Showing posts with label MH370. Show all posts
Showing posts with label MH370. Show all posts

Friday, March 17, 2017

Malaysia vs North Korea: There Is No Such Thing As FOC


Published by The Malay Mail on 13 March 2017. 
Malaysia will count on its international allies if the diplomatic situation with North Korea goes south, Datuk Seri Hishammuddin Hussein said today.
The defence minister said Malaysia may not have enough military assets compared to Pyongyang if the two countries went to war, but it has other ways to counter the reclusive state which has nuclear weapons in its arsenal.
“We will deal with it when the time comes, but don’t think we are only dependent on our own assets,” the minister told the press at the Parliament lobby.
Hishammuddin said Malaysia has its own allies thanks to cordial bilateral relationships with many countries, pointing at the help it received from 26 countries during the search for the missing flight MH370.
See more at: http://www.themalaymailonline.com/malaysia/article/malaysia-will-count-on-allies-if-n.-korea-wants-war-says-defence-minister#sthash.uDa5HJ5K.dpuf

Published by The Star Online on 8 March 2017.
The Government spent about RM456mil in the search for MH370, which disappeared exactly three years ago today.
Transport Minister Datuk Seri Liow Tiong Lai said the underwater sweep over 120,000 sq km of the southern Indian Ocean involved Malaysia, Australia and China. The search was suspended on Jan 17 this year.
"The decision to suspend the operations is in line with the Ministerial Tripartite Meeting between Malaysia, Australia and China which was held in July 2016.
"Through the meeting, the three countries agreed that unless there are new clues or credible evidence available, only then a further search operation will be considered," Liow told William Leong (PKR-Selayang) in Parliament.
Leong had asked to state the costs incurred in the MH370 search, and if a report providing the full information and data will be released.
Read more at: http://www.thestar.com.my/news/nation/2017/03/08/parliament-mh370-search-cost-rm456mil-says-liow-tiong-lai/#suy4QVmfyotvkz6e.99

Tuesday, September 2, 2014

RM6 billion injection of public funds into Malaysia Airlines (MAS) is a bailout or an investment?

Published by The Malay Mail Online on 29 August 2014.

The RM6 billion injection of public funds to turn around the fortunes of ailing national carrier Malaysia Airlines (MAS) is not a bailout but an investment, Prime Minister Datuk Seri Najib Razak said today. Najib said state fund Khazanah Nasional intends to fully recover the RM6 billion investment but that recovery for the ailing national carrier could take longer than the three years envisaged by the restructuring plan announced today.

“This is an investment, not a bailout,” Najib told reporters after the Umno Supreme Council meeting here. “The recovery may take more than three years. But we believe in three years we will see a positive turnaround,” he added. Najib also said that any downsizing of the company will be done in the most humane and compassionate way.

Khazanah announced today that the carrier will trim its workforce by 6,000 although Ahmad Jauhari Yahya will stay on as chief executive until July 2015. He said that a foreign CEO, if hired, will make room for a local eventually. 

Najib also claimed the plan is rooted in making MAS a commercially viable airline, and Putrajaya would need to subsidise MAS if it wants to keep certain routes. The prime minister also said that the airline is being kept alive as Malaysians want MAS as a national carrier.

Read more: http://www.themalaymailonline.com/malaysia/article/rm6-billion-mas-turnaround-plan-is-not-a-bailout-says-najib

Published by Reuters on 29 August 2014.

Malaysia Airlines (MASM.KL) (MAS) will slash nearly a third of its 20,000 workforce and cut back its global route network as part of a radical 6 billion ringgit ($1.9 billion) restructuring following the devastating impact of two jetliner disasters.

The 42-year-old company will be de-listed by the end of the year under the broad revival plan announced by state fund Khazanah Nasional on Friday that aims to bring long-elusive efficiency and global standards to the loss-making carrier.

The 6,000 job cuts were higher than expected by the industry and mark a painful new blow for staff after a traumatic year for the national flag-carrier and the Southeast Asian country. Khazanah, which owns a majority stake in MAS, said it would invest in "re-skilling" those who lose jobs and pledged to set up a panel to improve often rocky relations between unions and management.



Published by Bloomberg on 29 August 2014. By Chong Pooi Koon, Choong En Han and Elffie Chew.

