Friday, May 25, 2012

Unauthorized upgrades rob MAS of RM200 mil


A Syndicate Within. Malaysia Airlines has uncovered a ring involving some senior executive who have been enriching themselves by upgrading thousands of Economic Class passengers to Business Class every year, denying the financially-strapped national carrier of much-needed revenue.

Last year alone this syndicate let go over 50,000 upgrades without getting prior approval from those authorized to do so. I am not sure how they made money from "selling" these upgrades or if they were in cahoots with travel and tour agents, but by end last year the malpractice had cost the national carrier more than RM200 million in lost income! 

These unauthorized upgrades are not the same as the so-called "discretionary" upgrades like the one MAS Deputy CEO Rashdan aka Danny's maid supposedly enjoyed on a flight from MH122 from Sydney to Kuala Lumpur on Jan 1 2012, an accusation Danny has denied vehemently but which the whistle-blowing Member of Parliament, YB Wee Choo Keong plans to bring up again in Parliament next month [read his Questions for June Parliament].

After the share swap deal with Air Asia was rescinded, all eyes have been trained on Malaysia Airlines' new CEO Ahmad Jauhari whose task is to turn check the carrier's decade-long decline. There have been interesting developments. A couple of days ago, for example, it was reported that the management was negotiating with MAS Catering to review a one-sided 25-year contract with a company that belongs to the brother of the airline's advisor, (former PM) Abdullah Ahmad Badawi.

If AJ can get the caterers to agree to his terms, the airline might be able to make savings of as much as 15 per cent of the existing total F&B bills.AJ has said that his turnaround plans hinge greatly on making the best out of available resources and stopping the leakages.

I say, Happy Fishing! I hope AJ  goes for the big fish and not just the little ones ....

52 comments:

bonggo bonggo said...

simple...get politicians out of any business , that business will fly...especially politicians bastards from BN....

but it won't happen...

Anonymous said...

Rocky,

AJ? Know him personally. Not a Heavyweight...

Proven, capable of only taking orders!

Not hard to figure out (Unless You are Rocky).

Result? Will be Expected. Another Round of Bailout!!!



Joe Black

Anonymous said...

Why Tuanku Aziz as president of malaysia transparent did not also tell those MAS executives- company bukan bapa mereka? No wonder if Mata2 DiRaja is under DUMNO, MAS also operats like under DUMNO.

Anonymous said...

It shows Danny Nanny is the tip of a major problem.

But will they kick out the incompetent Danny?

He is trusted and protected partner in crime of Azman Mokhtar.

It is heard that the enquiry was done by only Managers. So siapa berani tell the truth?

Anonymous said...

What is happening to idriss jala turn around plan? Seems no continuation or it didnt work.

Jasper Bloodstone said...

Economic (sic) Class passengers on MAS getting freebie upgrades?

Well, well...what other worms are going to come out of the woodwork when detailed investigations are launched into the screwups at MAS?

Back to this subject of "unauthorised upgrades" - did the alleged malfeasances take place at KLIA or at MAS's domestic and international stations, where station managers call the shots?

Aren't all upgrades (Y to J, J to F, Y to F) supposed to be subject to strict rules, with different levels of management approval?

Isn't there a MAS IM (Instruction Manual) that covers topics like this?

Anonymous said...

si polan tu tak mengantok lagi sekarang, duk sebuk membangunkan dan menjayakan sedara sendiri dan menaikkan darjat bini kaper sepet dia.

Damansaraman said...

As i have said before, go and undo those many stupid practices and contracts thats bleeding MAS to death.

Hence why the government should bring back those personalities that have brought big success to MAS before as BOD to monitor the new mgmt team.

They could act as critical advisors to the operation whilst making sure no stupid deals being made.

MAS IS A VERY PROFITABLE VENTURE WITH WORLD CLASS TEAM.

Even with its National Service tasks it can still make good money

Its those TRAITORS thats killing our SUPER BRAND.

Charles F Moreira said...

We need Saddam Hussein who I'm told once tied an engineer who built a shabby road behind his four by four and dragged him four kilometres down the road.

The engineer was Saddam's own clansmen and was believed to have pilfered some of the funds to build that road.

I dont know whether the engineer survived the ordeal but irrespectiv, that's what we need to clean up this country.

Anonymous said...

MAS can only be rescued when there are guts to:

1. retrenches its hapless and clueless top management and replace them with knowledgeable insiders or get a visionary corporate head honcho in the mould of Hasssan Merican. Additionally, it should cut ties with those bankers conning it in broad daylight.


