Monday 24 August 2009

Who is behind Air Asia?

This was forwarded to me. Wanted to share it with everybody else. Make your own judgement.
by Little Bird.

Kawan-kawan, please fasten your seat belts now. I thought that I knew something about what is really going on in the administration of Abdullah Badawi. Today I found out I have not even scratched the surface. The following is panas-panas news. You may want to hit the eject button (not yours 
but theirs) after reading this. 

Firstly, the shareholders and/or stakeholders of Air Asia (directly, indirectly, through proxies, etc.) include Kamaluddin bin Abdullah Badawi, Kalimullah Maseerul Hassan (also into Tune Hotels), Khairy Jamaluddin, Tony Fernandez, etc.

We all know the story of Air Asia. Well, we all thought it was a rags-to-riches story. It is actually a story about riches. The rags part is actually very hazy. 

When MAS entered into a phase of 'restructuring' about three years ago, Air Asia, through Tony Fernandez, struck fast and furious. Before we go further, you may want to ask why did MAS have to suffer yet another 'restructuring?' That is a story by itself for another day but just bear in mind that Badawi's brother, Ibrahim, is the owner of the catering company (Skychef?) that used to supply 
mineral water at RM35 a case to MAS. With that kind of pricing, surely MAS would need 
'restructuring'. Anyway, Air Asia stepped in and pushed the government for a 'rationalisation' of the 
domestic air routes in Malaysia. Air Asia asked to be given MAS' Sabah and Sarawak routes.
MAS could keep flying in Semenanjung, they said. Despite objections by MAS, Air Asia was granted its wish. But the wish did not just happen. Zaki, a fourth floor boy at the PM's office, helped Air Asia 
make its wish come true.

Once MAS lost its Sabah and Sarawak routes to Air Asia, there was a staff redundancy. So MAS had to organise a VSS.
MAS demanded that since Air Asia was taking over their  Sabah and Sarawak routes it would make some of their staff redundant so Air Asia should pay MAS some compensation. 
Everyone (MAS, the government and even Air Asia) agreed that compensation was payable to MAS. But Air 
Asia would not pay anything. Finally, the government (that means you and me lah, Encik Taxpayer) paid the compensation to MAS, which MAS promptly used in one of the most expensive VSS 
payments in our history.

If your blood is starting to boil, stop reading and better cool off because it does not get better.

Then, within one year, Air Asia realised that the Sabah and Sarawak routes were not profitable. They 
never were. MAS was performing national service in Sabah and Sarawak. Flying chickens and goats is 
not a money-making venture.

No problem. Air Asia made another wish. They told the government, we have to return these air routes back to MAS. Again MAS objected. Again overruled. Not relevant.

Then came the handing over ceremony of the  air routes and the airplanes. When they took over the Sabah/Sarawak routes, Air Asia had 'acquired' seven airplanes from MAS in perfect working condition. 
(MAS does have one of the best safety records in the world.) However, when Air Asia 'returned' the 
planes to MAS, only one was left in working condition. The other six planes were grounded, not fit for flying and could not fly.

In actual fact, Air Asia was cannibalising parts from the six planes to keep the seventh one flying. 

Again MAS objected. Again overruled. Not relevant. It eventually cost MAS in excess of RM50 million to make the planes flyable again. This was a direct subsidy to 'rags-to-riches' Air Asia's profits. 

Then Air Asia started eyeing the lucrative KL-Singapore routes. Tighten your seat belts. This one will really jolt. But they went about it the roundabout way. They said they wanted to go international. They did (some) but international routes are tough. No Zaki, Badawi, Khairy, Kalimullah or Kamaluddin to make your wishes come true.

But the KL-Singapore sector was generating RM40 million in PROFITS to  MAS. This was the plum in the pudding. Air Asia wanted it badly. So they made another wish. It came true. 

