Malaysian Airline System Bhd : What is going on?

Malaysian Airline System Bhd, what is going on?

Datuk Seri Najib Razak has said that it might be too late to save Malaysia Airlines (MAS) in its current form, as the national flag carrier struggles to stay afloat following the disappearance of flight MH370.

“We have to look at it from all angles, bearing in mind that Malaysia Airlines is a government-linked company. It's not a private company, so there are certain repercussions in what you want to do in terms of how it is received by the employees and the general public,” Najib told The Wall Street Journal (WSJ).

Based on the financial reports, it is quite easy to identify Revenue - Expenditure equals to profit or loss during the year. Although it is a government link company, I would say it is too obvious that the accounts is making losses on a yearly basis by comparing operating revenue with operating expenditure.

Here are the following findings, it is obvious that,
a) Yearly operation expenditure more than their operation revenue
b) Fixed assets has been double from year 2010 and 2013, bring no impact to sales
c) Borrowing tipple increased from year 2010 and 2013
d) Trade payable with a less credit term offered by vendors

Bringing the attention to the followings :-
a) Are they having problem with the fixed assets?
b) No one really care about operating revenue and operating expenditure.
c) Borrowings purposes is for operating purposes or fixed assets ?

In order to restructure the whole entire company, lets investigate the figure from the MAS, which is Fixed Assets, Operating Revenue, Operating Expenditure and Borrowings. Bear in mind, there would be a lot of speculation on the fixed assets, if the problem does not come from the fixed assets.

Those who worked in MAS, just wonder if they notice any new fixed assets or not which takes about RM12,000,000,000 from 2009 to 2013. With such an amount, approval definitely requires top management so with the borrowings.

There are never be too late to investigate, since they are keeping at least 7 years of record. Going for bankruptcy is not a solution at all, as being a government linked company, government would be responsible for their action, don't we all think? Or else why do we call a company with a government linked company and let them play around with the company? Or some we call it, how could we employ an inexperienced people to run a business.

The nature of airlines itself is although undeniable affected by nature disaster, oil prices, hijacking/terrorism, carrying diseases and etc...but still there is an airline business going on.

 Description  Latest
 Current Assets more than Fixed Assets   No
 Current Ratio more than 1.50 No
 Net Profit before Tax No
 Fast Cash Flow Positive No

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