I’ve had the opportunity to read the full report of MAS business turnaround plan, the MAS way, recently and it was well crafted and very comprehensive. The new managing director really put a lot of works to compile the whole report by identifying the core problems that causing yet another unprofitable year for MAS. The truth is, the faults are not entirely due to the weakness of management but MAS at the moment is not treated as a true business entity. Yes, MAS is a GLC and this somehow has put a lot of pressures to MAS to do the business as the normal commercial business usually does. Commercial business philosophy is simple enough – profit, profit and profit. But due to social obligations that MAS has to adhere, this has to be compromised. Flying to Buenos Aires, Vienna, Zurich and many more places just to carry the national flag for government’s interest even each of them is not-profitable route, is the most obvious example. The fact is, MAS has to bear all these losses in order to adhere to this social obligation. Even for domestic routes, MAS has to fly to remote places which commercially non-viable at all. Government should not interfere MAS if they want MAS to succeed. Let MAS decides which direction they should take based on commercial business point of views. It would be interesting to see MAS and AirAsia competing in domestic market if MAS is given the degree of freedom as AirAsia enjoying presently. Well, a good plan is just the beginning, execution and end-result is what really matter in the end.
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