Revision of National Aviation Policy Needed

 “THE REST OF THE AIRLINES CAN. WHY MAS CANNOT?” Revision of National Aviation Policy Needed

It is time for the government to review its national aviation policy as MAS, our GLC has performed badly for recent years. The decision not to bail MAS out and at the same time strengthen our aviation policy is a must in order not to put government financial in jeopardy.

Prime Minister Najib Abdul Razak said that It is now too late for the government to step in and save Malaysia Airlines (MAS). Acting Transport Minister Hishammuddin Hussein said that there would be no government assistance for the financially ailing MAS while commenting on the 2014 first quarter net loss. I hope the government will keep to the promise not to inject fund to MAS either directly or indirectly.

The airline posted a net loss of RM442 million in the first quarter of 2014, which is almost double of the losses in the same quarter last year. Base on linear estimation, the double of the losses in the same quarter last year is crucial as it might bring the yearly losses of 2014 to about 2.34 billion. The airline also posted a net loss of RM1.17 billion, RM432.6 million and RM2.52 billion for the year of 2013, 2012 and 2011 respectively. In other words, MAS recorded a total net loss of RM4.12 billion from 2011 to 2013. (The unit cost of MH370, a Boeing 777-200ER carrier, is about RM0.8 billion)

“THE REST OF THE AIRLINES CAN. WHY MAS CANNOT?”

 “THE REST OF THE AIRLINES CAN. WHY MAS CANNOT?” AirAsia posted net profit of RM364.1 million and RM789.6 million 2013 and 2012 respectively. Besides, Dubai airline Emirates had profit of USD622 million for year 2012 and USD406 million for the year of 2011. Hong Kong flag carrier Cathay Pacific net profit tripled last year. The airline said recently that it 2013 profit jumped to $HK2.62 billion (USD377.63 million) from $HK862 million (USD124.24 million) in 2012. Even Garuda Indonesia, posted a net income of USD11.0 million and USD110.6 million for year of 2013 and 2012 respectively.

I strongly believe that airline business is a lucrative business. “MOST OF THE AIRLINES CAN MAKE BILLIONS, WHY MAS CANNOT EVEN MAKE MILLIONS AND YET LOSING BILLIONS?” Government should look into the matter seriously as there would be just another MAS if the root causes of the losses are not highlighted and rectified.

No financial injection to MAS is a wise move as to avoid government to share the loses because it is really unfair to share the loses. Government had helped and injected enough money to the airline. From now, the government should let MAS bear the losses, not the tax payer. Results also proved that either having better position as GLC or bail out from government did not turn MAS into a profitable company.

If MAS would finally file for bankruptcy in court, let it be, we can start afresh. We have to cut the losses and we have to stop somewhere as we cannot afford to lost further. The government cannot always share the financial burden with MAS due to its internal operational inefficiency.

We Need Effective and Open National Aviation Policy

We can always start again to have more competitive airlines with better and revised aviation policy. With effective and open national aviation policy from government, market will always deliver competitive and profitable airlines.   

It is important and crucial for government to practice a freer and open aviation policy. Giving out more licenses for commercial airlines is certainly one of the most effective strategies. More licenses would lead to more private commercial airline operators to operate in our country.

1.      More commercial airline operators

·         No more monopoly of a single airline.

·         Healthy competition among the airlines will lead to cheaper air ticket price and better quality of service.

·         People at large will be benefited from the slash of price and the improvement of service provided.Healthy competition among the airlines will lead to better internal and external operational effectiveness. These include internal procurement, carrier maintenance, human resource management, marketing strategies and debt management.

·         Government expenditure reduced. Government department or officers can bargain for cheaper tickets. No more indirect bail out, meaning no compulsory purchase of air ticket from a single airline without considering the price of the ticket.



2.      More inclusive airport landing right

·         Landing right at airports should be more open and inclusive. Landing rights that affect the airlines’ route should not been monopolized by certain airlines only.

·         To let certain airlines monopolize landing right at airport is contradict to fair competition environment.

·         Open and Inclusion landing right will lead to cheaper air ticket as more options available.

We do hope that Malaysia aviation industry will have a new chapter of development by having a revised and a more competitive aviation policy while taking MAS’s past poor performance as lesson.  

