BY FAUZIAH ISMAIL
It is not a merger as widely reported although a stock or share swap normally occurs as part of a merger or acquisition when shareholders' ownership of the target company's shares is exchanged for shares of the acquiring company.
There is no reasonable rationale for a merger since all three airlines operate totally different business models. It is a swap to pave the way for what some analysts has described as a "partnership". In fact, yesterday's signing ceremony was termed as "comprehensive collaboration framework".
Through the share swap, AirAsia group chief executive Tan Sri Tony Fernandes is not the single largest shareholder in MAS.
The government's investment arm Khazanah Nasional Bhd, with a 49 per cent stake in MAS after the share swap and holding a special shareholder position of the government, will continue to maintain its position as the single largest shareholder in the national carrier. The aviation sector is a strategic sector to the economy and MAS will remain as a core holding in Khazanah's portfolio.
Also, Khazanah's commitment to AirAsia is considered "firmer" given its stake is via the unlisted Tune Air, hence illiquid. As Tune Air's stake is via MAS, it would seem to have the option to sell into the open market if it is not in alignment with the views of MAS' board majority.
In addition, Khazanah also proposes to acquire some AirAsia X's shares on terms and at a price to be mutually agreed later.
Negotiations on a partnership had been ongoing since the days of Datuk Seri Idris Jala as MAS managing director. Khazanah's managing director Tan Sri Azman Mokhtar confirmed negotiations concluded at 2.05am on Sunday morning.
Shukor Yusof of international rating agency Standard & Poor's, who has been tracking both airlines for years, sees it as the "financial reengineering of MAS" that is "the hallmark of the Binafikir boys", who now run Khazanah.
Azman is one of the co-founders of Binafikir. The other is Mohammed Rashdan Mohd Yusof, who is Khazanah's executive director (investments) and recently named to the board of MAS. He has been named as MAS executive director. "They (Azman and Rashdan) crafted the Widespread Assets Unbundling (WAU) for MAS in 2002 - essentially moving the debts to another government agency Penerbangan Malaysia Bhd - and it would seem they are having another go at realigning MAS' financial profile," he said.
Shukor is not far from wrong really. The man that brought in the Binafikir boys into MAS back then has returned as chairman of the national carrier. Tan Sri Md Nor Yusof had served as MAS managing director before. At the press conference, Azman, Md Nor and Fernandes talked about growth and the immediate synergistic opportunities which can be realised without significant effect on any party's operations. This includes aircraft purchasing, engineering, ground support services, cargo services, catering and training.
The collaborative agreement signed between the three airlines will be for five years, with the option for a further five-year renewal.
Md Nor said the joint collaboration will help MAS focus on its strengths in its core markets . It will be able to offer services in engineering and other areas to both AirAsia and AirAsia X. Fernandes said AirAsia and AirAsia X see growth opportunities in new routes and destinations.
Azman called it "historic collaboration" which is both synergistic and pragmatic. It will sharpen the focus of core competencies, deliver better products and choices for customers and ultimately create greater value for all the stakeholders.
Through the collaborative framework, MAS and its subsidiary Firefly, AirAsia and AirAsia X will focus on business segments in which they are capable of developing the most value. MAS and Firefly will continue to operate the short-, medium- and long-haul full service segment while AirAsia and AirAsia X will provide the short-, medium- and long-haul budget services.
Analysts said with the Asean free skies policy coming into effect in 2015, this will see increased competition with unlimited flight frequencies between Asean's 10 major cities. "Notably, more regional airlines are now aggressively growing and starting their own low-cost carriers, which are turning out to be effective vehicles to garner regional traffic to feed into legacy, premium airlines' long-haul routes. Strengthening and coordinating the two local airlines are necessary to stave off incoming competition, particularly considering that the KL International Airport is stuck between Singapore as a major business hub and Thailand as a major tourism hub," he said.
Despite the owners saying that the playground is big for four airlines, it may be a tad too many for a small country like Malaysia. Some see the share swap as a prelude to some kind of arrangement that may see, for example, route rationalisation which could see AirAsia taking most of the domestic and short-haul routes, a committed traffic to feed into MAS' long-haul network, usage of MAS maintenance, repair and overhaul facilities and MAS employees' unions.
As Azman rightly puts it, this will not be the end-all transformation for the airline industry but it is the beginning. But for now, the government can breathe a sigh of relief as it will have less headache after having to referee the consistent discord between MAS and AirAsia all this while.
