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Facts About Two Airlines

Posted: 31 May 2011 09:24 PM PDT

Recently I read an article on  MAS and Air Asia. HERE  It prompted  me to take a closer look at MAS from the financial angle.  However instead of comparing to AirAsia I compare the financial statement of MAS with that of SIA. Why SIA and not Airasia ? The reason is  AirAsia being a budget airline has a lower cost structure. Further it is always better to bench mark against a good competitor , isn't it ?

Although one would argue that it is not totally fair to compare the two airlines financial because of the different in companies size and different financial period as SIA financial year ends 31 March and MAS financial year ends 31 December. But in the absence of other info, financial statements comparison serves as a good starting point.

Now let us take a look at the two airlines' INCOME STATEMENTS.

I used exchange rate of 2.2 ringgit to 1 S$. The % shown is % to Sales of various expenses items.

MAS & SIA COMPARISON            
  SIA SIA   MAS    
  $S RM MILLION   RM MILLION
   
  YE31/3/2010 2.2   YE31/12/2010   Note
             
REVENUE 12,707 27,955   12,980    
             
Staff cost 2,155 4,740 17.0% 2,164 16.7%  
Directors Remuneration 5 11 0.0% 4 0.0%  
Fuel cost 4,195 9,228 33.0% 4,384 33.8%  
Depreciation 1,714 3,770 13.5% 373 2.9%  
Armotisation of Intangible assets 43 94 0.3% 33    
Aircraft maintenance 342 753 2.7% 1,467 11.3% A
Commision 317 696 2.5% 487 3.8%  
Landing,parking, & overflying charges 589 1,295 4.6% 246 1.9%  
Handling +in flight meal +crew+passenger costs 1,416 3,114 11.1% 1,389 10.7%  
Rental of aircraft 553 1,216 4.4% 1,607 12.4% B
Material/Oth Engineering 375 826 3.0% 71 0.5%  
Adevertising & Promotion 210 463 1.7% 93 0.7%  
Computer booking system       184 1.4% C
Insurance 58 127 0.5% 60 0.5%  
Compay accomodation / Rental 142 312 1.1% 181 1.4%  
Other Operating Expenses 532 1,170 4.2% 582 4.5%  
  12,644 27815.92   13,324 102.7%  
             
Operating Profit/(Loss) 63 139.48 0.0% (344)  
D
Derivative Gain       139  
E
Finance Expenses (net) -68.9 -152   -138    
Finance Income 49.5 109   71    
Other Operating Income 92 202 0.7% 536 4.1% F
Associated Companies/JV 149 328   18    
             
PROFIT BEFORE TAXATION 285 627   282    

Those highlighted in color : blue and red are items that seems to be defy logic and common sense and are further explored below:

A) Aircraft maintenance

MAS is about half the size of SIA or put in another way MAS has fewer aircrafts than SIA but why was aircraft maintenance so much higher than SIA? SIA uses about 3% of sales to take care the maintenance but MAS uses a whopping 11% of its sales revenue to service the aircraft. AND not only the % to sales was high , the absolute figure was also higher than that of SIA.  I could not help but guess and hopefully I am wrong that someone are  getting really rich at MAS and indirectly the nation's expenses.

 

READ MORE HERE.

 

UMNO’s Unfinished Revolution

Posted: 31 May 2011 04:38 PM PDT

Let me illustrate the stark contrast in character constitution that I refer to.

When Tun Razak died, he had little money. His only liquid asset of any merit was the Magsaysay Award. He didn't have enough funds to finance his medical bills in England. After he died, the government had to step in to give his wife a home for her and her children.

When Tunku Abdul Rahman died he too had no money. A few times he was saved financially by Tun Datu Mustapha.

Let's take the case of a more plebian leader- Khir Johari. When he was alive and in power, all sorts of accusations were hurled at him. I remember looking at a picture of him and his wife donning traditional Chinese costumes wishing the Chinese, Happy New Year. It was probably done in good sport. Towards the end of his life, every one found out he had only one house in Bukit Damansara. Those rights over that house were disputed. In the end he had to leave the house and moved into an apartment. He died in that apartment.

What these examples show is that, by and large, these first generation UMNO leaders were actually of selfless material, enjoying the trappings of power indeed while in office, but taking none after they leave.

Present day UMNO leaders are a world apart. The majority are loud in every sense of the word.

This difference can only be explained by one factor. UMNO has been taken over by leadership of different material who is conditioned by different experiences having less service to the public motives. This may be a shocking admission – but I hope the present day UMNO leadership is aware of the general perception that is getting stronger by the day, that present day UMNO leadership consists of a bunch of sly politicians intent on making hay while it shines.

But certainly, what we could expect is to have those motivations and ideals behind the UMNO of 1946, refined and enhanced. From closed mind to openness, from debilitating traditionalism to modernism. These must the founding principles behind the 'betulkan orang Melayu' drive of Onn Jaafar.

