Medicines for ailing MAS: losses RM2bil, 6,000 job cuts, RM6bil capital injection a bailout?

New medicine for ailing MAS

FOR the first time ever, a government-linked company (GLC) will lay off workers and renegotiate contracts with suppliers and employees – a move that will obliterate the view that companies owned by the Government provide steady employment and are safe paymasters.

In its strongest action to rehabilitate the ailing Malaysia Airlines (MAS), the Government has given its undertaking to its investment arm, Khazanah Nasional Bhd, with the necessary legislation to bring the employees and suppliers to the negotiation table.

This is among the highlights of a 12-point plan unveiled by Khazanah yesterday to resuscitate MAS.

To recap, Khazanah, in a bid to save MAS, has proposed to take it private and delist it by year-end. It has a 69% equity in MAS and has offered to buy the remaining 31% in the airline at 27 sen a share.

A new Bill called the MAS Act will be tabled in Parliament before July next year to facilitate the migration of MAS’ existing operations into a new company (Newco), which will take over MAS’ operations on July 1 next year.

“The MAS Act is to facilitate the migration of the existing operations to a Newco. It is something that was proposed by the Government so that a new airline can take over. It will have a finite life,” Khazanah managing director Tan Sri Azman Mokhtar told the media yesterday.

“The Government will allow the transfer of the AOC (air operator’s certificate) and tax losses to the Newco.”

Apart from the establishment of a Newco to carry on the business of the existing airline, the plan calls for the conversion of some debt into equity and Khazanah injecting RM6bil more into the airline. Kumpulan Wang Persaraan (KWAP) agreed to swap its RM750mil existing perpetual sukuk with ordinary equity, meaning that it will eventually become shareholder in MAS.

 

Azman: 'The MAS Act is to facilitate the migration of the existing operations to a Newco'.

Of the RM6bil, a sum of RM1.4bil is for the privatisation of MAS, RM1.6bil for cost incurred in shutting down the existing company and a voluntary separation scheme to reduce the workforce by 6,000 and penalties for early termination of contracts with suppliers, and RM3bil for working capital for the Newco to take over the operations.

Since taking over MAS in 2001 from Tan Sri Tajudin Ramli, Khazanah has injected more than RM7bil into MAS, which Azman does not think would be recoverable.

However, he is confident that the RM6bil capital that will be pumped in can be recovered.

“We have done the financial modelling and are confident that the money can be recovered,” he said.

“Also, it is a conditional injection of funds, meaning that the money will only be available subject to the MAS management fulfilling the conditions set out in the recovery plan.”



Azman admits that renegotiating contracts with suppliers, leasing agents and converting debt to equity could have some effect on the credit ratings of MAS and other companies within the stable of the strategic investment fund.

However, he opines that the shedding of the workforce and the renegotiations of contracts is only to bring about a significant change in work practices and supply contracts.

“It would not be done arbitrarily. There is some bench-marking on the pricing of the contracts. The suppliers will be given an option to migrate to the Newco on new terms,” he said.



Azman is also confident that the new MAS will achieve profitability by the end of 2017. The new plan will also see net gearing reduced from 290% now to about 100% -125% eventually.

But not many share Azman’s sentiments, as MAS has undertaken half a dozen restructuring exercises over the past 13 years and yet remains in dire straits.

“I obviously do not share the same sentiments as Azman and am not as optimistic about seeing a profit in 2017. I don’t think the new plan goes far enough to resolve the structural problems within the airline. You can call it downsizing or rightsizing, and the plan may appear bold and courageous by slashing 6,000 jobs, but the question is: how much can you actually save from that?” Shukor Yusof, an analyst with Malaysia-based aviation consultancy Endau Analytics, asks.

He says, “The real issue in MAS the past decade is an ill-conceived strategy and financial mismanagement. That’s the key contributors to the losses, shareholder value destruction and the mess built up over the years. While I do agree that MAS is overstaffed, resulting in low productivity levels compared to Singapore Airlines (SIA) or Cathay Pacific, it is not a critical aspect of the overall picture. The losses registered over the years by the airline are not because the airline is overstaffed, but because it had a management which, unfortunately, had little understanding of the airline industry and was slow to adapt to the dynamics of the landscape of the industry,” Shukor says.

Route rationalisation 

MAS has been loss-making for the past 10 quarters, and the amount has ballooned since the two tragedies hit the airline within a space of four months since March this year. The first was on March 8 when a plane, MH370 en route to Beijing, disappeared.

The second was on July 17 when MH17, which was on the way from Amsterdam to Kuala Lumpur, was shot down while flying over Ukraine.

Even before the first airline tragedy on March 8, the airline was already losing close to RM1bil a year due to competition from low-cost carriers and Middle-Eastern full-service carriers (FSCs).

However, the losses exacerbated to RM2bil following the airline tragedies.

For the second quarter of 2014, MAS announced on Thursday an RM307mil net loss, bringing its first-half losses to RM750mil.

 

A lack of demand and the massive cancellations of flights has become a norm after the two incidents, and the policy to refund passengers after the MH17 mishap has further seen flight bookings going down. The airline’s strategy of pushing for loads at the expense of yields has also backfired. However, it has embarked on a new plan to drop fares to win back customers, a strategy which, however, does not guarantee high yields, which MAS needs.

MAS’ current yield of 20 sen per seat kilometre is lower than Cathay Pacific’s 24 sen and SIA’s 22.9 sen.

Azman says there are several conditions for the money to be injected into MAS.

