A Deserving Apology To MASwings

Hantu Laut

When I wrote 'MAS and MASwings,Shame On You' I based my information on what was reported in the mainstream media and concluded that MASwings tried to muscle its way using its status to monopolise the Sibu-KK air route without knowing the history that gives RAS (Rural Air Services) exclusivity (inherited from FAX, an Air Asia subsidiary) to MASwings.Sibu is included in the RAS.

The Managing Director Encik Mohd Salleh Tabrani of MASwings has kindly clarified the case and it would be rude on my part if I do not bring it to light.

Below is his response

Malaysia Airlines said...

Hi Hantu Laut, everyone,

I'd like to take this opportunity to comment on this conversation, and to help clarify the situation revolving around the Kota Kinabalu-Sibu route.

The Kota Kinabalu-Sibu route is exclusive to the operator of Rural Air Services (RAS) because AirAsia had in fact requested for routes exclusivity when its subsidiary, FAX operated the RAS.

This took place during the domestic rationalisation exercise of March 2006, and AirAsia demanded for exclusive rights to almost all of the air routes within and intra Sabah and Sarawak, which naturally included the Kota Kinabalu-Sibu route. Only AirAsia's subsidiary, FAX had the exclusive rights to ply these routes.

Therefore, we were following the RAS Agreement that is in place, and allegations of us forcing AirAsia out of the KK-Sibu route is in fact untrue. In addition, it should also be pointed out that AirAsia is bound by the RAS Agreement and as such, cannot fly these routes, which is only afforded to FAX.

Perhaps a little more history behind what actually took place: AirAsia, through FAX, took over RAS from MAS in 2006, and received higher subsidies as compared to MASwings for the same scope of air services. However, AirAsia quickly surrendered (13 months) RAS back to Malaysia Airlines when they realised how unprofitable the routes were. Is this a case of cherry picking and choosing only to operate on profitable routes? I leave it to your kind selves to make your own conclusion.

Regardless of how this is perceived, it is clear that loss of taxpayer’s money is involved here. As many of you may know, we cross subsidise profitable routes (such as the KK-Sibu route) with other unprofitable routes. By doing this, we in fact help save taxpayer’s money, as MASwings’ P&L is born by the government. There is also the untold story of job loss, as we were forced to retrench hundreds of long serving staff in Sabah and Sarawak under a Mutual Seperation Scheme, due to the initial handover handover in 2006.

Lastly, it is also noteworthy to mention that MAS handed over seven Fokker 50 as well as five Twin Otter aircraft to FAX, all of which were in excellent flying condition. When MASwings resumed RAS operations in 2007, 50% of the Fokker 50 aircraft and almost all of the Twin Otter aircraft were not airworthy. As a result, we spent an additional RM36 million to restore these aircraft back to operational conditions.

I hope that with this, you have a clearer picture of what has transpired, and will help everyone to better understand the situation with the facts in hand.
Thank you.

Encik Mohd Salleh Tabrani
Managing Director
MASwings

I hope the above clear the air.

However, I still think competition is the way to go and is healthy and should be encouraged.What I still would like to know is the fare disparity, why the huge difference between the two airlines?

MAS and MASwings, Shame On You

Hantu Laut

They are always afraid of competition, they need protection and they need to be spoon-fed.These are bunch of shameless incompetents. With that kind of privileges who need smart asses to run an airline.Just sit on your goddam asses and let the government makes the money for you.

Government collect taxes from the people and have social responsibility to return the money back to the people in the form of infrastructural development, public amenities and other social obligations.

If you can't compete in business than you have no business to be in business. We all know the horror stories associated with government linked companies and what kind of people employed to run them.Why would we ever want to continue financing the laziness and inefficiency of these incompetents.This is the kind of lazy good for nothing ragtag band of incompetents that gives the government a bad name.These are the kind of pseudo corporate leaders who were there because of who they know, not what they know.

The Prime Minister's 1 Malaysia "People First Performance Now" would be a mockery and laughing stock if what happened recently in Sabah and Sarawak, which is causing great inconvenience to travellers between Sibu and Kota Kinabalu is not rectified immediately.

Air Asia has been servicing the sector for a while now, parallel with MASwings, and had become popular with travellers from Sibu to Kota Kinabalu and vice versa, which is now a hub with easy connections to other destinations. The low cost fare, good aircraft and efficient service given by Air Asia has attracted almost 80 percent load factor since its inception.

Now, MASwings, a subsidiary of MAS wanted to have the business all for themselves by claiming it is a rural route so it should be their monopoly.If MASwings can offer the same kind of service and cheap fare as Air Asia would the people shun them? Not only they are more expensive, they also used smaller and slower turboprop aircraft.While Air Asia uses the bigger Airbus 319, MASwings uses smaller turboprop Fokker 50 and Aerospatiale/Alenia ATR72 and has 4 dialy flights while Air Asia has only 1 daily flight.

It gets even more ridiculous with the fare.On checking with the online booking of both airline, MASwings return fare KK-Miri was quoted at RM342 and Air Asia RM158.Given the choice which airline would you choose to travel with?

I have flown with Air Asia a number of times and there is absolutely nothing wrong with the airline.You pay for no frills and that's what you should expect to get.I would prefer to fly an airline where everyone paid the same fare rather than an airline where I paid RM1000 for my fare and found my fellow traveller next to me only paid RM50.That's exactly what you get when you fly MAS.They put their low fare passengers together with normal paying passengers.They can't decide whether they want to be a full-fledged airline or a cheapo airline.

Instead of resorting to using government to kick out the competition, the people in MASwings should have used their brains to find ways how to compete with Air Asia in a healthy manner.They are receiving subsidies from the government but yet unable to provide good service and cheaper fare to the public.This is the kind of thing that get the people going against the government because it is seen as a punishment.

If Prime Minister Najib truly believes and practises his 1 Malaysia this is the time he can show the people that they come first and kick the asses of those incompetents in MASwings and its parent company MAS (Malaysian Airline), which, amazingly, has announced fantastic profit for its fiscal 2nd quarter, while all other world airlines,including the beautiful and most efficient Singapore girl, are losing money big time. SIA(Singapore Airline) announced loss of S$307 during its fiscal first quarter and have warned of being in the red for the full year if adverse business conditions continue.

This may seems a small matter but it will have its effect in the ballot box.You can give us more ministrial positions, more developments, more this, more that but at the end of the day it is the people's happiness that count and that Mr Prime Minister can translate into votes.