NO LIES... JUST THE FACTS!
Thursday, August 11, 2011
Wednesday, August 10, 2011
ONLINE GUIDE BOOKS
Free backpackers cheatsheet are now available online.
Guidebooks for travel destinations have been condensed into two pages, and can be downloaded free online.
This means that you may no longer have to go through the hassle of ploughing through thick guidebooks to plan your next backpacking trip. Rather, you'd just have to look through two PDF pages - which fills you in on where to go, how to get there, where to sleep, what to see and do, and more - for each destination.
Called the "Backpacker Cheatsheets", these "guidebooks" by GuideGecko, a publishing portal for travel guides, cover areas in Southeast Asia and beyond. They can be downloaded for free online at www.GuideGecko.com.
These guides may also help make your trip a little more unique. "While every traveler researches his own trip, 95 per cent end up on the same itinerary," said Dr. Daniel Quadt, Chief Backpacker at GuideGecko.com. "Our cheatsheets...[give] you options to explore along the way."
The cheatsheets released so far include those for destinations in Southeast Asia, such as Thailand, Bali, Cambodia, Laos, Malaysia, Vietnam, Indonesia and Myanmar. Information for Australia, New Zeland are also available. In weeks to come, cheatsheets for South America and other countries will be released.
GuideGecko offers over 2,700 guidebooks on 169 countries and 270 cities and regions around the world. These guides were all independently researched and written by professional travel writers from around the world. They can be acessed via the iPhone, Amazon Kindle and on the web.
Guidebooks for travel destinations have been condensed into two pages, and can be downloaded free online.
This means that you may no longer have to go through the hassle of ploughing through thick guidebooks to plan your next backpacking trip. Rather, you'd just have to look through two PDF pages - which fills you in on where to go, how to get there, where to sleep, what to see and do, and more - for each destination.
Called the "Backpacker Cheatsheets", these "guidebooks" by GuideGecko, a publishing portal for travel guides, cover areas in Southeast Asia and beyond. They can be downloaded for free online at www.GuideGecko.com.
These guides may also help make your trip a little more unique. "While every traveler researches his own trip, 95 per cent end up on the same itinerary," said Dr. Daniel Quadt, Chief Backpacker at GuideGecko.com. "Our cheatsheets...[give] you options to explore along the way."
The cheatsheets released so far include those for destinations in Southeast Asia, such as Thailand, Bali, Cambodia, Laos, Malaysia, Vietnam, Indonesia and Myanmar. Information for Australia, New Zeland are also available. In weeks to come, cheatsheets for South America and other countries will be released.
GuideGecko offers over 2,700 guidebooks on 169 countries and 270 cities and regions around the world. These guides were all independently researched and written by professional travel writers from around the world. They can be acessed via the iPhone, Amazon Kindle and on the web.
Tuesday, August 9, 2011
MAS/ Airasia Share Swap Deal
Malaysia Airlines's move to carry out share swap deal with low-cost carrier AirAsia Bhd in the near term, has caught industry players by surprise.
With the share swap deal, both airlines may no longer be competing directly with each other but instead, leverage on each others' strengths and capability, so said HwangDBS Vickers Research here today. It also said both parties are likely to enjoy better purchasing power as a combined entity.
"We think more importantly, the deal could help reposition and turnaround Malaysia Airlines as a premier long haul carrier," the research house added, in its research note.
The shares of both airlines were suspended from trading today for two days pending an announcement to be made by the companies. At Friday's closing, AirAsia's share stood at RM3.95 while Malaysia Airlines was at RM1.60. So one can except a great deal movement in the stock market these couple of days
HwangDBS Vickers Research also said the partnership would see both airlines expanding their fleet size to an estimated 228 aircraft, the largest in the region.
For AirAsia, being a large entity and having Khazanah Nasional as a shareholder, enables it to be in a better position to gain more routes and landing rights both locally and internationally.
Under the deal, the airlines are expected to operate as separate entities at the operational level but would likely share common directors and policies. It could also lead to a change in management in the national carrier, said the research house.
Meanwhile, ECM Libra in its research note said the partnership would allow AirAsia to continue what it does best with less predatory competition, while Malaysia Airlines can concentrate on serving the premium segment with better revenue yield.
It also said that there are opportunities for cost-savings as both airlines would be able to bargain better for future aircraft purchases, as well as minimise duplication of resources such as that in the maintenance, repair and overhaul (MRO) area.
