Letter
by Z. Ibrahim
It is said sometimes that there are only two categories of people in this world. Employers and employees, entrepreneurs and wage seekers, risk takers and non-risk takers.
Employees in general are content with salaries and allowances commensurate with their experience, qualifications and working hours.
Entrepreneurs however, take huge risks by actually starting a new entity or business which generally requires workers and capital outlay. Entrepreneurs are greatly respected in open markets such as the United States. Malaysia had a similar tradition which included the late Tan Sri Lim Goh Tong.
The long drawn out silent battle to acquire Subang as an air terminal between Air Asia and MAS was plain to everyone. Which carrier should the government support? Neither. Only the market must be allowed to determine who prevails or survives.
If Subang is to be changed again to an air terminal, every airline including both Air Asia and MAS must be given a go at it. To sneakily allow MAS’s Firefly to operate from Subang on the basis that its turbo-prop planes are environmentally friendly to residents around the airport is to encourage a lop-sided policy of quiet favoritism, possibly because the government has a share in MAS.
This would be sending the wrong signal to venture capitalists, entrepreneurs, investors and FDIs.This inequality may translate into businesses and capital running out of the country.
The Government must realise that this is no more the old days of the controlled media but the age of information where the public easily acquire information through the net and are quite well informed. The government must play the strict referee and where possible, keep out of business.
KLIA, may or may not have been a mistake. Time will tell. Its greatest disadvantage is its distance from KL which can be overcome by placing a cost-effective LRT as in Heathrow. The government must endeavour to ensure that this is achieved.
As much as every player in the airline industry wants Subang because of its proximity to the large Klang Valley market, access to it, if provided, must be done fairly.
If we are to compete for investments and other FDIs, the government must inevitably indulge in cricket and do away with unlevel playing fields.
To do otherwise would be to perilously indicate to investors, both local and foreign, that their investments and money may not be safe in an arena of shifting goalposts.
“If we are to compete for investments and other FDIs, the government must inevitably indulge in cricket and do away with unlevel playing fields. ”
Playing fields have always been “unlevel” and there’s nothing wrong with it. It is not a field if it is not “unlevel”. Follow so far?? I don’t. What goes wrong is when men seek to introduce the concept of the “level playing field” to justify their less then level motives.
That is life in an UMNO controlled government. They will never win any game if the playing field is level.
The claim of “Keutamaan Melayu”and sending a Melayu to space (as a tourist but try to cover up as conducting research) and yet suffering from phobia of hearing the word “level playing field”.
That is UMNO way of life and struggle.
They’re a bunch of clowns. Are we heading the same as Philippines? Just wonder how we come to this state! In the first place Subang should be converted to a hub for buses and taxis. Is it because there’s not enough big money to be made? I wonder!!!!!
Yes, we have level playing fields. The 2nd level is for UMNO, the 1st level is for MCA and Gerakan, the ground level level is for illegal immigrants and the “underground level” (basement) for MIC.
Why talk about level playing fields for the aviation industry when the entire system (employment, education, contracts, civil service, judiciary) is on an uneven playing field.
Yeah, allowing MAS’s turbo-prop planes to operate from Subang air terminal based on turbo-prop planes being environmentally friendly to residents around may be mere excuse/pretext for ‘quiet favoritism’ shown to MAS but so what? What’s the larger picture – is the government really favoring MAS over Air Asia?
Granted, Air Asia, from the nature of its beginnings as a private entity has many hardworking staff who are prepared to wash the airline cabins – compared to MAS, run like a typical GLC at least prior to Datuk Idris Jala’s appointment as CEO to turn it around – so to speak, but no one can seriously suggest that, by now, it is not receiving government’s favour and patronage of BN’s politicians! Don’t we all see Tony Fernandes being featured in newspapers and friendly with all the bigwigs and even SIL? Damn good PR! (There is this joke making its rounds within the industry that dubs Dato’ Seri Chan Kong Choy “Minister in charge of AirAsiaâ€Â!)
Why don’t we talk of MAS’s loss of monopoly over the lucrative Kuala Lumpur-Singapore route to budget airlines like Air Asia? Low Cost Carrier Terminal (LCCT) for Air Asia was approved, built and made operational in record speed with government’s support though Air Asia still complains LCCT is not sufficient for its needs, and that’s why the delays. Hasn’t Air Asia been using MAS resources and facilities and owed unpaid bills which govt helped settled?