Malaysian Airline System Bhd. (MAS), which lost two jetliners in air disasters this year, will eliminate 6,000 jobs as the national carrier restructures.

Chief Executive Officer Ahmad Jauhari Yahya, whose term was due to end next month, will lead the carrier until July 1, Azman Mokhtar, managing director of majority owner Khazanah Nasional Bhd., said today in Kuala Lumpur. The full impact of the disasters will only be seen in the second half, the airline said yesterday after reporting its sixth quarterly loss.

Sovereign wealth fund Khazanah made a 1.38-billion ringgit ($438 million) buyout offer this month to take Malaysia Airlines private, and the funds are part of 6 billion ringgit it is investing to return the carrier to profit in three years. Prime Minister Najib Razak has said “painful steps” need to be taken to overhaul the airline, which has racked up 4.9 billion ringgit in losses since the start of 2011.

“We believe the fastest way is actually to create a hard reset and create a clean slate,” Azman said. “We needed to have a fresh start because the current MAS, unfortunately the cost structure does not work, unfortunately the revenue has been consistently below its cost.”

The national carrier that traces its beginnings to the 1930s will cut its workforce to 14,000 from 20,000, with Khazanah setting aside funds for retrenchment costs. It’s struggling to repair its image after MH370 vanished in March and MH17 was shot down over Ukraine last month.

CEO Search

As part of the restructuring, Khazanah will review Malaysia Airlines’ services to Europe, renegotiate supply contracts and move the carrier’s headquarters and operations to Kuala Lumpur International Airport, the fund said. It will spend 1.6 billion ringgit on revamp and retrenchment costs.

Khazanah’s buyout will result in the company’s delisting, targeted for completion by year-end. The airline is expected to be relisted in three to five years, Khazanah said. A global search will be carried out to find a new CEO by the end of this year, it said.

Khazanah will invest in a “staggered and conditional basis” over the next three years, it said in a statement. “While funds have been made available, they come with strict conditions, so as to ensure that MAS truly resets its business model and cost structures, in order to be truly sustainable.”

The 6 billion ringgit it is pumping into the carrier is not a bailout, Azman said today as the fund outlined its plans in a 40-page report titled “Rebuilding a National Icon.” Shares of Malaysia Airlines (MAS) were suspended from trading today. They have lost 19 percent of its market value this year.

Tainted Image

“The need to restructure the company was accelerated” after the disasters damaged the brand, Ahmad Jauhari said in a statement yesterday. “Our company has had to undergo a thorough re-examination and re-evaluation in order to reposition ourselves as a stronger and more sustainable Malaysia Airlines for the future.”

The March 8 disappearance of Flight 370, en route to Beijing from Kuala Lumpur with 239 people on board, sparked street protests in Beijing and prompted boycotts by Chinese travelers. No trace of the plane has been found in the world’s longest search for a missing jet in modern aviation history.

The airline’s yields, or measure of ticket prices, fell 4 percent in the second quarter to 21.7 sen, the company said. It filled 73.7 percent of its seats in that period, 6.7 percentage points lower than a year earlier.

Rebuild Sales

“We expected the impact of MH370” on second-quarter performance, Ahmad Jauhari said. “Given that, our team put in much hard work and effort to regain market confidence and rebuild sales. Tragically, just as we were beginning to see signs of recovery in all regions, we were dealt the blow of MH17.”

Flight 17 carried 298 people and was shot down in Ukraine July 17 on a route Malaysia Airlines said was declared safe by the International Civil Aviation Organization. The Ukrainian government blamed the downing on pro-Russian rebels in the country’s eastern part.

Average weekly bookings fell 33 percent immediately after the incident, the airline said yesterday. Unverified images of near-empty Malaysia Airlines planes have circulated on social media since MH17 crashed. The airline will review its European routes, Khazanah said today.

Malaysia Airlines said it retired its older Boeing Co. 737-400 aircraft at the end of June, six months earlier than planned, to save fuel costs and increase productivity. It had a fleet of 127 aircraft at mid-August.

The company’s cash and cash equivalent dropped to 2.38 billion ringgit at the end of June, compared with 3.25 billion ringgit at the end of March, it said.

