Aksi 'Surcharges' Yang Terlampau

I don't really mind Low Cost Carriers, its an inevitable part of redoing an existing business cheaper and more effectively.When you slash prices, its business model is then based on pre-selling seats cheaper if you book way way in advance and then the discounts narrow if you wish to fly sooner. You will also enjoy better discounts if you are willing to fly during ungodly hours.

Hence when they introduce a small fee if you wanted pillow, and sell you drinks and snacks on the plane, its a given. Now, its paying to get a nicer seat. Yes, its cutting close to the bone. If you wanted the window or aisle seats, you pay an additional RM5, or the first 5 rows will set you back RM25.

I am thinking what's next. I believe these suggestions should be implemented as well to boost the margins of AirAsia:

a) Toilets Surcharge - RM0.99 for small; RM4.99 for big... like buying 4-D, more clean-up mah when its big.

b) Both Feet Surcharge - If you wish to board the plane using both feet, you will incur a surcharge of RM9.99. Passengers are encourage to hop onto the plane with one feet only to minimise wear and tear.

c) Blackened Windows - AirAsia should totally blacken out half the windows on their planes, that way, you can really charge a huge premium to sit next to a reall see through window. I think RM49.99 surcharge should not be an issue.

d) Standing Room - The last 4 rows of seats at the back should be taken out, and instead introduce a standing room only section. Don't worry standing belts will be provided latched onto special poles and railings. This will work very well for short haul flights, I mean people have no problem standing to watch a football match for over 2 hours, this will not be a problem. The 4 rows may take out 24 seats but the standing room will be able to squeeze in 3x that number. Charge half price, you still come out in front.

e) Stewardesses - Divide the plane into two curtained off sections. The better looking stewardesses will be in one section, and really piss ugly ones in the other. You can see where I am going with this. Yes, RM29.99 premium should not be a problem. Plus, it enhances AirAsia's image as a really equal-opportunity employer, very ugly ones also can work and fly.

f) Arm rests - Take out all the arm rest from the seats. These can be separately purchased at the kiosk in the waiting room for a RM7.99 fee and a deposit of RM19.99. Deposit will be refunded when you return the arm rest at your arrival destination.

g) Super Red Hot Seats - This may or may not be available on all flights. Must check at boarding gates. You get to sit next to single pretty girls (21-30) if they happen to board the same flights. Premium rates apply at RM199.99 per seat and RM399.99 for long haul flights. We know looks are subjective but generally they should be a lot prettier than our stewardesses, and also MAS stewardesses as well.

Its a funny world really.... now flying on a LCC is a lot cheaper than taking the bus. You fly for 2 hours, that's cheaper than traveling on the bus for 10 hours??? That's not just where things are different now, the service on the buses are a lot better than the LCCs. We get DVD movies, blankets, a bottle of drinking water, aircon that's so strong you get to wear your winter clothing (two seasons one trip, where to buy??) .... just don't use their toilets at the back of the bus.

p/s photos: Nasha Aziz

Don't Ruin The Goodwill

Dear Tony,

To be fair, let's hear Tony Fernandes side... but after reading what he said, it seems he is intent on bulldozing his way through, regardless of the Masterplan... if there was a Masterplan, why not wait till its revealed. Tony always huff and puff that Malaysians are not supportive of a strong home grown brand such as AirAsia. Contrary to that belief, Tony, I think the majority of Malaysians love AirAsia for the freedom and choice it has created. The fact that it has parlayed and leverage the brand and operations to be a globally well known LCC for the Asia Pacific region is to be lauded. Just because sometimes the public do not like some of the strategic moves, does not mean that we don't like the company. We all know AirAsia has had its "insiders" promoting the company albeit giving AirAsia an advantage somewhat, but thats a given in a place like Malaysia. You still managed to turn the benefits and advantages positively, which is very good. When you are on a good thing, don't push, the line between acceptable greed and arrogance is a very thin line. Just that most of us think that you have crossed that line with the now simply clumsy, arrogant, unscrupulous, increasingly heartless (pun intended), callous, manipulative, clumsy, ruthless and predatory Sime Darby. There is substantial public goodwill with you Tony and AirAsia, much like the goodwill surrounding Obama, so don't fuck it up!

Business Times: Analysts and industry executives do not think that Malaysia needs two airports located within 10km of each other.

The newly approved airport in Labu is just 10km away from Kuala Lumpur International Airport (KLIA) in Sepang.

"The only way for this concept of two airports to succeed, is to have very efficient high-speed transportation, 24/7, between them," said Datuk Seri Tunku Iskandar Tunku Abdullah, Asean Tourism Association (Aseanta) Intra-Asean committee chairman.