Sad to say, UMNO must bear the primary responsibility over the more or less unchanged mental landscape of Malays in general. UMNO alone is responsible for the regressive ideas of Malays. If they have been sleeping over eons, they now have been given sleeping pills to slumber along while the world passes them over. Over the years, UMNO leadership has caused the motivations and inspirations that moved an entire nation to degenerate into besieged paranoia and parochialism.

So before I go on, maybe it's timely for me to remind Malay readers especially of what Zaaba said some time ago.

READ MORE HERE

 

Perspektif KPRU: Isu kenaikan tarif elektrik

Posted: 31 May 2011 12:59 PM PDT

Kajian Politik untuk Perubahan (KPRU) berasa kesal dengan langkah kerajaan untuk meningkatkan tarif elektirk secara purata sebanyak 7.12% mulai Jun 2011 mahupun pelbagai pihak, termasuk pakar ekonomi telah mengingatkan kerajaan bahawa tekanan inflasi semakin mendesak. Dalam pada itu, kerajaan juga mengumumkan bahawa tarif elektrik di negara ini akan dinaikkan setiap 6 bulan bagi tahun-tahun berikut supaya selaras dengan kenaikan harga gas asli yang dijual oleh Petronas kepada pengeluar tenaga.

Pengumuman kerajaan bahawa 4.4 juta atau 75% pengguna di Malaysia tidak akan mengalami sebarang kenaikan tarif elektrik memang dalam jangkaan. Akan tetapi, kerajaan secara sengaja mengabaikan satu fakta, iaitu harga barangan harian dan makanan akan meningkat susulan daripada pengumuman tersebut. Hal ini kerana pihak industri pengeluaran makanan yang menggunakan sebahagian besar tenaga elektrik dijangka memindah kos berkaitan kepada pihak pengguna.

Pandangan sedemikian juga disahkan oleh ketua ekonomis Ratings Agency Malaysia (RAM) Yeah Kim Leng yang mengatakan bahawa walaupun sebahagian besar isi rumah terlepas daripada kesan langsung kenaikan tarif elektrik, tetapi mereka tetap akan menghadapi bebannya apabila pengeluar dan peniaga memindakan kos yang lebih tinggi kepada pengguna.[1]

KPRU ingin menekankan bahawa kenaikan tarif elektrik dengan kuantum yang tinggi pada ketika inflasi cukup membebankan rakyat adalah kurang wajar. Dalam konteks kenaikan kos atau harga barangan utama dan barangan harian lain beberapa kali sebelum ini, kenaikan tarif elektrik kali ini akan menyebabkan gegaran berganda kepada pengeluar yang akhirnya memindahkan tekanan itu kepada harga barangan pengguna.

Misalnya, mulai Julai 2010, harga minyak RON97 mula dinaikkan sehingga RM2.15/liter pada 2 November 2010, RM2.30 pada 1 Disember 2010, dan RM2.50 pada 4 Januari 2011. Harga minyak RON97 terbaru mencecah RM2.90/liter.

Minyak RON95 mula diperkenalkan dalam pasaran domestik pada 1 September 2009 untuk menggantikan RON92. Harganya bermula pada RM1.75/liter dan seterusnya dinaikkkan kepada RM1.80. Dalam tahun 2010, harga minyak RON95 telah meningkat sebanyak dua kali. Harga terkini minyak RON95 adalah RM1.90/liter, dan dijangka akan naik lagi dalam masa yang singkat.

Dalam tahun 2010 sahaja, harga gula telah naik mendadak sebanyak 55%.  Pada Januari 2010, harga gula hanya berada pada paras RM1.10/kg, kemudian naik sebanyak tiga kali, iaitu 20 sen dalam Jan 2010, 25 sen dalam Julai 2010 dan 20 sen dalam 4 Disember 2010 sehingga RM2.10/kg. Pada 10 Mei 2011, harga gula sekali lagi naik sebanyak 20 sen menjadikan harga runcit sebanyak RM2.30/kg. Ekoran itu, Persatuan Kedai Kopi Wilayah Persekutuan-Selangor telah menaikkan harga minuman daripada RM1.20 secawan kepada RM1.40 secawan mulai 1 Jan 2011.[2]

KPRU ingin memaklumkan bahawa fenomena kenaikan harga bukan sahaja berlaku ke atas barangan tertentu, malah kesannya besar merangkumi sektor yang luas, seperti yang ditunjukkan dalam jadual berikut:

Barangan

Harga  Sebelum 2010 (RM)

Harga 2011(RM)

 

Kenaikan

 

Pakaian cita     30-50%
Tayar Baru 200 210 3-7%
Tayar Celup     10-15%
Minuman panas bancuhan   +0.20 16%
Kacang Kuning 3/kg 5/kg 67%
Kacang 4/kg 7/kg 75%
Kacang Hitam 5/kg 14/kg 180%
Kacang Merah 4/kg 7.5/kg 88%
Kacang Hijau 4/kg 7/kg 75%
Halia 4/kg 7/kg 75%
Cili Kering 7/kg 10/kg 43%
Bawang Putih 4/kg 10/kg 150%
Bawang Besar 1.2/kg 3.2/kg 167%
Kentang 1.8/kg 3/kg 67%
Nescafe dan Milo 30.00 31.50 5-6%
Gula 1.1/kg 2.30/kg 110%
Minyak RON95 1.75 /liter 1.90/liter 11%
Minyak RON97 2.05/liter 2.90/liter 41%

