Wednesday 5 March 2014

MAS...oh...MAS...sigh


My posting on FB yesterday on MAS reported losses of 1.2billion -

Well Mr PAC (Public Accounts Committee)...allow me to enlighten you...here's why..:-

Basic principle of managing an airline is; cost control. As a matter of fact; all businesses applies the same basic principle. Unfortunately; MAS management has no freaking clue on how to reduce their operating cost. Here's some tips from my book of Managing Airline Operating Cost for A Bunch of Idiots:-


1. Too many redundant staffs. Your Union is too powerful. They don't care if the company running at lost so long as they can keep their job till they die. As such, give them an ultimatum. Hit the KPI or hit the road!



2. Your multiple types of a/craft currently in ops is definitely not helping your books. Multiple types of a/craft meaning multiple types of spare parts you have to have in-hand. Your cashflow on parts alone will kill you! 



3. Your Revenue Management System sucks! From which third world country did you procure this system? Expensive and fancy system does not guarantee good results. Its the person handling the Department is incompetent!

4. For some weird reasons; you are still keeping 'dead wood' in the company. Get rid of these people! They are enjoying the salary, bitch a lot, maximize their privilege and contribute absolutely nothing!

5. Cut down on privilege enjoyed by your staffs. Its time for them to sacrifice on what they have enjoyed for many years. No more upgrading to C Class for them. Enough is enough...no more jolly ride.

6. The time has come for you to peg your fuel price. This commodity fluctuates like hell! Go back to your fuel supplier. Re-negotiate your terms. Peg it for the next 5 years. Once you peg your fuel price; atleast now you know your base cost on fuel.

7. Can you start whacking your pilots? They seem to enjoy every minute of burning fuel like crazy. One simple trick to reduce fuel burn is to fly higher! The higher you fly, the lighter you are and the less fuel you will burn. Not rocket science.

8. Your a/craft turn around time still unbelievably sloowwww!!! If now it takes you 1 hour...reduce it to 45 mins. So, if each sector you can save 15 mins and if each a/craft serves 6 sectors in a day, that's a saving of 1.5 hrs of engine cycles per day! Multiply that by 365 days...you need a calculator?

9. Shutdown or reduce your manpower at your overseas office. You don't need fancy set-up. A simple set-up will do...its the result that matters

10. Re-negotiate your ground handling contracts overseas or maybe its time for you to selfhandle. Crunch some numbers...

11. Your competitor is not Air Asia or Malindo...its SIA..and guess what; they are making tonnes of money and you are losing tonnes...

I can go on and on Mr PAC...

Smack them and stop spoon feeding this organization....

Dato Sri Mohd Najib Bin Tun Hj Abd Razak not rocket science Mr PM...pull up your sleeve and clean this up please..Thank you sir..

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