WITH Malaysia Airlines Bhd (MAB) slated to receive RM3.6 bil in capital injection, several quarters have suggested ideas on how the airliner could revamp itself for a better future.
Former International Trade and Industries Minister Darell Leiking had suggested for MAB to use East Malaysia to jumpstart the business, adding the airliner should also invest more on cargo flights and other downstream businesses.
“MAB can look into investing to create its own supply chain, in terms of aircraft components. I know some people will complain that it would put too much strain on the airliner but on the flip side, it will reduce our dependency on foreign parts,” he reportedly told FocusM.
However, a former official of the airliner cast doubt on Leiking’s assertions.
“It was suggested that, among other things, that MAB should have its own flying school or to invest in its own supply chain of aircraft components, preferably in East Malaysia.
“Sorry, l beg to differ. The airline should not venture in that line of business. No airline for that matter, is known to be involved in that.
“As it is, there are hundreds of qualified pilots without jobs and it is cheaper to get the various aircraft parts from vendors,” Malaysia Airlines former director (Flight Operations) Capt Kamil Abu Bakar told FocusM.
He also said the airliner must very careful now on how to spend the money injected by Khazanah Nasional Bhd (Khazanah) and not to blow it up on wasteful and needless ventures.
“Without a doubt, Sabah and Sarawak are important travel destinations.
“But with travel restrictions being enforced and international borders still closed, nothing much can be done to revitalise the aviation industry.
“Nevertheless, let us leave to their management team to show us the results. They said they will be back to their glory years by 2025,” Kamil added.
Two days ago, Malaysia Aviation Group (MAG) has obtained court approval in the UK for an agreement between the airline’s leasing unit and a majority of its aircraft operating lessors, which will allow MAB to begin a restructuring exercise with new capital of RM3.6 bil.
MAG, the parent company of MAB, said that the scheme received unanimous support of lessors, representing an important aspect of a wider restructuring which will help reduce its liabilities of more than RM15 bil.
“Now that the scheme has been formally sanctioned by the UK court, the airline can proceed to implement its restructuring plan with the support of its sole shareholder, Khazanah Nasional Bhd and other stakeholders,” the group said in a statement.
Have faith in Capt Izham
Touching on MAB’s future, Kamil said that it was heartening to hear that Khazanah would be giving the former a “new lease of life”, adding it would help boost the nation’s economy, through the airliner.
He stated that the capital injection would not only benefit MAB but also the entire ecosystem revolving around the aviation industry.
“The airline is at the apex of the economic chain and it supports the other related industries such as tourism, hospitality, transportation, food supplies, duty free shopping and manufacturing, amongst others. They too need to be revitalised,” he stressed.
However, Kamil cautioned the industry not to celebrate yet as the COVID-19 pandemic has yet to subside across the globe.
“With the movement control order (MCO) still being enforced in some states, forbidding even inter-district travels, it renders even the domestic air travel impossible,” he said.
On that note, Kamil said that MAB should use the lull period to restrategise and work on a business plan, in order to have a fresh start and not take the capital injection for granted.
“The employees must take it as a challenge to effect change and turn around the airliner. Remember that this could be the last chance. A failed endeavour (again) will make the public angry after a total of RM28 bil injected in the past.
“Have a fresh start. Change. Be lean, mean, productive, cost conscious and at the same time, maintain its renowned excellent service.
“I believe MAB has a comprehensive long-term business plan to revitalise its business within four years. I also have confidence in its Group CEO Capt Izham Ismail and his team. They know what to do,” Kamil remarked. – 25, 2021.
