Air Asia

When Air Asia took over the Sabah and Sarawak routes, they also took over seven airplanes from MAS. But when they returned the routes to MAS about a year later, only one plane was in flying condition. The other six planes had been cannibalized for parts or were under serious repair. Air Asia saved tens of millions of Ringgit (RM50 mill or so) from this underhand business tactic and simply passed the cost of repair back to MAS. Everything was approved by Badawi the Finance Minister and his Deputy Nor Mohamed Yakob.

The Finance Ministry official who gave me this news said that when Air Asia first took over the hinterland routes in Sabah and Sarawak they also demanded compensation from the Gomen. They told the Gomen that Sabah and Sarawak air routes were not profitable and had to be subsidised. Ok but how much? RM70 million per year!! And Air Asia wanted to be paid upfront! And they got it. The Gomen paid them the RM70 million subsidy up front, signed off by Nor Mohd Yakob.

To be fair MAS has also been paid subsidies by the Gomen to operate the Sabah & Sarawak routes but the Finance Ministry official says that throughout the entire history of MAS, the highest subsidy paid by the Gomen to MAS was a maximum RM14 million only. And the subsidy was always paid to MAS at the end of the financial year, after MAS had finalised its audited accounts. And during the years when MAS was profitable no subsidies were paid to MAS by the Gomen. Subsidies were only paid in those years when MAS made slim profits or suffered losses.

But here we have Air Asia getting an upfront subsidy of RM70 million. Who paid for that ? Err thats our money lah Encik Taxpayer. And ony Fernandez gets all the fantastic 'entrepreneur' awards!



By Little Bird
source: Malaysia Today