Among them is route rationalisation, whereby the emphasis is on destinations that are within eight hours of flying time. The plan is also to bring short-haul cost within the 15% of the low-cost carrier competition, at parity with Middle-Eastern FSCs and below those of the regional FSC competition. The Newco will only focus on profitable routes and secure global connectivity via oneworld and other alliances, says Khazanah, adding that MAS will come up with a business plan and fleet requirements.

Maybank Investment Bank senior analyst Mohshin Aziz says that with one-third of the jobs going, the route network also needs to be reduced by one-third.

“We were hoping to get the details of the route cuts, but they were not forthcoming. We really believe MAS should terminate its long-haul routes, such as Frankfurt, Amsterdam, Paris, Istanbul and even Dubai as soon as possible.

“They need to reduce frequencies on their Australian routes to twice daily from thrice daily now, and terminate the Brisbane and Adelaide routes,” Mohshin says.

Since the network will be reconfigured, MAS will also have to reduce the number of aircraft it flies from its current fleet of 127 to bring down cost.

Khazanah says MAS needs to renew its focus on revenue management to increase unit revenue by 10% to 15%, and among other things, it needs to also unbundle ancillary products and services and revamp its loyalty programme.

Staff buy-in

A major part of the success of Khazanah’s new plan for MAS hinges on the support of the airline’s employees and their unions. Yesterday, Azman met representatives of the unions to tell them of the new plan, but will the unions support the plan?

A major part of the success of Khazanah's new plan for MAS hinges on the support of the airline's employees and their unions.

“It was a good and frank discussion. I think we were at pains to try and explain what would be happening. And explain that the vessel of the Newco will not be able to carry everybody,” Azman says.

Throughout the day, Khazanah officials and MAS senior team members had various briefing sessions with its employees.

For now, the ties are somewhat strained between the senior team and many of the unions and their members, with many worried about the selection process of who would be axed.

Under the new plan, MAS will undertake a voluntary separation scheme to reduce its workforce to 14,000, with the plan also involving reskilling, redeployment and job creation.

“There seems to be a renewed effort to harmonise now so that Khazanah’s vision of rebuilding a national icon will succeed. But at a glance, the plan is wishy-washy and they are not able to give us details. We are worried as to who will decide on who stays and who leaves. We also do not want the existing team to decide, as there would be no professionalism, only partiality,’’ said a source.

Khazanah says the process of transfer migration and separation will be conducted with “utmost care, fairness and due process”.

A Khazanah official added that “the decision on who stays and who leaves will be done by the Newco”.

“The search for a new chief executive officer (CEO) for the Newco has begun and we are looking at both Malaysian leadership talent and global aviation specialists, basically for the CEO (post),” Azman says.

“Hopefully they will hire the best in the industry and not just anyone for the hot seat. It should be someone with entrepreneurial spirit and expertise to drive profits,’’ says an expert.

The current group CEO Ahmad Jauhari Yahya will leave MAS in June next year.

The plan to set up a Newco is also seen as a way to weaken MAS’ vociferous unions, although an expert says that the Newco could also set up new unions, provided there are no conditions attached to the Newco’s staff appointment letters.

Would minority shareholders sell out?

The biggest challenge Khazanah will face is whether it can get enough minority shareholders and institutional funds to vote in favour of its plan to privatise MAS at an EGM to be called in the coming weeks.

It needs 100% acceptance to take MAS private, and then there will be grounds for the Act to be established.

Khazanah cannot vote at the EGM, given the fact that it is an interested party and institutional shareholders only hold less than a 4% equity in MAS.

Now that there is a serious plan to resuscitate MAS, it is possible that some minorities may want to hold back and not sell their shares. Not only will MAS be profitable by 2017, but there is also a plan to relist the Newco in 2018-2020.

“There will be some minorities who will give up their shares, as holding MAS has been one painful episode. But there are yet others who may see that there is going to be creation of value in the future. So, why sell and miss out on future growth?” opined a source.

However, if Khazanah fails to get 100% equity in MAS, then the entire revival plan will be off.

By B.K. Sidhu The Star/Asia News Network

Radical plan to revive MAS

Khazanah Nasional Bhd has unveiled a radical plan to revive the ailing Malaysia Airlines that calls for job cuts, a capital injection of up to RM6bil and creation of a new company (Newco) to carry the airline business.

To facilitate the migration of the existing business to Newco, the Government will table a new law in Parliament called the MAS Act.

Khazanah managing director Tan Sri Azman Mokhtar said that the new legislation would have a finite life and was needed to facilitate the migration of the existing business to Newco.

In a move to ensure that Newco has a leaner workforce and cleaner balance sheet to compete effectively in a tough operating environment, Khazanah wants to see job cuts of 30% from the existing MAS workforce of 20,000 employees.

It is one of the many conditions Khazanah has imposed on the management of MAS if it were to inject more funds into the ailing airline.

 

“In our opinion, we think that Newco with its business model will require a workforce of about 14,000. A net reduction of 30% is an across-the-board number,” said Azman at a media briefing yesterday.

The job cuts also affect the top leadership of MAS, which comprises a team of 500 staff called the Extended Leadership Team (ELT). Most of them were holding senior positions with long service.

Azman said the current chief executive officer (CEO) of MAS, Ahmad Jauhari Yahya, has indicated his wish to leave.

In commending the MAS CEO for having led the airline during its toughest period, Azman said Ahmad Jauhari would remain in place until the transition.

