The 12-point plan mapped by Khazanah Nasional Bhd for Malaysia Airlines (MAS) will not be complete if it does not involve the restructuring of the airline's operations and business.
PAC Chairman Datuk Nur Jazlan Mohamed said the plan announced yesterday only involved a financial restructuring.
"It is a big task to turn MAS around because of the current market situation and competition," he said referring to the open sky policy where premium airlines can move in and out freely.
This has resulted in excess seat capacity in the region and Khazanah has not disclosed details how it would overcome the open sky policy which would impact MAS' international sectors.
He asked how MAS was going to garner back the domestic sector which was currently dominated by low-cost carriers.
"MAS needs to have a domestic sector network which will set the pace for its international routes.
Restructuring cannot only focus on financials but must move hand-in-hand with operations and business," he told a press conference after opening the UMNO Pulai Division meeting here today.
Khazanah Nasional Bhd has unveiled a RM6 billion recovery plan for Malaysia Airlines (MAS) which will see the ailing national carrier inject greater efficiency by cutting its staff size comprising almost 20,000 by 30 percent and refocusing on profitable regional routes rather than loss-making long-haul destinations.
Prime Minister Datuk Seri Najib Tun Razak said the RM6 billion to be injected into Malaysia Airlines (MAS) is not a bailout but an investment by Khazanah Nasional Bhd because it must be recovered.
He said the full recovery of the national carrier may take longer than three years but was hopeful a positive turnaround would be seen within three years.
Nur Jazlan said the national aviation policy must be looked at holistically because, while it helps to strengthen MAS, it should not jeopardise other airline companies operating in the country.
"If we use this law to turn around the national carrier especially in its ailing condition without proper planning, it will jeopardise other airlines," he added.
Nur Jazlan said MAS' problem was not that of "branding" as a result of the MH370 and MH17 tragedies but due to massive losses in the last.
"There are definitely inherent problems with MAS' business and operations modules. MAS needs to place less effective and competitive business components like increasing staff efficiency, renegotiating supply contracts and overcoming union problems," he added.
Nur Jazlan opined that local talents in the aviation industry be given the opportunity to turn around the national carrier, failing which, foreign expertise in turning around an airlines' fortune should be tapped.
Bernama
Sat Aug 30 2014
NUR JAZLAN: It's a big task to turn MAS around.
Japanese manicurist takes on plastic pollution, one nail at a time
Before global leaders address plastic pollution, a Japanese manicurist highlights the issue by incorporating it into her nail designs.
What to watch for ahead of US presidential inauguration
Here's a timeline of events between now and inauguration day.
The battle to reduce road deaths
In Malaysia, over half a million road accidents have been recorded so far this year.
Pro-Palestinian NGOs seek court order to stop Dutch arms exports to Israel
The Dutch state, as a signatory to the 1948 Genocide Convention, has a duty to take all reasonable measures at its disposal to prevent genocide.
How quickly can Trump's Musk-led efficiency panel slash US regulations?
Moves by Trump and his appointees to eliminate existing rules will be met with legal challenges, as many progressive groups and Democratic officials have made clear.
2TM: Consultations on PTPTN loans, admission to IPTA at MOHE booth
Consultations on PTPTN loans and admission to IPTA are among services provided at the Higher Education Ministry booth.
Kampung Tanjung Kala residents affected by flooded bridge every time it rains heavily
Almost 200 residents from 60 homes in Kampung Tanjung Kala have ended up stuck when their 200-metre (m) long concrete bridge flooded.
COP29 climate summit draft proposes rich countries pay $250 billion per year
The draft finance deal criticised by both developed and developing nations.
Bomb squad sent to London's Gatwick Airport after terminal evacuation
This was following the discovery of a suspected prohibited item in luggage.
Kelantan urges caution amidst northeast monsoon rains
Kelantan has reminded the public in the state to refrain from outdoor activities with the arrival of the Northeast Monsoon season.
Former New Zealand PM Jacinda Ardern receives UN leadership award
Former New Zealand prime minister Jacinda Ardern was given a global leadership award by the United Nations Foundation.
ICC'S arrest warrants for Netanyahu, Gallant an apt decision - PM
The decision of the ICC to issue arrest warrants against Benjamin Netanyahu and Yoav Gallant is apt, said Datuk Seri Anwar Ibrahim.
KTMB provides two additional ETS trains for Christmas, school holidays
KTMB will provide two additional ETS trains for the KL Sentral-Padang Besar route and return trips in conjunction with the holidays.
BNM'S international reserves rise to USD118 bil as at Nov 15, 2024
Malaysia's international reserves rose to US$118.0 billion as at Nov 15, 2024, up from US$117.6 billion on Oct 30, 2024.
Findings by dark energy researchers back Einstein's conception of gravity
The findings announced are part of a years-long study of the history of the cosmos focusing upon dark energy.
NRES responds to Rimbawatch press release on COP29
The Ministry of Natural Resources and Environmental Sustainability (NRES) wishes to offer the following clarifications to the issues raised.
Online Safety Bill and Anti-Cyberbullying Laws must carefully balance rights and protections
The Online Safety Advocacy Group (OSAG) stands united with people in Malaysia in the fight against serious online harms.
Malaysia's inflation at 1.9 pct in Oct 2024 - DOSM
Malaysia's inflation rate for October 2024 has increased to 1.9 per cent, up from 1.8 per cent in September this year.
Saudi Arabia showcases Vision 2030 goals at Airshow China 2024
For the first time, Saudi Arabia is participating in the China International Aviation & Aerospace Exhibition held recently in Zhuhai.
King Charles' coronation cost GBP 71mil, govt accounts show
The coronation of Britain's King Charles cost taxpayers GBP72 million (US$90 million), official accounts have revealed.