MAS also requested additional routes within the region but weren’t these additional routes to Jakarta, Bali, Medan, Bangkok and new routes to Hadyai given to Air Asia?
Idris was charged with turning around MAS, and his plan made known to government was to rid the fats by divesting non-core assets, retrench staff, bring in people from outside, get some profitable routes.
Don’t know whether international routes will help MAS that much because one must understand that for it to profit from international routes, Kuala Lumpur must be an international commercial hub like Singapore or Hong Kong – which KL is not – for business and wealthy passengers to fly in and out first or business class as part of their companies’ business expenses paid for. Money is generally made from business and first class – not economy class that helps in breaking even per flight taking into consideration the high fuel prices today.
So MAS still need help in terms of local and regional routes but this market share has been taken and spread around with Air Asia.
Though MAS cannot fight or resist the policy of fair competition and based on concept of open skies, Idris’s turnaround plan, however, as earlier outlined to govt when he accepted appointment was based on the regional “open skies” agreement coming into force at the start of 2009 (so that he could have some breathing space to put MAS in firmer footing) rather than a year earlier, beginning of 2008!
Favoring MAS with Subang (with its proximity and access to the large Klang Valley market) is in fact tilting the level playing field back to it in recompense of it being tilted already too much to Air Asia against MAS’s commercial interests! (Spealing of level or unlevel playing field, I don’t believe the writer is giving a balance accounting of the larger picture of this so called ‘friendly’ rivalry and competition between MAS and Air Asia for market share).
Although both Air Asia and MAS serve the country and its people, like it or not, MAS is still the national airline, and if it continues to lose money without help, it is our money (the public purse) that will be used to bail it out!
So there’s no big deal in the government having share in MAS : the government’s golden share through Khazanah is to allow the government to have a final say on pivotal decisions.
Our Air Asia is doing OK. CITIGROUP Equity Research reported AirAsia could meet its FY07 recurring profit forecast of RM198 million or a reported profit of RM400 million, if the Malaysian Accounting Standards Board approved the inclusion of deferred tax credits in AirAsia’s audited accounts. From nature of its business – on line booking & payment – it could recoignise income even before the flight took off where some of the costs kick in! According to CITIGROUP Equity Research, with a PE of 22 times, AirAsia was trading at 23% premium to global sector peers with similar earnings per share growth and 24% premium to the Malaysian market.
What does MAS have going for it when Air Asia (with lower fixed & variable costs) is taking greater market share of and aserting dominant presence in the lucrative regional and domestic routes?
And what does MAS have on the other hand on its side?
One, is People are banking on Idis Jala’s performance; bankers are lending loans based on tenure matching in maturity with Idris tenure as CEO.
And of course, two, the traditional govt’ support that when things get bad, as when feul prices soar, relax and give time on leasing payments (a major cost item) due from MAS to govt owned Penerbangan Malaysia Berhad.
i’m in penang and my hometown is in KL. i wouldn’t mind taking a flight back to KL every time when i travel only if the Airport is in subang. sepang is way too far and expensive. i would rather drive than. will never opt to the express buses (its like mat rempits driving a bus)
The early morning and late night domestic flights should be to/from Sepang(close proximity/access KL) for the convenience of locals attending to business meetings.
This will definitely ease jams and flow of traffic on the Plus Highway, may effectively cut down on accidents due to tired drivers on the road after a hard day’s work attending to business in the capital or other major towns. Whenever I drive myself, I often notice that most cars are single driver driven, no passengers.
Jeffrey, I do agree with you that CKC wants to create a level playing field insofar as MAS and AirAsia is concerned but can he stand the pressure from the extremist of UMNO. Cant you remember that there were some rumblings in Parliament by some UMNO extremists about CKC favoring Airasia.
So CKC has no choice but to please his UMNO brother by making such move and somehow get whacked again. That is the dogs life of MCA.
By now MCA politicians are already hardened and used to all these for the sake of their rice bowls, and no way MCA can help to create a level playing field. The force of UMNO is too great for them as they had compromised too much right from the start as human by nature are greedy,”they more you give the more they want”. I is already too late for MCA to do anything and it will be like a tsunami if they open their mouth a bit more.
