1) MAS has adopted the 3P approach of being prudent, professional and practical in its Recovery Plan that was announced yesterday. The intensive care therapy is not an option but mandatory for this resuscitation effort. Like they say things will get worse before it gets any better. Let's hope the better part will come sooner to the repose of everyone and the entire nation.
2) Prime Minister Dato Seri Najib had expressed it aptly that would be an investment not a bail out after a RM6 billion rescue plan was revealed yesterday. MAS also has legacy issues that need to be addressed thoroughly and the missing MH370 and disaster stricken MH17 have both complicated the revival efforts for MAS.
3) Privatization and formation of a new company is perhaps the best option in the restructuring exercise entailing its financial, operation as well as business redefinition for MAS recovery but certainly this is just the beginning of a new beginning for the new MAS entity.
4) The challenge is really to transformed those 12 strategic definitions into operational definitions and see through the recovery efforts with a three year timeline for profitability as envisaged by the CEO of Khazanah Nasional.
5) Putting back MAS on track to profitability is not like fixing other GLCs, which enjoy multi-billion dollars government contracts. For MAS, there are many variables to be considered that are sometimes beyond its control which include the both human and non human component in any organization.
6) The aviation industry is getting highly complex especially with the coming of the open sky policies and stiff competition from other airlines. Many Airlines such as JAL, Qantas, American Airlines and Air France had been in the same doldrums as MAS and some required huge government funds and tax payers money for the recovery efforts.
7) The embattled MAS has a leadership issue and the new CEO must be competent, must act with full integrity and must know the airline industry well with the necessary business network as well as possessing the capacity to compete in a highly dynamic global market. In other words MAS needs a 'blue ocean' leader with excellent entrepreneurial skills.
8) The best of talent with the necessary industry acumen must be employed to take on the task and the new MAS must not compromise on anything inferior. The new MAS must stick purely to financial viability as well as be guided by commercial decision and not be perturbed by any unprofessional pressure.
9) The costs cutting measures which include right-sizing the organization and renegotiation of contracts with existing vendors will save huge some of monies which will immediately go into its bottom line. Hence the need for the MAS Act.
10) The new MAS management team must revert to the fundamentals of marketing and look at the element of purpose, people and process in its new business strategy and plan of action.This is the core in the recovery, rebranding and redefining exercise of MAS.
11) We are all craving for the Malaysian Hospitality to recapture the glory of the yesteryears and be able to fly high graciously in the sky and stand tall gallantly on the ground. We must all make this happen and be a proud Malaysian again with Malaysian Airlines.
Merdeka! Merdeka! Merdeka!
Article contributed by Dr Tengku Rethwan Tengku Mansor.
31/08/14.
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