Looking forward to Malaysia Airlines scale new heights again
KUALA LUMPUR (Sin Chew Daily/ANN) - All Malaysians are looking forward to witness a revamp of Malaysia Airlines to turnaround the airline to scale new height. The company which takes over the airline will need to have room and flexibility in initiating moves to cut costs and improve efficiency. Insisting on no change of name and no retrenchment of staff do not fit current market condition.
Four companies have since offered to take over the debt- ridden Malaysia Airlines after the government of Malaysia expresses intention to sell the airline.
The fate of Malaysia Airlines receives market attention again.
Prime Minister Dr Mahathir Mohammad also lists two conditions - whether acquisition or joint-venture, no change of name for Malaysia Airlines and no retrenchment of staff for the acquisition.
The government has its consideration on Malaysia Airlines. By setting pre-conditions , this has restricted flexibility for whoever taking over the company and unfavorable to competition exists in the market. The Malaysia Airlines was once the pride of Malaysia. Due to improper management and stiff competition , Malaysia Airlines has become a financial baggage for the government.
The government has on many occasions injected huge funds to save the airline. It did not manage to solve the problem basically. In 2014, the previous government under Barisan Nasionsl injected RM6 billion ( US$ 1.46 billion) through Khazanah National but was unable to turnaround Malaysia Airlines.
In 2018 Khazanah incurred RM6.3 billion (US$1.53 billion) of losses where more than RM3 billion were losses and depreciation incurred by Malaysia Airlines. The government must find a way to solve the financial problem of Malaysia Airlines and it can’t be shouldering the financial burden.
The government will have to leave the old frame and stop applying traditional mindset on government linked corporations. It should be adopting more open and bold policies to revive Malaysia Airlines.
For instance, insisting on no change of name does not help to resolve problem faced by Malaysia Airlines.
If Malaysia Airlines can discard its baggage to rebrand, this will be helpful. Why must the government be confining to a name ? The most important matter for Malaysia Airlines would be leaving the debt-ridden trap. By remaining stable in airline industry, the government would not need to spend huge funds to save the airline repeatedly.
On no retrenchment of staff, the criteria is not suitable in the current market condition. One of the reasons for Malaysia Airlines to incur huge losses is due to large pool of staff.
The company which takes over Malaysia Airlines would need to have room and flexibility to initiate revamp by reducing operational costs and optimising resources in order to increase competitive advantage.
Of corse in terms of looking after the rights of workers , reducing manpower should be the last option.
The company which takes over the airline would need to offer compatible voluntary separation scheme for a win-win.
The Malaysia Airlines was once many people’s fond memories. All Malaysians are looking forward to revamp of the airline to scale new height again