2. review all its contracts and rescinds all that charge exorbitant rates for minimalist service.

3. embed information technology platforms in all its operations and minimise labour costs via strategic culling especially those implicated in bleeding it for personal interests.

4a. revive Firefly as either as a low cost jet operations or rebrand its as intermediate carrier plying the 6 hour routes. (MAS route rationalisation was a good move but they went crazy by removing a potential cash cow in FF from the equation at the behest of all people, a potbellied Christian cannibal and we know who that favoured don't we?)

4b. if FF is not revived as a LCC, then expand MAS Wings as a fully fledged LCC jet-equipped entity operating the domestic routes including to Singapore.

5. Terminate its collaboration with AA and charge full rates for services provided to AA.

6. explore tieups with carriers like Qantas in the long haul sector.

and of course, never ever again falling into traps set by immoral, selfish bastards, who will sell their mothers for a penny:

http://anotherbrickinwall.blogspot.com/2012/05/tony-fs-virgin-fascination.html

Other than doing the above, MAS can go and fly kites just as little kids given a bowl of alphabet soup splash it about like pseudo-aviation experts.

Warrior 231

Anonymous said...

Latuk:


In the past, certain senior officers are cozy with certain big time agents who would block book on certain flights like those to Taiwan and Hong Kong. These agents are not penalised when they don't take up their quotas, yet the airline was told not to sell more seats so MAS had the situation where planes are fully booked but yet are half empty when they fly.

I once tried to change my flight in Frankfurt, and was told the flight I wanted was fully booked. So I went to the airport to standby. I got a seat, and found out that the flight wasn't that full at all. Such is the efficiency of MAS. Cathay and Singapore Airlines would never let empty seats go unsold if there's demand.

I honestly think MAS is a basket case and needs to be sold to Qantas or Cathay for RM2.

Godfather

Kamal said...

Rocky.

Not that easy to upgrade from economy to first class.The pilot must approve.And not many seat in First Class.Normally they upgrage from business to first class.

Anonymous said...

Well done Rocky!

Bl

Anonymous said...

Rocky,

What happens now that the 2 year unpaid leave offer has received dismal response?

Nak sack semua ke?

Mana bolehh. Najib already said NO RETRENCHMENTS until after elections..

So MAS turnaround Effort now has to wait for Najib's election call!! Only if he wins will he let the jobkill proceed!

Unfortunately Waiting and Waiting and Waiting....MAS will be totally busted whilst waiting!! Heh Heh



Joe Black

Anonymous said...

The big fish is AJ himself. Look at how AJ signed the Agreement with AAX to uplift 35,000 AAX passengers with low cost fare with Premier services thrown in and AAX has the privilege to block seats.

Aj is one of the contributors to the leakages in MAS and he is as guilty as the others for upgrading passengers. Look at Nanny Danny, AJ is condoning him for upgrading his maid.

AJ has no credibility because he is one of them sucking up to the Red Indian's whim and fancy.

Anonymous said...

Hype only as usual.
What transformation?

trifling-jester said...

lets face it, the country has become an umno crony piggy bank. MAS is just a small scale representation of the rot. can you imagine how far the country would go without these scoundrels (rockys paymasters).

Anonymous said...

AJ reviewing the 25 year MAS F&B contract !!! I hear Pak Lah is current MAS advisor.
Wow ! I'd love to see how this will pan out.
If its not the fireworks that I expect but a mere fizzle - that's it ... MAS is a goner for sure.

Anonymous said...

AJ reviewing MAS contracts !!!

Najib has to get behind this - by not caving in to calls to protect or bagi muka to any individual. Give AJ full powers to clean up.

Let free market assert itself. No more free lunches (free upgrades to First Class, Business Class). No more expensive meals (25 year F & B contract).

If you have the will and balls to do this, next on list should be wholesale clean up of Khazanah, Tabung Haji, EPF.
Also require consistent spot checks at MITI, Petronas and other GLCs.

MACC should be bolder to investigate all these entities.

And SC has not had foresight to put into its rules and regulations regarding quality of management at listed companies.
Too often you see management/ directors who come in based on connections and are too dim to read/ do simple math (which explains why they make such bad investments).

Anonymous said...