"Otherwise, we can say goodbye to being a major aviation hub, and I can imagine the kind of complaints that travellers will have in not being able to inter-connect efficiently. There will be all kinds of new challenges for the inter-modality of passenger transportation," Tunku Iskandar said.

The ideal situation is for just one airport, with separate terminals and satellite buildings, to cater for the volume of air-travellers, he said.

Tunku Iskandar said the situation is bad enough now with the LCCT being a separate terminal and not well-connected to the main terminal at KLIA.

The situation has led to much inefficiency as inbound tour operators need to spread their resources over two terminals, some 20 minutes away from each other.

The KLIA, now in its eleventh year of operations, is under-utilised.

KLIA has some 3,290ha for aeronautical activities, which allows for four satellite buildings to be built around the main terminal.

Currently, only one has been built.

An analyst with a local bank backed brokerage agrees with Tunku Iskandar.

"When you think about the government 10 years ago, telling the public that they needed to develop the KLIA in the back of beyond, because they needed space for four terminals ... and now the government has approved the construction of another airport ... it's just so unbelievable," an analyst with a local bank backed brokerage said.

But AirAsia has not always gotten its way when it comes to government decisions.

It was forced to move out of Subang Airport into KLIA, in an effort to turn it into a hub in 2002. However, Firefly, a subsidiary of Malaysia Airlines, was allowed to operate turboprop planes there some five years down the road.

"We have moved three times in the last seven years. All we want is a place where we can be allowed to grow to our full potential," AirAsia chief executive officer Datuk Seri Tony Fernandes said during a site visit to Labu on Thursday.

He said this will be yet another year the budget carrier will beat all passenger forecasts by analysts, who have lowered projections due to the economic slow down.

It forecasts that it will be able to carry 15.7 million passengers this year.

theedgedaily: The race to secure the new permanent low-cost carrier terminal (LCCT) has started. Malaysia Airports Holdings Bhd (MAHB) has finalised its master plan for a new LCCT near the existing main terminal in Sepang, while AirAsia yesterday came out with more details on its proposed terminal in Labu, Negri Sembilan.

Sources said MAHB would submit its master plan to the government soon. The irony is AirAsia is part of the steering committee that finalised and approved the airport operator’s master plan, according to a source.

“The government and AirAsia are aware of the master plan, which has been finalised and approved by the steering committee. It will be submitted to the government soon,” the source said.

“In the 16 months when the master plan was being worked out, AirAsia, which is part of the steering committee, did not raise any issue on the plan. So why are issues raised outside the meeting now?” the source said.

Transport Minister Datuk Seri Ong Tee Keat said yesterday the government had not made a decision on MAHB’s proposed new LCCT.

Meanwhile, AirAsia group chief executive officer Datuk Seri Tony Fernandes said yesterday the carrier would finalise the funding for its own proposed LCCT, named KLIA East@Labu, by April. The cost of the LCCT, excluding land cost, is estimated at RM1.6 billion.

The budget carrier is partnering Sime Darby Bhd to build the Labu terminal. On Monday, Sime Darby obtained the government’s nod to proceed with the project.

Fernandes also dismissed sceptics who contended that AirAsia would face problems in securing financing for KLIA East@Labu, which may result in MAHB’s proposal being carried out instead. He stressed that the Labu LCCT project “is definitely on”.

He said it was in talks with bankers, infrastructure funds and investors to work out an “optimum funding structure”. AirAsia may partly or fully own KLIA East@Labu, or may even just be a pure operator of the airport without having a stake in the asset, he said, adding that it was open to MAHB taking a stake in the Labu LCCT.

“We certainly do not see any issue in financing it. There are so many options available to us. The final structure has not been finalised yet,” Fernandes said at a media briefing here yesterday. Reporters were also brought to tour Sime Darby’s Labu estate earmarked for the development of the LCCT after the briefing.

The capital of owning 100% of the Labu LCCT is equivalent to buying 12 Airbus A320 aircraft, Fernandes said. “We think it’s better for infrastructure funds and investors to own the asset, and lease it to AirAsia. We will manage it. This is the model we are looking at.”

AirAsia deputy group CEO Kamaruddin Meranun added: “Sime Darby also has not finalised the structure — whether they will be equity holder, or developer, or just sell the land outright.”

Asked if other budget carriers would also be allowed to operate out of KLIA East@Labu, Fernandes said the approval given so far was only for AirAsia to use the LCCT.

The first phase of the development of the Labu LCCT, due to be completed in March 2011, will create a capacity of 30 million passengers per year. The capacity can be further increased to 50 million passengers, depending on AirAsia’s growth.

The existing temporary LCCT in Sepang, which is being expanded, has the capacity to handle 10 million passengers currently. After the expansion, which is scheduled to be completed in March, it can handle 15 million passengers.

Fernandes said AirAsia needed a new LCCT as there would be no more room for expansion at the existing terminal. By 2014, it would see a capacity shortfall of some 12 million passengers at the temporary LCCT. Other budget carriers that operate out of the existing LCCT are AirAsia’s sister airlines Thai AirAsia and Indonesia AirAsia, as well as Tiger Airways and Cebu Pacific.

p/s photo: Jang Jin Young

I No Longer Friend Sime Darby

To me, Sime Darby is a big sell. I don't know about you but since the new management has taken over, since they have forced their way to gobble up the other major plantations companies, since they have become the biggest plantation company in the world... bit by bit the DNA of Sime Darby has been evolving, or should I say, disintegrating. The goodwill accumulated through the decades of being a professional company with integrity, and a heart... is now increasingly heartless (pun intended), callous, manipulative, clumsy, ruthless and predatory. Here are the cases which have led me to my opinion:

Read the latest update on the involvement of EPU and the Ministry of Finance on the opposing side on the IJN issue:

http://anotherbrickinwall.blogspot.com/2009/01/newsbreak-mof-disgree-epu-insist-with.html

a) IJN - why oh why, whoever even though up the idea should be shot ... repeatedly... or better still fed with animal fats over a 3 month period and then ask him to wait in line at IJN. The idea is a non-starter. If the idea is to ensure better pay for the medical staff, its a budgeting issue. To see Sime Darby getting involve - hey, how do you pay more to the staff when you also have to extract another new profit stream for Sime Darby? IJN Holdings had RM100 million in its coffers when Datuk Mohd Radzif took over as CEO in September 2003? Under the 9th Malaysia Plan, IJN was given another RM150 million grant by the Government - what is the problem, its not a big sum to sustain IJN by the government, is Sime telling us that they CAN make sure the rates charged will be LOWER under their regime??? Surely Sime Darby is not in this as a CSR project, right!!?? What next Sime? Thinking of privatizing the orphanages, rumah anak yatim piatu, the old folks home, how about the hospices as well... (in the wise words of my Malay teacher "kepala hotak engkau..").

Sourced from SimeDarbyWatch blogsite, the statement signed by the 35 consultants:

19th December 2008

Statement from IJN medical consultants

We read with concern the perceived perception that the medical staff of IJN are demanding higher pay and will leave IJN if these demands are not met.

We feel it is important that these negative perceptions are correctly put into context.

The institution was set up in 1992 as a corporate body directly under the purview of Ministry of Finance. Its board of Directors include representatives from Ministry of Health and MOF to ensure its direction and objectives of providing good quality and affordable medical care to Malaysians from all walks of life are adhered to.

In that respect, IJN has done and continue to do well, both in maintaining its moral as well as financial obligations. The institution has been self-sustaining since its inception (and has been able to pay year end bonuses annually without fail). For 2007and up to end Nov 2008, we have accumulated 285,764 number of outpatients, performed 15,084 cardiac catheterization interventions including angiograms and angioplasties, 6,094 heart and lung surgeries, 7 mechanical hearts and heart and lung transplants surgeries.

As true with any organization of our size, there will be people leaving the organization at various times in order to pursue different career paths. Over the last 7 years of operation, out of a total of 35 consultants, only 7 have left IJN to work either in local or overseas private centres. Therefore, our consultants' annual attrition rate is only 3%, and we have responded consistently over time to promote our home grown talents to fill up the voids accordingly. Currently, 75% of IJN consultants have been in their posts for more than 10 years.

All of us are salaried based on a different payscale than that of the MOH though not at par with the private centres. Periodic review of salary scale is usually undertaken, subject to approval from Ministry of Finance.

As proven from our consultants' attrition rate and longevity in serving this institution, it is logical to surmise that on the whole we are happy with the current scheme and proving it by remaining with IJN. Many of us have served than 10 years, excluding time spent within the MOH Hospitals prior to setting up of IJN.

Whilst we have yet to have a clear picture of the proposed privatization by Sime Darby, we would like to reiterate our commitment to serve IJN in its current form and want to stress that the proposed privatization of IJN must not be seen to be as a response to our demands for better pay. The medical personnel of IJN are not at all involved, directly or otherwise, in the negotiations for the said privatization.