“We have embarked on a global search for a new CEO and have engaged an international firm to undertake the task,” he said.

Some of the other conditions of the 12-point plan mapped by Khazanah for the recovery of MAS include the relocation of the airline’s existing headquarters in Subang to the KL International Airport and Khazanah owning 100% of MAS.

Towards this end, Khazanah is undertaking a privatisation of MAS at 27 sen per share.

Azman clarified that Khazanah had engaged a consultancy to undertake a review of MAS on Feb 26 this year, before the first airline tragedy on March 8.

“The review came about after the Government was concerned about the financial and general state of affairs in MAS,” he said.

On March 8, a MAS aircraft en route to Beijing went missing and further exacerbated the airline’s losses.

The Cabinet approved MAS’ proposal on Wednesday and yesterday the various stakeholders, which are mainly the unions, existing airline management and some key directors, were summoned for a briefing.

The management and union have been told to work together to decide the shedding of the workforce, he said.

The MAS Act is expected to arm Khazanah with the necessary bite to carry out the radical measures, especially in negotiating the new contracts and collective agreements of the unions.

“The Act would allow for the Air Operators Certificate (AOC) to be transferred from the existing MAS to Newco and the assets and liabilities,” said Azman.

By July 1 next year, Newco is expected to take off.

Azman said that employees who were not absorbed into Newco would be offered a retrenchment scheme or given an option to be absorbed into a scheme for re-training.

Towards this end, Khazanah is working with three business process outsourcing firms that have vacancies for 3,500.

Azman said Khazanah explored several options in coming up with the plan.

“Putting in more money into MAS would not save MAS. So we felt that enabling MAS to start on a clean slate and putting in new money into Newco provided it met the conditions stated was the best option,” he said. - The Star

Related articles:

MAS losses likely to double to RM2bil by year-end
Many workers will be affected, says union
Not so friendly skies for other airlines, too
MCA Youth calls for concerted effort to help MAS
RM6bil is not a bailout, says Najib 
Clean slate for MAS  

Related posts:

Are the problems of Malaysia Airlines, symptomatic in other government-linked companies?. 

Malaysia's flight MH370 mistakes reflect stagnant politics; Bad apples in NZ sex crime..

Malaysia is poised to escape the middle-income trap, but also ready to fall back into it. Normally the middle-income trap refers to count...

Who stands to gain from MH17, USA?

The general public should always ask this question to prevent ourselves from being deceived by ‘false flags’

THE Russian military has released military monitoring data which challenge allegations circulating in the media pertaining to the MH17 crash in the Donetsk Region of Eastern Ukraine on July 17, 2014. Questions have been raised about Kiev military jets tracking MH17, Ukrainian air traffic controllers and the deployment of Buk missile systems. Kiev should also release military data on the circumstances leading to the crash. So should the Pentagon which reportedly has relevant intelligence and satellite data.

Since military data is hardcore information, Kiev and Washington should be persuaded to be transparent and accountable. The UN Secretary-General can play a role in this since there is a specialised agency within the UN, the ICAO, dedicated to international civil aviation.

Military data from Moscow, Kiev and Washington should be scrutinised by the independent international panel that is supposed to probe the MH17 catastrophe.

Such data carries much more weight than videos purportedly revealing the role of the pro-Russian rebels and the Russian government in the crash. One such video showing a Buk system being moved from Ukraine to Russia is a fabrication. The billboard in the background establishes that it was shot in a town – Krasnoarmeisk – that has been under the control of the Ukrainian military since May 11. Similarly, a YouTube video showing a Russian General and Ukrainian rebels discussing their role in mistakenly downing a civilian aircraft was, from various tell-tale signs, produced before the event.

The public should be wary of fabricated “evidence” of this sort, after what we have witnessed in the last so many years. Have we forgotten the monstrous lies and massive distortions that accompanied the reckless allegation that Iraq had weapons of mass destruction (WMD) which led eventually to the invasion of that country in 2003 and the death of more than a million people? What about the Gulf of Tonkin episode of 1964 which again was a fabrication that paved the way for US aggression against Vietnam that resulted in the death of more than three million Vietnamese?

The “babies in incubators” incident in Kuwait in 1990 was yet another manufactured lie that aroused the anger of the people and served to justify the US assault on Iraq. Just last year we saw how an attempt was made by some parties to pin the blame for a sarin gas attack in Ghouta, Syria upon the Assad government when subsequent investigations have revealed that it was the work of some rebel group.

From Tonkin to Ghouta there is a discernible pattern when it comes to the fabrication of evidence to justify some nefarious agenda or other. As soon as the event occurs before any proper investigation has begun, blame is apportioned upon the targeted party. This is done wilfully to divert attention from the real culprit whose act of evil remains concealed and camouflaged.

The colluding media then begins to spin the “correct” version with the help of its reporters and columnists who concoct “fact” out of fiction. Any other explanation or interpretation of the event is discredited and dismissed derisively to ensure that the “credibility” of the dominant narrative remains intact.

As the narrative unfolds, the target often embodied in a certain personality is demonised to such a degree that he arouses the ire of the public and becomes an object of venom.

The pattern described here is typical of what is known as a “false flag” operation in which blame for some dastardly deed is consciously transferred to one’s adversary. It has happened right through history and many contemporary nation-states – and not just the United States – are guilty of flying false flags.

