Mercury Securities head of research Edmund Tham said MAS will have to find a solution, such as raising more funds, or it will become too dependable on government bailouts.
One company insider said it is possible for MAS to go the JAL and American Airlines way but "there will be a lot of noise from the unions". He said the airline is unfortunate to inherit costs that it could not change.
"And while the Department of Civil Aviation allows a cabin crew of four to serve on a B737, MAS has to provide a crew of six as stipulated by the union. There are other inherited costs that MAS could not do anything about unless the terms are renegotiated," he added.
After Qantas who is next on the line? Time will tell!
QANTAS will slash at least 2000 jobs, dump some international routes and sell off planes as it races to secure its future through a government debt guarantee!
Hey qqq668...there's more than 1,000 listed companies in Bursa. Why would you promote or buy or support MAS simply because its cheap at 28sen ??11 To be honest, its not cheap at all as its bleeding badly. And the sad part is, the MAS management don't even have a clue how to turn the company around. The MAS management is so very bad...
There's also many hidden gems out there about to break-out. Don't flog a dead horse to unsuspecting investors. At 28sens, you can buy so many other good stocks and double up. With MAS, you cannot. Just check the market price same time next year (after the FY2014 financial accounts).
Sometimes you have to lick your wounds, cut losses and look carefully for the right stock to Buy. Unfortunately, MAS is not one of them! I'm sorry but the truth can hurt !!
I agree with qqq668. If MAS can handle their union very well then it is good. Sometimes having a union is good but not this one. Sorry to say. MAS union has to be realistic. Just move away and give MAS a breather,if MAS fall ..will the union still stay put?
if mas want to life very good. i give an idea to mas management with the fare must lower han airasia for fare plane at klia2. otherwise..............................................
‘Now everyone can fly’ used by AirAsia applies to Malaysia Airlines as well these days. Paradoxically the premium national carrier now comes with budget pricing.
The ongoing airline price war between AirAsia and Malaysia Airlines has done a world of good for consumers. What is worrying though, is that Malaysia Airlines is pricing itself out of profitability for the sake of keeping up with the competition.
Folks, Malaysia Airlines is more famous for being unprofitable than moving and shaking up the corporate world.
How can things get any worse for Malaysia Airlines than posting a net loss of RM1.2 billion for the 2013 financial year, more than double the previous year’s losses?
27% higher passenger traffic and still more losses? But why? The answer is pretty simple. Malaysia Airlines has been selling below cost!
If a business is selling product/service at loss per unit, the more it sell the more it lose, only stupid business man will do, might as well put money in bank for a steady interest without the management headache and business risk.
Quoted from report: Some analysts feel that Malaysia Airlines (MAS), which reported a net loss of more than a RM1 billion last year, may consider bankruptcy
"MAS will have to start all over, such as re-hiring staff, awarding contracts, as well as leasing and buying planes. MAS has contracts and agreements that expire in a long time. Those are expensive and dragging down its earnings,"
Easy to turn around. just privalise it. If MAS management cant turnit around, let someone who has the skills and knowledge does it! Why talk about national pride when its bleeding profusely!
in stock investment... always remember, when ppl ask u to sell, u better buy more/accumulate. when ppl said buy, u better sell it slowly but surely... if mas share crash to below 0.28.. it will do the next day after announce the result. u will never have chance to buy once the "expect" said mas is good to buy... there is not many competitors in Malaysia airline business, not like car industry/proton. it is just someone not doing their jobs or too many inter-related party profit from it.
Hear some rumors Mas is helping some political person to ''Wash Black money' so the account always negative until the Gov change Then Mas is my priority to buy.
~ Investment return can take seconds/hours/days/months/years ~ ~ Start Early & Be Patient ~ Good luck with your investment!!! ^_* http://awonginvestment.blogspot.com/
Poor quality food and substandard service are among the most frequent complaints made by Malaysia Airlines passengers on the SkyTrax Airline Rating and Review website.
Of the 66 reviews made from December last year to Feb 20, 41 percent said that they would not recommend the airline or fly with it again, for those reasons.
This is compared to only 25 percent who swore off Singapore Airlines and 16 percent who said they will no longer fly Thai Airways after a bad experience during the same period.
Malaysia Airlines fared slightly better than Emirates where about half of passengers who reviewed the airline between December and February said they would not recommend the airline.
Interestingly, even those who flew first class on Malaysia Airlines found the food “inedible”, with one passenger saying he will opt for AirAsia flatbeds from now on.
“First class lounge in Kuala Lumpur was terrible. Service was okay but a la carte breakfast was horrible. Food on board was worse – inedible spicy chicken, limp salad and cream cheese instead of proper cheese.
“The meal before landing was even worse. Undercooked pastry with unidentifiable mushroom filling. That was it. Three bites and it was gone.
MAS is one of seven airlines rated with five stars by Skytrax, alongside Singapore Airlines, Cathay Pacific and Qatar Airways.
“A key factor behind 5-Star Airline Rating is the airline's ability to deliver a truly consistent and high quality of product and service.
“A great product is not by itself the key to a 5-Star airline rating, and Skytrax Star Rating also places great emphasis on the quality of front-line service an airline provides.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
BullBear
3,811 posts
Posted by BullBear > 2014-02-23 09:04 | Report Abuse
Mercury Securities head of research Edmund Tham said MAS will have to find a solution, such as raising more funds, or it will become too dependable on government bailouts.
One company insider said it is possible for MAS to go the JAL and American Airlines way but "there will be a lot of noise from the unions". He said the airline is unfortunate to inherit costs that it could not change.
"And while the Department of Civil Aviation allows a cabin crew of four to serve on a B737, MAS has to provide a crew of six as stipulated by the union. There are other inherited costs that MAS could not do anything about unless the terms are renegotiated," he added.