The airline has said that it will waive all fees and accept all requests to postpone or cancel flights scheduled for this year, including non-refundable tickets.
It comes in the wake of the MH17 tragedy, as the row between Ukraine and Russian separatists over who fired the fatal missile continues, and investigators struggle to access the wreckage site.
The Netherlands declared a national day of mourning yesterday, as the Dutch paid their respects to their 192 fellow countrymen who were killed in the accident.
In total 298 people were killed on the Malaysian Airlines flight, 10 of whom were British.
The carrier has now said it will stop using the flight number MH17 “out of respect for the crew and passengers” who died.
It has also defended itself from claims that the pilots of the ill-fated flight should not have been flying over Ukrainian airspace, insisting the plane “never strayed into restricted airspace”
If go for bankruptcy then the shareholders wont get any money but i think will be privatised because since shareholders (sh) subscribed to rights issues therefore Khazanah have to honour the "sh" so no bankruptcy..my view only.
khazanah will not going to put MAS bankrupt as they need to present the new restructuring plan to Govt by this week. Just watch the news on it in tv. They will announce the new restructuring plan early next month meaning after raya.Minority shareholder already give an indication that there going to be restructuring the management and operation and also pump in money by govt to ensure the survival of this national carrier. The bankruptcy option is not on the option and not their plan as govt will not in fever of it as it is national, airline which govt have huge interest on it. That what the minority shareholder and one of my friend inside the airline said. So tomorrow onword you can start see a lot of interest on this counter.
BOTTOM LINE very simple & blunt ....... Indeed, "selective members" of Govt wld fight hard to keep MAS on EPF & taxpayers expenses , otherwise , the "selective members" will loose the privilege of FOC travelling between Club & First , etc etc This abuse is in the DNA for generation and it will remain so until it get privatise !! Don't forget MAS is the only "Full-schedue" carrier flight direct and yet we are not making money !! Yes you can gamble over the coming days & weeks or so on a MH Roulette table n maybe any number below 18 (cents) !!! That's BOTTOM LINE
i dont know also how the the market sentiment. But that is the info that i get from someone inside. I ask him whether there is any suggestion on privatization and at what price he not reply yet. But he did mention one of the option is for govt to pump in money and restructures the management team and also the operation. He said the plan it to ensure they can appease the Union also where two things has been request by the union which is change of management & govt help. will wait for his reply if any on the privatization. If got i share it here k.
Malaysian Airline System Bhd, the state-backed carrier whose jet was shot down over Ukraine on July 17, will present turnaround plans this week to the government fund that controls it, people familiar with the matter said.
The proposals presented to majority owner Khazanah Nasional Bhd will include taking the company private or allowing it to go bankrupt and then renegotiating contracts with the workers’ unions, said one of the people, who asked not to be named as the information is private.
Khazanah, Malaysia’s sovereign wealth fund, owns 69.4 percent of the carrier.
The carrier’s shares tumbled 11 percent the day after Flight 17 was shot down, killing all 298 people on board.
The incident came four months after the disappearance of Malaysian Air Flight 370 spurred the longest search for a missing plane in modern aviation history.
Taking the company private remains the preferred option, rather than a bankruptcy, they said.
Malaysian Air, which has lost RM4.57 billion since the start of 2011, had been speeding up an overhaul of its business since the disappearance of Flight 370.
Even without MH370 and MH17, there is little chance MAS will succeed. With MH370 and MH17, it made matter worse. MAS is full of shit ranging from overly unionised, unfavourable contacts, too much government intervention and not not just bad branding but also bad luck. No point continue to pour good Tax payer money to save this airline. It is best let it go bankrupt. Government to allow Malaysian businesses to bid for establishing another airline company without Khazanah or PNB involvement. With new airline, the company has start it own branding to break away from MAS. Get rid of the unions and all contracts. Hire the best regardless of whether they are form MAS or other airlines or non airline management and employee. In this way, there may be a chance for the new airline to make it. With MAS, the chances of succeeding is remote, painful and expensive.