To protect ourselves from being deceived by such operations, the general public should always ask: who stands to gain from a particular episode? Cui Bono is in fact an important principle in the investigation of a crime. In the case of the MH17 carnage, the pro-Russian rebels do not benefit in any way from downing a civilian airliner. Their goal is independence from the Kiev government which is why they are fighting Kiev through sometimes violent means including shooting down its military planes. Massacring 298 passengers in a flight from Amsterdam to Kuala Lumpur does not serve their cause. Moscow which backs the rebels to an extent also gains nothing from involving itself in such a diabolical carnage.

10 days after the carnage, it is now clear who is trying to reap benefits from that terrible tragedy in the skies. The demonisation of the Russian President, Vladimir Putin, orchestrated from various Western capitals, including Kiev, after Crimea voted to join the Russian Federation, thus thwarting one of the primary strategic goals of Nato’s eastward expansion, has now reached its pinnacle.

MH17 has helped the elite in Washington in yet another sense. It has strengthened its push for tougher sanctions against Russia which began after the Crimea vote.

It is obvious that those who seek to punish Russia and the pro-Russian rebels, namely, the elite in Washington and Kiev, are poised to gain the most from the MH17 episode. Does it imply that they would have had a role in the episode itself? Only a truly independent and impartial international inquiry would be able to provide the answer.

In this regard, we must admit that while elites in Kiev and Washington may stand to gain from MH17, those who actually pulled the trigger may be some other group or individual with links to the powerful in the two capitals. It is quite conceivable that a certain well-heeled individual equipped with the appropriate military apparatus and with access to air-control authorities in the region may have executed the act of evil itself.

Because of who he is, and where his loyalties lie, that individual may have also decided to target Malaysia. Was he giving vent to his anger over our principled stand on the question of justice for the Palestinians? Was he also attempting to divert public attention from Israel’s ground offensive against Gaza which time-wise coincided with the downing of the Malaysian airliner?

As we explore MH17 from this angle, would we be able to connect the dots between MH17 and MH370, between July 17 and March 8, 2014? We should not rest till the whole truth is known and the evil behind these two colossal catastrophes punished severely.

We owe this to every soul who perished on those fateful flights.

This article is dedicated to the cherished memory of all those on MH17 – especially the 80 children who were on board.

By comment: Dr Chandra Muzaffar

Dr Chandra Muzaffar is the President of the International Movement for a Just World (JUST).

Related posts:

 

MH17 probe must steer clear of politics

The whirling aftermath of the crash of Malaysia Airlines flight MH17 is now upon us, with Western-led international opinion turning the... 

MH17 black boxes handovered to Malaysia to be passed to AAIB UK via Dutch investigators

Malaysian experts hand over MH17 black boxes to Dutch investigators THE HAGUE, July 22 -- The black boxes from the crashed flight MH1... 

Another Malaysian plane crash shrouded with mystery in Ukraine killing all 298 people!

Photo taken on July 17, 2014 shows the debris at the crash site of a passenger plane near the village of Grabovo, Ukraine. A Malaysian...

MH17 shot down, more questions than answers

While there is no doubt that shooting down MH17 was a grave crime, everything else remains uncertain. ALL the big questions about MH1...

 

 
Was Flight 370 remote-hijacked as Boeing has autopilot technology?

Boeing has patent for autopilot tech PETALING JAYA: When it was first speculated that Flight MH370 could have been hijac...

 

  
Malaysia's flight MH370 mistakes reflect stagnant politics; Bad apples in NZ sex crime..

Malaysia is poised to escape the middle-income trap, but also ready to fall back into it. Normally the middle-income trap refers to count...

 

Related Global Research Related Articles

Kiev Source: Ukraine Accidentally Shot Down MH17 During Exercises 

A source within the Ukrainian defense department claims that Malaysia Airlines Flight 17 was accidentally shot down by Ukrainian troops during a military exercise near Donetsk which took place on July 

17. “On July 17 the commanding officer of ... 

What Happened to Malaysian Airlines MH17? 

Washington's Propaganda Machine in High GearWashington’s propaganda machine is in such high gear that we are in danger of losing the facts that we do have. One fact is that the separatists do not have the expensive Buk anti-aircraft missile system or the trained ... 

Malaysia Airlines Flight MH17 Timeline 

by Dina Murad A Malaysia Airlines Boeing 777 plane has reportedly crashed in Ukraine near Russian border. The plane, MH17, was flying from Amsterdam to Kuala Lumpur with 283 passengers and 15 crew members. Thursday, July 17 6pm: Scheduled ... 

Ini Malaysia Boleh? MH370 was likely on autopilot; new search area announced

Australia said the search for MH370 has shifted further south and the aircraft is now believed to have been on autopilot before it disappeared.

“It is highly likely that the aircraft was on autopilot.

“Otherwise, it could not have followed the orderly path that has been identified through the satellite sightings,” said Deputy Prime Minister Warren Truss during a press conference in Canberra yesterday.

However, he said the investigators could not, and had not intended to, pinpoint the moment when the aircraft was put on autopilot.

“We know it was on autopilot during the critical phase of our tracking but it will be a matter for the Malaysia-based investigation team to look at precisely when it may have been put on autopilot,” said Truss, who also declined to comment on speculation about the pilot having flown the course on his simulator, pointing out that it was irrelevant to their task of finding the aircraft.

“I don’t really want to comment on areas which will probably be the responsibility of Malaysia and its investigators,” he said.

Truss said the Australian Transport Safety Bureau had released a report which outlined the basis for their conclusion that the new search area was the most likely place where the aircraft could be found.

