Title: MAS, let’s start afresh.
Reading the latest media report on MAS, I feel sad, angry and not happy all at the same time. If all the losses incurred through circumstances that is beyond management control, I would still be able to accept it. What rile me up is that if the “poison pen letter” even has a shred of truth in it, then the top management has a lot to answer for. Although I am not a direct shareholder in MAS, I still feel the top management has failed their fiduciary duty to act the best interest of its shareholders, Malaysian Government, and the rakyat, beside those who hold MAS shares.
Strange thing that the “khabar angin” start to turn into reality.
The Prime Minister had said a week ago that the government would lend money to MAS, so that it can continue flying but I start to have my reservations. Would the RM3billions be worth spending/lending?
Why do I say that it might not worth pouring another RM3billions?
For a start, how much does it cost to start up an airline afresh? Did Air Asia started up with that much capital? It would probably pointless to compare, because of the different market they operate and the size of the airline.
If we let MAS go bankrupt;
• We could quickly hold license auction to operate a national airline, be it named Air Malaysia (or some other name) and the winner should be a locally domiciled company with the best management team and good sized capital base.
• We could save that RM3billions that we intend to lend to MAS and use it for some other worthy projects like housing for the poor or flood mitigation program in northern states.
• Reading the poison pen letter, it seems the consultants and top managers are drawing high salaries, they could simply be fired, with minimal cost.
• The creditor might get 10sen in a dollar and the shareholders get nothing, but the new airline would start afresh without the burden of past debts. The new airline might also be able to hire new staff and workers at lower salaries as well. Overall, the new airline would be more efficient.
Or, the government could let some other company takeover MAS. Sell Government shareholding in MAS to the highest bidder. Let the new management run the airline to make profit. Let them remove the unprofitable routes if they want to, maybe some other small airline could service those routes profitably with less subsidy. How much MAS shares at KLSE today?