This is how they did it. Air Asia's bid to break into the KL-Singapore sector was first discussed in Cabinet when Badawi was on holiday overseas. Najib chaired the meeting and Air Asia's application was rejected. The application was rejected for two main reasons: 

i. By 2009, the whole of ASEAN becomes open sky anyway. ASEAN airlines can fly to all ASEAN capitals without restrictions. So why open up KL-Singapore in double quick time? 

 ii. If budget flights are allowed between KL-Singapore, KLIA will die an unnatural death. KLIA will become a feeder airport for Singapore's Changi. People will fly from KL to Singapore and then fly off from Singapore to the rest of the world. MAS will then die a natural death. 

So the request was declined.

Then Badawi came back from his travels and asked Tengku Adnan the Minister of Tourism to prepare a paper on tourism, linking MAS, Air Asia, SIA, etc., to tourist arrivals. At the next Cabinet meeting chaired by Badawi, he asked Tengku Adnan to present the 'Cabinet paper.' Insiders say that the paper 
was an 'out of Agenda' item - meaning it surprised everyone, but the dunggus approved it nonetheless. 

Air Asia got its wish again. Tengku Adnan also secured his Putrajaya seat.

Now here is the killer. Soon after Air Asia started flying the KL-Singapore sector, they started giving away 300,000 free tickets, 5 sen tickets and all the other gimmicks. Singapore is believed to be subsidising Air Asia for all these expensive gimmicks.
For SIA, losing RM40 million (S$17 million) profit from the KL-Singapore sector is chicken feed. Air Asia is feeding thousands of transit passengers from KL to Changi . Air Asia is providing RM19 bus 
rides from KL to KLIA. From KLIA, passengers fly almost free to Changi. From Changi the passengers can connect to the world.

Now, Air Asia is making another wish - they want to fly direct from Kuching, KK, Penang, Alor Setar, Kota Bharu, etc., to Changi. They will earn even more 'subsidies' from Singapore. KLIA will drop dead 
later, MAS will die first.

This is how we go from 'rags-to- riches'. And we all thought Tony Fernandez was such a great guy too. 

The shareholders and/or stakeholders of Air Asia (directly, indirectly, through proxies, etc.) include 
Kamaluddin bin Abdullah Badawi, Kalimullah Maseerul Hassan  (also into Tune Hotels), Khairy Jamaluddin, Tony Fernandez, etc.

Yes, we believe in open skies, competition and all that.

But friends, fellow Malaysians, this is the PM, his son, his S-I-L and his cronies lah. 

 How can they sell out their own country? But this is what they are doing.


  1. Dear All,
    Flying Air Asia is such a delight, on a flight from Bangkok on the flight leaving Bangkok at 18.20 hours., well I made to the flight sat down and previous to getting to the aircraft I was told it was a 50% occupancy and changing the seat would not be a problem.
    Well here I am the doors closed, I asked a staff member whether I could change the seat and was told OK no problem so I moved to 2 C, but was charged by Ms. Panpen who under the threat she would call the captain chased me back to my original seat 27D. The the plane took off I dared to move back to 2C when I asked for the immigration card, Ms. Panpen told me that she had placed the card at my original seat.
    Where does Air Asia Get such a Nazi employee from, who is rude, threatens the passenger and of course in this day and age you stand no chance, as if you refuse any instructions you could be charged with air piracy and the alike.
    Ms. Panpen does not belong in a flight operation, as she clearly enjoyed the situation, grinning in my face and laughing out loud as I had to move back.
    Comment of mine this is a free seating arrangement, answer if you pay more you can sit here if not move back to where you came from.
    The entire set up is unacceptable, as they claim they charge no administrative fee and no surcharges. Well! Not true, if you are a fool and you got to their offices, you do pay for the fees and they WILL charge you for it.
    When I commented the situation and I questioned the staff what was the logic behind it, as their offices were already open and the expense was there. Answer well that is why you are paying more!

    But all the bullshit about we do not charge more is all untrue and false!

