The major hurdles for the ailing Malaysia Airlines (MAS) to return to profitability are its employees' unions, a prominent think-tank said.
Chief executive officer of the Institute for Democracy and Economic Affairs (IDEAS) Wan Saiful Wan Jan said every time efforts were made to reform or restructure the airline towards profitability, the unions would come all out against many of the proposals.
"So I think what we need to do to turn MAS into a profitable company is by taming down the influence of the unions. They are a little bit too influential, too vocal, too powerful. Yes, respect employees' rights as it is absolutely imperative that their rights be respected.
"But the powers of the unions are sometimes not really in line with the interest of the company itself. It is ironic that the staff size in MAS is too big when the company itself is loss-making. Usually, a company will aim at cutting costs when it is not doing well," he told Bernama.
Wan Saiful also criticised the unions for being almost always resistant to change, adding that they should accept change in order for the airline to be saved.
He said for the whole company to be saved, there had to be some difficult decisions made and if the unions kept resisting, nothing was going to work.
Asked what he thought was the crux of MAS's problems, Wan Saiful said the national carrier was way up there in terms of providing superior service even if compared with the likes of Emirates or American Airlines but it was unable to compete in terms of price.
Citing an example, he said for the 45-minute flight to Penang from here, passengers would fly the cheaper option than MAS because it did not matter to them if they were served a sandwich when they could survive without even drinking water on board. Similarly, there is a big difference of a few thousand ringgit extra for passengers flying MAS to Dubai from here compared to Emirates.
"So there is severe cost, there is significant cost competition happening and MAS really has to catch up with that. I think this is the biggest problem, they have to significantly cut costs but for some reason this is not happening," said Wan Saiful.
"Also one of the biggest expenditures has to be on the staff cost and with such strong unions resisting that change, it is just not going to happen."
Wan Saiful also called for the link between MAS as a company or government-linked company (GLC) to be severed.
"It has to be cut off. When you cut that off, then MAS has to run as a company by itself. It cannot be dependent on bailout anymore. If you have to close down, you have to close down and then only some sense of reality should sink into the employees and the unions that you cannot play the political game anymore because you are now just another company and there is no one to protect you anymore.
"If you cut that link, I think there will be some significant changes," he said.
He said for as long as MAS remained a GLC, its employees would always feel that they were safe because whatever happened, the government would always bail them out.
Wan Saiful said the issue in MAS was no longer about what business model to adopt but whether or not there was political will to change.
"And just like everything else in Malaysia, when it comes to political will to take the hard decisions, it doesn't happen," he said.
Bernama
Sun Jul 06 2014
MAS
SPRM lancar bilik gerakan PRK Kuala Kubu Baharu
SPRM melancarkan bilik gerakan, bagi membolehkan orang ramai menyalurkan maklumat serta aduan berkaitan perbuatan rasuah dan salah guna kuasa.
Kerajaan rangka hala tuju beri lebih banyak perlindungan kepada kanak-kanak
Kerajaan akan merangka hala tuju bagi memberikan lebih banyak perlindungan dari segi undang-undang kepada kanak-kanak di negara ini.
Tiada tepung di pasaran tempatan mengandungi benzoil peroksida melebihi kadar dibenarkan - KKM
Tiada mana-mana jenama tepung di pasaran tempatan mengandungi benzoil peroksida melebihi paras yang dibenarkan di bawah undang-undang.
Freedom Flotilla to Gaza: Semua delegasi diminta pulang, FFC akan maklumkan tarikh baharu misi
Menurut Jawatankuasa Pemandu FFC, Ann Wright, pihaknya akan memaklumkan perkembangan terbaharu kepada semua delegasi terlibat sekiranya tarikh akhir pelayaran ditetapkan.
Bytedance enggan jual TikTok di Amerika Syarikat
BYTEDANCE kini mengatakan mereka tidak akan menjual perniagaan TikTok di Amerika Syarikat (AS).
Malaysia komited tingkat hubungan dua hala bersama Libya
Malaysia terus komited mempertingkatkan hubungan dua hala yang berterusan bersama Libya demi manfaat bersama dalam pelbagai sektor.