I think it's all a grand plan to kill MAS coz it had the potential to outdo SIA especially when Malaysia has greater tourism capacity than singapore

Anonymous said...

anwar failed to destroy Malaysia

so kj and paklah was the duo to continue project

all bad trails will lead to sodomite and sleepy era

joehancl/PRAY, it works said...

Malaysia is broken beyond repair unless a new govt. takes over. One with guts and the God given conscience to rectify the damage

Anonymous said...

MAS is a living example of all that is wrong with this Malaysia.Malaysian business running of Sovereign Grant Funding has become incestuous. Most of them are in need of wheelchairs for the rest of their milking days and one day even PETRONAS will not have enough money to finance them. The people who are running Khazanah must be called by Parliament to account for their failing investments.

Jasper Bloodstone said...

Proof, please!

I believe that SIA, from the time it was set up, has never incurred a loss on a full financial year basis. That's 40 years and counting....

MAS.....?

Such is the stuff of wishfully delusional dreams!

Tourism capacity? Minus out the Singaporeans and Singapore residents who visit Malaysia and see what Malaysia's net tourist numbers are.

Jasper Bloodstone said...

"review all its contracts" and rescind those out of whack?

Obviously the "sanctity of contracts" is a non-starter here.

And why stop at lopsided MAS contracts?

What about IPP contracts, toll highways contracts, "negotiated" projects contracts etc?

It's like striking at the root of the cosy nexus between business and politics!

Anonymous said...

I've had the experience of being upgraded from economy to business class once during a flight to Joburg many years ago. I didn't ask for it. I was only told of the upgrade the minute I checked in for the flight. Was told that the flight was overbooked and I was selected for the upgraded. I'm still uncertain what criteria they used to upgrade me. But was not allowed to use the business class lounge at KLIA. Thought that was a nice gesture from MAS.

Anonymous said...

Can Rocky please tell us how many bailouts for Mas over the years and the cost?
It seem Mas is the golden goose that lay golden eggs non stop.

Anonymous said...

The senior executives yg terlibat semuanya pakai kopiah dgm ada janggut. Confirm orang pas

Paspoyo

Anonymous said...

Hmm, the negotiations on the one-sided MAS catering contract have been going on for two years. And how long has the new management been around?

Anonymous said...

Rocky,

Now that Election is going to be September, MAS will have to hold its breath until september which is 4 months from now!!

Let's see how long MAS can hold its breath!!

Suffocation Coming!!!!




Joe Black

borhan said...

MAS ini umpama seekor lembu betina tua yang susunya diperah oleh sesiapa saja. Diberi makan ala kadar asal jangan mati sebab kalau mati ramai yang akan rugi. Lembu ini akan hidup macam itulah selama-lamanya untuk diperah susunya.

Quiet Despair said...

Wow, glad to read my brother is enervated, rejuvenated and upbeat after a gruelling two-day ceramahs in the Malay heartland.
So am I bro. Came back red as lobster after a three-day Himpunan Dua Juta Belia in the BN seat of power.
You should see the energy there. We had fun but we sure had purpose. The crowd far surpassed the 20,000 official figures of the Bersih 3.0 demo.
We were one at all the fun-filled events. And the belias were with the PM when we sang Stand By Me with him and the BN mandarins. So much for saying BN is not the party of choice of the young.
Heard that Pakatan Selangor had a gathering in Shah Alam to rival the Putra Jaya show. But a mere piddling 0f 150 were seen loitering there! LMAOF.
Hmmm Sak,still believing of a Pakatan victory? Or is it dreaming?
Am I talking to the next PM of Malaysia?
You are ready for it. You can do it. But is your party allowing it?
It wasn't a slip of the tongue when Bai Kapal Singh saluted LGE as the future PM. He was speaking in tongues.
Who is going to be the CM if LGE moves up?
I see Anu-war cringing in anger. And St Nick was vocal in stressing that a Malay should be the PM.
It set a debate in motion with respected historian Khoo Kay Khim saying it will be a Malay PM since the race constituted 2/3s of the Malaysian population.
LGE as usual is playing coy and nonchalant saying he has no such ambition.
And this is a show-case of Pakatan sharing the same pillow but having different dreams.
Cannot even agree on who your next PM will be when you have been trumpeting Pakatan plenty big victory.
Going by the polemics, I see you as PM by default. DAP is the only party that can win the seats it is allocated for among the PAS and Keadilan.
So brother, you gotta start acting statesmanly from now on. Strut yourself as someone of sterner stuff. Not the Anwar-like petty politics of accusing BN of foul means at every turn.
Bg brother is watching bro. Watch your back right now.