It was reported that the swap deal will involve Khazanah Nasional taking up a substantial stake in AirAsia's major shareholder, Tune Air Sdn Bhd. Tune Air on the other hand, may take up to a 20 per cent stake in Malaysia Airlines via the subscription of new shares at a price likely to be at a premium to the market price.
Will this swap be the end of a low cost carrier or an end to a premium airline is yet to be seen.
With the share swap deal, both airlines may no longer be competing directly with each other but instead, leverage on each others' strengths and capability, so said HwangDBS Vickers Research here today. It also said both parties are likely to enjoy better purchasing power as a combined entity.
"We think more importantly, the deal could help reposition and turnaround Malaysia Airlines as a premier long haul carrier," the research house added, in its research note.
The shares of both airlines were suspended from trading today for two days pending an announcement to be made by the companies. At Friday's closing, AirAsia's share stood at RM3.95 while Malaysia Airlines was at RM1.60. So one can except a great deal movement in the stock market these couple of days
HwangDBS Vickers Research also said the partnership would see both airlines expanding their fleet size to an estimated 228 aircraft, the largest in the region.
For AirAsia, being a large entity and having Khazanah Nasional as a shareholder, enables it to be in a better position to gain more routes and landing rights both locally and internationally.
Under the deal, the airlines are expected to operate as separate entities at the operational level but would likely share common directors and policies. It could also lead to a change in management in the national carrier, said the research house.
Meanwhile, ECM Libra in its research note said the partnership would allow AirAsia to continue what it does best with less predatory competition, while Malaysia Airlines can concentrate on serving the premium segment with better revenue yield.
It also said that there are opportunities for cost-savings as both airlines would be able to bargain better for future aircraft purchases, as well as minimise duplication of resources such as that in the maintenance, repair and overhaul (MRO) area.
It was reported that the swap deal will involve Khazanah Nasional taking up a substantial stake in AirAsia's major shareholder, Tune Air Sdn Bhd. Tune Air on the other hand, may take up to a 20 per cent stake in Malaysia Airlines via the subscription of new shares at a price likely to be at a premium to the market price.
Will this swap be the end of a low cost carrier or an end to a premium airline is yet to be seen.
Monday, August 8, 2011
WALKABLE CITIES OF MALAYSIA
Living within a quick drive to work, the store, school or public transportation is nice, but only having all of those items a few blocks away makes your neighborhood "walkable."
Although walking tours are quite rate in Malaysia, we need to spend time judging the distance between residents and amenities and ranking places based on the results. This "walkability" study can also determine the possibility of organizing walking tours.
Ideal walking neighborhoods have either a main street or public space at the center, enough people to keep public transit running frequently and a good mix of housing and businesses. Parks and other public spaces make up a large part of the equation, as do amenities designed around pedestrians, nearby schools and workplaces and "complete streets" designed for pedestrians, cyclists and transit.
Very often, you'll see a good pedestrian design with sidewalks and crosswalks that make a city more accessible and walkable. Even in cities that on the whole aren't that walkable, there are neighborhoods that are great places to walk.
We can insists that a walkable neighborhood adds an increase to a home's selling price and cities with major tourist spot can provide for a good walking tour.
Take Kuala Lumpur for example. Any tourist who's seen Dataran Merdeka and stopped into Bangunan Sultan Abdul Samad and directions can tell you that the city's most walkable neighborhoods in City Centre, the Masjid India, Lebuh Ampang and China Touwn and along the riverfront are some of the easiest to navigate in the city. What locals probably won't tell is just how easy it is to get around Maslid Negara, Bird Park, Orchid Garden, the Lake Gardens and its surrounding neighborhoods.
Although walking tours are quite rate in Malaysia, we need to spend time judging the distance between residents and amenities and ranking places based on the results. This "walkability" study can also determine the possibility of organizing walking tours.
Ideal walking neighborhoods have either a main street or public space at the center, enough people to keep public transit running frequently and a good mix of housing and businesses. Parks and other public spaces make up a large part of the equation, as do amenities designed around pedestrians, nearby schools and workplaces and "complete streets" designed for pedestrians, cyclists and transit.
Very often, you'll see a good pedestrian design with sidewalks and crosswalks that make a city more accessible and walkable. Even in cities that on the whole aren't that walkable, there are neighborhoods that are great places to walk.
We can insists that a walkable neighborhood adds an increase to a home's selling price and cities with major tourist spot can provide for a good walking tour.
