Barisan Nasional Saving MAS or Killing It?

Now we are seeing the true “masterplan” of Tony on how to wipe out MAS totally.

By Mat UMNO

Reported By Forbes.com, “The collaboration won't work. We believe it only benefits AirAsia, which will get (the advantage of) a free hand in the low-cost segment," union secretary-general Abdul Malek Arif told The Associated Press. Abdul Malek said staff were told at a briefing last month that a new premium carrier called Sapphire Air would be set up to handle regional and domestic routes. The fate of Firefly, the current
low-cost unit of Malaysia Airlines, remains unclear, he said.
While details remain vague, he said 80 percent of Malaysia Airlines' staff are expected to be transferred to Sapphire Air - a move he claimed was aimed at busting the union, which will make it easier for the new management to retrench staff. "Why is there a need for a new airline? There is a lot of confusion now over Malaysia Airlines' direction and policy. Everyone here feels their job is at stake," he added.”

Reported By The Star, “MAS is the oldest airline in Malaysia. There is no reason for not making a lasting profit,” Ab Malek said, adding that the Government should revamp the entire management.”

Reported By YB Wee Choo Keong, “Updated 06-09-2011 @ 11:30 pm: It was a known fact that MAS set up Firefly to provide an alternative to AirAsia and AirAsia X Sdn Bhd previously known as Fly Asian Express Sdn Bhd aka as FAX. Remember in 2006/2007 FAX snatched Rural Air Services (RAS) from MAS during Tun Abdullah Badawi’s administration and received about RM65 million from the government as subsidy.

However, in a short span of 8 months or so it dumped seven un-airworthy aircrafts to MAS with a total bill of RM35 million.

On 12-11-2010, Firefly said in The Star that “it would fly commercial jets for domestic routes and begin with crossover routes, e.g. Kota Kinabalu and Kuching, on Jan 15. Asean will be its next stop”. So it was crystal clear from the decisions of the new management of MAS consisting of Tan Sri Tony Fernandes, Datuk Kamarudin Meranun (both of AirAsia and AirAsia X Sdn Bhd/FAX), Tan Sri Md Nor MD Yusof, Datuk Azman
Yahya and En Mohammed Rashdan Yusoff aka Danny to terminate Firefly services from JB to Kuching and JB to Kota Kinabalu via an email dated 25-8-2011 as published below. We have been indoctrinated by Tan Sri Tony Fernandes that competition is healthy and good for the travelers. Are we witnessing the real Tan Sri Tony Fernandes now?

Perhaps we can now see a bit clearer whether MAS needed AirAsia to survive as made out to be the case in a news portal and mainstream media or the other way around.

I have been informed that during the Hari Raya season several full load flights of Firefly have been cancelled at the eleventh hours. The cancellations have caused enormous inconveniences to members of the public, who were on their balik kampung back to see their families. Why cancel full load flights during a festive season?Where is the business sense of MAS current management? Even if you want to help your close friend like Tan Sri Tony Fernandes/AirAsia, please don’t do it at the expense of the public.

This is not the way to kill Firefly, indirectly MAS. Surely with all your top financial qualifications and famous credentials under BinaFikir you should know of better ways to skin a cow! Why are you in such a rush to kill Firefly in such a desperate manner? I am sure that Datuk Omar Ong will advise you against such ill thought out decisions.

Below is the e-mail dated 25th August 2011 from MAS HQ to all its agents.

Dear Valued Agent,

Greetings from Firefly!

We regret to inform you we will no longer operate JB – Kuching V V & JB – Kota Kinabalu V V route from September 15 onwards. We don’t advise a re-routing of flights because we don’t want to inconvenience you further. A re-route through a third destination such as KLIA will double the length of your travel time if not more.

To minimize disruption to your time, we strongly suggest the solution of a refund.

We apologize for the inconvenience caused and wish to offer you a refund in the form of credit shell. Please allow 8 weeks for the refund to be processed. Due to our network rationalizing exercise, and we’re very sorry that this has inconvenienced you.

We at Firefly are more than obliged to work hand in hand with you on other routes and will do our very best to see the production grow for both our parties.

The above is the email sent out by MAS HQ to its agents on 25th August, 2011. The work of the powerful unseen hands. This must be part of the game plans of the so-called “MAS – AirAsia share swap”, which was shrouded in secrecy.

After the signing ceremony of the said share swap between Tan Sri Azman Mokhtar and Tan Sri Tony Fernandes on 8-8-2011, it was immediately announced that Firefly will soon change its business model. Presumably, what the economic genius in Khazanah and Tan Sri Tony Fernandes meant was Firefly will stop competing with other low cost airlines, in particular AirAsia.

Instead of chasing after huge debts owed by Alwafeer Air, which involved non-payment of leasing rentals for three jumbo jets amounting to ten of millions of ringgit, En Mohamed Rashdan Yusof, the Khazanah’s representative in MAS management was more interested in how to disrupt and/or stifle Firefly for the benefit of the competitor of MAS. Guess who?

If the stopping of Firefly’s profitable routes to East Malaysia was part of the said secret share swap exercise by YB Nor Mohamad Yacop, the former Minister of Finance II under Tun Abdullah’s administration now Minister in charge of EPU, Tan Sri Azman Mokhtar and En Mohamed Rashdan Yusof, both of whom are former business partners in BinaFikir Sdn Bhd, then Firefly is as good as dead! The future of MAS is not hard to determine.

The time has come for the rakyat, bloggers and, most of all, the MAS Union to join hands to stop the rot.

Well done YB Wee! Few bloggers and parties had tried to warn the government and people about what will happen when the MAS/AA share swap deal is sealed. You can refer to my older posting on “MAS AA Share Swap” does anyone listen or even think about it?
NOOOOOOOOOO……

Now we are seeing the true “masterplan” of Tony on how to wipe out MAS totally. Don’t believe me? In my previous writing, I’ve already explained the financial benefit and how AA can use MAS as a scapegoat in burdening them with debts and abusing the advantage of MAS capabilities. What slips my mind was the fate of Firefly.

MAS set up Firefly with the intention to compete with AA despite MAS' hands being tied by the government as Ministry of Transport favors AA much more. It is said that the Ministry of Transport has a few bucks going in their pocket from AA. When I said “few bucks going in their pocket from AA”, I don’t mean AA is donating the money directly to the “Ministry of Transport” itself. It is more directly to those high ranking in the ministry
that benefited from it.

AA will skin and poison Firefly and MAS slowly. They already managed to be in MAS so now they have the opportunity to shut down Firefly. But why shut down Firefly and create a new airline such as Sapphire Airline?

Here are a couple of reasons; Firefly is seen as a direct competitor to AA's business locally and internationally. Firefly has already made good ground in giving AA a run for their money as it offers better service, competitive prices and departure convenience. This has been noted a few years back by AA and they needed to do something about it after all, there are more benefits to AA with the closure of Firefly.

Recently, it was announced that Tony had just bought over the Queen Park Ranger football team. I have no issues with his passion for football but when you start sponsoring your own football team with the money from MAS, it becomes totally wrong. First of all, MAS reported a loss recently and AA made profits. So how could a losing company pay for the sponsorship?

The reason MAS and AA decided to sponsor QPR was for better market exposure. Hmm, why sponsor a football club? How much is the sponsorship? Which target market do they target? What is the ROI from the sponsorship?

With the sponsorship of QPR happening without a glitch and without consultation from Khazanah, what will stop AA from sponsoring their F1 racing team? MAS will be again used to pay for Tony’s hobby and the saddest part of it is no one will stop him because he has “political’ strings.

I cannot emphasise how dangerous this man is to MAS. His cunning business ways are only suitable for him and not for others. He is a wolf in sheep's clothing!

The fates of 15,000 MAS staff too, hang in danger with the opening of Sapphire Air. The union cannot do anything without help from the government. Why is it the government willing to lose 15,000 votes in this coming election? These 15,000 vote can quadruple as they have family and friends that will listen to them!

When Sapphire Air emerges, no one can stop AA from permanently destroying MAS! The union will be helpless. I can give you the scenario how AA will systematically kill off MAS:

1. Sapphire Air is born. They will offer the current MAS staff to “migrate” with lower pay and lesser benefits.

2. If Sapphire Air does not have enough staff, this will be better for AA as they can now hire cheaper labour thus cut their operational costs.

3. Those who choose to stay can stay, but sooner or later, MAS downsizing will take effect, which means the company will offer VSS.

4. Khazanah will use the rakyat’s money to pay MAS staff “Voluntary Separation Scheme”. Why Khazanah? Well, Khazanah is still the majority shareholder and with money. AA is just the biggest individual shareholder but they don’t have money.

5. Those who decide to take the VSS can retire, start their own business or have enough money to last them for a few months while searching for a new job with lower pay. When this happens, whatever their current commitment, eg. house loan repayment etc will be jeorpadized!

6. Once they have fully transferred all the local routes to Sapphire Air, where can MAS or Firefly go?

So my question is … what can the current MAS union do to stop this? We are talking about people’s lives and it seems the government doesn’t care.

Prime Minister Najib Tun Razak, please open your eyes and heart regarding this matter. It is a matter of the rakyats' welfare and pride of Malaysia. We can turn MAS around if given a fair chance. Given a free hand to do business as it is supposed to be, without hands being tied behind our backs by Khazanah!

I dare say that BN will lose terribly should you allow this annihilation of MAS by AA!

More to come! ... Mark my words!