He said the new priority search zone was 60,000sqkm, and was greatly expanded compared to the previous underwater search area of only 860sqkm.

“The new phase of the search will have two elements. Firstly there will be mapping of the sea floor in the area, which is already under way, and a comprehensive search once mapping had been completed,” he said.

Mapping is currently being undertaken by Chinese survey ship Zhu Kezhen and the Australian-contracted vessel Fugro Equator.

Truss said mapping of the very deep sea floor was expected to take about three months to complete, while the underwater search was expected to commence by August.

“To put new equipment into the area without a clear knowledge of what the sea floor is like will certainly put at risk the capacity of that equipment to operate safely,” he said.

Truss added that the search effort would include equipment provided by Malaysia, including vessels equipped with towed sonar systems.

Despite acknowledging the enormity of the task, Truss remains optimistic.

“The search is still going to be painstaking. Of course, we could be fortunate and find it in the first hour or the first day, but it could take another 12 months.”

The Star/Asia News Network 

Related stories

• MH370: Aussies pledge RM272m for search
• MH370 search: Drones with sonar may be used
• Bluefin suffers second technical glitch but issue resolved
• RM27.6mil spent on search for MH370
• MH370: Passengers likely suffocated, Australia says

Missing Malaysian airliner 'likely on autopilot' as new search area announced

Australian Deputy Prime Minister Warren Truss points the new search area for MH370 to reporters at a press conference at Australian Parliament House in Canberra, June 26, 2014. Australian Deputy Prime Minister Warren Truss said on Thursday that it is "highly likely" the missing Malaysian airliner flew on autopilot until it ran out of fuel and crashed into the Indian Ocean. (Xinhua/Xu Haijing)

CANBERRA, June 26 (Xinhua) -- Australian Deputy Prime Minister Warren Truss said on Thursday that it is "highly likely" the missing Malaysian airliner flew on autopilot until it ran out of fuel and crashed into the Indian Ocean.

Truss made the comment on Thursday when announcing the joint search operation involving Australia, Malaysia and China would shift its focus in the southern Indian Ocean for Malaysia Airlines flight MH370.

The revised search area is based on the findings of an international satellite working group.
The group has reviewed all existing information to define a search zone of up to 60,000 square kilometers along the arc in the southern Indian Ocean.

Truss said the refined search area would still be focused on the seventh arc, where the aircraft last communicated with satellite.

But the search would shift to an area slightly further south along the arc, based on the calculations of the international experts.

"Specialists have analyzed satellite communications information- - information which was never initially intended to have the capability to track an aircraft -- and performed extremely complex calculations," Truss said.

"This site is the best available and most likely place where the aircraft is resting."

"It is highly, highly likely that the aircraft was on autopilot, otherwise it could not have followed the orderly path that has been identified through the satellite sightings," Truss said.

He said the search for MH370 was ongoing. A three-month mapping of the ocean floor in the search area is in progress and would be followed by a comprehensive search of the sea floor that is expected to begin in August and take up to 12 months to complete.

"The bathymetric survey has already commenced, with the Chinese survey ship Zhu Kezhen and the Australian-contracted vessel Fugro Equator conducting operations in the areas provided by the Australian Transport Safety Bureau," Truss said.

"The underwater search will aim to locate the aircraft and any evidence to assist with the Malaysian investigation of the disappearance of MH370."

"This area has never been comprehensively mapped previously and so to put new equipment down into that area without having clear knowledge of what the sea floor is like certainly risks the operation and the capacity of that equipment to operate safely."

He warned that the search will still be painstaking. "Of course we could be fortunate and find it in the first hour, or the first day, or it could take the next 12 months."

Australia, Malaysia and China have reaffirmed their commitment to continue to search for MH370 and to keep families informed of developments.

Truss said search nations owed it to "the passengers and the crew and everyone associated with MH370 to bring this mystery to a conclusion."

"I can assure all the families and those with an interest that Australia remains dedicated to the task of solving this greatest aviation mystery."

Flight MH370 vanished on March 8 with 239 people aboard, while en route from Kuala Lumpur to Beijing.

Related:
New search area announced for missing Malaysian jet
CANBERRA, June 26 (Xinhua) -- Australia announced on Thursday a new search area for the missing Malaysian Airlines flight MH370.  Full story
Malaysian speaker vows continued MH370 search
BEIJING, June 24 (Xinhua) -- The speaker of Malaysia's House of Representatives has said that the country will continue searching for missing flight MH370 until its fate has been discovered.  Full story
Investigator: New search area for MH370 to shift south
BEIJING, June 21 (Xinhuanet) -- Search for the missing Malaysian passenger plane MH370 will focus on the area hundreds of kilometers south of the first suspected crash site in the Indian Ocean. That’s according to chief commissioner of the Australian Transport Safety Bureau, Martin Dolan.  Full story
Malaysia commits continuing search for missing plane
KUALA LUMPUR, June 15 (Xinhua) -- The Malaysian government and the Malaysia Airlines (MAS) on Sunday reiterated their commitment to continuing the search operation for the missing MH370 flight as 100 days had passed since its disappearance on March 8. Full story

Full coverage: Malaysia Airlines Plane Bound for Beijing Goes Missing

Related posts:

Was Flight 370 remote-hijacked as Boeing has autopilot technology?

Boeing has patent for autopilot tech PETALING JAYA: When it was first speculated that Flight MH370 could have been hijac...

MH370 flight confirms: “deliberate acts”, suggest hijacking and terrorism planning, crew under scrutiny

  Malaysian PM confirms that deliberate acts were involved in the plane’s disappearance Any terrorist seizure of the plane ‘would have r...

