Tan Sri Tajuddin Ramli left MAS more than 13 years ago in February 2001 but still gets blamed whenever any negative development on MAS surface. Many forgot that Khazanah had managed MAS for almost a analisa supply demand forex and half. Also forgotten, Tajuddin bought MAS to rescue Bank Negara for Tan Sri Nor Mohamed Yakcop’s RM16 billion forex trading losses.
It provided temporary relief but Khazanah poor management under his leadership made losses bigger and bigger. Tajuddin’s accumulated losses from forex devaluation pales in comparison. Over the weekend, business weekly Focus Malaysia unraveled another side of the WAU scheme that was hidden from the public eye. AIRLINES are eyeing the lucrative aircraft-leasing business but their success will depend on the infrastructure to support the business. Also, the skill sets needed to operate an efficient and profitable leasing company are not necessarily the same skills as running an airline,” says an industry expert. More often than not, airlines rent out unused planes to manage fleets.
Lion Air’s Singapore-based lessor, Transportation Partners, aims to ramp up third-party leasing next year and in 2016 with a focus on China, Brazil, Japan and the United States. 89 bil to buy 35 planes. Nevertheless, the entry of airlines to the leasing business raises questions about whether these budget airlines have the know-how to succeed or if they have simply ordered more planes than they need. 140 bil at current list prices. Essentially, they are competing with established finance firms that lease out aircraft to cash-strapped carriers from China. However some, such as Singapore Airlines Ltd, tried the leasing business but eventually exited.
If successful, the low-cost carriers could in theory take business away from traditional lessors, particularly smaller players. That could put pressure on lessors to cut their rates. It has racked up accumulated losses of RM 1. 92 bil as at Dec 31,2003. A look at its annual financial statements over 11 years shows fluctuating fortunes.
The statements also reveal little information such as to whom PMB leases the planes, at what rates and what other asset it owns. Where has PMB gone wrong that it has suffered losses for six of its 11 years? Will Khazanah ever turn around the company and what are its plans for PMB? As of press time, Khazanah had not responded to FocusM’s queries. In the absence of answers, we can only speculate that PMB is a vehicle that generally buys planes from a third party and not from aircraft manufacturers Boeing or Airbus. However, it is learnt that it provides the executive jets used for the nation’s leaders such as the King and the prime minister. Not everyone wants to buy new planes and can wait for a slot.
This is where leasing companies like PMB come in. PMB is not making money probably because it is not leasing out planes that are sitting idle. It has old planes, which are not what the market wants. Also, you may wish to know how much the planes are leased for.
I don’t see the relevance of PMB. It owns Boeing 777 widebodies, which are in demand. It can lease to cash-strapped airlines in China. PMB should list its fleet size and type as well. PMB is believed to own four Boeing 777-2H6ER aircraft. Incidentally, the missing MAS flight MH370 is a Boeing 777-2H6ER purchased in 2002, with one safety incident recorded in 2012. 05 bil – was restated in its 2011 accounts as being just RM588.