Take Kuala Lumpur for example. Any tourist who's seen Dataran Merdeka and stopped into Bangunan Sultan Abdul Samad and directions can tell you that the city's most walkable neighborhoods in City Centre, the Masjid India, Lebuh Ampang and China Touwn and along the riverfront are some of the easiest to navigate in the city. What locals probably won't tell is just how easy it is to get around Maslid Negara, Bird Park, Orchid Garden, the Lake Gardens and its surrounding neighborhoods.
Sunday, August 7, 2011
REGIONAL TRAVEL AGENT CONFERENCE
THE first regional travel agent conference will field hard-hitting topics such as ‘Can you handle the truth?’, ‘Can you handle online?’ and the satirical, ‘How to lose clients and win complaints’.
Aside a critical examination of what travel agents must do to remain relevant, it will be packed with practical How-Tos, in line with its aim of ensuring agents walk away with real learning points. These topics include ‘How to retail travel today’, ‘How to buy travel today’, ‘How to achieve customer service excellence’ and ‘How to customise travel’.
Speakers include keynoter Hans Lerch, CEO of Hotelplan Switzerland, who will paint a macro picture of the future of the travel agency business; Martin Symes, CEO of WEGO, who will guide agents on how they can make money from online; Hui-Wan Chua, senior regional director Asia, Travelport, who will show agents how to be effective in travel retailing; and Charee Guico, manager Travel Agent Distribution, South-east Asia, Expedia, who will explain how agents can buy travel more effectively in today's world of multi-channels.
Arthur Kiong, managing director hotel operations Asia-Pacific, and senior vice president group marketing services, Banyan Tree Hotels & Resorts, will show how customers are changing and the key areas agents need to reboot in order to service the more sophisticated, demanding and empowered clients of today.
Sheldon Hee, general manager, Tradewinds Tours & Travel Singapore, will look at conduct, ethics and professionalism, an essential component in customer relationship management. Yet another session will give agents insights into how new dream merchants, such as John Sutherland, CEO Dreamscape Journeys, who sells space travel, get their ideas for unique travel experiences and how they get the clients to buy these ideas.
Registration for the free conference will open on August 19 on a first-come-first-served basis to TTG Asia readers and ITB Asia delegates (travel agents get first priority). To register, please visit www.ttgasia.com and click on the button at the top of the page (Register: TTG Asia Travel Agent Conference), which will be up from August 19.
TTG Travel Agent Conference, a collaboration between TTG Asia Media & ITB Asia, will be held on October 21, 2011, from 9am-12pm, at Suntec Singapore Ballroom 1.
Aside a critical examination of what travel agents must do to remain relevant, it will be packed with practical How-Tos, in line with its aim of ensuring agents walk away with real learning points. These topics include ‘How to retail travel today’, ‘How to buy travel today’, ‘How to achieve customer service excellence’ and ‘How to customise travel’.
Speakers include keynoter Hans Lerch, CEO of Hotelplan Switzerland, who will paint a macro picture of the future of the travel agency business; Martin Symes, CEO of WEGO, who will guide agents on how they can make money from online; Hui-Wan Chua, senior regional director Asia, Travelport, who will show agents how to be effective in travel retailing; and Charee Guico, manager Travel Agent Distribution, South-east Asia, Expedia, who will explain how agents can buy travel more effectively in today's world of multi-channels.
Arthur Kiong, managing director hotel operations Asia-Pacific, and senior vice president group marketing services, Banyan Tree Hotels & Resorts, will show how customers are changing and the key areas agents need to reboot in order to service the more sophisticated, demanding and empowered clients of today.
Sheldon Hee, general manager, Tradewinds Tours & Travel Singapore, will look at conduct, ethics and professionalism, an essential component in customer relationship management. Yet another session will give agents insights into how new dream merchants, such as John Sutherland, CEO Dreamscape Journeys, who sells space travel, get their ideas for unique travel experiences and how they get the clients to buy these ideas.
Registration for the free conference will open on August 19 on a first-come-first-served basis to TTG Asia readers and ITB Asia delegates (travel agents get first priority). To register, please visit www.ttgasia.com and click on the button at the top of the page (Register: TTG Asia Travel Agent Conference), which will be up from August 19.
TTG Travel Agent Conference, a collaboration between TTG Asia Media & ITB Asia, will be held on October 21, 2011, from 9am-12pm, at Suntec Singapore Ballroom 1.
Subscribe to:
Posts (Atom)