The net loss widened to 307 million ringgit last quarter from a year earlier, the company said. Revenue fell to 3.59 billion ringgit. The carrier will probably lose more than 1 billion ringgit in 2014 and continue to report losses through 2016, according to analyst estimates compiled by Bloomberg.

Tuesday, April 29, 2014

Why Is Malaysia Hiding Its Report on MH370?


By Clive Irving. Published by The Daily Beast on 28 April 2014.

Day 50 of the search for Flight MH370 has come and gone without one fragment of the Boeing 777 being found. This is extraordinary. The greatest mystery in aviation history eludes explanation in spite of the enormous effort being made in the far reaches of the Indian Ocean.

Two questions prevail over many others: Are enough resources being devoted to the underwater search? Is it realistic to persist with the search during the Southern Hemisphere’s winter when the conditions can only get worse?

A reasonable way of assessing the answers to both questions is to measure the effort against the only similar exercise in recent experience: the search for Air France Flight 447 in the south Atlantic that began in 2009.

First of all, it’s striking that the Flight 447 search was never a continuous and open-ended effort. It was carried out over a period of a little more than two years in four discrete, limited-time operations. The first began immediately after the Airbus disappeared at the beginning of June 2009, and concluded, with a final tally of floating wreckage and bodies, at the end of that month.

The second was carried out for three weeks between July and August 2009. Although this search located nothing, it did provide valuable information that contributed to eventual success. A multi-beam echo sounder attached to the hull of a French research ship mapped the profile of the seabed—a formidable combination of deep valleys, sharp ridges, and sand-covered plateaus—that would greatly increase the efficiency of the autonomous underwater vehicles, UAVs, deployed in later searches. (The British Royal Navy’s HMS Echo has been performing the same sonar mapping work in the search zone west of Perth, Australia.)

The third search, a year later, was divided into two phases and in total lasted from April 2 to May 24, without result. It deployed much more sophisticated deep-water equipment, including a towed Orion deep-water sonar scanner and three highly advanced remote-controlled Remus UAVs from the Woods Hole Oceanographic Institution in Massachusetts. (There has been discussion of sending an Orion, owned by the U.S. Navy but operated by a company called Phoenix International, to Australia to supplement the Bluefin-21.)

The fourth operation, which was again split into two phases, lasted from March 24 until May 13, 2011 and was successful. It was one of the three Remus vehicles, again operated by the Woods Hole team that on April 2 detected a concentration of debris at a depth of nearly 13,000 feet. The recovery of the debris and bodies was made by another vehicle, the Remora III, operated by Phoenix International.

It was only then that the searchers realized that in the first 2009 operation two towed ping detectors, similar to the one deployed three weeks ago in the search for Flight MH370, had passed very close to the debris field without detecting it, which warns us that ping location is far from being a perfected science.

The flight data recorder was retrieved and taken to the BEA headquarters in Paris. Steps were taken to ensure total transparency. The data from the recorder was downloaded in the presence of investigators from Brazil (many of the passengers were Brazilian), the United Kingdom and Germany (both partners in Airbus), the U.S. National Transportation Safety Board, and two representatives from the French judicial system.

It is clear that the search for the remains of the Air France Airbus A330 was carefully planned, systematic and well-resourced, each operation timed for the season when the south Atlantic was at its least challenging in terms of weather.

Of course, the searchers had a boost that the search for Flight MH370 does not have: the early discovery of wreckage. But, even with that advantage, the Atlantic search demonstrated that there is no point in using the most effective deep-diving equipment until the area can be narrowed to a searchable size. Then, and only then, can the technology work—first the location of debris and then its recovery.

In the search for Flight MH370, the Australians seemed confident that they had a sufficiently focused target zone of 154 square miles, hard decisions now have to be made. The single Bluefin-21 UAV could be supplemented by either Orion or Remus-type UAVs, but none has yet been requested and those available would take at least two weeks to arrive, either from Europe or the U.S.

Or, given the likelihood of worsening sea conditions as winter deepens, a decision could be taken to call off the search for at least six months. That would be politically unpalatable, given the very vocal anguish and frustration of the families of the missing. But it would also be realistic.

As well as questions about the future of the search, there are others raised by the persistent lack of transparency in Kuala Lumpur about the crash investigation. 