FeedLOOTcorp said...

UMNO's culture kan... why bother stir the Hornets' nest?

QPR Rule! said...

After WAU, still BAU busuk!

Anonymous said...

bloodystone is in denial or paid cybertrooper

SINGAPORE: Singapore Airlines' full-year profit slumped 69 percent year-on-year after a fourth-quarter loss due to high oil prices and global economic uncertainty, the leading Asian carrier said on Wednesday.

Net profit for the year to March plunged to S$336 million ($268 million) on group revenues of S$14.86 billion, the carrier reported in a statement.

In the fourth quarter, the airline said it suffered a net loss of S$38.2 million, down from a profit of S$171 million in the same period a year ago.

It was the third quarterly loss in the history of the company, which is also facing stiff competition from other premium carriers from the oil-rich Middle East as well as from the growing ranks of budget carriers.

http://www.channelnewsasia.com/stories/afp_singapore_business/view/1200217/1/.html

Jasper Bloodstone said...

I am a tad confused - what's your post got to do with the travails of MAS?

Which, incidentally, has been well-documented.

No one, including YB Wee and others, have rebutted or refuted the current fundamentals and realities of the airline industry.

Instead of hardheaded and logical analysis, they have ganged up to vilify and witch-hunt AirAsia and Tony Fernandes.

Qantas splitting it's operations into domestic and international. SIA announcing a rare quarterly loss. Cathay Pacific and Emirates showing reduced profits. Apparently, none of these matter.

What is more important is that Tony F is tarred and feathered and driven out of town (a la the Ku Klux Klan in the bad old days of the US deep south) and that AirAsia is whipped into servile in pursuit of some benighted agenda.

Well, they achieved one of their wishes. According to press reports, Tony F is relocating from KL to Jakarta and basing himself (with about 20 of his senior staff) in AirAsia's regional Hq in the Indonesian capital.

My sources in JKT inform that there is some quiet glee there about this and keen interest in his future strategies.

Indonesia, after all, has 240 million people and a government that has a driving ambition to make JKT a regional air hub.

Olek Skilgannon said...

anon 6:43 PM

A point of clarification: SIA, in it's 40+ years of operation, has never made a full-year loss.

Go check it's financials.

Can you say the same thing about MAS?

Be careful what "facts" you bring up, because all of them can be refuted or rebutted.

Are you still game for a debate on the economics of the airline industry?

Anonymous said...

"Instead of hardheaded and logical analysis........."

You can understand logic, meh? Really ah? mmm...interesting development.


"Be careful what "facts" you bring up, because all of them can be refuted or rebutted."

Ooooooo...... like that wan ah? ...we are shitting and peeing in our pants already.....oooooooo

Anonymous said...

hahahaha

theterrible twins are back - bloodystone and elek

forever trying to prop up the sinking red dot - sinking into deep waters as well as sinking its fortunes

Olek Skilgannon said...

Anon 11:58 AM

So, "man up" and bring on your "facts" for our delectation.

Let's start with a head-to-head comparison of MAS and SIA from the time they came into being as offshoots of MSA (Malaysia-Singapore Airlines).

Here are some points to consider in running your comparison:

- size of fleet
- composition of fleet
- number of staff
- market capitalisation
- history of financial results
- assets and cash balances
- number of destinations served
- return on capital
- analysts' recommendations

Go ahead, dude. Make my day!

Jasper Bloodstone said...

Bloomberg: "Investors seek higher yield for MAS sukuk"

Bloomberg: "MAS fits new A380s with widest seats in the sky"

Read the reports in detail before whooping it up in premature congratulations.

Anyway, who is going to pay US$9,000 or thereabouts for a round trip to London on MAS's A380 in first class?

The rakyat who fly AirAsia or the VVIPs who regard London as their second home?

Anonymous said...

hahahahahahaha

got bloodystone pissed off, see the substandard IQ, typical of the kiasu scholar

all they can do is copy paste from some magazine and claim to be an intellectual

the point bloody stone is this, MAS has not exhausted her tremendous potential YET, whereas SIA has reached a plateau

as in race, swift Harry LOST out to steady Tortoise

or the sprinter may win the 100m but will be super exhausted in a triathlon

see bloodystone, life is a triathlon NOT a sprint

P.S. if there are no journals to refer to, bloodystone will be a walking zombie

enjoy hahahahahahaha

Jasper Bloodstone said...

