight savings compared to steel brakes. This translates into a lighter airplane, which directly contributes to decreased fuel consumption and associated reductions in engine emissions.

These cost considerations often resulted in the use of steel brakes on smaller, short-haul commercial airplanes (B737-800) and carbon brakes on larger, long-haul (B777-200) commercial airplanes. In the past, the higher cost of carbon brakes could more easily be justified for larger airplanes because of the cost savings associated with reduced weight and longer service life.

So who asked Azhari Dahlan to change the steel brakes with carbon brakes suitable for a smaller short-haul aircraft that had caused the air turned back of MH192?

Is this not crystal clear of the surfacing evidence that sabotaging act carried out by Azhari Dahlan or AirAsia have become eminent?

A special message for MAS board of director; in the afternoon of 28th May 2014 or early; the clueless CEO will endorse officially and handle over MAS MRO to Tony Fernandez’s proxy as the buyer! If this transfer of ownership is validated; MAS will lose out in billion of revenues and cost for maintaining and repairing MAS aircraft will hike up instantly.

In planning a restructure for the National Carrier; there shall be a change of new Top Management urgently to eradicate the presence of sabotaging acts internally and removing the moles of AirAsia vizly Azahari Dahlan the average qualified CEO whose records showed lacks of aviation knowledge and imminent saboteurs complement AND most importantly that Zahrah Zaid the Tobacco Evil Madam who claims she is untouchable because she is protected by someone from the Ministry of Human Resource as the most certifiable Human Cruelty Director of the century”.

Next episode; we shall cover on the topic on how the clueless CEO crashed MAS into loss-making airline of the year! Stay tuned for eliciting yet-unreported news!

AirAsia – The failing Low Cost Airline

The first failing airline of a low-cost concept in Asia-Pacific region is AirAsia – TheConAirliner (TCA). The master planning by Tony Fernandez for AirAsia has failed unexpectedly from his organizational infrastructure that fully support unsuccessful execution in view of now that Tony Fernandez is indeed a creative WMD (Weapon of Mass Destruction). His fine creativity of WMD is a reflection of his gradual slope in his management.

AirAsia never stops cheating its customers and it continues to promote its misleading and fraud deals to the public. But for how long is this going to be? For Tony Fernandez; cheating is a new trend of business ideology which he learned from his late mother who sold tupperware for a living.

Tony Fernandez is the first idiot who adopted the modern psychological warfare in airlines industry; slacken his management via his hunger for suicidal decision. Tony Fernandez is a greedy famish pig who wanted every airlines deal for himself thinking he’s a genius aviation man.

Until he fell from the ladder he was trying to climb through his underground fast-track lane; he still is the same “never learned” pig-asshole fat boy.

Tony Fernandez’s failure in its collaboration with the Malaysian National Airlines – MAS and his most recent failure in securing his board of directorship with Japanese National Airlines predicted his next failure to secure the India’s most popular cities – Mumbai and Delhi.

Mumbai and Delhi do not welcome Tony Fernandez. Tony thought his smart ideas penetrating airlines business into India market will secure him another hub-based in India. His con-job on IPO had the India’s investors fooled. AirAsia’s share prices changed for “before and after” signing of agreement with Indian investors. Before signing – AirAsia’s shares were at RM3.50 but after having closed a deal with the Indian investors – AirAsia’s shares dropped dead to RM2.20.


There’s one principle that Tony fails to adopt is the discipline of the Japanese that would never try telling lies to the shareholders. The Japanese counterpart will not follow Tony’s sly way bullshitting for AirAsia Japan by falsely declaring the airline was making profit when it was actually making a huge losses amounted to RM113 million.

Unlike AirAsia Malaysia; it’s still making losses in its balance sheet and it declared profits from AirAsia’s credits combined with the 6 months pre-paid sales of airfares. In reality; Tony uses his credits that he owes to MAS for aircraft’s maintenance as top-up profits for AirAsia’s account. Until todate; AirAsia’s shareholders still received zero dividend for falsifying accounts.

AirAsia parted ways with Japan’s All Nippon Airways (ANA) when it sold its 49% stake in AirAsia Japan to ANA in June this year. Both airlines had clashed over management and operational differences followed by losses amounting to ¥3.5 billion (RM113 million).

Fernandes, 49, has publicly said that he wants AirAsia to re-enter the Japanese market and is on the lookout for Japanese-Indian financial partners.

“We’ve just got to look for the right one this time because we screwed up the last time,” he added.

When Tony said “Japan was a disaster. Our partner didn’t understand what we wanted,” he actually meant that the Japanese counterpart didn’t want to lie for him.

Tony’s next con-job really had the Thailand’s Prime Minister accepted his idea to fly long haul via Bangkok to Los Angeles using  AirAsia X’s new Airbus jet order – A330-300.