• Chinese families stage mass walkout, demanded China’s inquiry into mysterious Flight MH370

• MH370 mystery: missing plane’s pilot ‘joked with female passengers in cockpit at 30,000ft

•  MH370 pilot was political fanatic? 

 Stupid fellow ! Dr Ling, former Malaysian Transport Minister slams  AG … 

Who to blame for the frequent accidents: the Transport Ministry, bus companies or drivers...?

Driving them to crazy!

PETALING JAYA: Express bus operators say they are being held to ransom by their own drivers, who are allegedly exploiting a driver shortage in the industry to escape punishment for dangerous driving.

An operator, who spoke on condition of anonymity, told The Star that one of his drivers sabotaged his bus after being reprimanded for speeding two weeks ago.

“We called him up and asked why he was driving very fast. He replied: ‘Hey, the steering is in my hands, I do what I like. You think I’m afraid (of you)?’

“Then he took the bus somewhere and poured sand into the engine,” said the operator.

He said although a police report was lodged, no action was taken against the driver, who quit for another company.

Relating another case, the operator said a driver who was ticked off for speeding, threatened to walk away and leave his passengers by the roadside.

The operator experienced a high turnover of bus speed monitors, saying they would quit when verbally abused by the drivers.

“We employ women (for this) because they’re more soft-spoken. But many resign after a month or two because the drivers used vulgar words when scolding them,” he said.

Another operator, who also declined to be named, said he also came across drivers who dictated terms to their employers.

“They don’t say it to my face but they have told my other drivers they don’t care if I take action against them,” he said, adding not all drivers were bad but the ones giving the industry a bad name could not be booted out because operators needed any driver they could get their hands on.

Suggestions by the industry to fill this shortage with foreign drivers, even temporarily, were rejected by the Government, he said.

He said increasing wages to woo better drivers was also difficult, saying bus fares had not gone up since 2009 despite a rise in operational costs.

Pan Malaysian Bus Operators Association (PMBOA) president Datuk Ashfar Ali declined to comment on the issue of errant bus drivers.

He confirmed, however, the industry was experiencing a driver shortage, adding: “The Government has to ensure a constant supply of drivers into the market.

“All these safety measures cost money. We urge passengers to be prepared to pay higher fares.”

Ashfar said the authorities had to urgently implement the 51 recommendations of an independent advisory panel to prevent fatal bus accidents.

Contributed by Patrick Lee The Star/Asia News Netwrk

Related stories:

• Bus operators lax until action is taken, says SPAD

• Double-decker buses barred from six ‘danger’ routes

• Sleepy drivers and horrific crashes

Related posts:

• Malaysian Transport authorities taken to task

  The authorities in charge of road transport were taken to task for failing to introduce any meaningful improvements to safety...

• Stupid fellow ! Dr Ling, former Malaysian Transport Minister slams Attorney-General 
  

• Karpal Singh: Bye-bye, Jangan main-main/Don't fool around !

• MH370 mystery: missing plane's pilot 'joked with female passengers in cockpit at 30,000ft

•  MH370 pilot was political fanatic?

•  MH370 flight confirms: “deliberate acts” 

• Malaysia paying the price for flight MH370 ! 
• Flight MH370 ended in southern Indian Ocean ... 

Was Flight 370 remote-hijacked as Boeing has autopilot technology?

Boeing has patent for autopilot tech

PETALING JAYA: When it was first speculated that Flight MH370 could have been hijacked via remote control access, many dismissed it as far-fetched science fiction.

But the technology to navigate planes, ships, trains, buses and other vehicles by remote control has been around for about a decade.

The Boeing Company, the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft, has the technology.

It owns a patent for a system that enables remote controlling of its aircraft to counter hijacking attempts.

Boeing applied for the patent for an “uninterruptible autopilot control system” about 11 years ago, and was awarded it in 2006.

The system can be activated when the security of onboard controls are jeopardised.

“The method and systems of the present invention provide techniques for automatically navigating, flying and landing an air vehicle,” states the report for the US patent number US7142971B2.

Once activated, an aircraft could be automatically navigated, flown and made to land without input from anyone on board.

“Any onboard capability to supercede the automatic control system may be disabled by disconnecting the onboard controls,” states the report.

Power is provided to the automatic control system “from an alternative power control element that is inaccessible (to anyone on board the vehicle)”.

According to the patent report, control commands could be received from a remote location and/or from predetermined control commands stored on board the plane.

Boeing applied for the patent on Feb 19, 2003, barely two years after the Sept 11 attack in which hijacked planes rammed into the World Trade Centre, reducing the gigantic buildings into rubble.

Eric D. Brown, Douglas C. Cameron, Krish R. Krothapalli, Walter von Klein Jr and Todd M. William invented the system for Boeing. The patent was awarded three years later on Nov 28, 2006.

When the automatic control system is activated, no one on board the aircraft would be capable of controlling its flight.

The patent report also states that a signal might be transmitted to at least one remote location from the plane to indicate that the uninterruptible autopilot mode of the air vehicle has been engaged.

The system includes a dedicated communication link between the aircraft and a remote location, distinct from any communication link established for other types of communication.

According to an independent analyst James Corbett, the US Federal Aviation Administration had reported on the Federal Registrar last November that the Boeing 777-200, -300 and –300ER aircraft were equipped with an electronics security system to check unauthorised internal access.