(Sumber: Sinchew Jit Poh, Malaysiakini, 2011)

Ekoran itu, kadar inflasi di Malaysia pada Disember 2010 mencecah 2.2%, iaitu yang tertinggi dalam tempoh 19 bulan.[3] Indeks Harga Pengguna (CPI) kemudian melonjat ke 3% pada Mac 2011, dan seterusnya 3.2% pada April 2011, menjadikan kadar inflasi setinggi 2.9% sepanjang bulan Januari hingga April tahun 2011.[4][5] Perkembangan ini sejajar dengan unjuran dalam Laporan Tahunan Bank Negara bertarikh 24 Mac 2011 bahawa kadar inflasi akan mencatat 2.5%-3.5% bagi tahun 2011.[6] Peningkatan kadar inflasi jelas akan memberikan impak negatif seperti menjejaskan kuasa membeli dan meningkatkan beban kos sara hidup rakyat, terutamanya kepada golongan yang kurang berdaya dan berupaya.

Read more at: http://kpru2010.wordpress.com/2011/05/31/rasionalisasikan-dasar-memihak-korporat-besar-dahulu-sebelum-pemotongan-subsidi-rakyat/

Selayang Pound: SPCA Selangor Urges DVS to Prosecute

Posted: 31 May 2011 12:44 PM PDT


Wed, 18th May 2011, 08:34pm
25 FEBRUARY 2010, SELAYANG – Visits by the Society For The Prevention of Cruelty To Animals (SPCA Selangor) and animal rescuers to the Majlis Perbandaran Selayang (MPS) dog pound in Rawang in the last few days have revealed that the pound is grossly mismanaged, and that almost a dozen dogs have died in the pound since Sunday.

On Sunday, an animal rescuer visited the pound and reported that it appeared the dogs were not being fed or watered. She brought back 5 emaciated puppies, one of which was dying already. The SPCA vets had to euthanise the puppies due to their severe condition, and sent them for a post-mortem at the Universiti Putra Malaysia (UPM) on Monday morning.


SPCA's help declined
SPCA contacted MPS Director of Health and Licensing Dr. Razif Zainol Abidin on Monday morning, offering a supply of dog food and assistance with improving conditions at the pound. However, Dr Razif declined the offers, saying that the MPS had food and did not need help with the pound.

Later on Monday, the SPCA Selangor Inspectors and vet went to the pound, but were denied access to the pound. The caretaker refused to let them in, as he did not want to get into any trouble with the management. However, after some coaxing he allowed them to go in briefly to look around – but warned them not to take any photos. There were approximately 20 dogs and puppies in the kennels, only half of which appeared to be in reasonable health. The kennels and dogs were heavily infested with ticks. Volunteers from animal rescue groups Malaysian Dogs Deserve Better and AnimalCare had brought food and water containers, and bags of dog food earlier and had fed and watered the dogs.


Two dogs lie dead in the MPS Pound on Wednesday morning


"Though the floor had been washed down, there was no evidence that the kennels were disinfected regularly to prevent the spread of prevailing diseases in the pound like distemper, parvovirus, and tick-fever," says SPCA Selangor Veterinarian Dr Karen Koh. There were four dogs in one kennel that looked very ill and emaciated. "Since providing medical care for the dogs is beyond the means of the council, they must ensure that dogs that are severely injured or ill are euthanized by a vet promptly, and not left suffering in these enclosures for days," says SPCA Selangor Animal Inspector Cunera Kimlon.

A second visit was made early Wednesday morning. The gate to the pound was open, and the SPCA team began inspecting the kennels again and taking photographs. The sickly dogs that were seen two days earlier were no longer around. All the puppies had been placed together in one kennel, while the neighbouring kennels housed 2-3 adult dogs each. Food and water placed by animal rescuers was still there. Two dogs were found dead, a brown mix-breed dog and a black Spitz-mix wearing a red collar.

"We were invited to a meeting with Majlis Perbandaran Selayang, to discuss how to immediately improve this miserable situation the pound dogs are facing, but this invitation was immediately revoked upon them learning of our pound visit on Wednesday morning," says SPCA Selangor Chairman Christine Chin. "However, we are still keen on teaching them how to manage their pound better in the short-term and long-term – if they are willing to accept our help. Municipals should be encouraging animal loving constituents to help at the pound, not chasing them out," she continues.



Puppies, some too small to drink from the water container

Read more at: http://cruzinthots.blogspot.com/2011/05/selayang-pound-spca-selangor-urges-dvs.html

 

Kredit: www.malaysia-today.net

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