MAS, was MH370 (9M-MRO) really air worthy? After possibly losing 239 souls, it is incumbent on MAS or aviation investigators to at least check the authenticity of two pictures posted by blogger peopleinsider. The pictures of MH370 (9M-MRO) were snapped by one Eric Lew on March 2, 2014, at Hong Kong International Airport and sent to the blogger. The picture of the MH370 Boeing 777 appears to show a damaged aircraft tail. According to the blogger, Lew had sent the picture after he realised that it was the missing MAS jet. Lew, upon zooming in on MH370’s tail, noticed its uneven surface. Lew hopes aircraft experts or engineers can clarify whether the tail was damaged with a dent or did it look normal. Was MH370 (9M-MRO) in good condition to fly? Lew took the pictures on March 2, 2014. The ill-fated MH370 with 239 passengers and crew went missing at 1.07am March 8, 2014, about an hour after taking off from the Kuala Lumpur International Airport enroute to Beijing. Photo Taken by Eric Lew on the 2nd March 2014. Meanwhile, MAS woes continue to mount and its corporate image thrashed beyond dizzying heights. Last week, MAS jets were hit by two flight safety-related incidents. Flight MH066, bound for Incheon, South Korea, on March 23, was diverted to Hong Kong due to a faulty aircraft generator which affected the plane’s electricity supply. Fortunately for the 271 passengers and crew, an auxiliary power unit had continued to supply power to the A330-300 jet to land safely in Hong Kong. On March 21, another MAS flight encountered problems landing at the Tribhuvan International Airport (TIA) in Kathmandu, Nepal. Carrying 180 passengers and crew members, the aircraft was reportedly struck by a flock of ducks as it touched down on the runway at 10.45pm, leaving the southern tip of Runway 02 strewn with broken glass. And, allegations of second class treatment have unfolded with Sarawak Report’s article titled “Staff Families Claim They Are Treated As ‘Worth Less’ By Malaysia Airlines”. MAS has responded, explaining that for now each family will receive US$5,000 hardship allowance. MAS has denied allegations that families of passengers were getting US10,000. This negative perception would have been avoided if MAS had been transparent and open about its public-relations affairs, instead of having to resort to damage-control responses. And signs of legal address have started to strike MAS with Bloomberg reporting that a father of a passenger who was on board MH370 filed an application with a US court, seeking 26 kinds of information and records from the airline and Boeing on the ill-fated aircraft. The request put in by Januari Siregar – father of Indonesian passenger Firman Chandra Siregar – which was filed in the Illinois state court in Chicago could be a prelude to the filing of a lawsuit. It was filed by Chicago-based Ribbeck Law Chartered on behalf of Januari. The list of 26 includes data on possible defects in the missing Boeing-built 777-200 ER or its component parts, the airline’s training of its crew, and information about its cargo, Bloomberg said. A partner of the law firm Monica Kelly was quoted as saying that Januari is seeking that “possible design and manufacturing defects that may have contributed to the disaster”. MAS and the Malaysian government’s inability to respond to a Reuter’s query that the national air carrier would need another round of mammoth bailout to stay afloat is telling. According Reuters, even before the loss of flight MH370, MAS was bleeding cash, prompting talk that it may need another financial rescue from state investor Khazanah Nasional Bhd, its majority shareholder. The flag carrier’s cash and short-term investments at end-December were close to US$1.2 billion (RM4 billion) – less than its average operating costs of the two previous quarters, and a signal that it may soon need fresh funding or bank loans. MAS, Southeast Asias fourth-largest airline by market value, has had negative operating cash flow for three years – which means it is not generating enough cash to meet its day-to-day operating costs – and has had negative free cash flow, operating cash flow minus capital expenditure, for six years. No one has yet calculated the cost to the airline of the lost plane, which is now assumed to have crashed into the Indian Ocean with 239 passengers and crew on board. While the plane was insured, there will likely be compensation payouts to the relatives of those who died. “What this accident is going to create is an acceleration of the downward trend that we’ve seen at MAS for years, and the need to restructure, Bertrand Grabowski, who heads German bank DVBs aviation and land transport finance divisions, said. “The only way out is shrinking, in terms of capacity and route network.” MAS declined to comment on its financial situation. CEO Ahmad Jauhari Yayha told a briefing that it was “a very painful period for the airline”. Until flight MH370 vanished, MAS had been looking to break even this year. In February, Ahmad Jauhari, a triathlete and long distance runner, said the airline expected further pressure on its yields – passenger revenue per seat – and would try harder to cut its structural costs and improve productivity. Khazanah, which owns 69 per cent of MAS, backed the recent rights issue. In 2012, Khazanah had tried to cut its stake in the airline, but the powerful Malaysian Airline System Employee Union (MASEU), which represents the airline’s 20,000 workforce, rejected a share swap deal with AirAsia. “Khazanah will have to support MAS (just) as Temasek backed Neptune Orient during the financial crisis,” an investment banker, referring to the Singapore state investor’s support for the local shipping firm’s 2009 rights issue, said.
Posted on: Fri, 04 Apr 2014 08:39:11 +0000
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