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Thursday, January 23, 2020

Khazanah Wankers Suggest RM21 BILLION Bail Out For MAS !!

MAS will need RM21 billion taxpayers’ money to stay afloat until 2025 
RM21b financing is “high-level estimate” by Khazanah Nasional 
includes aircraft purchases 

roughly RM3.5b a year 
RM1b - RM1.6b for operations 
rest for aircraft

MAS' own estimates RM10.3b needed
MAS plan criticised by Khazanah as “overly optimistic” 

4% revenue jump growth ‘unlikely’
average growth rate of MAS 1% between 2016-2018

Khazanah still needed to pump extra RM10.3b to pay off RM5.6b loan 
from Turus Pesawat for six Airbus 380s 

MAS already risked defaulting on Turus Pesawat loan

Khazanah conclusion business plan will not help turnaround 
airline’s weak track record, execution capacity, inability to address revenue decline

at 1% growth rate, MAS will never break even
2018 RM8.73b revenue, net loss RM791.71m 

My comments : If revenue growth (ticket sales) is stuck at 1% then why do you need RM10 billion for new airplanes over the next five years? 

A 737 Max costs upwards of RM420 Million.
The Airbus A330s cost upwards of a billion Ringgit a piece.

My question is what is MAS' load factor?  
Many MAS flights are full. 
Often you cannot get tickets if you are not early enough.
So the tickets are being sold.

The problem may lie largely in the management of the back office.
From what I hear the procurement of parts is haphazard.
Buying parts that are not used as quickly and not having enough parts that are frequently needed. Both options cost money.

And the purchase of SIX A380s has become a white elephant.
Why not just sell off some or all of them?

Spend your money on engineering staff, pilots and aircrews.
No over bloated Civil Service type operations.

All the procurement functions need to be fully overhauled.
Trim the fat, trim the selekeh. 

All airlines fly Boeings and Airbus.
They all sell tickets.
What is it that MAS is doing different (and wrongly)?

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