Anonymous 5:52 AM

Facile comments are cheap, aren't they? Especially when they are not backed up by facts and hard-headed analysis.

There have been umpteen comments that MAS is a "rough diamond" that only needs polishing to make all it's facets gleam with pristine brilliance.

Well, how long has this particular "rough diamond" been around? 40 years and counting? That's sure a long time to get the "polishing" done, isn't it?

And when the "rough diamond" fails to sparkle, then what better way to divert attention from the failed process than by looking for scapegoats?

It's always someone else's fault, isn't it?

Which is not surprising, seeing as how the "culture of blame" has been well and truly institutionalised in this country.

Anonymous said...

Anons 11.58am ; 5.52am and 1.39pm

See your points, guys but er.....you are talking to a madman which by the way is a very useless thing to do.

As grandma used to say whenever the mad chinaman in our neighborhood began his cursing, 'let a madman bark for at least he is helping the dogs save their voices.'And sure enough all the dogs around went to sleep as chinaman madman did their jobs for them.

That is sound advise, anons, the more you dignify it with a response, the more louder the madman will bark thus disturbing the neighborhood peace.So shhh..let it bark itself out.

And one more thing ah...his bark is bigger than his bite like his mouth is bigger than his cock..heh heh heh.

Anonymous said...

haiyaya bloodystone

"culture of blame" is really a good way to sharpen up your self defence mechanisms you know

it is the culture of "covering your ass" and coming up with pathetic excuses for incompetence that is worrying

like the Mas Selamat episode where the whole red dot combed thru the forests and "jungles" and yet failed to checkon Mas's close relatives

classic example of incompetence but minister in charge still REMAINS intact - with skyhighest salaries his head must roll, agree or not

and to top it all off, Mas Selamat was captured by hey hey hey you know who - Malaysia's men in blue

LOLROTF

Anonymous said...

"backed up by facts and hard-headed analysis"

hahahahaha - oh you mean BORROWED facts from an "expertise" eh?

and err ... the paid for analysis by foreign specialists, as in annual subscription huh?

Jasper Bloodstone said...

Get real, dude!

By what measures can you posit that "MAS has not exhausted her tremendous potential YET, whereas SIA has reached a plateau"?

Let's see the metrics to support your thesis.

And I suppose that it has taken MAS some 40+ years to discover that it has "tremendous potential"? Doesn't say much for the cool maruah brainpower that's been running MAS from Day 1, does it?

I suppose that you will be posting some equally absurd thesis about KLIA and Changi Airport now?

As for cutting and pasting, what's there to be ashamed about if there's proper attributing and no plagiarising, eh?

Jasper Bloodstone said...

So, refute the facts and the analysts.

What could be simpler?

Assuming, of course, that you have the intellectual acumen and facts to do the refuting.

At the end of the day, let's see who's the "last man standing" - MAS or SIA.

Without the need for bailouts, Islamic bonds and other unconventional financing methods!

Anonymous said...

Anon 8.54pm

You spoke not a second too soon. See your point and appreciate the advise....heh heh.

Anonymous said...

yeah bloodystone

so far there is no "proper attributing" from you eh?

you comment as if you did all the legwork

hahahahahaha typical kiasu "scholar"

Jasper Bloodstone said...

Why, ah - you got a problem rebutting my views, izzit?

Surely, you must have the cool maruah intellect to rubbish my arguments, instead of resorting to the tritely bankrupt arguments about "attribution".

Or maybe you don't.

More's the pity as MAS could sure benefit from your "expertise"!

So, go to it, dude. Let's see your pearls of wisdom about the airline industry, and why SIA will fall, while MAS reigns supreme.

Yeah, right!

Jasper Bloodstone said...

"Qantas shares plunge on S&P warning" (Channel News Asia)

"Shares in flagship Australian airline Qantas dropped below A$1 (98.5 US cents) Friday for the first time since the carrier's float in 1995 after it was put on credit watch by Standard & Poor's.

"The embattled airline's stock plunged as low as 96.2 cents - a fall of more than nine per cent - after S&P put its BBB/A-2 investment-grade rating on credit watch negative following warnings this week of a huge profit slump."

Hmm...I wonder what MAS shares would be worth if it were subject to the ratings agencies' evaluations? Cents, probably.

After all, Qantas has a better profit track record than MAS, a more focussed management, and is headquartered in a country where bailouts aren't the norm.

It's surreal how the apologists for MAS refuse to acknowledge the realities of the airline industry.