[Mailbag] Why and How Malaysia Airlines Will Continue to be Lossmaking

By the end of year 2005, Malaysia Airlines (MAS) appointed Idris Jala as the new managing director and chief executive officer.

Inheriting heavy deficit incurred throughout the past administrations, the new MD realised the expectation of national ordeal on his shoulders, thus initiated a string of turnaround plan, trying to resuscitate the dying MAS.

Knowing that for the national carrier to succeed, Deputy Prime Minister Najib Tun Razak gave assurance that the Government will not meddle in the affairs of the national career, meaning to say that, micro-managing doesn’t exist between the Government and MAS.

Yesterday, Deputy Tourism Minister Donald Lim said Malaysian Airlines has been asked by the Cabinet to resume the Penang-Langkawi flights starting from September 1. Thus, reader Usman Bawang, apparently disappointed with the Government decision, sent a mailbag to this blogger. Excerpt:

Clearly the government is very forgetful, or at least they are hoping that the people are.

Date: Sat, 29 Jul 2006 12:37:24 +0800
From: "Usman Bawang"
To: SK <skthew@gmail.com>
Subject: Why and How Malaysia Airlines Will Continue to be Lossmaking

Clearly the government is very forgetful, or at least they are hoping that the people are.

Seven months ago:

The Star
Sunday 8 January 2006
http://thestar.com.my/news/story.asp?file=/2006/1/8/nation/13058601&sec=nation

DPM: Government will not interfere in MAS

The Government will not meddle in the affairs of the national air carrier, said Deputy Prime Minister Datuk Seri Najib Tun Razak.

He added that Malaysia Airlines (MAS) was capable of making its own decisions without outside interference.

"We don’t micro-manage MAS. They have their own board of directors and management staff. They can decide on what is best for the company," he said yesterday.

Today:

The Star
Saturday 29 July 2006
http://www.thestar.com.my/news/story.asp?file=/2006/7/29/nation/14993489&sec=nation

Cabinet wants MAS’ Penang-Langkawi flights resumed

Malaysian Airlines has been asked by the Cabinet to resume the Penang-Langkawi flights that it had done away with.

Deputy Tourism Minister Datuk Donald Lim said the Cabinet wanted MAS to resume the route from Sept 1.

The national carrier would fly twice a day between the two popular tourist destinations after restarting the route, he told reporters at the launch of the Famous Street Food of Penang – a Guide and Cook Book here yesterday.

Lim clarified, however, that this would not change MAS’ decision to stop flights between the two venues on Aug 1, as planned earlier.

"(But) the Cabinet has made a decision that MAS restart the route on Sept 1 and fly twice a day from Penang to Langkawi," he said, adding that a growing number of visitors from the Middle East was keen on these two places, in addition to Genting Highlands.