Contributed by Sira Habibu The Star/Asia News Network

“Flight 370 Was Remote-Hijacked”

Author, barrister and political advisor Matthias Chang

A high-level Malaysian source has confirmed that missing Flight MH370 must have been hijacked by remote control.

Matthias Chang, a barrister who served as Political Secretary to the Fourth Prime Minister of Malaysia, Dr. Mahathir Mohamad, explained why only a remote-hijacking “fly by wire” scenario can explain the plane’s disappearance.

Read Matthias Chang’s MH 370 – A Sinister Tragedy In the Fog of Coincidence?

In an exclusive interview with Truth Jihad Radio, Chang – who remains well-connected with the highest political levels in Malaysia – patiently explained why all of the evidence points to a remote hijacking by one of the handful of countries capable of such a technological feat. He expressed annoyance with Western media criticism of the Malaysian government, arguing that it is Western governments, not Malaysia’s, that are covering up what they know while the media fails to ask the hard questions.

[The audio interview will be posted for Truthjihad.com subscribers by this evening here.]

During our interview on the morning of Friday April 4th (Malaysia time) Matthias Chang told me: “I want to raise a point that has not been much discussed in either the mainstream or alternative media, which is that the technology of autopilot has been in existence for a long time. Since September 11th, more sophisticated systems have been placed in all planes to avoid any hijackings. If there is a hijacking in progress it kicks in and flies to an airport to land safely. The system can be triggered by the pilot himself from the cockpit, or it can be triggered by ground control. And by ‘ground control’ I mean it can be operated from land, an AWAC plane, or a ship, by an entity that has the capability and technology to fly the plane remotely. That technology is out there.”

Chang pointed out that only remote-hijacking can explain the plane’s flight path: “This plane is flying for six hours on its own. Who’s flying the plane? The entity flying the plane must be those with the technology that’s used now to pilot drones. We know drones have been flown in Afghanistan from Florida. We have seen video tapes and news broadcasts about how ‘pilots’ in Florida are flying planes and drones in Afghanistan as if they are playing computer games.”

Chang explained that the Western media’s pilot suicide hypothesis “doesn’t hold water. If you’re a pilot, why turn back, go north to Thailand where there are military exercises going on, and you will know from the radar that other planes are flying, then turn south and fly for six hours? That’s ridiculous. Also, most suicides leave notes explaining why. This is another huge question mark. Why this accusation of the pilot, when the facts are inconsistent with suicide?”

Suggesting that the Western countries have been leading the public on a wild goose chase, Chang explained:

“During the past four weeks, we have heard of various countries providing data. Australia said there were two floating objects west of Perth, but when ships were sent they were not found. France, also, said they discovered two objects. When the search planes went, these too couldn’t be found. The satellite of Thailand (a US client state) found two objects. It was sea rubbish. This was followed by (US occupied) Japan saying they found objects. But those objects were not MH370s. The British firm Inmarsat, using its calculations, said the plane would have crashed in the area where the objects were located. But subsequently Boeing, doing new calculations projecting faster flight at lower altitude, said the plane could have ended somewhere 1000 miles north of the previously projected location.”

Were all of these people ordered to look in all the wrong places – by a military high command that knows perfectly well where the plane is?

Chang continues:

“Given all this information, it’s crystal clear, clear as day, that the one country that has the most sophisticated surveillance technology has remained mute. They may have given sealed evidence – I don’t know. But no public announcement.

As VT Editor Gordon Duff says, a gnat has a hard time disappearing. So how can a 777 vanish?

“America has the most advanced satellites in the world…it can detect an object the size of a coin, look at bunkers buried deep underground. NROL 39 (the US National Reconnaissance Office) uses the octopus emblem. It states clearly that enemies of America cannot hide because ‘nothing is beyond our reach.’ The octopus’s tentacles encompass the whole globe. I find it very odd that America has been reticent, conspicuously silent, about what their satellites have shown, if anything.”

What makes it especially odd that the US will not admit it tracked the plane is that the flight path involved some of America’s most sensitive military areas:

“As MH370 reached the airspace of Vietnam it went north toward Thailand where the US-run Cobra Gold and Cope Tiger military exercises were being held. Then, allegedly, the plane ended in the Indian Ocean. But there is no evidence or debris. Now what is conspicuous…is that when a plane goes past Southern Thailand into the Indian Ocean, it has to fly past a very important landmark: Diego Garcia, a secretive US military base. It was from this base that the US launched bombers to Afghanistan, Iraq, and Vietnam before that. Surely this base has some of the most sophisticated surveillance technology. Any unidentified plane that flew in the direction of Diego Garcia would certainly be located and identified.”

Chang, the former top political advisor to the Prime Minister of Malaysia, noted that the bizarre disappearance of MH370 coincided with the US-run Cobra Gold and Cope Tiger military exercises – just as previous “disasters” have mirrored suspiciously-timed drills and exercises:

“On 9/11, when planes struck the Twin Towers and the Pentagon, there were military exercises taking place, and NORAD and others were confused about whether the planes were part of the exercise or not.”

Chang was referring to the notorious 46 drills of September 11th 2001, the biggest pre-designated National Security Special Event Day in US history. Those exercises practiced and then mimicked every aspect of the actual attacks, including a live-fly plane-into-building exercise that shut down the National Reconnaissance Office and prevented NRO personnel from seeing satellite images of whatever the alleged attack planes and their military control planes, including the “Flying Pentagon” E-4B Command Center aircraft, were really doing that day.