    By the way try to find a phone number for any of the AIR ASIA offices, good luck to you, not even the phone company can give you working numbers, unless you go there in person. A very friendly airline!
    If you believe it.
    Miss a plane!
    WE all know that if you miss a flight you will pay more!
    Not if you are a person known to the airline.
    I was in KL and watched a family of rather large proportions who missed a flight as they were late.

    No Transit, don't fly with us and if you do don't blame us if you are not being served, stupid you!
    Thanks Ms. Panpen she is the true representative of a culture of crushing the passenger, wanna know who is in charge I am dude and shut your mouth!!!!!!

    Air Asia, sucking the life out of Malaysia and their customers and Tony my friend, where are you and your little red cap looking after your customers, last week I spend more then 800 USD with Air Asia, was I treated nicely - sorry Tony not at all I was treated like a goat and staff behaved rather poorly! Any consequence for them. Nope none as they just put cattle on planes and we have to be thankful and Khun Panpen is just a good example of it, or better said a rather poor example. Do as I say or I throw you off the plane........... Thank you very much!
    Air Asia Ole Well this time I am taking Malaysian Airlines, costs the same and I am sure I will not get mistreated!!! Ole!

  2. The rather large family knew somebody and after a few Ibu this and Pak that they were accommodated to the next flight and no extra payments were asked for, even though they were clearly too late. Hey if Mr Pinky white like you and me miss the plane you WILL Pay as YOU ARE LATE.

    Miss Panpen and her Nazi behaviour are common, as they clearly believe that they are doing you a favour for letting you on the aircraft, after the abuse of Ms. Panpen on my 22nd of August, 2009 from Bangkok to Hanoi she was clearly threatening me and of course dare not to follow an instruction by staff and you will be charged with air rage, air piracy and so on and so forth.
    Thank you Khun Panpen for your hospitality, especially the grin and open laughter in my face ( I am 52 yEARS OLD ) I REALLY ENJOYED HER LEVEL OF RESPECT FOR age and so on and so forth!

    Ole Air Asia
    This time Malaysian Airlines will do the joy for me, costs the same and I get a free glass of water and wont have to negotiate if I booked the sandwich or not, if you did not book it you will run hungry as I did!
    Air Asia

  3. Tony,
    What happened to your promise of treating people better and making it available and affordable with great fresh new service, I guess Ms. Panpen on the flight of the 22nd from Bangkok to Hanoi was not part of your project!
    Ole! Have some more like her and for sure we will never fly with you again!
    By the way this coming Sunday I will be using your services again, lets see if there is anybody listening at your end,
    From Michael W. Brabsche

  4. I am was no impressed at all some time last year when my wife could not walk properly and needed a wheelchair, well if you have such kind of condition, PAY 1000 Baht for a wheelchair, hence forth if you are handicapped, AirAsia will not help you unless you pay.
    I had to carry her to the aircraft, as 1000 Baht was clearly unreasonable, as this kind of service should be available to any handicapped person, why does AirAsia discriminate people who have some impairment.
    I thought we are advancing and not going back in time!
    Ole Tony

  5. Ole,
    Tony I am not happy about your services and your employees, your lovely pretty people are nasty and not nice to their passengers, as they consider them, cheap charlies and hence forth get the treatment from your staff.
    Pay little and get little service, in fact your rates are at the same level as Malaysian Airlines who try hard and harder,
    How come nothing has improved and changed as time has gone by!
    Michael W. Brabsche

  6. Well Done!
    Steady head on steadyaku47,
    Kind regards,
    Michael W. Brabsche

  7. do have a story to tell !!! Regards.


  8. It's a no frills airline to start off. Obviously they tend to charge for everything that is not part of "flying" in their terms.

    First we are cheap, then we are calculative, and finally we are all opportunist. I'll stick with MAS. Pay more but the satisfaction of making noise and seeing it through ... priceless!.

    There's a saying, "Beggars can't be choosy". I think Air Asia hit it on da nail.