Two 'national champions': Who bear the costs from now on?
If Tony Fernades (AirAsia) usually got what he wanted -- especially 'the logical thing to do' -- does it mean Idris Jala (MAS) always ended up getting what he wanted not?
When Transport Minister said the country could create two successful "national champions" by having the government ensure equal route distribution between AirAsia and state-owned Malaysia Airlines, who will ultimately bear the costs?
Bob Teoh, former editor with theSun, has a 4-paragraph question not meant for AirAsia or MAS, but for all of us.
Mailbag
Bob Teoh
The Cabinet’s decision to direct Malaysia Airlines to take back the country’s rural air is a bad one. MAS is a public listed company and cannot be subject to arbitrary Cabinet directives as if it was a government department. In this instance, MAS board of directors was not even consulted. The Cabinet has also not given any reason for its decision.
As Transport Minister Chan Kong Choy has acknowledged, the details of the proposed subsidy to MAS to run the service again have not even been worked out. The biggest losers will be tax payers who will now have to shoulder the subsidy.The rural service was run and subsidised by MAS since its inception in 1982. Nine months ago, AirAsia/Fax agreed to take over the rural service in exchange for 22 of MAS lucrative routes in Sabah and Sarawak.
The rural fleet, of which six are out-of-production Canadian Twin Otters, is now due for replacement. Who will pay for this? Not tax payers again surely.
Bob Teoh
OK, forget about the magician with the handkerchief behind the MAS Business Turnaround Plan. Turn-around its has been, like always.
Comments
This whole turn of events is bad for us the tax payers, and bad for MAS which should be an independent public listed GLC.
If anything, it goes to show that as always, when the wellbeing of the poor rural folk, one can't trust the private sector to shoulder the burden of providing services, but instead need to rely on the government. Which now beggars the question, Should MAS ever be considered a business with P&Ls or should it be considered a govermental arm, providing services to the general populace even if routes are not profitable?
Bad show to FAX. They harped to all and sundry on how they can manage the Rural Services and barely a year later, they've pulled every arm to make sure they can get out of it.
Posted by: alfabob![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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May 4, 2007 07:39 PM
Little bird said the government is going to compensate the losses to FAX.
Posted by: patriotic1994![[TypeKey Profile Page]](http://www.jeffooi.my/nav-commenters.gif)
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May 4, 2007 11:09 PM