Airbus alleges US interference in $22 billion Boeing deal
Europe's Airbus accused the White House of derailing open competition by helping Boeing Co win a record aircraft deal in Indonesia as details emerged of a behind-the-scenes struggle over jobs and airplane sales worth almost US$22 billion, reported Reuters.
The European planemaker's sales chief said lobbying over the deal on behalf of President Barack Obama had demonstrated double standards on free-market competition amid an ongoing row between Washington and Europe over aircraft subsidies.
"There's only one superpower in the world and I think we know it isn't France; it is probably represented by President Obama," John Leahy said at a market briefing in Washington.
"When he starts making headlines that he is selling airplanes and how that wouldn't happen without his personal involvement, we are seeing economic distortion and we shouldn't be talking about free and open level playing fields for trade around the world if the US pulls stuff like that."
Last month, Obama showcased an order for 230 jets from Indonesian budget carrier Lion Air worth $21.7 billion at list prices, the largest commercial deal in Boeing's history.
That came months after Airbus, a subsidiary of EADS, pulled off a dramatic coup by landing its own largest order in volume terms for 260 aircraft from American Airlines, toppling an exclusive Boeing customer.
The move prompted Boeing to alter its strategy and match Airbus by refreshing its most-sold 737 model with new engines.
Attending the Lion Air signing ceremony during a nine-day Pacific tour in mid-November, Obama called the deal a "win-win" for US workers and Asian consumers and said his administration and the Ex-Im bank played a key role in facilitating the sale.
The White House said it would support 110,000 industrial US jobs, addressing a key issue in next year's elections.
Analysts say a deal between Lion Air and Airbus would have been a surprise since it has an all-Boeing fleet and Europe's jetmaker has previously tried and failed to win its business.
But lifting the lid on secretive yet fruitless negotiations to invade Boeing's turf a second time, Leahy said Airbus might have won a deal if it had not been for political intervention.
"The CEO and owner of that airline, who has bought nothing but Boeing airplanes, actually came to see me in Toulouse twice to talk about buying the airplanes and in the end told me he had no choice," Leahy said.
"I am not sure what 'has no choice' means, but there seems to have been an awful lot of political interference and I think the White House is very proud of that, taking credit for it, saying it would not have happened without White House intervention. Well, that is probably true, but it doesn't really speak well for freedom of competition and free trade."
There was no immediate comment from the White House. A Boeing spokesman said it never commented on such negotiations.
News of the Lion Air deal angered Airbus, which thought it had pulled off another dramatic coup against Boeing, though analysts do not expect too many defections between rival camps.
A person with direct knowledge of the talks said Airbus had progressed as far as reaching a provisional deal known as a memorandum of understanding with Lion Air, which although non-binding, usually signals an end to the competition.
Lion Air declined comment, but denied bowing to pressure.
"I do not wish to comment on that issue, but all I can say is we did the purchase purely on a commercial basis and we have our independence in doing so," spokesman Edward Sirait said.
Cut-throat competition and diplomatic pressure have defined aerospace for decades as aircraft makers chase business estimated to be worth trillions of dollars over 20 years, shoring up trade balances and protecting high-tech jobs.
Leaked cables published by Wikileaks described lobbying on both sides and selling is seen as a growing part of diplomacy.
As part of the US National Export Initiative, US officials have said that Cabinet officials and even Obama himself would take time to make a commercial sales pitch when travelling overseas in response to what they see as high-level advocacy from other countries such as Germany and France.
French President Nicolas Sarkozy regularly beats the drum for France-based Airbus, as did his predecessor Jacques Chirac, whom newspapers nicknamed the "travelling salesman of France".
Boeing and Airbus compete for aircraft sales worth about $80 billion annually, but the stakes have rarely been higher as airlines scramble for revamped short-haul jets to lock in fuel savings, leading to a series of blockbuster orders this year.
Each side also accuses the other of benefiting from unfair government subsidies. The European Union said on Thursday it had met a deadline for complying with a World Trade Organisation ruling against European government subsidies for Airbus and called on Boeing to rectify its own government aid.
Neither side in the world's largest trade dispute disclosed the steps taken by the EU, but some trade experts doubted they would succeed in putting an end to the long-running spat between Airbus and Boeing.
Monday, December 5, 2011
CORPORATE PLAYMAKERS
Saturday January 1, 2011
Those who will count in 2011
THERE are many interesting personalities who are likely to go on making the news pages in 2011. These are people who have taken up new roles and positions throughout the year, or who had suddenly emerged after a long hiatus from the corporate scene.
