Summary
MALAYSIA Airlines Bhd (MAS) is once again in the limelight. This time around, it is over two paintings bought for RM1.55 million. The airline has a history of grabbing the attention of the Malaysian public. On the eve of welcoming a new managing director (MD), Idris Jala, the airline reported a second quarter loss of over RM300 million, bringing its losses to a total of almost RM700 million for two quarters in 2005. The airline's financial woes have always been in the limelight as have its problems. This time, it was reported that the loss was contributed by a 45% increase in fuel prices and operating costs. The focus then shifted to its employees, with some quarters suggesting trimming its staff strength. The staff union, not one to take things lying down, however, fought back, saying the losses were contributed by excesses, with surat layang (poison- pen letters) flying all over the Internet as to what the `mismanagement' actually was. One of the causes was the purchase of two paintings for purportedly RM1.55 million. They were supposedly to enhance the corporate image of the airline. Then, there were other accusations such as the large number of consultants being hired, with at least one being paid by the thousands each day. Nobody is sure what the consultants do but given the financial problem of the airline, their fees are certainly causing a strain.
History has shown that the major problem with MAS is its leadership. It is most unfortunate that MAS has been experiencing turbulent skies for a long time so much so that the government has had to rescue it in the form of assuming all its liabilities. Gory details of mismanagement had made their rounds in the past and things seemed to be settling down when the government decided to appoint a former banker at its helm. But he decided that it was time for him to move on when his contract ended. An insider with years of experience took over and hopes were high that the flight was going to be smooth from then onwards. But before the announcement on the losses for the two quarters were made, he resigned. And so MAS was left with a non-executive chairman who acted as the CEO while waiting for the new CEO to come on board. Again, the gory stories of mismanagement and excesses made their rounds.See the full content of this document
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All Eyes On Mas
In a briefing given by the new boss, it was reported that everyone, including the union members, felt that the new man understands what the airline's problems are a...
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