Wednesday, October 5, 2011

MALAYSIA AIRLINES TODAY -3

Can you believe that the government of Malaysia announced that it had “no choice” but to let some one with no experience running an airline as the CEO of the embattled Malaysia Airlines.
The Deputy Finance Minster made this statement in the Dewan Rakyat (Parliament)sitting on 04 October, that the new CEO of Malaysia Airlines has no experience in the airlines industry but asked the members of Parliament to give him a chance! The new CEO was formerly the Head of a Public-listed company in Malaysia.
          Ahmad Jauhari, the new CEO of Malaysia Airlines.
The question is - can he turn the losses into profit? Perhaps, a "Miracle" could happen. Good luck to this man who may belong to a certain group trying to milk Malaysia Airlines dry.
Why didn't the government appoint one of the current most senior manager who knows  the business to be the CEO? Alternately, why not have this vacancy published nation and world-wide to select a capable person to run the airlines? Why take the "chance" instead of the "Choice".
Another very disturbing news is that Firefly, a subsidiary of Malaysia Airlines would be forced to terminate their low fare services between East and West Malaysia.
The brand new B737-800 of the Firefly
Firefly started their East-West Malaysia services from January 2011 with their brand new B737-800 aircraft fleet, providing low fare into Kota kinabalu and Kuching from Kuala Lumpur.  
Click into Flyfly website, you will find the latest news as below:
We are truly sorry for the inconvenience that has resulted from the recent route cancellations due to a business realignment exercise by our parent company, Malaysia Airlines. There are many questions over this and Malaysia Airlines will be releasing a statement to address your concerns in due course.Please rest assured that Firefly will take all necessary steps to minimise the disruption to you, valued passengers who have been impacted by the business realignment exercise.
The rumour is that a new premium carrier, called Sapphire Air will be set up to operate regional and domestic routes. This carrier will be given all the new B737-800 from Firefly. Who are the owners of this Sapphire Air? It's anybody guess! What will be the fate of Firefly, the current low-cost unit of Malaysia Airlines? .......Nobody knows.
What will happen to these Firefly staff when they have no B737-800 aircrafts to attend to?
Many people said that the termination of the East-West Malaysia services of Firefly was "directed" by the boss of Air Asia, Tony Fernandes, who is also a 20.5% share holder of Malaysia Airlines. He sees Firefly as a rival, taking substantial amount of revenue away from his Air Asia. He could not afford to lose to such competition. Many believed that he would do all the tricks to benefit his group after the share swap deal. Remember the QPR T-shirt deal? Malaysia Airlines has to pay RM18 million to QPR, a football club owned by his group.
RM18 million for this T-shirt deal. 
Malaysia Airlines workers unions representing some 20,000 employees have earlier objected to the deal of swap share between Air Asia and Malaysia Airlines sighting that such a deal would not benefit their workers and their welfare would be at stake. As their grievances were ignored, they have given their bosses 2 months to withdraw the deal with Air Asia, failing which they would stage protests in December.    
With the Malaysia Airlines-Air Asia deal, there is a danger that both Malaysia Airlines and Firefly could just disappear from the East Malaysia sky.
Kicking out Firefly, Air Asia would be the sole low cost carrier operating in Malaysia. The consumers will have to dance to the tune of Air Asia's tariff. The winner is Tony Fernandes who will be laughing all the way to the bank all the time!!!

May God help Malaysia Airlines and their staff !   


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