Consider Datuk Bakke Salleh, who had been hand-picked by Sime Darby Bhd's board of directors. Bakke, who has a reputation of being highly scrupled, has also made a name for himself as a turnaround specialist of ailing government-linked companies and he sounds like just what the doctor ordered for the troubled Sime.
Another person to keep an eye on is Shahril Ridza Ridzuan, who was made deputy chief executive officer (investments) at the Employees Provident Fund. He has raised the Fund's game, particularly in property investments and some say, more changes could be expected over the course of the new year.
Then there's Datuk Tong Kooi Ong, who has been active in the year. In what was deemed as a rare move, Khazanah Nasional Bhd's UEM Land Bhd has proposed to takeover one of Tong's flagship vehicle property developer Sunrise Bhd to build a leading real estate company not just in Malaysia but the region.
Tongues wagged vigorously that this was part of a plan by Tong to exit his business interests in the country, but he has tirelessly quashed such talk, promising to stay on to help grow the enlarged business and “create value for shareholders and customers.”
Last year also saw the changing of guard at the helm of Petroliam Nasional Bhd, whereby Datuk Shamsul Azhar Abbas became president and chief executive officer taking over from Tan Sri Mohd Hassan Marican. Oil and gas players will be watching closely as to how Shamsul's new initiatives will pan out. These include how the development of new marginal fields will be farmed out and who will be the beneficiaries as well as Petronas' proposed introduction of a new production regime.
Then there are the consummate entrepreneurs to watch as they always seem poised on a big corporate deal. Tan Sri Syed Mokhtar Al-Bukharyand Tan Sri Halim Saad were busy trying their luck to get assets ranging from PLUS Expressways Bhd to KFC Holdings Bhd. Don't rule them out of trying to put together deals just as big this year. Read on for more.
President and group chief executive
Sime Darby Bhd
A well-known figure among the government-linked company (GLC) fraternity as the turnaround maestro for troubled GLCs, Datuk Mohd Bakke Salleh has been busy making sweeping changes at Sime Darby Bhd to restore it back to a stable footing.
Bakke had been roped in by the Sime Darby board to tackle the group's loss-making subsidiaries, particularly the massive cost over-run fiasco in the energy and utilities (E&U) division, which had dragged the group into the red.
Bakke has also been given the greenlight by the “powers that be” to oversee the full restructuring of the conglomerate and restore investors' confidence. The four key thrusts which Bakke will focus on includes the turnaround of its E&U unit, potential maximisation of core businesses, instituting a high performance culture and a review of the company's portfolio mix.
By Jan 1, 2011, Bakke is set to implement the group's two-tier board structure with subsidiary boards consisting of members from the main board, senior management and industry professionals, which some say is akin to the old Sime Darby structure prior to the mega merger (ofKumpulan Guthrie Bhd, Sime Darby and Golden Hope Plantations Bhd) in 2007.
Bakke is looking at revamping Sime Darby's existing six separate divisions into six flagship subsidiaries in plantation, property, motor vehicle, industrial, E&U and healthcare all poised to be undisputed leaders in their area of expertise under a four-year business plan.
He is also expected to put on hold the plan to list Sime Darby's plantation unit in Indonesia on the Jakarta Stock Exchange in 2011. In his previous capacity, Bakke who is a chartered accountant, had managed to turnaround Lembaga Tabung Haji in early 2000. In fact, he was in the midst of listing TH Plantations Bhd prior to assuming his “national service” at Felda Holdings Bhd in 2005.
Bakke was then heavily involved with the on-going reorganisation of Felda units Felda Global Ventures and Felda Holdings Bhd but once again was asked to perform another “national service” at Sime Darby in July last year (2010) as the acting president and group chief executive.
The acting position was due to the fact that the working contract of his predecessor Datuk Seri Ahmad Zubir Murshid would only expire on Nov 26, 2010. To recap, in mid-May 2010 Ahmad Zubir was asked to take a leave of absence by the Sime Darby board pending an investigation into the group's massive losses. - By HANIM ADNAN
Shahril Ridza Ridzuan
Deputy chief executive officer
(investment),
Employees Provident Fund
Shahril Ridza Ridzuan is the central character in the crucial changes that have taken place in the Employees Provident Fund's (EPF) investment profile this year. He has raised the Fund's game, particularly in property investments and some say, more changes could be expected over the course of the new year. More importantly, plans such as investing in UK properties, the takeover of PLUS Expressways Bhd, the massive multi-billion development of the Sungai Buloh land and the merger betweenMalaysian Resources Corp Bhd (MRCB) and IJM Land Bhd will all likely gain traction this year and it would be interesting to watch their progress as well as the impact on the Fund's fat coffers.
