Mr Shane Nollan of PlaneConsult, as the Acting Commercial Director of MAS and En Rozman Omar (Rozman), ex-AirAsia’s Head of Regional Finance, CFO of MAS must take full responsibility and account for the Special Rates and agreed payments for the uplifting of the 35,464 AirAsia X Sdn Bhd (AAX) passengers.
The Settlement Rate (Special Rates), Terms and Conditions in the Re-Accommodation Agreement (RA) dated28-3-2012 are reproduced in the later part of this posting.
AAX, formerly known as FlyAsian Express Sdn Bhd aka FAX. It is not a 100%Malaysian owned company, in HERE & HERE.
On 15-3-2012, yours truly has exposed the scandalous uplifting AAX passenger by MAS with ZERO FARE to Bombay (Munbai), HERE.
Mr Shane Nollan and/or En Rozman must have instructed Puan Nor Zalida Ahmadto send out the unsigned e-mail at 12;26 am dated 28-3-2012 to MAS staffs via MAS“Your Voice online”, HERE.
The salient point in the said e-mail were:
“Malaysia Airlines has entered into a Re-Accommodation Agreement (“RA”) with AirAsia X effective 27 March 2012 to re-accommodate the latter airline’s passengers on four routes cancelled using excess capacity on Malaysia Airlines flights. The four routes involve Mumbai, Delhi, London and Paris.
Economy and premium class passengers holding confirmed AirAsia X tickets issued before 13 January 2012 on the four routes would be transferred for travel on Malaysia Airlines between28 March and 27 October 2012.
Under the terms of the RA, Malaysia Airlines would receive upfront cash payments or pre-paymentson tickets for the re-accommodated passengersbefore departure. To date, Malaysia Airlines has received a prepayment of RM20 million in cash.
Hence, the related revenue from this arrangement is pure incremental revenue for the airline andwould significantly contribute to the profitability of Malaysia Airlines.
Recent reports that Malaysia Airlines may have re-accommodated AirAsia X passengers without payment or at rates unfavourable to the national airline are unfounded and untrue.
Malaysia Airlines would also like to put on record that it continues to respect and abide by all governance requirements in the execution of this transaction.”
The contents of the above e-mail were also reported in, of course, The Star of 28-3-2012, in HERE.
The above 12:26 am e-mail clearly showed that Mr Shane Nollan and/or Rozman were misrepresenting facts to the MAS staffs, Government and the nation. It was a very poor attempt, which was a clear reflection of their incompetence and lack of integrity to hold such high office in any company let alone MAS, our national icon.
The said misrepresentation of facts were done with the predominant purpose to cover-up their misdeeds in the said re-accommodation exercise of the said 35,464AAX passengers that have been put in motion well before the 27-3-2012, as can be seen in HERE.
Perhaps it was due to Mr Shane Nollan’s indirect relationship with AAX through PlaneConsult and Rozman’s direct relationship with AAX that have caused them to wilfully ignore the existing established policy of MAS in such a re-accommodation exercise done by MAS for a non-IATA airlines.
For uplifting of passengers of IATA airline, payment is guaranteed under Bank Settlement Plan (BSP) or IATA Clearing House (ICH).
For the non-IATA airlines, unless there was an existing valid Prorate Agreement, the Special Rate and terms of payment shall apply for such an exercise.
In the case of AAX, it is neither a member airline of IATA nor a party to an existingProrate Agreement with MAS. Under such circumstances, it is the MAS existing policy to charge FULL FARE for all classes and mandatory for AAX to deposit fund or Bank Guarantee with MAS to secure payment for the uplifting exercise. But none of these conditions have been imposed by MAS in the RA!
But in this particular case, the existing established policy of MAS has been totally ignored by Mr Shne Nollan and Rozman with demand for for payment of deposit prior to the BOOKING and UPLIFTING of the first batch of AAX passengers.
Furthermore, the RA was entered into after yours truly had exposed the scandal on15-3-2012. Under such circumstances, Mr Shane Nollan and Rozman saw it fit to charge AAX unprecedented low fares and at the same time did not ensure that AAX strictly adhered to the terms and conditions of the RA i.e. the payment of DEPOSITby AAX is made on time i.e.31-3-2012.
The RA was entered into on 28-3-2012, which was well after MAS had already uplifted a few hundred AAX passengers. The said RA was entered into as a coverup.
The relevant excerpts of the terms and conditions of the “Secret” Re-Accommodation Agreement are as follow:
1.1 AAX has deposited an upfront payment totaling RM20 million with MAS.
The payments were made by AAX in several instalments. The 1st payment was RM3 million on or about 28th February, 2nd RM3 million on or about 12th March and 3rd RM14 million on or about 15th March 2012. That was how AAX paid the total RM20 million.
1.1.2 AAX shall deposit the balance of the total upfront payment amounting to RM31,615,776 by 31stMarch 2012.
After the elapsed of 17 days as at 17-4-2012, AAX has not paid to MAS the said sum ofRM31,615,776.
1.2 MAS will invoice AAX weekly based on confirmed booking and supported by the name list as per the template, PNR, flight number, sector (s).
Could MAS staffs help out with information whether the Condition 1.2 has been dutifully carried out by Rozman?
1.4 MAS will draw down upfront payment against the confirmed booking and issue tickets.
Could MAS staff help out whether Condition 1.2 has been dutifully carried out?
1.5 MAS will send advice to AAX to top-up the upfront payment, should the balance fall below the required amount for ticket issuance.
Could MAS staffs help out with information whether the above Condition 1.2 has been dutifully carried out?
1.6 Tickets issuance shall be subject to availability of funds and MAS shall within its sole discretion be entitled to withhold ticket issuance unless and until AAX has topped up the upfront payment or settled the balance in accordance with the terms and condition of this agreement.
The glaring fact is that the said upfront payment of RM31,615,776, which was supposed to have been paid on 31st March 2012 under Condition 1.1.2 above has NOTbeen paid by AAX.
Could MAS staffs help out with information whether id MAS withhold the issuance of further tickets after 31-3-2012?
Let us examining the above glaring facts, and the last paragraph of the excerpt of the 12:26 am e-mail of 28-3-2012:
“Malaysia Airlines would also like to put on record that it continues to respect and abide by all governance requirements in the execution of this transaction.”
It is evident that at the material time Mr Shane Nollan and/or Rozman and/or other members of the top management of MAS were not only misrepresenting facts but they have made a FALSE DECLARATION in the hope of pulling wool over the eyes of MAS staff, Government and more importantly the NATION as a whole.
Now look at the extremely low SETTLEMENT RATES granted to AAX.
2. Settlement Rates
The agreed settlement rates in Ringgit Malaysia (RM) are as follows: