By Manu Sasidharan; CEO, Sabah Air Aviation Sdn. Bhd.
In the last few weeks Yang Berhormat Jimmy Wong Sze Phin has been bringing up allegations and issues pertaining to Sabah Air Aviation. Sabah Air would like to clear the air and give clarity to the general public on the same.
The Audit Report by Jabatan Audit Negara was submitted in February 2011 to the shareholders and the Audit Exit Conference was held on 24th June 2011. The report was discussed, clarified, at the conference and necessary steps were taken to address all matters pertaining to the audit report queries. Necessary steps were taken in the immediate aftermath, with the appointment of a new leadership in the month of July 2011. The requisite re- structuring and process updating was initiated immediately.
The company is in fact now embarking on operating process overhaul and updating its procedures to meet future requirements in the aviation field, such as getting international quality standards approvals (AS/EN9110) and other process approvals, with an aggressive
view on the potential long term future of the company.
The company made a profit of RM 1.6 million for the FY 2010.
Sabah Air Aviation would like to address some of the specific allegations that were brought up in the media recently, for the benefit of the public at large, and Yang Berhormat Jimmy Wong Sze Phin.
The company is in fact now embarking on operating process overhaul and updating its procedures to meet future requirements in the aviation field, such as getting international quality standards approvals (AS/EN9110) and other process approvals, with an aggressive
view on the potential long term future of the company.
The company made a profit of RM 1.6 million for the FY 2010.
Sabah Air Aviation would like to address some of the specific allegations that were brought up in the media recently, for the benefit of the public at large, and Yang Berhormat Jimmy Wong Sze Phin.
1. RM 1.00 Lease Agreement with Eurocopter
As mentioned in the previous Press Conference, the said agreement was an above board arrangement with Eurocopter to cover the cost of participating in LIMA`11. The aircraft was transferred to Subang Base for Hangarage and technical support (while away from main operating base). The participation in LIMA `11 was covered by Eurocopter (in terms of expenses). The main reason for Sabah Air to bring this model to LIMA `11 was to highlight its superior capabilities to Ministry of Health senior officials on a potential new contract for nationwide Emergency Medical Services (EMS). The total expenses for the entire event were in the range of RM 800,000.00+, which was translated into a major saving for Sabah Air. While the aircraft is under the aegis of Eurocopter, the standard procedure is to ensure the insurance coverage for the aircraft is also passed to them, which has to be done on the basis of a Lease Agreement for RM 1.00. The aircraft has a few more jobs in Peninsula Malaysia and Singapore before coming back to Sabah in mid-March. Sabah Air would like to stress at this stage the following,
a. The EC-145 belongs to Sabah Air, and is been currently operated out of Eurocopter Subang Base.
b. Main reason for this is to assist in the company’s campaign with the customer on the potential EMS contract.
c. Once the pre-determined commercial and non-commercial (e.g: demonstration flights to potential customers) are completed the helicopter shall be coming back to its Home Base (Kota Kinabalu).
d. It is a common practice in the aviation sector for such collaborative efforts between the operator and the OEM.
e. The ownership of the aircraft still and will always remain with Sabah Air.
2. Sabah Air in disarray
On the topic of three spokesmen for the company indicating the company is in disarray, Sabah Air would like to point out the following,
a. Sabah Air Aviation is in the midst of a transitional management, and the issues referred to the Audit Report overlapped across two different management.
b. Hence it was in the best interest of the public for the past and present management to be addressing the issue.
c. Sabah Air would also like to point out that the issues were addressed by the management itself, rather than an appointed spokesperson to show its seriousness in addressing public interest on the subject matter.
3. “In the business of saving lives”
The business of saving lives is a profitable one. The Medical Care industry is a multi-billion dollar industry. Sabah Air is in the logistics sector of this industry vertical; which is a vital infrastructure in region such as Sabah with its unique geography. The Flying Doctor Services, MEDEVAC and the Emergency Medical Services are all paying services, not just in Malaysia but all over the world.