Last week the Malaysian prime minister, Najib Razak, told CNN’s Richard Quest that an initial report on Flight 370 had been sent to the International Civil Aviation Organization, the ICAO. That was somewhat surprising. It’s not customary for air accident investigation reports to go to the ICAO. It’s the responsibility of each nation’s accident investigation agency to release the reports directly to the public as they see fit, according to long-established protocols that demonstrate the independence of the investigators from both political and industry influence.

As it happens, the case of Air France 447 serves as an international benchmark for the integrity of crash investigations.

Only one month after Flight 447 disappeared, French investigators issued their first brief report. They could not explain the sequence of events leading to the accident, but were able to rule out scenarios that could have fed public alarm and conspiracy theories. The airplane had not broken up in the sky. It had hit the water with great force, but there was no evidence from pieces of wreckage of either fire or an explosion.

Five months later, without any additional physical evidence to work with, the BEA issued an update on their investigation. By then they were able to identify a critical sequence of events—and what had probably triggered them. The Airbus’s speed gauges, external devices called pitot tubes, were vulnerable to icing in turbulent weather at high altitude. Consequently they had given false readings which, in turn, had caused the autopilot system to shut down.

And the BEA was already emphatic about an issue that had suddenly been made urgent by the challenges encountered in searching for the Airbus’s black boxes. Among their recommendations to the European Aviation Safety Agency, EASA, and the ICAO, were:

“To make it mandatory, as rapidly as possible, for airplanes performing public transport flights over maritime areas to be equipped with an additional ULB [underwater locator beacon] capable of transmitting on a frequency and for a duration adapted to the pre-localisation of wreckage;

“To study the possibility of making it mandatory for airplanes performing public transport flights to regularly transmit basic flight parameters (for example position, attitude, speed, heading).”

This was, it should be emphasized, in November 2009.

There was never any doubt about the BEA’s commitment to go public with what they found. They were well aware of the public anxiety that follows a large loss of life in unexplained circumstances.

At the same time though, as they pressed on with their investigation, the BEA was under the increasing scrutiny of four powerful interests, Air France, Airbus, the aerospace conglomerate Thales who manufactured the speed gauges, and the two very aggressive unions that represent French airline pilots.

The investigators were careful to preface their reports with this caveat: “…the investigation is not conducted in such a way as to apportion blame or to assess individual or collective responsibility. The sole objective is to draw lessons from this occurrence which may help to prevent future accidents or incidents.”

The BEA’s final report in July 2012, reflecting the value of the data retrieved from the black boxes, ran to more than 200 pages. It was descriptive, prescriptive, and exemplary in its clarity.

Careful not to blame, it nonetheless left no doubt that that the fate of Flight 447 required urgent action on at least three issues: the flawed speed gauges, Air France’s failure adequately to train pilots to take control after an autopilot failure in the “blind” situation of a night flight, and to equip airliners with live streaming of data that would end the dependency on black boxes in accidents over water. (They also recommended that the battery life of the pingers used to locate sunken black boxes be extended from 30 to 90 days—something that the Florida manufacturer of the Boeing 777’s pingers is now finally offering.)

So, why did the Malaysians not follow this model and, instead of sending their report to the ICAO in Montreal, release it themselves?

Everybody involved in assisting the Malaysians has been very tight-lipped about what is going on.

Boeing staff have been in Kuala Lumpur working alongside technicians from the NTSB. In a statement, Boeing said: “We continue to serve as technical adviser to the NTSB and in that role we have been an active and engaged party to the investigation.” The British, represented by the Air Accidents Investigation Board, AAIB, are equally buttoned-up: They explained that they are there as part of a large international effort because the Boeing 777 was powered by Rolls-Royce engines, but concluded, “it is not appropriate for the AAIB to comment further on the investigation.” Investigators from the BEA spent a week in Kuala Lumpur advising on the organization and operation of undersea searches, but they left late in March.

In any case, the investigation has had no physical evidence to work with. Something as basic as the timeline of Flight MH730 from when it took off to when it was last spotted on radar has never emerged in a form that could inspire confidence—the whole issue of radar coverage and intercepts has been used more to fuel speculation for bizarre theories than to bring dependable detailing to the narrative.