25th September 2013 – AirAsia X has revealed it is getting closer to launching its new long-haul division in Thailand after confirming in a filing to the Malaysian stock exchange last week that it had reached agreement with Thai AirAsia chief Tassapon Bijleveld and Julpas Kruesopon, a businessman and advisor to Thai Prime Minister Yingluck Shinawatra, to formally incorporate the business.

The joint venture, called Thai AirAsia X, marks the first overseas foray by AirAsia X, the long-haul arm of Asia’s largest low-cost airline by passengers.  Although not formally part of the AirAsia Group the business has common shareholding with the other airline interests.  In the statement Thai AirAsia X said it submitted an application for an air operator’s license on June 20, 2013 and expects approval to be granted by end of this month when it will then apply for an air operator’s certificate.

As predicted; Tony Fernandez isn’t as smart as he thinks he is as an aviation man. Thai Airways fly from Bangkok to Los Angeles using B777-200/300 long-range aircraft for a flight time of more than 14 hours up to 18 hours. His latest order for 25 A330-300 airbus jet could fly a longer range where he also leases 6 A340 jets from airbus to deliver a one-two punch by 2015 to MAS and Malindo Airways especially after the Malaysian National Airlines rejected Tony’s initiative and collaboration to penetrate Los Angeles whilst Malindo Airways is busy attractting millions of AirAsia’s regular FED-UP flyers.

Whilst Tony Fernandez is planning his next route penetrating Los Angeles; his collaborative double agent CEO of MAS Ahmad Jauhari is tasked to end MAS oldest route KL – TYO – LAX by 2014 before he leaves MAS paving ways for AirAsia X to launch its first long haul route into United States of America via Kuala Lumpur. This will be Tony’s hardest punches for Malaysia Airlines after CEO Ahmad Jauhari contract ends.

Ironically, soon after Tony had the under-tabled discussion with the Thailand Prime Minister to accept his landing rights for Los Angeles to Bangkok; Thailand Prime Minister Yingluck initiated for amnesty bill passed for her cloned brother Thaksin to return home from exile. Consequently Yingluck faces street violent protest and fled from being captured by her protestors. The latter is calling for new election to calm the protestors.

Tony has his right hand wing flown to Los Angeles to discuss the landing rights for both routes i.e. LA – Bangkok and LA – KL (via Taipei). If FAA approved AirAsia X to fly directly from KL; Tony Fernandez will firmly deliver his punches to MAS workers who got his ass kicked out of Malaysia Airlines.

AirAsia has a bad record of its safety performance over the last one decade as compared to Thai Airways;

  • 8 November 2004 – On AirAsia Flight 104, the Boeing 737 plane carrying 111 passengers and five crew skidded while landing. Three passengers – a five-year-old girl and two women – were injured while evacuating from the plane and received outpatient treatment at the Queen Elizabeth Hospital.
  • 14 December 2005 – The Kota Kinabalu International Airport was closed for a few hours after an AirAsia plane burst a tire on landing. There were no injuries in the 10.30pm incident.
  • On 10 January 2011, AirAsia Flight 5218 skidded on the runway whilst landing. The incident occurred around 10:15pm during a heavy downpour. Four passengers were rushed to Sarawak General Hospital, believed to have suffered from health complications.
  • 3 August 2012 – On AirAsia Flight 5187 from Miri to Kuala Lumpur was scheduled to take off at 7.40pm. Furious passengers had their journey delayed for over an hour as a result of a man’s emphatic decision not to remain on the plane until take off. A witness said that as the plane was about to take off, the man suddenly opened the emergency doors and leapt out. On-duty flight attendants reportedly said they were powerless to stop him from opening the emergency exit and jumping out once the plane had started to move on the runway.

For Yingluck to have approved AirAsia X – a subsidiary of AirAsia to take long haul flight away from Thai Airways that basing on AirAsia’s bad safety record; is a bad luck for the Ying-luck. Ying-luck now turns Bad-Luck! Corruption does not choose its gender and Yingluck is a fool to have fallen into her bad-luck at this stage.

For public knowledge on Tony The Scumbag’s strategy; he always applies espionage as his gateway to heaven! Tony Fernandez will do anything to survive from the fierce competition including bribing the middle management of  MAS to screw up the operations and paying top-dollars to Ahmad Jauhari; Azhari Dahlan; Zaharah Zaid and remain as the champion eventhough his AirAsia’s debts-growth rose and tripled to maximum.  Tony’s next con-job is to shake those who rejected his proposal and initiatives – Revenge will rise!

Stay tuned to us for more updates on this scumbag – Tony Fernandez the pig asshole fat boy!

AirAsia runs Malaysia Airlines with defective management skills – Episode 3

Previously, as exposed in our Episode 1 and Episode 2 on how carefully and insidious that AirAsia has its invasion into Malaysia Airlines despite the failed share-swapping strategy that was then cancelled by the Malaysian Prime Minister.

Our intention is to expose stealthy plans by Tony Fernandez and his gangsters to the public of his tryst on the sly.