“It is said sometimes that there are only two categories of people in this world. Employers and employees, entrepreneurs and wage seekers, risk takers and non-risk takers.” Z Ibrahim
It is also been said that one type of rice feeds thousands of different kind of people. And in Malaysia, there are only two categories of people, the masters and the slaves.
“Employees in general are content with salaries and allowances commensurate with their experience, qualifications and working hours.” Z Ibrahim
Obviously you are so not in touch with the people on the ground.
“Entrepreneurs are greatly respected in open markets such as the United States. Malaysia had a similar tradition which included the late Tan Sri Lim Goh Tong.” Z Ibrahim
Give me a casino license and I promise to be another Lim Goh Tong.
dawsheng, Z Ibrahim is talking about the government lah. The government cannot think like you, the employees. It is because our government think if employees, that’s what happen today!
Next, are you sure the license is given FIRST to LGT before he start a casino? A true entrepreneurs will have the idea of casino conceived in the mind FIRST and then work to obtain the license from the government. Early bird got the worm. Right? So you don’t get another license because you are already late!
Actually, it is level, a trade off: MAS gets Subang, Air Asia gets to fly to Singapore sooner than 2009.
Talking about level playing field, you will hear a lot of seditious speeches about this from November 5 to 9 in UMNO general assembly.
Weapon brandishing, bathing the weapon with Chinese blood, robbing a higher percentage of wealth from Chinese businesses, the world owes them a living, ……. and a lot of other uncivilized acts and speeches.
So be prepared for these disgusting yet laughable things from this assembly of Uncivilized Malays National Organisation.
“Next, are you sure the license is given FIRST to LGT before he start a casino? A true entrepreneurs will have the idea of casino conceived in the mind FIRST and then work to obtain the license from the government. Early bird got the worm. Right? So you don’t get another license because you are already late!” patriotic1994
You are right I am damn late. Almost 55 years to be exact! As to work to obtain the license from the govt, dream on! But of course you can always try. In case you don’t know, Berjaya Corp’s Vincent Tan has gone to South Korea Island to build his USD600 millions IR, consist of a 500 rooms 5 star hotel, a Casino of course, luxury condominiums and commercial buildings, open its door in 2011.
Well when KLIA was mooted, government said Subang is too crowded, true or not we will wait and see.
Why at the early stage allowed development to come near to Subang airport? There should be planning order and sense.
Now government want to revive Subang as airport for whatever reasons, that is really laughable as a government, treating policy as child play!
When the residents complained in the past of the environmental impacts on them and on their living, why now resume the usage of Suabang? The impacts have dissipated into thin air?
When you move to KLIA, it means it is a permanent decision. Why now revert?
Not to be petty in my argument, YB, but isn’t there transportation for KLIA? It’s the ERT I think.
I agree that the Government should be impartial in it’s dealings, which it is clearly not doing in this case. But then again, most of the unhappiness of the public stems from such lack of impartiality, no?
The key words in Zaid Ibrahim’s letter are that “EVERY airline, including both AirAsia and MAS must be given a go…”.
At the moment, the pendulum swings between MAS and AirAsia, with the latter getting favourite treatment from Chan Kong Choy and the 4th floor boys. MAS does get crumbs, particularly at UMNO general assemblies when delegates question why a national airline doesn’t get protected or is discriminated against.
Yes, let Tiger, Valuair, Jetstar, Nok Air, Adam Air, One2Go, Kingfisher and others come to KL (or Subang) and we will find out if AirAsia or MAS can withstand the competition.
A level playing field for AirAsia and MAS is simply not enough. For the consumer to benefit, it must be a level playing field for all airlines, local and foreign.
When MSA split into MAS and SIA, one is successful because it has none of the political baggage carried by the other and is operated as a commercial venture. AirAsia appears to be the perfect example of a lesson the Malaysian government has yet to learn or has ‘refused to learn’ after so many years – that ‘politics’ and ‘business’ are like oil and water. They are not meant to mix.
A nation that spent US$20 million for a space tourist and then calls it an achievement into space when it does very little for it, does not say it believes in a ‘level playing ‘ field. In fact, it screams of saying ‘see, I don’t have to!, and to hell with everyone else’.
Who are we kidding, the are plenty in politics and business in this country that would object to a playing field even publicly. We would not be the first country with self-interest people and apathetic public dominating the debate on high ideals they won’t fight for. BUT, we would also be one of the many countries that eventually gets into trouble that does not have such high ideals..
Who are behind al these ???