MAS oh MAS, what a year for the management led by Idris Jala, Malaysia’s biggest kept secret. Coming out of nowhere, he is now leading country’s most controversial yet dominant aviation company. Let’s review back what MAS faced up in their boulevard of doom.

* Malaysia Airlines consultant Chris Andrews resigned his RM7,525-a-day job as senior general manager last month. A MAS staff circular dated Dec 30 said he had decided to return to Australia to focus on running his Australian and Britain-based business. Yesterday, an airlines official confirmed Andrews' resignation.

* Malaysia Airlines’ purchase of three paintings for RM1.55mil have drawn flak from the Dewan Negara and the public.

* About 600 Malaysia Airlines staff based at its 34-storey headquarters in the Golden Triangle will relocate to offices in Subang and KL International Airport as part of MAS's turnaround plan.

* Malaysia Airlines has offered its 35-storey head office building in Jalan Sultan Ismail for sale under a closed tender with a reserve price of RM130mil.

Yes, it was one a hell season for MAS’s board of directors. Let’s look at the first hitch, on Chris Andrews resign. He was leaving his job basically because the so-called ‘cost-cutting’ step by the management. But wait, MAS is an international recognized aviation company. Why MAS cannot afford to pay an international-classed consultant, but want to be recognized for being world-classed? It is the credibility what we are talking about. If MAS cannot afford to be recognized as world-classed, then forget about being world-classed. Take English football as example. If Chris Andrew’s daily wages converted into pound sterling, it is just equivalent to Manchester United Reserve Team player’s wages! If you want to expect something terrific from a person, pay him well. Simple right? Ronaldinho was paid millions by Barcelona’s management, and what’s the consequence? Barcelona won the Spanish Primera Liga for two consecutive years.

Now, let’s move on to the work of arts dilemma. At this moment, I think MAS took a world-classed action. MAS was pointed due to the purchase of three paintings for so-called unreasonable RM1.55mil. From my point of view, the paintings were some MAS’s good investment. It actually reflects sound business sense and be good for the company’s cultural image. There was a cliché saying that arts appreciate its value. Maybe in the long term, the paintings might worth even billion of ringgit!

“We should credit MAS for having supported local visual artists for many years. MAS should expand its role in promoting local artists and their works overseas,” says national art laureate and former National Art Gallery director Datuk Syed Ahmad Jamal.

You are definitely right, Datuk.

The sale of the building and the relocating of the staffs are some of the major thrusts of the restructuring plan to fly the airline back into the black. I am not into denying it. Having a house at the most valuable, costly, and pricey location like the Golden Triangle of Kuala Lumpur, you surely need a handsome amount of money to procure the household. So, to cut cost, you better leave. But wait, if you can sell it, sell.

Woah! What a misery MAS has to confront. But, one thing that really flabbergasted me is, every time I flipped a the newspaper which I read about MAS’s crisis, an ads would follow.

‘AirAsia New Promotion! Bla..bla..bla’

What a contrary. Nation’s biggest carrier is having the biggest problem, and nation’s smallest carrier is counting the cash! AirAsia has something that MAS should learn from. Sometimes, big boys should learn from their juniors! And that is what MAS should do. I think I have some proposal which should be analyzed.

What if MAS establish a low-cost airline (LCC) to operate some domestic and South-East Asian routes if it wants to reduce its operating cost and stay afloat? It is just a plan but wait, can this idea from this KL boy be heard in the MAS’s boardroom?

But, I am not saying that MAS should compete with AirAsia. MAS must realise that competing with AirAsia on routes that the latter operates with low fare makes no business sense. It must compete on a level playing field on the routes and develop its international medium-and long-haul network operating as a full service airline. But, the proposed carrier should be operated as a separate entity. What I mean is, the national carrier can sub-lease several Boeing 737-400s to the proposed LCC.

A full service airline with high fares will never be able make an impact with the mass market, which is price sensitive, and with competition from an LCC. If I am not mistaken, in Australia, Qantas did the same, setting up Jetsar to compete with Virgin Blue.

Something need to be done MAS! I’m here waiting to fly high with you!

11:19PM

Wednesday, 18th January 2006