SCwatch


IS TONY FERNANDES SAYING ‘CIAO’ TO THE AIRLINE BUSINESS?
December 10, 2011, 7:55 am
Filed under: Corporate Governance, Rakyat's concerns | Tags: , , , , ,

Some people say the darndest thing.

They do so during a moment of weakness ……. similar to then PM Tun Mahathir when George Soros publicly rebuked the former in 1998 …… resulting in Mahathir, in a moment of weakness, conceding to problems/failures in the Malaysian economy in an open interview with Malaysian TV.

Tony Fernandes has had quite a few of these moments recently ….. like telling the press he is on his way out of Air Asia…….. after realizing that he did not have the clout (read: political backing) that he used to have during the Pak Lah administration.

Furthermore, Tony Fernandes or Tony F. to his detractors is now only an employee of the UMNO led government.

He is no different from Sunrise’s Tong Kooi Ong (who is now in UEM Land), E&O’s Terry Tham (who runs to the beck and call of Sime Darby) and SP Setia’s Liew Kee Sin (whose new political master has changed from Tun Daim to the institution PNB).

Why employee?

I still maintain that Air Asia has now been taken over by the government (read: EPF).

Otherwise, the price of Air Asia would not have been allowed to rise to the ‘stratospheric’ price, relatively speaking, of RM3.95.

Let’s not forget that Air Asia’s price was languishing at around 68 sen ……. and Tony F was then looking for buyers to take over the airline.

That was when EPF came into the scene …….. around the same time the foreign shareholders were cashing out.

Tony F has done quite well, in cash terms …… as he has managed to sell at an attractive price ….. just below RM4.00!

And who had to cough the money?

EPF of course!

That’s our money!

This is how OUR money has been treated and is it no wonder that Malaysians are now desperate to withdraw as much as they can from EPF …….. lest we will be paid an annuity sum in future, instead of enjoying a lump sum withdrawal at 50 years of age or 55 years old.

Of course, the perennial question persists – why should the government acquire Air Asia in the first place?

Admittedly, the UMNO led government’s handling of the recent crisis (or any crisis for that matter) has always been based on a KNEE JERK response.

Their objective is to quickly ‘manage’ the situation so that it does not get out of hand and sully the ‘good name’ of the UMNO led government.

Not anymore …… thanks to technology.

The other reason for the Air Asia purchase …….. is also to manage the perpetual loss making MAS problem!

As in most Government Linked Companies, they are entrenched with dead woods that are so difficult to extricate.

You can put in Chairmens and CEOs, but the power really lies behind these Little Napoleons that wield their influence when implementing and administering the policies – will it be done in reality or just on ‘an appearance’ level?

Air Asia will be used to marginalise MAS in the long term.

Just as CIMB was used to marginalise the cash printing Bank Bumiputera enterprise until its ‘usefulness’ had expired!

Just as Proton is being marginalised (read: SOLD) to the likes of DRB-Hicoms, Nadzmis etc. Even the Toyota controlled Perodua does not want to have anything to do with Proton!

So could things be handled better?

Of course, my friend.

Can it be done under this UMNO led government?

You be the judge of it ……. after reading behind the pictures, stories and figures!!

Click HERE and HERE of Tony F.’s impending departure and subsequent denial.


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