Cegah jenayah: Kerjasama komuniti kekang jenayah secara holistik
Jelasnya, program seumpama ini diharap dapat memberikan pendedahan tentang pencegahan jenayah dan menzahirkan aspirasi PDRM untuk penglibatan aktif warga komuniti dalam memerangi aktiviti jenayah.
PRK Kuala Kubu Baharu: Boon Lai tarik diri saat akhir
Hasrat Chng Boon Lai menjadi salah seorang calon Pilihan Raya Kecil (PRK) Dewan Undangan Negeri (DUN) Kuala Kubu Baharu tidak kesampaian.
PRK N06 KKB: Kerajaan Perpaduan akan dibebani dengan isu semasa - Muhyiddin
Pilihan Raya Kecil Kuala Kubu Baharu kali ini akan menyaksikan Kerajaan Perpaduan ‘dibebani’ dengan isu-isu semasa yang dilihat membebankan rakyat, tegas bekas Perdana Menteri yang juga Pengerusi Perikatan Nasional, Tan Sri Muhyiddin Yassin.
PRK N06 KKB: UMNO, BN dukung calon PH demi Kerajaan Perpaduan – Ahmad Zahid
UMNO dan Barisan Nasional berpegang kepada prinsip mendukung calon yang mewakili Kerajaan Perpaduan, iaitu Pang Sock Tao, biarpun beliau berasal daripada parti DAP yang pernah menjadi seteru mereka satu ketika dulu.
Hak kanak-kanak pelarian, pencari suaka dapatkan pendidikan dan penjagaan kesihatan perlu dilindungi
Hak mendapat pendidikan dan penjagaan kesihatan adalah antara dua hak asasi kanak-kanak.
COVID-19: Sistem pendidikan perlu lebih bersedia untuk krisis di masa hadapan - IDEAS
Pelan tindakan krisis perlu diformulasikan supaya sistem pendidikan lebih bersedia sekiranya ada lagi kecemasan atau krisis di masa hadapan.
Edarkan peranti elektronik kepada pelajar, tingkatkan PnP melalui televisyen - IDEAS
Lanjutan PKP akan mengakibatkan penutupan sekolah lebih lama, dan memberi impak besar kepada pelajar dari keluarga kurang berkemampuan.
COVID-19: Tingkatkan akses pendidikan kepada pelajar miskin, orang Asli dan pelajar OKU - IDEAS
Menteri Kanan Dr Mohd Radzi Md Jidin dilaporkan berkata, 36.9 peratus murid di seluruh negara tidak mempunyai sebarang peranti elektronik.
#MalaysiaMemilih: Berita sebelah pihak semakin tidak diterima dunia
Media yang hanya menulis berdasarkan satu sumber mungkin hanya memperoleh 25 peratus daripada keseluruhan audien.
Whistleblower: Defisit kepercayaan halang masyarakat salur maklumat - Wan Saiful
Kepercayaan rakyat terhadap badan-badan ini semakin menghakis kerana mereka berasakan ada campur tangan unsur-unsur politik dalam badan ini.
Mampukah Parti Islamik Baharu akhiri polemik golongan konservatif dan progresif PAS?
Tindakan menubuhkan parti baharu oleh kumpulan progresif atau G18 yang tewas dalam muktamar PAS baru-baru ini dilihat sebagai satu langkah yang baik.
Pakatan baharu: Apakah jaminan ia tak akan terkubur juga?
Pakatan baharu perlu dilihat sebagai sebuah pakatan yang tidak bersifat 'ad hoc' atau ia akan terkubur seperti Pakatan Rakyat baru-baru ini.
Cadangan Azmin sebagai MB oleh PAS tindakan yang betul - Wan Saiful IDEAS
Katanya Azmin merupakan calon yang lebih sesuai kerana jika Wan Azizah menjadi Menteri Besar Selangor, banyak persoalan akan timbul.
Kenaikan gaji ADUN Selangor adalah wajar - Wan Saiful IDEAS
Pengarah Eksekutif IDEAS Wan Saiful Wan Jan berkata kenaikan gaji bagi ADUN Selangor adalah wajar supaya ia setara dengan tanggunjawab mereka.