MAS needs to go private, Dr M tells government
(Malay Mail Online) – Tun Dr Mahathir Mohamad reiterated today his calls to privatise Malaysia Airlines (MAS), insisting it is the best way for the crippled flag carrier to get out of the red.
The former prime minister who had introduced the concept of Malaysia Inc added that the government is in “denial” by refusing to accept that the national airline is not doing well.
“MAS, I think should be privatised. There are many ways to privatising and we can perhaps get some expertise from elsewhere but what is happening is that despite promises to turn around, things got worse.
“I think there comes a time when you have to accept that you are in denial that you refuse to accept the fact that you are not doing well,” he told reporters, after launching the book, “TPPA: Malaysia is not for sale” at the Karangkraf headquarters here.
Dr Mahathir had called for MAS to be privatised as far back as last year, before the airline’s misfortunes plunged further with the mysterious disappearance of Flight MH370 in March.
In an interview with the Malaysian Reserve last month, Malaysia’s longest-serving prime minister of 22 years, not only said MAS should be privatised, but specifically by Malaysians who have experience in the aviation business and who can work with the national carrier’s powerful unions.
He had said that privatisation would offer the best chance for the airline to turn around because it needs a radical restructuring from top to bottom.
“Therefore they should accept other processes like privatisation.
“I think in this country there are a lot of people with expertise,” he clarified today, when asked if he meant foreign expertise should come into the picture.
MAS recorded a net loss of RM2.52 billion in 2011 following the slump in the aviation sector especially for cargo service.
Besides, operating cost especially that of fuel had spiralled while non-fuel cost climbed on capacity-related costs, marketing, maintenance and provisions for phased out aircraft.
MAS had said that it is considering all options for a radical turnaround plan, including privatisation.
