End patronage, not Malaysia Airlines
ANALYSTS and politicians cannot just argue to shut down or sell our Malaysia Airlines based on its accumulated loss of RM2.5 billion without acknowledging the flawed execution of the turnaround plan. Post-restructure, we still refer to our national carrier as MAS instead of MAB, showing our deep love for our Malaysia Airlines.
The “new deal” expires on 2020 with an option to extend for another five years. Technically, the concession is effectively three years shorter and 25% cheaper than the original concession. More than 50% of all the meals lifted by Brahim’s SATS Food Services go to the national carrier alone. This locked-in contract shuts the door for the national carrier from utilising an open tender for cost reduction.
Malaysia Airlines remain one of the favorite choices for travelers from Australians, New Zealand, South Asia, and Western Europe. While the MH370 and MH17 incidents dented Malaysia Airlines’ image, reducing flights was knee-jerk reaction. The perception has evaporated, and Malaysia Airlines should expand its international network. I agree with former Malaysia Airlines CEO Abdul Aziz Rahman that Malaysia Airlines has lost its purpose, just because Malaysia Airlines tried to compete with AirAsia.
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