Boeing and the U.S. investigators are in an uncomfortable place. No doubt lawyered up for future liability litigation Boeing is, at the same time, trapped in an investigation that few aviation experts have any confidence in. With the Malaysians in charge, there is a clear risk for Boeing of being compromised by a process that is not sealed off from political influence and agendas.

The Malaysian prime minister did say that the report sent to the ICAO was pressing for the mandatory adoption of live data streaming from airliners, which is rather like a bank manager who has not installed alarms complaining that it was too easy to rob his bank. He did tell Richard Quest that the report might be released this week.

To put it mildly, transparency is not exactly second nature to Malaysian politicians. It’s a single-party state unused to public scrutiny. By sending their first report to the ICAO, the Malaysian politicians can argue that they have shared responsibility for it with the appropriate United Nations agency. In fact, the ICAO is culpable in the inexcusable failure to act on the BEA’s 2009 recommendation that critical performance data should be live-streamed from airplanes flying over water.

Wednesday, March 26, 2014

#MH370 Most people don’t know enough about Malaysia and its government. Here’s what you should understand.


By Adam Taylor. Published by The Washington Post on 20 March 2014.

Malaysia's government is in the spotlight due to its handling of the missing Malaysia Airlines Flight MH370, which disappeared just 40 minutes after leaving Kuala Lumpur en route to Beijing on March 8.

It's an unusual situation for the country. Malaysia doesn't usually make headlines -- it's not a huge tourist destination, like its neighbor Thailand, and it hasn't had a recent disaster like the Philippines or Indonesia. Instead, Malaysia has mostly become known as a quiet success in Southeast Asia in recent years, where GDP per capita was well ahead of Thailand and Indonesia and the economy was expected to grow between 4.5 percent and 5.5 percent in 2014.

Now, with the Malaysian government facing scrutiny from all corners, everyone is beginning to wonder: Is there more to Malaysia than meets the eye?

The geography and history of Malaysia

Look at a map of modern Malaysia and the geography of the place may strike you as unusual. Roughly half of the country exists on the Malay Peninsula, bordering the lowest tip of Thailand. The other part of the country is on the northern part of Borneo island, which it shares with Indonesia. In both of these two parts there are smaller states: the city-state of Singapore, which sits just off the coast of the Malay Peninsula, and Brunei, which is in the Malaysian part of Borneo.

The modern Malaysian state began with the Federation of Malaya's independence from the British Empire in 1957, but the area had been populated for a far longer time -- in Sarawak's Niah Caves in East Malaysia, there's evidence of human remains from 40,000 years ago. The first independent state covering the region is commonly considered to be the Malacca sultanate, an Islamic Malay monarchy that controlled the area from 1400 to 1511, when the city of Malacca was captured by a Portuguese invasion. After a long period of Portuguese rule, the Dutch took it over in 1641, with the British Empire gradually taking over Penang in 1786, Singapore in 1819, and Malacca itself in 1824, ultimately securing control of what would later become Malaysia.

British rule continued until World War II, when Japanese troops were able to overrun the unprepared British authorities and take over the area. After Japan lost the war, the British returned but could not regain the authority they had before due to their war. An anti-colonial insurgency known as the "Malayan Emergency" began in 1948, compelling Britain to create the Federation of Malaya that same year, which in turn became became independent in 1957. In 1963, modern Malaysia was created with the Malaysia Agreement; North Borneo, Sarawak and Singapore joined it in a new independent state, though Singapore would be expelled two years later. (Brunei, which had once been at the center of the Bruneian Empire, remained an independent, and oil-rich, sultanate).

Malaysia's complicated ethnic politics

Toward the end of British rule, the United Malays National Organization (UMNO) emerged as a political force dedicated to protecting ethnic Malays and the Islamic religion. Since independence, the party has been a part of every government alliance.

Today, Malaysia is a constitutional monarchy, loosely modeled after the United Kingdom: The head of state is the Yang di-Pertuan Agong, effectively a monarch elected by Malaysia's traditional Malay rulers. The prime minister is the head of government, officially appointed by the Yang di-Pertuan Agong to lead a majority in Malaysia's lower house of parliament. While the constitution of Malaysia, which came into force in 1957, says all Malaysian citizens are equal, Bumiputera (a designation that refers to the indigenous people of Malaysia, including ethnic Malays) are singled out for special treatment in Article 153. That section of the constitution begins: It shall be the responsibility of the Yang di-Pertuan Agong to safeguard the special position of the Malays and natives of any of the States of Sabah and Sarawak and the legitimate interests of other communities in accordance with the provisions of this Article.

