MAS revival plan under fire
Aviation analysts are beginning to doubt the latest restructuring moves by Malaysia Airlines.
Last week the new boss of MAS, Ahmad Jauhari Yahya, announced a theme of “right sizing” involving cost cuts and spinning-off businesses.
Brendan Sobie, analyst at Centre for Asia Pacific Aviation, said, “MAS has an unenviable track record of failed turnarounds and transformations. Its rivals will be watching closely as MAS takes a stab at yet another new strategy.”
CEO Ahmad Jauhari, says MAS is in a “deep crisis” due to lack of focus on the premium segment. He blames pricing, an ageing fleet, a stale product and lagging its rivals in adapting to change.
Standard & Poor’s senior aviation analyst in Singapore, Shukor Yusof, said downsizing was not the best way to address MAS’ problems when it wants to be considered a serious premium player and is going to add five 500-seater A380s in 2012.
Shukor said MAS will open itself to “predators, and there is no shortage of them in the region from Jetstar, LionAir, Singapore Airlines, Cathay Pacific and many others”.
Ian Jarrett
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