Screenshots

More twists to the audit of Fokker aircraft which are now in the custody of Fly Asian Xpress (FAX).

July 12, The Edge Daily quoted the auditor report by Singapore-based Fokker Services Pte Ltd as follows:

1 ) One third of the aircraft were not air-worthy.
2 ) Four of seven Fokker 50s and one of five Twin Otters have been heavily cannibalised to keep the remaining aircraft in the air.
3 ) The "unacceptable" state of the aircraft was a result of failures in planning, logistics and maintenance.
4 ) The fleet's current state could have been avoided as spare parts for the turboprops were widely available in the market.

The audit report was attributed to Fokker Services regional director Michael Cole, according to Forbes.

Yesterday, FAX (new) CEO Azran Osman-Rani issued a 7-page statement to rebut the audit report.

He also questioned the independence of the firm selected to carry out the audit, claiming that the company, Fokker Services, is associated with the Fokker aircraft manufacturer and is the original equipment maker which sells spare parts and maintenance services.

What's the damage?

Screenshots strongly urges Malaysian taxpayers to scrutinise the issues as FAX is making an exit, and MAS is making a re-entry into the RAS sector within a short 11-month period. Who profited? How much are we bleeding in between?

FAX is scheduled to hand over the running of the Sabah-Sarawak rural air services (RAS) to MAS by October 1.

FAX has announced that it is no longer interested in operating the RAS as it planned to focus on long-haul, low-cost service under AirAsiaX, which is scheduled to begin in September with a leased aircraft arriving late next month.

AirAsia's chief executive officer, Tony Fernandes, has a 50% stake in FAX.

The Edge said it may cost the government up to RM40 million to repair the grounded aircraft operated by FAX since August 2006.

Coupled with the repairs of the grounded aircraft, it may cost the treasury some RM100 million for having contracted FAX to operate the RAS.

Meanwhile, it's going to dent more on the Government's coffers when the dust settles.

On its part, FAX is reported to be submitting its claims, for staff transfers and other costs associated, from the government for operating the RAS.

Though the amount has yet to be finalised, the final sum would be lower than RM650 million paid to MAS for early termination of its domestic air services agreement with the government last year -- meaning taxpayers are to bleed twice in two years for the "now you do, now you don't" national service.

Numbers: Ten, Nine, Eight, Seven...

This is not the first time FAX had argued on the state of affairs pertaining to Fokker and the RAS.

June 19, MAS chief executive Idris Jala made a public response to a news report that quoted then then FAX CEO Raja Mohd Azmi Razali as saying that MAS had only given seven aircraft to FAX, resulting in the latter's difficulty in operating the RAS.

Idris went on record by saying that MAS returned all the 10 Fokker aircraft used for RAS to Penerbangan Malaysia Bhd (PMB) when it handed over the RAS to FAX with the commencement of the domestic routes rationalisation on Aug 1, 2006. Quote:

"At that time, all 10 aircraft were returned by us to PMB. They (FAX) could have gone for eight. They could have gone for nine. They could have gone for 10. But they decided, for commercial reasons, to take up the seven," he told reporters after the company's AGM.

"We have those three additional aircraft sitting there, basically doing nothing, until MAS set up Firefly. We asked (PMB) whether we could purchase those aircraft.

"We have purchased two of the aircraft (for Firefly), and there's still one sitting there with PMB today," he said.

Follow the money, folks!