Some people I was talking to yesterday say that Air Asia International (AAX) is facing serious problems on some of its international routes. And so they are cutting "unprofitable" routes. The latest being AAX axing its Christchurch run. Please read here.
"In January, AAX said it would stop flying to London, Paris, New Delhi and Mumbai. It is learnt that AAX is moving away from long-haul to medium-haul flights."
The first question that pops up now is what is Air Asia going to do with all those hundreds of Airbuses they have just placed on order at the Paris Air Show in June last year? Just how many planes did they order? Well read here. Air Asia ordered 200 planes plus an option for 100 more. Cost : RM54 billion. Whoever the Airbus salesman, agent, middleman was, he, she, they or it made some huge commissions.
AirAsia places largest ever order with 200 A320neo aircraft
Largest-ever order consolidates A320 Family’s market leading position
Blagnac, 23 June 2011
AirAsia, the largest low cost airline in the Asia-Pacific region, has placed a firm order with Airbus for 200 A320neo aircraft. The contract, announced at the Paris Air Show today, is the largest order ever placed for the A320 Family and makes AirAsia the biggest airline customer for the Airbus single aisle product line worldwide.
Airplane deals generate commissions between 1% to 5% for the middlemen. That is between RM540 million to RM2.7 billion for whoever was the salesman / middleman in Air Asia's 200 planes plus 100 planes deal !!
However, after buying 200 Airbus A320s plus options on another 100 planes, Air Asia is now cutting flights to the world's most busiest destinations like London, Paris, New Delhi, Mumbai and Christchurch. Haiyya then what about less busy destinations around the world like Timbuktu, Ulan Bator and the Falkland Islands?
What will they do with all those 200 new Airbuses? I think I know the answer. I think Air Asia's Sales Department will soon be calling the Purchasing Department at Malaysia Airlines. Here is the conversation. It is fictional ok.
AA : Hellooo Purchasing Dept, MAS. This is Sales Dept Air Asia calling.
MAS : Yes Air Asia how can we help you?
AA : We still have a few more Queen's Park Rangers T shirts to sell to you.
MAS : Oh just send them over. We'll take them.
Air Asia : OK. Thank you for shopping at Air Asia. We also have some Airbus 320 Neo planes to sell. Can you buy them?
MAS : How many do you have?
Air Asia : About 200.
MAS : How many are you selling?
Air Asia : About 200.
MAS : Ok. We'll ask our shareholder Khazanah Nasional. Please wait a couple of days. They will have to ask their con-sultans for the time. Their con-sultans will then call us - we have the watch. Is it ok if we call you too, ok? You know just to double check the time?
Air Asia : OK. We will wait for your call. By the way, we will be going to the Paris Airshow again next year.
MAS : Do you think you will have some free tickets ?
Well folks, excuse me for sounding so serious. Lets lighten up a bit shall we. Lets cut ourselves some slack. Here is some funny news that will make you feel like laughing. Its such a good joke.
Thursday March 1, 2012
- MAS posted a shocking RM2.52bil net loss for its financial year ended Dec 31, 2011
- the biggest-ever loss in its corporate history ..
- The RM2.5bil figure for 2011 includes a RM1.09bil provision
- “The company is in crisis. group chief executive officer Ahmad Jauhari Yahya said
- The non-cash items include RM179mil of stock obsolescence (mostly spares for the B737 aircraft),
- RM602mil for re-delivery of aircraft (it will return 52 of its leased aircraft and will incur some cost in making sure they are in pre-delivery condition),
- and RM314mil impairment of freighter aircraft (adjusting the freighters to current market value).
- By stripping out the RM1.09bil provisioning from the net loss of RM2.52bil, the actual loss incurred by the airline for 2011 is RM1.43bil.
- MAS is in dire need of more cash.
- needs another 60 days to come up with a plan.
- “The plan includes, but not limited to, debt and/equity market options. Khazanah Nasional Bhd and Tune Air..
- deputy Mohammed Rashdan Yusof did not rule out the possibility of ..selling non-core assets to raise cash.
- Ahmad also disclosed that talks with Qantas were under way
- Ahmad remains positive, saying “if we follow our business plan, we should be in the black (this year).''
Lets forget about MAS for a while ok. After all Ahmad says, "we should be in the black (this year). So relax everyone. Chill.
Lets get back to Air Asia. Air Asia's shareholders include that Slumberjack crony, who is partners with the SIL in that EPF company they hijacked before. Of course the Advisor to MAS is none other than Slumberjack himself. Cosy isnt it.
Has anyone heard of Jack The Ripper?
17 comments:
sh*t!
now exeryone can die with this story. you can tune the hotel, but never on the cabinets... but if it happen to be true, what left is the yellow 'lemmon tree'!
ha..ha..ha.. good posting bro!!!
Tuan
You may also need to 'sniff' around the Ministry Of Health. Our brader in Khazanah (and the rest of his con-sultans gang)is now 'fishing' on one 'seriously' big project.
I can't say much here (too risky).
But what I can say should this project get the green light, all the small producers of the equipments can 'gulung cadar' in a blink of an eye.
We have sooo many blind and deaf people, or STUPID (purposely stupid kut!!!) in Khazanah, in PM office. MAS vis-a-vis government of Malaysia is being screwed/sodomised openly by the so-called high level con-corporate people by Jack The Ripper...
Bring back Tan Sri Aziz, and ask the Khazanah to f**k off and don;t interfere. Teh old days it was plain honest...Nowadays you have plenty of con-man in Khazanah. Check it out.
In airline industry, profits are made by selling airplanes,not the air tickets. Tony knew this from the first day.
In airline industry, profits are made by selling airplanes,not the air tickets. Tony knew this from the first day.
Does this sound like the biggest scandal in Malaysian corporate history? Can BN afford another humiliating scandal after the latest Nfc fiasco?
In the old days, treason is punishable by death. This looks like treason in the modern world context.
I salute you Dato Syed and YB Wee Choo Keong for enlightening the public about the ongoings in MAS/ AirAsia.
MACC, what are you waiting for?? So many leads provided already!
Lets see some results and hold those accountable, and we are talking big fish being accountable.
do that and I guarantee increase in credibility in not just MACC but also the PMs Government for walking the talk.
PM Najib, nak menang Pilihanraya tak nak??
Concerned Citizen
Hello Syed,
Just to share this...
“Singapore Air's ability to sustain the top ranking all these years to a well-thought-out, big-picture philosophy regarding the airline's global brand.
It maintains a high standard that is executed by an impressively trained staff.
It’s no mystery that the Singapore Girl service experience for passengers aboard the airline is still tops in the open skies.
But how they continue to keep things relevant, desirable and smooth is another story.
Last week, I flew from JFK to Singapore for the inaugural flight of the massive double-decker Singapore Airlines A380 plane, the world’s largest passenger aircraft.
The plane was designed with the branding familiarity of Singapore Air’s color scheme and fabrics, but with the sensibilities of a luxury cruise ship.
It was outfitted with luxury suites reminiscent of Pullman train cars. And the business-class seats are the widest in the industry.
At the end of the flight, Singapore Air is the same business it originally set out to be. That keeps customers booking and the airline thrives as the industry’s second largest, with an estimated worth of $14 billion.
Before taking off, I spoke with Singapore Airlines’ VP of communications, James Boyd, about how the company continues to soar after nearly 40 years flying...”
Singapore Airlines VP on How the Brand Stays Strong : Innovation :: American Express OPEN Forum - http://www.openforum.com/articles/singapore-airlines-vp-on-how-the-brand-stays-strong
CIMB’s unethical brokering | Free Malaysia Today - http://www.freemalaysiatoday.com/2011/08/18/cimbs-unethical-brokering/
Well, what happened to this...?
Investigation to commence on MAS-Air Asia share swap deal | MOLE.my - http://www.mole.my/content/investigation-commence-mas-air-asia-share-swap-deal
You be the judge.
Shalom.
Truly heartsick whenever I read about AirAsia, Tony F and MAS..
AirAsiaX cutting so many routes that they were so gung-ho about before just showed that their management is as weak as MAS' management. AND we gave them MAS? Bodoh punya Khazanah!
Dear Syed,
With reference to 200 planes that was preordered by AA , we, the people of Malaysia is part guarantor to it as AA is part of MAS with the share swap.
It doesnt need an Oxford mind to read the TF game plan all along.
As for the billion losses ,my advise is for Mr Rashdan to start selling QPR T-shirt at pasar malam to recoup the losses . I dont like the look of his face during the press conference announcing the losses.Juxtaposed this to more cheery look he had when he was with his great mentor,Mr TF ,on announcing the spending/ gallibanting disposal of MAS RM18 million for TF favourite project in QPR.
Disposal of assets? Dont we see this before? Financial genius ? .....its time for a real business man who run a lorry business to run MAS. All prized brains did was to bring MAS to her knees !!
DrPotong.
Tuan Syed kena bagi dakwah kepada Tony Fernandez tentang Islam dan perniagaan secara Islam.
Segala apa perbelanjaan, bil kepada Jabatan Agama Islam Malaysia.
There is a joke that if you ever want any business downsized just let the government or Khazanah run the business.
Had the government, Khazanah or any similar agencies ran a company like Genting, the late Lim Goh Tong and Genting would have turned and become a soleroprietor/proprietorship.
errrr.....brother Syed....what are U doing in the MACC advisory board? why write in your blog when even the MACC cannot do anything....
stop wasting your time lah!
azlanbinadnan
Rugi 2.52B setahun tu sama dgn 0.21B sebulan atau 210,000 juta Ringgit sebulan.
Board of Director's MAS tak pernah ambik tahu akaun syarikat ke ?
Atau BOD hanya diberitahu tentang gula-gula yg manis je ?
Akhirnya, tahu-tahu kena potong kaki sampai peha kerana kencing manis (kata lain kena kencing oleh ...)
Siapa yg patut kena potong ?
MAS memang berbelanja mewah habis habisan,kalau nak kaya lekas kerjalah kat kompeni bangkrap ni. kerja jadi air crew dalam masa 3 tahun boleh beli kereta dan rumah.Nak pi sana sini naik aje flight, lagi murah dari naik bas.
Syed:
MAS has to rid itself of all the leeches. I'm surprised Badawi hasn't voluntarily resigned as Advisor. He gets RM 40k per month, plus a car and a secretary and an office. Sell the paintings that Munir Majid bought from his friend. Then tell the world how much MAS has lost from these stupid purchases.
Finally, sell MAS to whoever gives Khazanah the best price. That'll stop the meddling from your friend Azman Mokhtar and will also get rid of Danny.
You give MAS away to an experienced operator and it will make money.
Godfather
Tuan Syed,
Maybe it is worth considering the fact that not only Slumberjack & Co are to be blamed in this "crisis" but also your beloved "Ayahanda Tun Mahathir" - the real Jack the Ripper of our economy..........
Why in the first place, pledge RM18 million to advertise the carrier's logo in a football club that is going nowhere.
Those chaps that owned Cardiff football club advertise 'Malaysia' on their jerseys without a cent and they are proud of being true Malaysians not like that airline schemer who takes every opportunity to scheme MAS. Who has the 1 Malaysia spirit here.
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