Earlier; Tony has his most loyal workers to provide him the most accurate account of the progress inside Malaysia Airlines on weekly basis after the dodgy swap deal was axed. We have sufficient evidence to believe that Ahmad Jauhari, Azahari Dahlan and Zaharah Zaid are paid in top dollars to sabotage the workers starting from the engineers section and the associations that includes the unions.

Through this tactic; Tony Fernandez appears to have corrupted most or all workers in engineering and cargo functions.

Today; Malaysia Airlines has just lost its engineering division.  Workers appear to be afraid voicing out their concerns. Clients are being successively lost and therefore the airlines’ revenue has decreased from RM5 billion to only RM2 billion per annum.

AirAsia invades Malaysia Airlines

It frequently appears that lately Malaysia Airlines’ flights are systematically delayed by its MAS engineering and cargo CEO – Azahari Dahlan in order to detract Malaysia Airlines loyal passengers. Consistently; the affected passengers from the planned delaying flights do not receive compensation for expenditure (accommodation or otherwise) incurred through the delay. We believe this is part of an underlying plan to divert MAS passengers towards AirAsia.

AirAsia’s proxy working in Malaysia Airlines to destroy the airlines for Tony Fernandez

Ever since Azahari Dahlan is the appointed CEO for MAS engineering & cargo functions whilst Ahmad Jauhari is the appointed CEO for Malaysia Airlines; the airlines never had a peaceful operation such as engine on fire; emergency landing; nanny upgrading to first class stories or free first class tickets for Tony Fernandez and his partner Kamarudin Meranun or the Sultan of Lanun (The Pirate King) and MAS flights commonly on re-timing recklessness of all in which it was incurring most costs than saving costs for Malaysia Airlines.

All of the occurrences were never a coincidental memoir. We believe Ahmad Jauhari and Azahari Dahlan together staged it all closely with Zaharah Zaid for avenging Tony Fernandez’s survivability take-off plan that was foiled by MAS workers.

There is currently less work in engineering section which would have justified Azahari Dahlan declaring redundancy of excess workers in that section to Ahmad Jauhari – MAS CEO and Managing Director. The engineering workers on top of lessor work provided under Azahari Dahlan – the proxy of AirAsia; nowadays are being screened thoroughly of their workplace behavior and adherence to MAS rules and regulations is tightly monitored.

Fixing-up workers has now become fashionable under Ahmad Jauhari’s clueless leadership. Anyone could be fixed-up and bribery for “unfixing” the affected worker or “whitewash” records of workplace misconduct is now popular practice for Ahmad Jauhari – MAS clueless CEO as “cash” leveraging black income opportunity to his few selected managers in engineering, cabin crew and functions division.
Oddly, MAS flight crew is not in the fixing-up program list.

Already Ahmad Jauhari’s term is expiring; he continues with Zaharah Zaid to implement such plot destroying the entire airlines slowly but steadily.

We have reliable sources informed us Ahmad Jauhari has been lobbying for an extension of his tenure through the provision of false reports and declaration to the shareholders of Malaysia Airlines that the airlines is stabilizing and performing well in preventing its aviation business from plummeting further despite MAS shares is below USD 0.30.

However, we remember precisely that the day Ahmad Jauhari boarded Malaysia Airlines; its airlines’ shares was below USD 0.70 compared to nowadays that it barely could sustain but fluctuating at around USD 0.10.

The shares speak THE TRUTH

The truth lies on the price of MAS shares where the secret is Ahmad Jauhari is destroying Malaysia Airlines gradually but progressively.  The only chance Ahmad Jauhari has is to get all MAS Unions & Associations to support him fully but unfortunately; he has no support among all workers except Azahari Dahlan; Zaharah Zaid and her co-conspirator Mr. Fauzi and those directors and managers who are in the same ploy to fix-up workers.

The truth is Ahmad Jauhari is fixing up Malaysia Airlines with the verge to delisting of Malaysia Airlines with intention to cease Malaysia Airlines’ rights to purchase new aircraft and the privileges getting easy soft loans from bankers.

MH – Musnah Harapan is real by Ahmad Jauhari – the evil descendant of LUCIFIER’s family

So is Ahmad Jauhari looking high and low for us? Try finding us as NEMO swimming in Texan’s sea. You might see us there Mr. AJ the Idiot! And cheers to Ahmad Jauhari for his permanent retirement ship! ADIEUS DUMBASS!

Let’s see what UMNO’s council have to say about you Mr. AJ the Idiot?

Umno supreme council member Datuk Dr Mohd Puad Zarkashi said MAS managing director and group chief executive officer Ahmad Jauhari Yahya must accept full responsibility by resigning. He urged Ahmad Jauhari to pay the RM10 million fine imposed on the national carrier by the Malaysia Competition Commission (MyCC) from his pocket.Puad said AirAsia, which was fined the same amount, should be made to pay more as it was the bigger beneficiary of the deal, which was ruled as unlawful by MyCC for being monopolistic.

“AirAsia, without a doubt, stands to benefit more from the share swap deal than MAS.

Tony (AirAsia group chief executive offi cer Tan Sri Tony Fernandes) is a staunch supporter of the deal, which saw an exodus of MAS workers to AirAsia.

“I can’t ask Tony to step down but in my opinion, MyCC should impose a higher fine on AirAsia.”

Stating his case for Ahmad Jauhari’s dismissal, Puad said “Ahmad Jauhari had shown that he is incapable of leading.“

He should step down immediately or the government should not renew his contract, which is expected to expire this month.

“Everybody was taken aback when MAS was fined. We understand that a consultant was hired for the swap deal and we know that consultants are there for the sole purpose of making profits.”

“Ahmad Jauhari should have spotted any weaknesses in the deal and objected to the consultant on the deal’s viability,” Puad told Business Times yesterday.

Ahmad Jauhari was appointed to spearhead MAS on September 14 2011 and his contract is believed to expire this month.

Earlier this month, MyCC – a unit under the Domestic Trade, Cooperatives and Consumerism Ministry – fined MAS and AirAsia for violating the Competition Act 2010.

They were found to have breached Section 4(2)(b) of the Act by entering into a Comprehensive Collaboration Framework agreement in August 2011.

The deal saw Khazanah Nasional Bhd, which owns 69 per cent of MAS, having a 10 per cent stake in AirAsia. In turn, Tune Air Sdn Bhd, AirAsia’s controlling shareholder, was given a 20 per cent stake in MAS.

The deal was called off in May 2012 following heavy political and union pressure.

Stay tuned to us for more updates on Malaysia Airlines’ defective management skills. Next upcoming episode we would be introducing some thoughts on how Malaysia Airlines could transform its defective management.

AirAsia runs Malaysia Airlines with defective management skills – Episode 2

This is the continuation from our previous posting “AirAsia runs Malaysia Airlines with defective Management skills – Episode 1” revealing on how MAS current management is still running by AirAsia’s proxies started a couple years ago in August 2011 during MAS and AirAsia share swapped by Khazanah Men-In-Red Azam Mokhtar.

If Khazanah is to sack Azman Mokthar; the public would find Azman M. working for AirAsia as the OLDEST STEWARD advertising COFFEE; TEA; OR ME OR THE BUCKET!

Azman Mokhtar the Slywolf

Azman Mokhtar the sly wolf works secretly with Tony Fernandez of AirAsia to steal over some of the Government Linked companies for Tune Group by pulling string and making strong recommendations in favor of AirAsia and Tune Group. Although MAS and AirAsia share swapped but dropped by the Malaysian Prime Minister; its’ both collaboration framework still exists till today pursuing by Tony Fernandez run with – these 3 main AirAsia proxies;

  1. Ahmad Jauhari – Head of Group CEO;
  2. Azahari Dahlan – CEO for Engineering and Cargo; and
  3. Zaharah Zaid – Human Resource Director.

These 3 assholes together with those defective and challenging brainless ass-faces including Hayati Dato Ali must be extirpated by MAS investors by reason they are just as saboteurs and corporate espionages for AirAsia. Particularly the above top 3 are paid top dollars by Tony Fernandez warranting a gradual progress in delisting MAS.

Delisting of MAS – a Boon or Bane for the shareholders?

If we look back to the day before Ahmad Jauhari was hired by Tony Fernandez to be MAS CEO; the shares price for MAS was fluctuating at around RM2 (USD 0.60) but today after Ahmad Jauhari became MAS CEO for 2 years from September 2011; MAS shares have dropped tremendously to only 30 cents (USD 0.10). This proves crystal clearly Ahmad Jauhari is programmed to delisting MAS.

The question that arises is what should such investors do, who had invested on the basis of the faith and trust in MAS system and also on the basis of the contents in the prospectus which MAS security have been listed on stock exchanges for years now takes an irreversible decision; as the promises in the prospectus are irreversible.

If MAS securities get delisted, its shareholders’ investment will no longer be marketable and trade-able. On top of it; if its CEO had it delisted; the shareholders will be left in lurch with no option but to tender their shares at whatever price which may be much lesser than the actual value of the Company.

Other option of Voluntary Delisting may happens when there is little investor interest in a stock; it does not trade much and it is hard for a company to sell more shares to investors.

As a corollary to this; the fundamental question that arises is – Is delisting of securities a boon or a bane for the shareholders?

Unions Galore at Malaysia Airlines

Last month – STAR wrote Union Galore at Malaysia Airlines – pointing at the below in campaign strategy which we’ve written many moons ago. The transformation strategy by Tony Fernandez is to cap down the salaries & wages for Malaysian stewardesses with lessor benefits and higher work hours in combining practice – a set up for Malaysia benchmarking airlines policy.