Chang noted that the 7/7/2005 London bombings – like 9/11– perfectly mirrored drills that were occurring at exactly the same times and places:

“On 7/7 in London, there was a bombing of underground stations, plus the bus in Tavistock Square. Surprise surprise, four Muslim youth were said to be responsible for the deaths and injuries. Yet on that very day, there were terrorist bombing exercises at precisely the same four locations.”

YouTube - Veterans Today -
 
Chang observed that Christopher Bollyn, whose book Solving 9/11 implicates Israel and its US agents in the worst terrorist attack in US history, has discovered indications that the disappearance of MH370 might be connected with another false-flag plot: “Bollyn exposed how, immediately after the hijacking (of MH370), the Times of Israel put out propaganda that the plane was hijacked by agents of Iran, then landed in Bangladesh to weaponize the plane to carry out a diabolical attack like September 11th.” (Bollyn also discovered a suspicious “evil twin” of MH370 hidden in an Israeli hangar – his article is linked here.)

Chang said that the media’s focus on the search for the MH370′s black box is a deception. “We’ve been diverted to look for the black box. Bullshit! There are plenty of signals.” Chang asserts that both Boeing, a leading US military contractor, and the Rolls-Royce company that makes the plane’s engines, know exactly what happened to MH370, because they are constantly fed signals giving them every significant detail about all of their planes including exactly location, altitude, airspeed, engine function, manual or autopilot, and so on.

Regarding Rolls-Royce, Chang said:

“As long as the engine is running, they monitor it. If anything goes wrong with the engine for any reason, they land the plane and abort the flight. There have been a couple of instances when Rolls-Royce detected malfunctions and told the pilot to land as soon as possible due to the malfunction.

“So for six hours or more, Rolls-Royce would have kept track of the pings. Rolls-Royce would know where the plane’s going. Now I’m told, rightly or wrongly, that in the protocol, Rolls-Royce may be prohibited from disclosing this information.”

Likewise, Malaysia has been prevented from disclosing the sealed evidence it has been provided by one or more unnamed countries – or even the name of that country or countries.

But despite the gag order, Chang thinks the evidence speaks for itself: “There is cyber war between these (larger) countries, and we small countries are caught in the middle. I think the passengers were collateral damage.”

Chang’s conclusion about Flight 370?

“Under the cover of the military exercises, something diabolical, something catastrophic, has happened.”

 Sources Veterans Today Editor:

Dr. Kevin Barrett, a Ph.D. Arabist-Islamologist, is one of America’s best-known critics of the War on Terror.

Dr. Barrett has appeared many times on Fox, CNN, PBS and other broadcast outlets, and has inspired feature stories and op-eds in the New York Times, the Christian Science Monitor, the Chicago Tribune, and other leading publications.

Dr. Barrett has taught at colleges and universities in San Francisco, Paris, and Wisconsin, where he ran for Congress in 2008. He currently works as a nonprofit organizer, author, and talk radio host.


Related posts:

• Families filing lawsuits over MH370 while new 122 objects identified by a French satellite  

•    Search for missing MH370 jet could turn on robot subs

• Chinese families stage mass walkout, demanded China's inquiry into mysterious Flight MH370

Philippines based Abu Sayyaf gunmen want RM36mil to free Chinese tourist, no ransom for Filipina

Gao Huayun

< Video  http://shar.es/TX2SI

Home minister: Kidnappers want RM36m for Chinese tourist, Malaysia negotiating

themalaymailonline.com

KUALA LUMPUR: Abu Sayyaf-linked gunmen have demanded RM36.4mil for the release of a 29-year-old Chinese woman tourist whom they abducted from a resort off Semporna in Sabah, said Home Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He added that there had been no ransom demand for the other hostage, a 40-year-old Filipina resort worker.

“We have received a note that the kidnappers have asked for 500 million pesos, equivalent to RM36.4mil, in ransom.

“We have sent our team, the police and negotiators to discuss with their so-called appointed middle person to negotiate about reducing the ransom,” he said after launching the “Message from Prison” segment of TV3’s Wanita Hari Ini programme here yesterday.

Gao Huayun and Marcy Daya­­­­wan were snatched from Singamata Reef Resort in Semporna on April 2.

One of the kidnappers is believed to be also involved in the abduction of a Taiwanese woman who was snatched on Pom Pom Island on Nov 15 last year after gunmen shot dead her husband.

To a question, Dr Ahmad Zahid denied that the Eastern Sabah Security Command was a failure, saying Esscom was merely carrying out its activities based on the Standard Operating Procedure that had been set for Esszon, the Eastern Sabah Security Zone.

He added that Prime Minister Datuk Seri Najib Tun Razak had a meeting recently with the members of the National Security Council on tightening security in the area.

“We are going to tighten the activities within Esszon ... (more) equipment and assets are to be deployed within the Esszon area.”

Dr Ahmad Zahid said the police, military and Malaysian Maritime Enforcement Agency were working together and collaborating with the Philippine coast guard, navy and military on further tightening security.

Zahid said they would seek the cooperation from the resort operators within the Esszon area and ask them to install high-security cameras.

“We are going to ask them to install high-definition CCTV in all their premises to prevent future activities by intruders or kidnappers,” he added.

Sources: contributed by Florence A. Samy The Star/Asia News Network

Related stories:
Philippine authorities shocked by huge ransom demand
Amount ridiculous, say China netizens

Related post:

Chinese tourists abducted by Philippine terrorists to sour ties with China?