Being responsible employees of IJN, we are not in the position to dictate the outcome of the privatization proposal from Sime Darby to the stakeholders of IJN. However, the perception that the privatization proposal is in response to demands for higher remunerations by its medical staff is misconceived and must be corrected accordingly to safeguard and preserve the trust placed upon us by our patients.

Signed,

1. Sharifah Suraya Syed Mohd Tahir
2. Suhaini Kadiman
3. Nor Azlina Abdul Jalil
4. Ariffin Marzuki Mokhtar
5. Thiru Kumar Namasivayam
6. Mohd Sharif Mohd Shaffie
7. Mohamed Hassan Mohamed Ariff
8. Azhari Rosman
9. Amin Ariff Nuruddin
10. Ahmad Khairddin Mohd Yusof
11. Aiza Aizan Abdul Rahim
12. Mohd Nasir Muda
13. Shaiful Azmi @ Jamauddin Yahaya
14. Balachandaran Kandasamy
15. Azlan Hussin
16. Razali Omar
17. Chew Soon Ping @ David Chew
18. Rosli Mohd Ali
19. Robaayah Zambahari
20. Mohd Azhari Yakub
21. Pau Khew Kong
22. Sivakumar Sivalingam
23. Abdul Rais Sanusi
24. Hew Chee Chin
25. Hamdan Leman
26. Alwi Mohamed Yunus


b) New Low Cost Terminal @ Labu - The new terminal, to be called "KLIA East @ Labu", will be built on a 2,800 hectare site (6,919 acres) in Negeri Sembilan under a private finance initiative, costing RM1.6 billion (US$461 million). Labu is between Nilai and Seremban. The project is to be undertaken jointly by Air Asia and Sime Darby.

Firstly, simple planning will reveal that we need a phase 1, phase 2 and phase 3 for the current LCT to cope with organic growth and demand, not just by AA but other budget carriers... just zone off a piece of land 4-5x the current size and make sure expansion phases do not hinder current operations - why no planning, why the sudden need to have a new second LCT. If we had planned better in the first place, we would not have needed the second one so soon - I do not like to trash the authorities, but please la, this is planning and budgeting 101.

Secondly, why suddenly Sime Darby is roped in? This is not Sime's expertise, especially when there is a more relevant body in Malaysia Airports Holding - what is the under-current, why do we pick and choose and allow ourselves to be lobbied into inefficiences. Apparently, Sime is involved because the new LCT will be an integral part of its proposed development plan for its Negeri Sembilan Vision City ("NSVC"). NSVC is part of the Company's Central Vision Valley ("CVV") property development project spanning Selangor and Negeri Sembilan.

Now, lets hear what Malaysia Airports Holdings Bhd (MAHB) has just said " MAHB implied that it is more logical for the Low Cost Carrier Terminal (LCCT) to be at the Kuala Lumpur International Airport (KLIA)". In a statement today, the airport operator said it is now in a position to undertake the project with its own funds, thanks to the government’s approved restructuring plan. The National Airport Master Plan study, after considering several locations, has identified a site for the permanent LCCT at KLIA, MAHB said. The new LCCT location was selected as it would provide excellent connectivity for both landside and airside transfers for passengers as well as baggage. At least there is a National Airport Master Plan, why the need for so many LCTs, why can't MAHB be allowed to build a really big one next to KLIA, maybe the new LCT can have its own runway as well.

c) Integration Failure - This has to be my biggest gripe about Sime Darby. I have heard enough stories and examples where staffers at Guthrie and Golden Hope are marginalized and maybe penalized, and at the same time employees from the original Sime Darby are protected and at times given preference in terms of supervision and rankings. Failure to integrate such a huge merger is my biggest concern - failure to integrate means failure to reap the synergies, it means failure to see units being consolidated to work as one, it means huge infighting and inefficiencies. I do not see a proper integration team that takes what's best in the merged companies and to get all to know and believe they are all one company. Turf wars and dissensions are very high - don't trust me, just ask ANY Guthrie/ Golden Hope employee... any of them... or ask the more than 100 plantation executives and senior executives who have resigned over the past few months, many leaving for KLK and IOI.

Integrating merged companies is not something all management can do well. The fact that management of Sime Darby is not talking about integration in a major way shows that something is very wrong. There was an Integration Blue Print... I am pretty sure its a powerful power point presentation, and will be just that. It is not an easy task no matter how you cut it, there's years of differing cultures and ways of doing things. It is easy to be dismissive of another unit's SOP. It is easy to rubbish some units thinking and strategy. It is very hard to get all to think as one. It is very hard to get all to feel they belonged to a company that respected their work, their worth and their contribution. It is very hard not to play favoritism.

It is now very hard for me to friend Sime Darby!


p/s photo: Nabila Syakieb