STAR wrote; “IT is interesting to note that the National Union of Flight Attendants Malaysia (Nufam) has appointed itself as the union representing the cabin crew of Malaysia Airlines (MAS), although the airline had yet to recognise it up till yesterday.”

Already, the carrier has eight unions and associations. Nufam would be its ninth, if accepted. And if the other three segments are formed, then it would round up to make a dozen, and that would make MAS, perhaps, the only company with a dozen unions.

Unions are necessary and Maseu has shown in the past how powerful a union can be by lobbying for the unbundling of the share swap with AirAsia Bhd. It is now rallying for a management change. Is the recognition of Nufam a move to weaken Maseu so that it cannot lobby for change then?

Take a look at what’s in this cooking pot for Malaysia Airlines!


So Tony Fernandez has his transformation plan for Malaysia Airlines pursuing by his 3 cronies. We’ve written this many moons ago but what we did not know earlier is that Nufam is the acting transformer for Tony Fernandez until we had a small chat with former Minister of Human Resource and a few internal workers. Ahmad Jauhari did ask the Ministry of Human Resource to grant recognition to Nufam for his convenience and smooth operation recruiting cabin crew from AirAsia – for twice the fun and half the price! Take a closer look at how AirAsia stewardesses are treated in AirAsia!
AirAsia stewardesses know how it feels to be treated like cheap sex objects. As if it is not enough mucking out toilets, the airline’s crass advertising has painted girls as a ‘hostess meets whore for over a decade.

Consider headlines: The new girl has finally arrived. She’s twice the fun and half the price” or Now taking reservations”. The seat, not the girl. This is the way AirAsia demean staffers. We are going to show you how tasteless, damaging promotions play out in reality.

Asian whores

More than three AirAsia stewardesses have been attacked and molested in Malaysia after Tony Fernandez advertising them as Asian whores. The story – HERESHARINAWATI and AMRITA ROY should echo in your psych as you continue to read how AirAsia treat their staff with zero security but fatalities and incidents working environment.

Some prefer to call them the flying prostitutes – Don’t lose sight of the fact that this is an advertiser that commonly boasts close-up shots of stewardesses’ buttocks in their television spots. Take the images that pepper the Internet, where perverted individuals and amateur pornographers photograph stewardesses’ behinds, breasts and under their uniforms. While this is indicative, this clip is a milder example than some.

Flying prostitutes are hot!

This website hastens to clarify that none of the lewd or distasteful photographs featured in this article were taken or commissioned by our team. Such pictures are abundant on the Internet. As it happens, airlines that do not sexually exploit stewardesses do not feature significantly – at least not in a pornified manner –  on the Net. AirAsia habitually demean staff – and appear infinitely more regularly than most on smutty sites. The close-up shots of AirAsia stewardesses’ buttocks scene….AirAsia is selling buttocks and it’s the buttocks’ airlines.

According to insiders, a decade of demeaning AirAsia advertisments and objectification of its crew has manifested into many offending passengers ‘competing’ and using mobile devices to take lewd photographs, and a number of alleged unreported sexual assaults. You are surprised? Let’s just say that AirAsia’s passengers are hardly civilised travelers. Trailer trash…cheapskate customers…


AirAsia don’t think twice about draping ‘bimbos’ en masse over some geeky male passenger in what looks like a still from a sex video. Perhaps we could have a competition to give the sex movie a title. Maybe it could star the old perv in the ‘Blow Me’ t-shirt. Sadly, this is precisely the demographic that would buy into lowest common denominator ads, using sex to sell.  The problem is that AirAsia are prostituting their female staff’s image and reputation to achieve it.

Speaking to one AirAsia stewardess on the condition of anonymity,  we were told that they – the AirAsia girls – realise that they have a very ‘bad reputation’ as ‘sluts’ among passengers, management and particularly stewardesses & staff from other carriers. Her conclusion was, “But what can we do, when we’re painted that way? AirAsia is a terrible stepping stone.”As a low-cost operator flying tens of thousands of Australian passengers, we’re wondering if AirAsia are subject to legislation governing the Australian workplace. If so, the Malaysians could be in for a rude awakening. Have they not heard of Collective Shout? So AirAsia’s girls should get down to contact this Collective Shout!

Young girls themselves begin to act out this image that has been pinned upon them by the AirAsia airlines!

Prostitutes working as AirAsia’s stewardesses!

AirAsia’s stewardesses showing their tiny boobs!

The sex bunnies act maybe their pseudo porn poses and come hither expressions spring naturally; do they bed all their customers in-flight-ly or in the Tune hotel at KLIA2?

It is patently obvious that stewardesses from Singapore Airlines, and even Malaysia Airlines to a degree, are considerably more urbane and refined than the type of staff AirAsia sets out to attract. Does that, however, mean that girls who are not as worldly should be subjected to such sexist treatment from AirAsia?

