Friday, May 17, 2013

MAS strategy is hurting the rakyat again

MAS new strategy of setting new 7 weekly flights into Kathmandu is not a strategy at all. If the management had learnt its lesson, this system does not help the rakyat nor its profitability.

They did the same thing 3 years ago by following whatever new route AirAsia and AirAsia X in particular did. Remember Perth, Melbourne and Sydney - those flights were launched by AirAsia X. Then MAS did several "low fare" promo to those destinations. Yet they could have made promo flights into say Adelaide that is not served by AirAsiaX. Adelaide is not a small town, yet it is clear MAS wanted to "take back passengers" from whatever Azran Osman Rani created. He created passengers. Not steal passengers. MAS (lazy) management did not understand 21st century analysis.

Now since AirAsia X made Kathmandu their new X route, MAS is doing the same lame shameless tactic that does not help the average rakyat - and will certainly not help their share price - wow it is below 50 sen for a MAJOR airline. A hedge fund manager in London or Tokyo will see with laughter a HUGE MAJOR airline worth 15-20 cents USD (when seen in their calculations they surely think in that currency). Why? No not why they view it this way. WHY our country's pride is worth so little and not making money ever since the great Idris Jala was removed from the helm of the national carrier?

Extra insider info: do you know or would you be surprised that AirAsia pays MORE for their crew than MAS?

Now back to this lame tactic (I can't label it strategy since a strategy composes complex tactics, long term views, calculated risks and evaluations by proper planning and thinking). It will not work and does not bode well for Malaysia. Yes Malaysia. Our country. Not BN. Seems the govt machinery is always about NOT for Malaysia.

MAS could have lobbied for routes say at the same distance and same target market and geographic area - Bhutan. Bhutan is a close neighbour of Nepal and the sub-continent. It has high-value customers since they implemented a rigid system of tourism, that promotes their core cultures and not allowing (anyhow) certain levels of tourists by way of a daily minimum tour cost that consists of accommodation. (they amount is about 150-200 USD per day - please check Google / Wiki).

MAS could have done a better job of say introducing better connectivity to China's 2nd tier airports. 2nd tier in China is not 2nd tier in Malaysian terms. It usually it top notch, many eager travelers. And AirAsia is progressing so well with the launch of Nanning and Kunming. Oh don't follow the routes. CREATE new routes. Vladivostok!

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