Shahril launched into Malaysia's corporate space nine years ago together with comrade Datuk Abdul Rahman Ahmad to boost the sagging position of MRCB, which was strangled by massive debts and on the brink of bankruptcy.
Their appointments to MRCB was also part of a bigger plan to make overMalaysia Inc and move away from owner-run enterprises to professionally managed entities. It didn't take the duo long to come up with a financial restructuring and the ensuing operational changes which saw MRCB sliced and diced into two groups property and construction, and media. Shahril went on to lead MRCB, which core business is property and construction with its flagship project KL Sentral.
Shahril stepped down as group managing director of MRCB in late 2009 and was roped in to lead EPF's investments given his strengths in corporate finance, restructuring, mergers and acquisitions and of course, property development.
Indeed, the EPF which has long held on to a steady yet somewhat wary (it hasn't altered much in terms of new asset classes) investment portfolio has seen more changes over the course of this year than it ever has over a decade. Many attribute it to the quiet push led by Shahril.
For a Fund that has long been visibly driven by its chief executive officer Tan Sri Azlan Zainol, it is noteworthy that since Shahril's entry into EPF, he has taken centre stage in most of the key developments this year. Could bigger things be in store for this professional manager? - By ANITA GABRIEL
Managing director
Khazanah Nasional Bhd
As chieftain of Khazanah Nasional Bhd, Tan Sri Azman Mokhtar needs very little introduction. He is certainly a man to watch, considering the active role that Khazanah plays in the corporate world today.
One of 2010's biggest deals for Azman must surely have been the take-over of Singapore-based Parkway Holdings Ltd. The deal was a challenging one, as Khazanah suddenly found itself pitted against India's wealthy Singh brothers, which had bought a stake and sought to wrest control of Parkway.
A widely publicised battled ensued but Azman and team in the end emerged victorious as they took the prize home and the Singhs bowed out. But the Singh brothers pocketed a handsome profit in the process.
Then there was PLUS Expressways Bhd, a company that had somehow become a takeover target. It is said that Azman had fought hard to ensure that PLUS does not go into the hands of parties who had no track record in running an asset as vital as the country's North South expressway.
Together with the Employees Provident Fund (EPF), Khazanah (via its subsidiary UEM Group Bhd) has offered to buy out PLUS. The deal is close to being done.
Going forward, Azman will have his work cut out in the plans for Khazanah's divestments. Apart from continuing the older mode of selling down its shares in government-linked companies (GLCs), Azman has spearheaded the planned divestment of certain GLCs to entrepreneur-type parties. “It (divestment) has moved beyond just placement of shares. Khazanah will gradually divest its stakes in government-linked companies and not just create more market liquidity,” Azman told reporters recently.
He has also said that strategic divestments and grooming of entrepreneurship were major areas of focus. One of those divestments involves Pos Malaysia Bhd, where Khazanah has a 32.2% stake and has invited bids from different entrepreneurial groups, both local and international.
Various big names are said to have put in bids and Azman has said that he will ensure a transparent bidding process as he wants to make the divestment of Pos Malaysia an “iconic template.”
The Pos Malaysia divestment announcement first came about in March last year but until now, the transaction has not taken place. It has been speculated that the problem lies with the Government dragging its feet with regard to relinquishing its “golden share” in the company, which illustrates the kind of challenges that Azman faces in executing his plans for Khazanah's divestment.
A more recent example of an iconic divestment is that of Time dotCom Bhd (TdC). It was reported that Khazanah's controlling stake is being transferred to a promising entrepreneur, who had already achieved certain benchmarks in turning around the previously ailing TdC.
The market however has yet to be convinced this is the right thing for TdC as seen in the latter's share price. Minority shareholders (excluding Khazanah who won't be voting) will decide on the deal soon and that will indicate if the market believes in Azman's entrepreneurial-driven divestment strategies. - By RISEN JAYASEELAN
Datuk Shamsul Azhar Abbas
President and chief executive officer
Petroliam Nasional Bhd
Feb 10 of this year will mark Datuk Shamsul Azhar Abbas' first year anniversary as Petroliam Nasional Bhd's (Petronas) president and chief executive officer.
