Tuesday, 25 October 2011

Malaysia Airlines and Air Asia, the marriage that is base on convenience??


I am writing this while I am on board of the Mas airplane to Los Angeles on my way to Phoenix, Arizona.  As we know that the MAS staff union is against the merger between Air Asia and MAS and there has been no clue on whether the Union will continue to go against the exercise or will eventually accept it and move on. It could also be a reminder of what  can be done or not to be done by Tan Sri Tony in by  the MAS management in order to make the Union accept the merger .
In whatever angle that we take to look into the situation we should know one thing for fact that MAS has been losing money for years and years and Air Asia has been making money since day one the flight took off from the airport in KLIA under the new management of Tan Sri Tony who took over the the company and its license from the original owner DRB Hicom ( maybe many dont know about this ). 
One of the best capabilities of Tan Sri Tony is the strong  financial background that he has and as an expert in the field of financial , he understand clearly about the profit and loss report (PNL). The basic understanding of any business is if the business is in the right direction to become succesfull , the overall expenses will need to be lower than the overall income at all time.  This is the basic principle and this is the main ingredient for success in every  business no matter what type of business it is.
I have read Tun Mahathiri comments in his blog over the matter and he said and explain the situation in a very simple to understand manner . The basic comparison between Air Asia flight and MAS can already make any fool to understand why is MAS is losing money while Air Asia is making tonnes of money even when Air Asia is giving out free tickets. The main different is at most time, Air Asia plane is always on the air working and generating income to the company while MAS airplane is not . 
I have the privilage to chat with few of the MAS crew during the flight and he said that they have an opportunity to recently to talk to Tan Sri Tony and Tan Sri Tony was talking about making MAS to take more international route like Hawai , New York ( Mas has deceased from flying to all this places for sometimes ) in order to make more money and improve company profitability. 
All the best to MAS
P/s, hope that Tan Sri Tony will also look into the quality of food in MAS now, i doesnt have to be expensive in order it to be delicious. 

No comments:

Post a Comment