Fernandes’ greed, MAHB’s weak bosses
Since the people at MAHB don’t know how to run airports, maybe in the interest of efficiency, we allow Fernandes to make his own airport.When I last asked the Oracle of Syed Putra, who incidentally is the alter ego of former economic adviser Daim Zainuddin, about the MAS-AirAsia deal, he immediately said it’s an insider trading case. Pure and simple.
Malaysia Airlines has to pay more to acquire 10% of AirAsia’s share while MAS’ own shares dropped.
AirAsia chief executive officer Tony Fernandes and friend got MAS shares on the cheap. Investors holding AirAsia shares saw their value dropped just after the so-called merger.
After the transaction was finished, MAS shares moved up again.
Fernandes and friend then were able to make another round of financial killing when the shares they got cheap, now went up.
So when Fenandes, the consummate marketer carried out his guerrilla tactics by putting up posters (stickers) all over the place denouncing Malaysia Airport Holdings Bhd’s (MAHB) decision to raise airport taxes and so forth, it was actually a simple issue of muscling in.
MAHB’s weak bosses
But the real issue here is that Khazanah Nasional Bhd’s Azman Mokhtar and his band of financial re-engineers agreed that the only people who can make money nowadays in Malaysia are the owners of AirAsia. Others cannot make money.
I am not going to defend the bosses of MAHB. If they are weak and can’t put their foot down, they are not worth defending.
If they are inefficient as bosses of government-linked companies (GLCs) normally are, remove them. Bashir (Ahmad) or no Bashir (MAHB CEO). Give them the boot.
They should be let off to pastures unless they can show us that they the balls to compete and defend their turf.
You have a piece of asset that you can capitalise on – the airport and all the services therein.
The problem is you are not using the material between your ears to the fullest.
Azman will now have a new case to present the prime minister perhaps through his main backer – CIMB boss, Nazir Razak, the PM’s brother.
AirAsia wants monopoly
When I last met the banker, I told him directly that what he was doing is downright unethical.
Hamman, the minister during Paharoh’s time, did consulting work only for the Pharoah.
The modern Hamman does consulting work for both Paharoah and Moses. It now appears that we not only hunt with the dogs but also run with the hares.
Since the people at MAHB don’t know how to run airports, maybe in the interest of efficiency, we allow Fernandes to make his own airport.
Or allow him to acquire shares in MAHB. You will complete the vicious circle – from airlines to airports.
Plane owners know baggage fees and cargo handling are significant contributors to the income of their companies. Fernandes even described them as “gushing streams”.
The problem here is that Fernandes doesn’t want MAHB to be part of that “gushing stream”. He wants only AirAsia to have monopoly over these sources of revenue.