Excerpt:
'When I think of the many needed functions of government, owning or running an airline is not one of them. Instead, taking care of the health, welfare and security of its citizens should rank way up there.'
'Malaysia once again contemplates pouring billions to rescue Malaysia Airlines (MAS). Apart from consuming a never-ending amount of scarce and expensive government resources, the company receives an inordinate degree of attention at the highest level of the Najib Administration. I would have preferred that those leaders be concerned with our deteriorating schools and universities, or the awful delivery of our public services. On the day of the news of the proposed MAS bailout, there was another headline on a fire at the waste dump in Klang Valley.'
'Malaysia does not need MAS to project the nation’s image abroad. Besides, the image MAS now projects is of the worse kind. Malaysia also does not need MAS to bring in tourists. The other airlines including Air Asia do a fine job at that, and at no cost to the government. Malaysians do not need MAS for their international travels. You can choose from a dozen airlines to fly from Kuala Lumpur to San Francisco. In fact MAS no longer flies to the west coast of America.
There can only be one prudent decision on what to do with MAS now after all the repeated expensive and unsuccessful bailouts and reorganization exercises. Sell it or declare bankruptcy, with a view of total liquidation.'
'We should not be squeamish about or be ashamed of bankruptcy; it is an integral part of business. No enterprise is guaranteed to be a success.
Swiss Air, once dubbed the “Flying Bank” because of is solid finances, went bankrupt in 2002. Nobody would conclude negatively from that the business acumen or executive talent of Swiss managers. The more relevant lesson for Malaysia from the Swiss bankruptcy is this. The company’s entire top management was prosecuted for alleged criminal misconduct. They were found not guilty; nonetheless they were made to go through the wringer. A thought should MAS file for bankruptcy.
Japan Airlines, another government-linked company, also filed for bankruptcy. Today it is flying high after its reorganization. The venerable Pan Am, the very icon of a once glamorous industry, too was done in; likewise all the major legacy US airlines (Delta, United, American). Neither Japanese nor American pride was dented. Life (and business) goes on.'
'American Airlines posted its biggest quarterly “profits” from the insurance settlement of its DC 10 that crashed on take-off from O’Hare in 1979. However with MAS today, thanks to that “brilliant” WAU scheme, both planes were probably owned by another company with MAS leasing both back. So the insurance payments would go to that company instead of MAS!'
Rest of his article:
http://www.bakrimusa.com/
Link
'When I think of the many needed functions of government, owning or running an airline is not one of them. Instead, taking care of the health, welfare and security of its citizens should rank way up there.'
'Malaysia once again contemplates pouring billions to rescue Malaysia Airlines (MAS). Apart from consuming a never-ending amount of scarce and expensive government resources, the company receives an inordinate degree of attention at the highest level of the Najib Administration. I would have preferred that those leaders be concerned with our deteriorating schools and universities, or the awful delivery of our public services. On the day of the news of the proposed MAS bailout, there was another headline on a fire at the waste dump in Klang Valley.'
'Malaysia does not need MAS to project the nation’s image abroad. Besides, the image MAS now projects is of the worse kind. Malaysia also does not need MAS to bring in tourists. The other airlines including Air Asia do a fine job at that, and at no cost to the government. Malaysians do not need MAS for their international travels. You can choose from a dozen airlines to fly from Kuala Lumpur to San Francisco. In fact MAS no longer flies to the west coast of America.
There can only be one prudent decision on what to do with MAS now after all the repeated expensive and unsuccessful bailouts and reorganization exercises. Sell it or declare bankruptcy, with a view of total liquidation.'
'We should not be squeamish about or be ashamed of bankruptcy; it is an integral part of business. No enterprise is guaranteed to be a success.
Swiss Air, once dubbed the “Flying Bank” because of is solid finances, went bankrupt in 2002. Nobody would conclude negatively from that the business acumen or executive talent of Swiss managers. The more relevant lesson for Malaysia from the Swiss bankruptcy is this. The company’s entire top management was prosecuted for alleged criminal misconduct. They were found not guilty; nonetheless they were made to go through the wringer. A thought should MAS file for bankruptcy.
Japan Airlines, another government-linked company, also filed for bankruptcy. Today it is flying high after its reorganization. The venerable Pan Am, the very icon of a once glamorous industry, too was done in; likewise all the major legacy US airlines (Delta, United, American). Neither Japanese nor American pride was dented. Life (and business) goes on.'
'American Airlines posted its biggest quarterly “profits” from the insurance settlement of its DC 10 that crashed on take-off from O’Hare in 1979. However with MAS today, thanks to that “brilliant” WAU scheme, both planes were probably owned by another company with MAS leasing both back. So the insurance payments would go to that company instead of MAS!'
Rest of his article:
http://www.bakrimusa.com/
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