While we have people such as lecherous old Sir Dick treating staff like objects he can pick up and manhandle, have we really got any hope? Really, have you ever seen a respectable multinational CEO picking up one of his or her staff in a short dress and parading her tail before the press? Tacky. You noted that AirAsia’s CEO cannot even spell the word stewardess? Of course, he may have been distracted, busy planning an evening of joy with the Emperor’s courtesans.

The lecherous Sir Dick!

“The new girl has finally arrived. She is twice the fun and half the price” – The crass advertisement by AirAsia selling its female staff.

Coffee, tea or me? How about a bucket?

This post also relates to the well-being of AirAsia’s workers. We feel that their work conditions are quite sad enough, treated like second class citizens. We hope that the stewardesses cease to be treated as eye candy, or bait for undesirables.

Many AirAsia’s workers have expressed silently by sending their messages to the public;

Lively and fun work place – I have been working at AirAsia full-time. Pros – It’s a lively place to work at; with all sorts of celebration going on more than once a month. Cons – In my department (web content); there are not a lot of things to learn that will help in career growth and there’s not a lot of thinking to be done but you just do what people tell you to do. Other benefits are just so-so. You get good allowance but food is not good and no variety. Good food is expensive and allowance is little. Parking is not provided for staff (have to pay and to apply for monthly pass, need to wait for more than 5 months and some don’t get monthly pass)

Advice to Senior Management – Increase pay and allowance or decrease daily expenses (parking; meals; etc) and to provide mileage claims; uniform laundry; etc.

No, I would not recommend this company to a friend because it’s horrible working place.

What about those who work with Malaysia Airlines? 

Good place to learn and gain experience – I have been working at Malaysian Airlines full-time. Pros – Travel and Medical Benefits; if you want to travel the world and meet new people; new adventure; then MAS should be your destination. Cons – Nature of my requires me to work at odd hours.

Advice to Senior Management – Salary needs improvement except for top management – you people are saving cost to increase your own salaries range.

Yes, I would recommend this company to a friend – though I’m optimistic about the outlook of this company.

Except Malaysiaairlinesfamilies received this image last week stated a fixer and the ball boy for Hayati Dato Ali. Hayati is known as the most downright and challenging female leader of this millennium. Perhaps; it’s time for her to leave MAS before she contaminated the entire organization which she already had half of the division contaminated with her retarded strategy.


This person has been known for being an apple polisher since his steward’s day and currently is employed as FIXER ridding off any MAS workers who could have been smarter than Hayati. We assume the list above pointed at his policy adopted on MAS cabin crew that is compulsory to buy insurance from him! Do the shareholders know of this yet? And did Hayati – his employer condones such abuse of power?

Workplace fixed-up strategy never work well for any company. Sadly, some employers feel they have the right (or even the need) to behave badly in the workplace, hurting and demoralizing the very people whose best thinking and assistance they need. MAS must also extirpated these cruels animal before all assets start walking out leaving behind the dead woods!

Do stay tuned to us for another upcoming episode 3!

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;

  1. 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.
  2. 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.
  3. 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.














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.

A tale of two airlines in Malaysian skies – Episode 1 “Buy MAS Sell Air Asia”

The industry view on the National Carrier – The Malaysia Airlines conclusively recommended the investment funds holding Air Asia to switch into Malaysia Airlines (MAS). On a risk-adjusted reward trade, a well-known researcher Morgan & Stanley see limited downside for MAS at the current price. Net cash accounts for more than 70% of market capitalization, and Morgan & Stanley believe the MAS share price could double if the carrier achieves its internal net profit target of RM0.7-1.0 billion for this year. In contrast, Morgan & Stanley (M&S) think Air Asia’s share price could see further downward pressure if oil prices and funding costs stay high.

Where M&S Differ:

While many like Air Asia’s low-cost business model, we think MAS has restructured its operation to be extremely competitive with Air Asia, and the carrier now has much better fundamental operating prospects than Air Asia does. The market appears to believe Air Asia will continue to take market share from MAS.

Malaysiaairlinesfamilies; however, believe drastic changes may affect Air Asia market share from MAS when Malindo Airways took off in March 2013. Many Malaysians are waiting in line to fly with Malindo Airways.

Why Morgan & Stanley Researchers Like MAS over Air Asia:

Disciplined growth strategy;

Sharply improving operating and pretax margin trend;

Prudent fuel hedging strategy;

Strong balance sheet and negative gearing; and

Attractive relative valuation.

Divergence in Relative Valuation: If we subtract net cash from MAS’ market capitalization, its franchise value is less than 1.0x EBITDA. In contrast, EV/EBITDA for Air Asia at 11.5x is expensive, given the inherent risks of potential fuel-hedging derivative contract losses and higher funding costs to finance capital expenditures for the next five years.

“Buy MAS, Sell Air Asia”

Brief notes about Morgan & Stanley:

Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.

For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report.

+= Analysts employed by non-US affiliates are not registered pursuant to NASD/NYSE rules

The rating of MAS & Air Asia by Morgan Stanley in April 2008


MAS (RM3.60) is rated Overweight (RM7.00 price target) above;

While Air Asia (RM1.38) is rated Underweight (RM1.20 price target) below


Investment Case – Summary and Conclusions by Morgan & Stanley

In our initiation report on Air Asia, First-Mover Advantage in High-Growth Industry (30 June 2005), we provided a comparative analysis between Air Asia and Malaysia Airlines (MAS) on the domestic operation. Our conclusion was that even though Air Asia network capacity size is about 15% smaller than MAS’, Air Asia has significantly lower unit costs that more than offset its low unit yield when compared with MAS. The net impact was a wide divergence in operating profit: Air Asia recorded an operating margin of 20% while MAS reported a negative operating margin of 21% for the nine months ranging from July 2004 through March 2005.

Prior to MAS’ corporate restructuring exercise in 2006, Air Asia had little competition, and we believe the vastly inefficient and poorly capitalized MAS has made it easy for Air Asia to gain domestic and regional market share at the expense of MAS. We think the picture between the two carriers has changed dramatically since then, and MAS’ fortunes now appear to be rising at Air Asia’s expense. Our preferred aviation play in Malaysia is MAS, and we rate the stock Overweight with price target of RM7.00. We rate Air Asia Underweight and see fair value at RM1.20.

MAS versus Air Asia: Changing Fortunes

We highlight five reasons why we prefer MAS over Air Asia for the Malaysian aviation market.

I. Revenue Growth Strategy

For the past three years (2005-2007), Air Asia grew at an exceptional rate with RPK doubling to 9.86 billion and operating revenue rising 141% to RM1.6 billion at the end of June 2007. In contrast, RPK for Malaysia Airlines fell by 13% to 36.8 billion, but operating revenue rose 22% to RM14.9 billion at end of December 2007. In 2005, the domestic operation was part of the MAS network, but following a major corporate restructuring, the domestic operation was downsized. A significant portion of the domestic routes was transferred to Air Asia in 2006 as part of the government aviation policy of increasing competition. The growth comparison is also affected by the fiscal year changes – MAS changed its fiscal year to December from March in 2005, and Air Asia changed its fiscal year to December from June in 2007. Since we used an annualized 12-month period for our analysis, we think the fiscal year change should not affect the magnitude and direction of our analysis.

We think it is interesting to highlight that MAS was growing operating revenues by enhancing yield (indirectly higher fares) and other revenue sources, particularly cargo, while Air Asia grew its operating revenues sheer by an increase in passenger volume to gain market share.

MAS is expected to continue its steadily growth and path of growing RPK by 15% and operating revenues by 19%.

Malaysiaairlinesfamilies think MAS growth trend has got higher after the carrier took new delivery of its new A380 aircraft.

Of course, Air Asia or Group Tune Air would be recommending Air Asia to buy Tony Fernandez’s pipeline order of A380 aircraft to penetrate into Los Angeles routes competing painfully with MAS. That is what Tony Fernandez is all about in the aviation industry. All he cares is to KILL Malaysia Airlines just to save his stupid LOW CASTE Air Asia.

II. Operating and Pretax Margin Trends Over the 1995-97 period

MAS’ operating margin swung from a loss of 13.7% in F2005 to a profit of 3.0% in F2007. Air Asia’s operating margin declined from 14.1% in F2005 to 12.0% in F2007. The trend was similar for pretax margin. Air Asia’s declined to 17.3% in F2007 from 18.8% in F2005. The swing was more spectacular for MAS, rising from a loss of 13.3% in F2005 to a profit of 5.9% in F2007. A disciplined revenue growth strategy and tight control on operating costs led to the big earnings turnaround in MAS’ operation, and the operating margin gap between the two airlines has narrowed significantly since 2005.

The sharp divergence in operating and pretax margin performance between the two carriers should become more evident in the next two years. We expect Air Asia’s operating margin to rise to 19.4% in F2009 from 12.0% in F2007 but look for the pretax margin to drop further to 9.5% in F2009 from 17.3% in F2007. In contrast, we expect MAS to see an improvement in operating margin to 5.2% in F2009 from 3.0% in F2007 and anticipate a higher pretax margin of 6.4% versus 5.9%. While Air Asia will likely see pretax margin pressure from high net interest expense, MAS should benefit from net interest income primarily due to its huge net cash position.

III. Fuel Hedging Policy

We see a sharp contrast in fuel hedging strategies between the two airlines. MAS has adopted a conservative fuel hedging policy whereby it benchmarks its fuel hedging ratio against the average hedged ratio of its regional airline peers. The underlying fuel hedging philosophy is that MAS management does not want its airline operating performance to be significantly affected by volatile oil prices when compared to the other Asian airlines. In contrast, Air Asia takes directional bets on its oil position as part of its fuel hedging policy. In late 2007, Air Asia management sold call options at US$82.60/bbl for 150,000 barrels per month, and the call options will be triggered if WTI crude price averages US$90/bbl for the month. The premium from the call options was used to cover the insurance premium for buying puts at US$69/bbl and selling puts at US$55/bbl for 150,000 barrels per month.

While Air Asia management has effectively closed its directional oil position bet for 2008 by buying and selling more call/put options to neutralize the original fuel hedging contract position, the carrier still has directional bet for January 2009 to June 2010 call option position. If WTI oil prices stay above US$90/bbl during January 2009 and June 2010; the losses for Air Asia are likely to mount between the spot price and US$82.60/bbl. If oil prices trade substantially higher in the current environment due to the weak US$, we see an increasing risk that the derivative loss could be substantial, affecting both the operating and financial position of Air Asia.

Malaysiaairlinesfamilies believe the above is the cause of Air Asia being not sustainable as compared to Malaysia Airlines – the oil prices trade has increased the risk affecting both the operating and financial position of Air Asia which is why Air Asia needed desperately to cheat its customers and swindled the stupid fool in Khazanah – The Men-In-RED who holds the title with Stupid Fool (SF) Azman Mokhtar.

References can be found here;

Part I – Air Asia is a cheat Part I;

Part II – Ask Air Asia how to cheat customers – Tony Fernandez will answer;

Part III – Now Everyone Can Buy Air Asia Tickets but Cannot Fly;

MAS, however, does not have derivative exposure risk on its oil position. In F2008, the carrier has hedged 43% of its fuel requirement at the WTI crude oil price of US$89/bbl and another 13% at US$95/bbl for its fuel requirement in F2009.

IV. Financial Leverage

At the end of December 2007, net debt-to-equity for Air Asia was 158% (in June 2007, the gearing was 170%), whereas MAS had a net cash position. In F2009, we expect Air Asia’s leverage to rise to 227% as the carrier raises new borrowings to finance the aircraft acquisition.

However, we think shareholders’ equity for Air Asia is inflated with deferred income tax credits and the deferred losses from associates, and if we adjust the shareholders’ equity, the underlying net debt-to-equity for the carrier rises to 372%.

Despite the huge capital expenditure for the new aircraft order — MAS recently ordered 55 B737-800 aircraft for US$4.2 billion with 35 firm and 20 option – we forecast the carrier will still be in a net cash position in F2009, as the bulk of the capital expenditure will be incurred from F2010 onwards.

We believe MAS will raise debt capital in either 2009 or 2010 when capital market conditions are likely to be much improved from the tight liquidity credit crisis where funding costs have increased due to the rising credit default swap risks in the past months.

In contrast, Air Asia will have to raise RM2-3 billion a year for the next five years, and we estimate the carrier will need to raise RM2.8 billion for F2008.

Malaysiaairlinesfamilies saw as analyzed by Morgan & Stanley in 2008 where Air Asia needed to raise a minimum of RM2.8 revenue annually supposedly since F2008 to rescue Air Asia from Act 360 (Bankruptcy Act 1967); however it did not go well as expected due to fuel prices hiked unexpectedly where Air Asia in fact had declared losses consistently for two year from F2007 to F2008. The collaboration with MAS orchestrated by Air Asia was to have MAS profits siphoned out to save Air Asia which led MAS to declare for the first time in Malaysia industry; a mass record of RM2.52 billion loss.

All Air Asia and Group Tune Air board of directors had to have a backup plan saving Air Asia with reason to save themselves from conviction for Air Asia’s Bankruptcy incurring debt without reasonable ground of expectation of paying it.

Morgan & Stanley however think they favor MAS over Air Asia for 5 of the core reasons that included;

V. Relative Valuation

Perhaps the most important difference between the two carriers is the contrasting relative valuation. On franchise value, measured in EV/EBITDA, MAS trades at less than 1.0x compared with 11.5x for Air Asia. More interestingly, MAS’ net cash at RM4.4 billion at end of F2007 comprises about 73% of its current market capitalization of RM6.0 billion, which implies that the current franchise value is less than 1.0x its EBITDA (or cash flow).

Note – EV/EBITDA simply put by providing a simple, though incomplete, ratio of profit to value, EBITDA/EV is often used to estimate the cash return on an investment.

Morgan & Stanley is an international researcher for trading market etc. Even they understood Air Asia’s earnings are boosted by deferred income tax credit and contributed to an artificial strong balance sheet that again boosted by Tony Fernandez.

TF bullshit

The public is not a fool and cannot be fooled; not for too long

Below is reply from Air Asia customers to Tony Fernandez above statement

TF bullshit2

The next remedy for saving Air Asia would be to conquer the Malaysia Aviation Industry by controlling the workers of the main Airlines in Malaysia i.e. Malaysia Airlines; Firefly; Air Asia and Malindo Airways.

Consequently the existence of the National Union for these airlines would save Air Asia but would kill the workers of Malaysia Airlines; Firefly and Malindo Airways. How could it happen? Stay tuned for our next episode.

Cheers from Malaysiaairlinesfamilies!