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The MAS Story: Malaysian Hospitality or Malaysian Humbug
by Mariam Mokhtar (received via e-mail) 

In MAS, MH stands for Malaysian hospitality which many of us know is highly overrated; MH might as well stand for Malaysian humbug. Or Malaysian hanky-panky.
A once proud airline is now a shadow of its former self. It is run by the corrupt and the incompetent – all puppets of the government. If the MACC were a responsible outfit, MAS would not be in the position it is today and many MAS senior managers, and government ministers, past and present would be languishing in jail.
The new MAS-AirAsia merger is shrouded in secrecy. Tony Fernandes is just a public front and assumes the rôle of pilot in this move.Someone else has charted the route for him.Who is that person?

One thing is certain. There is talk about solving the operational issues in MAS. Will Tony be able to alter an UMNO-BN culture that has been allowed to corrupt all levels of the airline’s hierarchy? This UMNO-BN culture is mired in controversy. MAS, like other GLCs, is haemorrhaging money. Attempts to stem this outflow have been unsuccessful.
Would any CEO of MAS be as daring as Peter Hill, the British CEO of Sri Lankan Airlines, who stood up against the Sri Lankan President Mahinda Rajapaksa in 2007?
President Rajapaksa, together with his family and several officials, was in the United Kingdom to witness the passing out parade of Rajapaksa’s son from the Royal Naval College, Dartmouth. When Rajapaksa demanded that 35 seats be reserved for his entourage to return to Colombo, Hill refused to bump passengers off the flight from London. Hill may have been the passengers’ hero but his work permit was rescinded.

Unfortunately, the work culture that exists in MAS is symptomatic of our government’s performance. Some dishonest MAS staff allegedly “steal” from the airline.
Perhaps they are taking their cue from the government officials or from previous chairmen. Perhaps they see this as part of their perks and benefits.
Cost cutting has reduced many allowances which they once enjoyed.One stewardess who declined to be named, said that she had lost track of all the items she took from the plane and according to her, “everyone did it”. In an attempt to justify her actions, she blurted, “What about the millions the chairmen have ‘stolen’?” She is wrong. It is billions. Not millions.
How many politicians and their spouses have used their influence to obtain free flights or bullied airline staff for upgrades for themselves, their officials, friends or relatives? How many times have we heard of a spouse of a leading politician wasting taxpayers’ money on transporting her shopping via MAS and MAS Air Cargo?
How many genuine passengers have been victims of alleged over-booking by MAS when it is well known that government officials were offered preferential seats over normal fare-paying passengers?
It is also well known that MAS practices two sets of rules: one for Malaysiansand another for westerners. One Malaysian mother and child were bumped off one flight to the UK. Under EU rules, cancellation of the flight meant they were due compensation. Only her teenage son was offered compensation because he had an English name. The mother was refused compensation despite pointing out the discrepancy to the senior managers in London.
In one European airport, it is alleged that some members of staff have protected their long-term positions by fraternizing with senior politicians and VVIPs. In most companies, employees would not be allowed to remain in one posting indefinitely, but not, apparently, in this location.
Another person alleges that it is common knowledge that a member of staff would use influence to perform “dodgy” upgrades for friends or people of influence and later be rewarded with “gifts”. Others allege, too, that this person removes items from the aircraft on a regular basis. Cheese, toilet rolls, toiletry bags, duvets and blankets from First and Business Class may not be classed as the crime of the century, but it is theft all the same.
The modus operandi appears to be to wait till the flight and cabin crew, have left the aircraft. The security staff must be complicit in these thefts. Could there be hanky-panky with food and fine wines from the Golden lounge?
One wonders why work colleagues have remained silent about the alleged petty theft. Are the senior station managers in these postings incompetent or in collusion? Perhaps theses managers don’t want to deal with the problem.
Co-workers are probably afraid of whistleblowing because they fear they will be known as troublemakers. They wonder, “Can the system be trusted or will they will be identified and crucified?” Like the Malaysian public and corrupt politicians, employees are reluctant to report irregularities because they do not see much hope of redress.
Perhaps the worst sort sycophancy is the one which is ignored by all because it involves VVIPs. In one European airport, it is alleged by many that some MAS employees turn up, even when they are not officially on duty, to attend to the VVIPs. This is no charitable act or selfless dedication to duty. The rewards are high. Cash and expensive, small personal electrical items are the norm but the most prized of all is a title.
When even the bodyguards of the VVIPs proudly display their designer labels, which lowly worker can fail to be impressed?Which junior employee would refuse a title in exchange for making sure personal baggage and the truckloads of luxury goods are safely loaded onto the plane? Who dares ensure that the customs at KLIA will tax these items?
It wouldn’t take a genius to trace the titles that are dished out to MAS employees at some of the overseas airports which are frequented by VVIPs. And it would surprise no-one that even those in menial positions in the airline, can acquire Datukships.
The equilibrium at work must be disturbed as it is alleged that those conferred titles are known to be generally work-shy, are late for work, despite occasionally reporting for extra duty for VVIPs.
It is baffling that these employees are allowed, allegedly, to have a stake, either directly or indirectly, in companies which provide airline services which are in conflict with MAS cargo services.
Will Tony address the staff, who only attend to VVIPs and celebrities who give them benefit in kind? This is a form of bribery and theft from the airline, reminiscent of UMNO political tactics.
Will he put pressure on those in charge of complaints? VIPs get their complaints seen to promptly. Others may take months. The truly unlucky customers have theirs swept under the carpet by lazy station managers.
So what else is going on? Tony should whip the corrupt and inefficient MAS work-culture back into shape and the MACC should investigate these irregularities. Then again, pigs might fly.
_______________
The MAS-AirAsia deal has been aborted. Agitated Tony Fernandes has decided to relocate the airline’s regional hub to Jakarta, Indonesia. But the problems of MAS remain. This is because the MAS culture is rotten to the core, and it is also trite to say that the culture has to change. Mana Ada Sistem is the reputation MAS enjoys, Mesti Ada Susah.


We need a Peter Hill, or Jan Carlzon who changed SAS (Scandinavian Airlines System) in MAS so that real transformation can take place. If the MAS Union is an obstacle to change fix it.

To operate an airline profitably every seat must generate revenue and every flight is  making money.  That is basic in management. It is, therefore, the duty of the sales people in our national airline to do their job. And they are not.

Have you tried booking a flight to London? It is always full. But when you are finally given a seat and board the aircraft, you will find there are still plenty of seats available. The problem of overbooking must be solved and ticketing agents should be penalised for blocking more seats than they can sell . You can deal firmly with erring ticketing agents, if they are your cronies, friends or relatives.
I myself cannot understand why certain number of Business class seats on domestic routes, for example, must be reserved for Royalty and Politicians. Can’t these VVIPs plan their trips? What are the private and political secretaries doing if they do not know the travel schedules of their bosses. It is that simple, yet it is not done.

There is no such a thing as a free lunch. MAS has to bear the burden of serving privileged customers. Furthermore, first and business class passengers must be treated in the same manner, irrespective of their social class or political office. No double standards, please. Will MAS top management answer me?–Din Merican

Published: Monday June 18, 2012 MYT 1:00:00 PM
Updated: Monday June 18, 2012 MYT 4:17:00 PM
Aireen Omar is new AirAsia CEO for Malaysia

KUALA LUMPUR: AirAsia has appointed Aireen Omar as its new chief executive officer (CEO) of Malaysian operations.

AirAsia group CEO Tan Sri Tony Fernandes said Aireen has been with AirAsia for the past six years.

Reuters meanwhile reported that prior to the appointment, Aireen was AirAsia’s regional head of coporate finance and treasury.


Newly appointed AirAsia’s Chief Executive Officer (CEO) of Malaysian Operations Aireen Omar smiles after Group CEO Tony Fernandes places a cap bearing the company logo on her head, during a news conference in Sepang, outside Kuala Lumpur June 18, 2012. Malaysia’s AirAsia Bhd said on Monday it had appointed Omar to head its local operations as the founder of Asia’s largest budget carrier Fernandes moves to Indonesia to oversee its regional expansion plans. REUTERS/Bazuki Muhammad

She will assume her new post on July 1 and report directly to Fernandes who confirmed he was moving to Jakarta.

“During the credit crisis, Aireen kept AirAsia ahead of the curve,” AirAsia co-founder Kamarudin Meranun told reporters at the budget carrier’s headquarters at Kuala Lumpur International Airport in Sepang.

“While other companies fell into trouble securing any financing at all, Aireen was able to lock up financing at very competitive rates for two years for the purchase of aircraft for Airasia.”

Bernama reported that Aireen Omar aims to maintain 60 per cent domestic market share.

“I know I have a big shoe to fill and I am confident to keep the target alive. Everyone can fly not only now but forever.

“We have 60 per cent domestic and 40 per cent international market share. We intend to maintain that and grow it,” she told reporters after being named AirAsia’s chief executive officer for Malaysia’s operations.

Aireen said AirAsia Malaysia would continue to be creative and innovative.

She said maintaining market leadership, cost discipline and increasing revenue would be among the main challenges helming the post.

http://biz.thestar.com.my/news/story.asp?file=/2012/6/18/business/20120618131632&sec=business

Why is Tony unhappy? — Lim Mun Fah

DEC 2 — Many people are asking why AirAsia CEO Tan Sri Tony Fernandes is not happy with KLIA2.

The construction of KLIA2 was started in 2009 and 42 per cent of it has now been completed. It is said to be the world’s largest low-cost carrier terminal (LCCT) catering for 45 million passengers once it is fully operational.

Some people might see it as the best example of the Malaysia Boleh spirit.

However, one after another of negative news is being heard before its completion.

Firstly, the project’s completion has been delayed by six month from its original dateline.

Secondly, the construction area has been extended, resulting in skyrocketing costs from RM2 billion to RM3.9 billion.

We do not know the reason behind the decision to expand the KLIA2 project but what is certain is, the soaring costs will ultimately be borne by consumers.

The increase of airport tax serves as the best example here.

Tony openly opposed the increase of airport tax based on a very simple reason, he said on Twitter: “Airport taxes are paid by Malaysians and passengers. The money doesn’t go to AirAsia but MAHB (Malaysia Airports Holdings Bhd).”

According to earlier reports, AirAsia’s proposal to build a new low-cost carrier terminal (LCCT) costing RM1.6 billion in Labu, Negri Sembilan was rejected. It was rumoured that although the project was rejected, AirAsia had successfully fought for lower LCCT airport charges.

If the rumour were true, it would then be understandable why Tony is so angry, causing him to accuse MAHB of making too many empty promises.

Tony is not a politician. As an entrepreneur, it is understandable for him to view things from a business point of view. The problem is, would the authorities listen to his unpleasant words?

The opposition have criticised KLIA2 as a grandiose project because the country appears to have no need for an enormous second international airport. This episode reminds us of the controversial KLIA-KL Sentral baggage handling system.

The baggage handling system was estimated to cost RM92.4 million but “various factors” doubled the cost to RM186 million! And the system is still not fully operational three years after completion due to issues over charges. So far, usage has been a mere 25 per cent.

If KLIA2 meets the same fate as a project meant only for development without due consideration of cost and returns, the price will again be borne by the people! — mysinchew.com

* This is the personal opinion of the writer or publication. The Malaysian Insider does not endorse the view unless specified.
http://www.themalaysianinsider.com/mobile/sideviews/article/why-is-tony-unhappy-lim-mun-fah/

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