The logic behind Article 153 was that Chinese and Indian immigrants to Malaysia had been favored during British rule, and both had subsequently gained economically while Malays and others remained in poverty. After independence, these economic disparities had begun to cause problems in the country: Singapore's removal from Malaysia was based in part upon a number of race riots that took place in the country between Chinese and Malay groups in 1964, and Kuala Lumpur had its own race riots in 1969. In 1971, economic measures referred to as the “New Economic Policy” (NEP) were implemented to favor Bumiputera, offering them positive discrimination in the civil service and business in a bid to improve their economic standing.

The quiet, yet successful, economy

Under British rule, Malaysia became one of the world's biggest exporters of tin, palm oil and rubber. And as one of the three countries that controls the Strait of Malacca, an important shipping route, it still plays a key role in international trade. High-tech manufacturing has  become a successful part of Malaysia's economy, and Kuala Lumpur is now a global center for Islamic banking. The city is also home to Petronas Towers, which replaced Chicago's Sears Tower (now Willis Tower) as the world's tallest building in 1998 and held the title until 2004.

All this has resulted in a pretty favorable economy. The Doing Business Project recently ranked the country as 6th in its annual rankings, and GDP per capita is higher than neighbors like Thailand and Indonesia.

Despite these good signs, there have been criticisms that the country's ethnic policies were in effect creating a lack of competition and stifling opportunities for non-Bumiputera. The Economist recently noted that 25 percent of the population is thought to be Chinese and to control much of the country's business, while Indians were said to be around 7 percent and overrepresented in professional careers. The magazine warned that Malaysia faces a brain-drain unless more opportunities are put in place for non-Bumiputera ethnic groups.

An angry opposition

As you might expect, 50 years of virtually uncontested rule has resulted in some problems. Writing recently for Bloomberg Businessweek, Joshua Karlantzick argued that the country's ruling coalition only managed to win elections last year due to "gerrymandering, outright thuggery, and opposition parties’ inability to stop squabbling and make connections with rural voters." Despite some minor signs of change, the NEP remains a significant factor in Malaysian political life and its business world, with the ruling parties apparently afraid to alienate the Malay majority who make their base.

The Malaysian government's manner of dealing with opposition leaders also appears to show it's on the back foot. The best-known opposition leader, Anwar Ibrahim, was sent to jail on corruption and sodomy charges in 2000. While the sodomy charges were overturned in 2004 and he was released, Anwar is now facing the threat of jail again on more sodomy charges.

An ethnic Malay and former member of UMNO, Anwar was once deputy prime minister of Malaysia but fell out with leaders. He now leads a multi-ethnic three-party opposition group called Pakatan Rakyat, running on a manifesto that aims to end the NEP ethnic policies and promote a system of meritocracy.

Why this all matters to MH370

The response to the disappearance of MH370 from the Malaysian government and Malaysia Airlines (a state-run company) is seen by many as evidence of a lack of ability among the country's political and business elite -- a result of decades of positive discrimination in favor of Malays and a lack of competition in business and politics. Malaysian officials aren't used to dealing with a free and open press, and they have blundered in their attempts to deflect questions about the plane. While they are no longer suspected of involvement in the plane's disappearance, the fact that two passengers were traveling on fake documents has embarrassed both the airline and the state.

It's possible Malaysia's internal politics could have played a direct role in the plane's disappearance. It's true, for example, that pilot Zaharie Ahmad Shah was a member of an opposition party and distantly related to Anwar (Anwar himself has said that the speculation about political motives was "grossly unfair" to the pilot). The country's Muslim Brotherhood-styled Islamist party, the Pan-Malaysian Islamic Party (PAS), is also a part of Anwar's opposition coalition and increasing in popularity, though speculation about an Islamist-backed terrorist attack remains just speculation.

A more likely problem for Malaysia is that of perception. A country once known for its quietly strong economy is becoming better known as something else: a disorganized, unmeritocratic country completely unable to cope with a real emergency.

[Correction amended 3/25/2014] Link: