If MAS is to be sold, cast the net wider
Malaysia Airlines Bhd (MAS) is like the Brazilian football team. Almost everybody, from politicians to technocrats and investment analysts, seems to be an expert in how it can improve its services in good and bad times.
The comments on how to improve MAS heighten when it is in trouble, like how it has been since 2001. Everybody seems to be an aviation expert, commenting on what is best for the national carrier.
The bright side is that it underlines the fact that most people care about MAS. The downside is that not many are aware of the non-financial obligations of MAS towards its stakeholders, especially politicians, and the challenging industry dynamics that it operates under.
For starters, the industry is plagued with an overcapacity issue. It’s not only in Malaysia, but also world-wide. Apart from overcapacity, the industry has also been hit by gyrating oil prices that make up between 25% and 30% of an airline’s operating expenditure.
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