Proton, Perwaja and MAS are the obvious blood suckers of the country finances since inception except for the last one. MAS since TR days is like a goldmine for the Umno Baru cronies to dig until it became financially not viable. It used to be one of the best run airlines in the world even rivaling SIA. Then we have under utilized infrastructures like KLIA, Sepang Circuit, Putra Jaya, MSC, Cyberjaya and some other white elephants. The grand design of one man is falling apart because not the best brains were utlilized to ensure them of the best chances of being successful and also beacuse of the ego of one man.
Let it go bankrupt, renegotiate the contracts with all including the union and then get the best managers regardless of race to build a true national air lines. If this is done, MAS can fly high but do not turn it into Taliban Airline for the start. Going for privatization again is equivalent to robbing another national asset, for we all know Apa Nama shall get it if it is privatized !
What about the minority shareholders who bought the share with their live savings at a higher price and kept it as an investment. I bought the share at RM1.60 and 200,000 of the rights issue. we were cheated into taking up the rights issue as MAS promised turnover and now it is a worthless paper. Do we deserve this treatment. Is the Govt. not responsible for supervising the on goings of MAS. Who benefited from the life savings. I always thought MAS was a national carrier and that it will be well looked after. There are hundreds of minority shareholder like me. Some of them hold very large shares for their life savings.
In reality Malaysians have to be EXTRA vigilant. Privatisation may turn out to be "piratisation". Whatever method, privatised, corporatized or bankruptised, make sure that "asset stripping" or 'basement fire-sale' do not occur to the detriment of Malaysian taxpayers and to the undeserved benefits of cronies. Whatever method if not done transparently, based on merit and taking cognisant of good governance will be the WRONG way. Unfortunately when prime gomen assets drop in 'goodwill' value, political vultures stand ready to pounce as real physical values are the prime assets for stripping. Examples are when cronies became fabulously wealthy from taking over and stripping 'failed' govt organisations during the implosion of the communist system in Russia and market liberalisation in China.
The value of a company depends very much on its brand. Pray tell us what does the brand MAS represents to investors and consumers (passengers) moving forward and into the foreseeable future ( within next five years.
candygirls, what i heard from inside the company,bankruptcy will not be an option for khazanah taking into consideration of Union,staff, minority shareholder,govt and political will on this. That what i heard from inside la. still waiting for the man inside to reply me on the potential of privatization or this airline.
LIKEWISE, B4 M17, the very "inner" gang who I know well is seriously considering to privatise or further "right issue" where no other holders will respond , other than Khaz which will push them over the level of privatise and then off load to BIG private investors or else cut losses to go for bankruptcy with "pre-arranged" buyers !!! NOW , sadly with MH17, it could be a Golden opportunity to let it go into bankruptcy without great detriment to Najib .............. BOTTOM LINE , just stand on the side line and watch the game !!!
With such low price concurrently, with the high volume transacted, some nominees might be started buying cheap now already. Once they announced it, may be, less than 10% shares still not in their hand. In order to satisfy long term minority shareholders, expecting the offer price for privatisation will not be less than 40sen, fingers crossed :)
i don't think khazanah will offer price less than 20 cents. I heard around 25 cents at least. you can see a lot of investor accumulate at 20.5 cents for past two days. info from CIMB they are targeting around 30 cents once privatization announce. don't miss the boat yaeh....
Speakup, they are unlikely to do that. Announcing pn17, frighten away more passengers, no money=cut corner=safety uncertainty??? Dont think they do such thing, the whole world is focusing on mas, they would avoid further damage/bad publicity on mas , ;)
Privatisation allows to mas to move faster in turnaround, as a private entity , less requirements for announcements, compliance, etc etc. No need to wash the dirty stuff in the eyes of everybody globally :)
Reported in Utusan newspaper that Khazanah has already owned 69% and by Aug 2014 it would be able to acquire all shares that are still not owned by them. What does it mean? It means,MAS is confirmed going private. On the day when MH 17 was shot down,the was a heavy volume traded. I predict that day itself,Khazanah acquired almost 3%.
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....
Nallayak
928 posts
Posted by Nallayak > 2014-07-21 18:39 | Report Abuse
Airlines should publish their air route for passengers to decide if the routes is safe , ppl just gave airlines the benefit of doubt in the past