 

“其他航空公司行，为何马航不行？” 政府是时候重新审核国家航空政策

政府是时候重新审核国家航空政策。正如马航，我国的官联公司近年的表现差强人意。这个决定并非只是要协助马航摆脱困境，同时也应该强化我们的航空政策，以免危及我国的财务状况。

马航宣布2014年首季业绩面临亏损，我国首相纳吉承认，政府现在要拯救财务状况不断恶化的马航或许为时已晚。代交通部长希山慕丁也指出，政府不会出手拯救或给予马航财务援助。我希望政府能信守承诺，不会直接或间接的注入资金。

根据马航公布的2014年首季业绩报告显示，今年首季净亏损额超过4.42亿令吉，与去年同季相比，亏损暴增近一倍。依据线性估计，与去年同季相比，亏损暴增一倍是个关键，其2014年的年亏损额可能达至23.4亿令吉。马航于2013，2012，2011年的净亏损分别是11.7亿令吉，4.326亿令吉和25.2亿令吉。也就是说，马航从2011到2013年的净亏损额总共达41.2亿令吉。(一架MH370, 波音777-200ER的价钱大约是8亿令吉)

“其他航空公司行，为何马航不行？”

“其他航空公司行，为何马航不行？”亚航于2013年及2012年的净盈利分别是3.64亿令吉及7.90亿令吉。除此之外，杜拜阿联酋航空于2012和2011年的盈利分别是6.22亿美金和4.06亿美金。而香港的国泰航空有限公司的净盈利与去年相比增长了三倍，他们表示其2013的盈利从2012年的8.62亿港币（1.2424亿美金）暴增至26.2亿港币（3.7763亿美金）。就连印尼鹰航于2013和2012年的净收入也有0.11亿美金和1.106亿美金。

我深信航空业是利润丰厚的业务。“大部分的航空公司都能赚取数十亿，为什么马航不仅无法赚取数百万反而亏损数十亿？”政府应该认真调查问题所在，如果没有找出亏损的根源并纠正错误，这将会有另一个马航出现。

不向马航注入资金以避免政府分担他们的亏损是个明智之举，因为替马航承担亏损是很不公平的。政府曾经给予援助并且注入足够的资金于航空公司。现在开始，政府应该让马航独自承担亏损，而不是纳税人。马航的业绩也证明，官联公司即使得到政府的协助且具有更好的优势，但都无法使马航转亏为盈。

如果马航向法院申请破产，这样也好，我们可以重新开始。我们必须阻止亏损继续扩大。政府不能因为马航内部管理的无能而承担其经济负担。

我国需要更开放的航空政策

我们随时都可以重新开始。更好的航空政策将会促使拥有更具竞争力航空公司的诞生。若政府实行有效及开放的航空政策，市场上将出现具竞争力及有盈利的航空公司。

自由和开放的航空政策对政府来说是极其重要和关键的。发出更多商业航空准证肯定是其中一个最有效的策略。更多的航空准证将能引领更多的私有商业航空运营商在我国运作。

1.      更多的商业航空运营商

·         再也没有任何一家航空公司可以垄断市场。

·         航空公司之间良性的竞争将带来廉宜的机票及更优质的服务。广大的民众将从削价和服务品质的提升中获益。

·         航空公司之间的良性竞争将由内到外带来更好的运营效率。这包括了内部采购，飞机维修，人力资源管理，市场营销策略和债务管理。

·         政府开销减少。政府部门或官员可以取得更廉宜的机票。政府也再没有理由提供间接的协助，也就是说不顾及票价的向单一航空公司购买机票。

2.      不被垄断的机场降陆权

·         应该开放更多及更广泛的机场降陆权。降陆权影响了航班航线，这不应该有指定的航空公司所垄断。

·         让指定的航空公司垄断机场降陆权与公平竞争的环境是互相抵触的。

·         更开放及广泛的降陆权将带来更廉宜的机票，也让人们有更多的选择。

我们必须从马航差强人意的表现吸取教训，制定更具竞争性的航空政策，为马来西亚航空领域写下一个新篇章。

http://www.kwongwah.com.my/news/2014/05/21/27.html