Sabah Air was one of the pioneering Aviation companies in the country to start the Flying Doctor Services. Over the years, substantial portion of the company’s revenue was derived from this sector. Hence, we at Sabah Air would like to reiterate the fact that we are in the business of SAVING LIVES. This was also one of the main reasons the company was approached by the United Nations in the immediate aftermath of the Aceh Tsunami Tragedy to provide vital air services. The services offered is on the basis of Government
Tender and paid for by the government. Occasionally we have also undertake mercy missions on humanitarian grounds as a service to the poor citizens of the state, which sometimes do not fall within the purview of the stated contract. Such flights are considered as the Corporate Social Responsibility of the company, without damaging the financial stability of the company, which is evident in the evident in the profit the company made last year.
4. Meetings with Department of Civil Aviation; Malaysia
In the business of Aviation; whether General Aviation, MRO or Airlines, liaising with the Department of Civil Aviation on matters concerning regulations and safety are normal and mandatory requirements. To recent reports on Sabah Air personnel going to meet with DCAM is true and there is nothing unusual about it. Such meetings will normally cover all aspects of the company (aircraft, flight crew and engineering). Hence, the general public need not be alarmed on such meetings. Sabah Air would also like to point out that the allegation that the Chairman attended the meeting in DCAM on the 6th December 2011 is not true. The meeting was attended by the CEO along with senior company personnel.
5. Certificate of Airworthiness
Sabah Air has one of the oldest Air Operator’s Certificates in the country. Our team is experienced in the task of maintaining the required Airworthiness Documentations for all types of aircraft that is operated and or owned by the company. Some of these certificates and or documents are based on calendar renewal while some others are valid on different time scales, depending on the DCAM or company requirements. As per current status, all Sabah Air aircrafts are fully certified for any type of flights and it is usual for the certificates to run its term before been renewed again on the basis of specific regulatory requirements.
6. Aircraft Registration
On the issue off 9M-CMD and 9M-MOH registration, Sabah Air would like to state that the issuance of the same by DCAM was random, which was accepted by Sabah Air. Any links to any agencies or personalities, as suggested in the media are purely coincidental and has
nothing to do with any preferences as mentioned in the media. The Government or Sabah Air shareholders were not involved in this routine task for new aircraft registration in any manner and does not interfere in such decisions which is entirely up to the management.
7. Crew Movement
As for the media reports on pilots leaving Sabah Air, we would like to highlight the fact that unlike other industrial or service sector, the aviation sector has a highly mobile workforce. Such mobility is higher in the aviation industry as it is very much an internationalized industry and people can and are free to move around within as well as outside the country.
a. The EC-145 belongs to Sabah Air, and is been currently operated out of Eurocopter Subang Base.
b. Main reason for this is to assist in the company’s campaign with the customer on the potential EMS contract.
c. Once the pre-determined commercial and non-commercial (e.g: demonstration flights to potential customers) are completed the helicopter shall be coming back to its Home Base (Kota Kinabalu).
d. It is a common practice in the aviation sector for such collaborative efforts between the operator and the OEM.
e. The ownership of the aircraft still and will always remain with Sabah Air.
2. Sabah Air in disarray
On the topic of three spokesmen for the company indicating the company is in disarray, Sabah Air would like to point out the following,
a. Sabah Air Aviation is in the midst of a transitional management, and the issues referred to the Audit Report overlapped across two different management.
b. Hence it was in the best interest of the public for the past and present management to be addressing the issue.
c. Sabah Air would also like to point out that the issues were addressed by the management itself, rather than an appointed spokesperson to show its seriousness in addressing public interest on the subject matter.
3. “In the business of saving lives”
The business of saving lives is a profitable one. The Medical Care industry is a multi-billion dollar industry. Sabah Air is in the logistics sector of this industry vertical; which is a vital infrastructure in region such as Sabah with its unique geography. The Flying Doctor Services, MEDEVAC and the Emergency Medical Services are all paying services, not just in Malaysia but all over the world.
Sabah Air was one of the pioneering Aviation companies in the country to start the Flying Doctor Services. Over the years, substantial portion of the company’s revenue was derived from this sector. Hence, we at Sabah Air would like to reiterate the fact that we are in the business of SAVING LIVES. This was also one of the main reasons the company was approached by the United Nations in the immediate aftermath of the Aceh Tsunami Tragedy to provide vital air services. The services offered is on the basis of Government
Tender and paid for by the government. Occasionally we have also undertake mercy missions on humanitarian grounds as a service to the poor citizens of the state, which sometimes do not fall within the purview of the stated contract. Such flights are considered as the Corporate Social Responsibility of the company, without damaging the financial stability of the company, which is evident in the evident in the profit the company made last year.
4. Meetings with Department of Civil Aviation; Malaysia
In the business of Aviation; whether General Aviation, MRO or Airlines, liaising with the Department of Civil Aviation on matters concerning regulations and safety are normal and mandatory requirements. To recent reports on Sabah Air personnel going to meet with DCAM is true and there is nothing unusual about it. Such meetings will normally cover all aspects of the company (aircraft, flight crew and engineering). Hence, the general public need not be alarmed on such meetings. Sabah Air would also like to point out that the allegation that the Chairman attended the meeting in DCAM on the 6th December 2011 is not true. The meeting was attended by the CEO along with senior company personnel.
5. Certificate of Airworthiness
Sabah Air has one of the oldest Air Operator’s Certificates in the country. Our team is experienced in the task of maintaining the required Airworthiness Documentations for all types of aircraft that is operated and or owned by the company. Some of these certificates and or documents are based on calendar renewal while some others are valid on different time scales, depending on the DCAM or company requirements. As per current status, all Sabah Air aircrafts are fully certified for any type of flights and it is usual for the certificates to run its term before been renewed again on the basis of specific regulatory requirements.
6. Aircraft Registration
On the issue off 9M-CMD and 9M-MOH registration, Sabah Air would like to state that the issuance of the same by DCAM was random, which was accepted by Sabah Air. Any links to any agencies or personalities, as suggested in the media are purely coincidental and has
nothing to do with any preferences as mentioned in the media. The Government or Sabah Air shareholders were not involved in this routine task for new aircraft registration in any manner and does not interfere in such decisions which is entirely up to the management.
7. Crew Movement
As for the media reports on pilots leaving Sabah Air, we would like to highlight the fact that unlike other industrial or service sector, the aviation sector has a highly mobile workforce. Such mobility is higher in the aviation industry as it is very much an internationalized industry and people can and are free to move around within as well as outside the country.
At the same time, Sabah Air is also attracting a lot of new talents. Hence pilots leaving and joining the company is normal, as it is for licensed engineers. Never the less, the new management has early on itself identified weaknesses in the Human Resources management and took corrective actions to address the same.
8. Conclusion
The allegations brought out in the recent days on the company and its customers have had a negative impact on its operations and on-going business campaigns.
It was also unfortunate that these issues got highlighted in the media when the next Flying Doctor Service contract tender (2012 to 2015) process got into a critical decision-making stage for the customer.
Two out of the three potential contractors were highlighted by the Yang Berhormat, in a negative light. Hence, the timing of this issue been brought up in the media is highly questionable as potentially giving an unfair advantage to certain quarter of the competitive
landscape of the said contract.
Sabah Air shall not be addressing the media again on these matters till the said tender process is concluded successfully by the customer, as we consider it highly prejudiced otherwise. The company also has more important issues to address and chart its future to
become a regional leader in this industry, in accordance with our business plan. We belief all issues are clearly elucidated now for the public to read and understand.
Thank you.
Manu Sasidharan; CEO, Sabah Air Aviation Sdn. Bhd.
8. Conclusion
The allegations brought out in the recent days on the company and its customers have had a negative impact on its operations and on-going business campaigns.
It was also unfortunate that these issues got highlighted in the media when the next Flying Doctor Service contract tender (2012 to 2015) process got into a critical decision-making stage for the customer.
Two out of the three potential contractors were highlighted by the Yang Berhormat, in a negative light. Hence, the timing of this issue been brought up in the media is highly questionable as potentially giving an unfair advantage to certain quarter of the competitive
landscape of the said contract.
Sabah Air shall not be addressing the media again on these matters till the said tender process is concluded successfully by the customer, as we consider it highly prejudiced otherwise. The company also has more important issues to address and chart its future to
become a regional leader in this industry, in accordance with our business plan. We belief all issues are clearly elucidated now for the public to read and understand.
Thank you.
Manu Sasidharan; CEO, Sabah Air Aviation Sdn. Bhd.
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