Shamsul, who took over Tan Sri Mohd Hassan Marican's position as the Petronas' chief last year, is no rookie to the oil and gas industry having served with the Petronas group since 1974.
He was the president and CEO of Petronas' Malaysian International Shipping Corp Bhd between 2004 and 2009.
Within his first year as Petronas' chief, Shamsul has made changes to the national oil company's strategy by scaling back on exploration works overseas and beefing up domestic exploration instead.
The domestic oil exploration will see Petronas drill deeper for oil and gas in the shallow waters of Malaysia and increase the amount of oil it pumps out from existing wells in the country.
The group's new direction is also to acquire proven oil and gas reserves instead of drilling for them. The fruition of the change in strategy will not be evident immediately and can only be seen in the coming years under Shamsul stewardship.
Aside from that, Petronas took the lead in the newly released tax incentives for the oil and gas sector announced under the Economic Transformation Programme (ETP). The incentives are aimed at boosting the development of oil and gas resources and to stimulate domestic production of petroleum resources to arrest the projected 1%-2% decline in domestic oil and gas production.
Shamsul says that the new incentives could spur the production of 1.7 billion barrels of oil equivalents from 25 marginal fields over the next two decades. The incentives will make developing smaller or marginal fields more commercially viable due to the heavy investments needed.
Petronas says that it will encourage new foreign and local companies to develop these marginal fields and not confine it to the big oil companies.
The new year will put the spotlight on how the development of new marginal fields will be farmed out and who will be the beneficiaries as well as Petronas' proposed introduction of a new production regime.
An idea that is being floated for development of marginal fields is the commissioning of risk service contracts, whereby the contractor who explores and drills the field will bear the investment risks.
Another area of focus for Shamsul will be the review of the gas subsidy borne by Petronas, which stood at RM19bil for its financial year ended March 31, 2010. Petronas subsidises gas for both power and non-power sectors and is working with the Economic Council on how to set-up new gas prices. - By JEEVA ARULAMPALAM
Minister in the Prime Minister's Department and chief executive officer of Performance Management and Delivery Unit
Senator Datuk Idris Jala first came into the public eye in December 2005 when he was appointed managing director and chief executive officer at the then loss-making national carrier, Malaysia Airlines.
The task at hand was not a simple one to steer the cash-flow stricken airline out of its losses of RM1.3bil in a less-than-encouraging economic environment.
But turn around the ailing company, he did by implementing massive cost-cutting measures implemented under his brainchild, the Business Turnaround Plan (BTP1).
The BTP1 turned MAS' nine-month loss of RM1.3bil in 2005 to a record profit of RM851mil in 2007. After that turning point, Jala introduced a bolder five-year business transformation plan also known as BTP2 which aimed to make MAS a world-class five-star value carrier. The BTP2 targets annual profits of RM2bil to RM3bil by 2012.
Before he got to see the BTP2 to the end, Jala was appointed as Minister in the Prime Minister's Department and chief executive officer of the Government's Performance Management and Delivery Unit (Pemandu).
Many viewed the appointment of Jala as head honcho of Pemandu the unit overseeing the implementation of the Government's Key Performance Indicators (KPIs) as apt.
Known for this “turnaround magic” and no-nonsense character, Jala seemed the perfect match to head up the unit and make sure everyone at the administration was performing up to par.
These days, Jala is more known for being the main guy behind the Economic Transformation Programme (ETP) the programme which is expected to propel the country from a middle-income country to a high-income one by 2020.
The ETP has plans to make Malaysia the main Asian hub for oil field services, to clean up and beautify the capital city's rivers, to build a 7km shopping strip with covered walkways as well as to identify sites for the country's first nuclear power plant.
Among the larger projects that will be implemented under the ETP are the mass rapid transit (MRT) system as well as the high-speed rail project between Kuala Lumpur and Singapore. Jala is confident that the projects under the programme will be successful despite criticisms from some quarters.
“This is a private sector-led initiative , if we fail, the private sector has failed,” he once said.
Every Friday, he heads a meeting called PSM (problem solving meeting) to help iron out issues standing in the way of successful implementation and execution of the key projects under the ETP. - YVONNE TAN
Datuk Tong Kooi Ong
Executive chairman
Sunrise Bhd
As a driven and self-motivated entrepreneur, nothing gets Datuk Tong Kooi Ong's adrenalin going as much as a big challenge. And he's had his fair share of that over the years and some say, this streak will continue well into the new year.
Tong founded and built innovative banking group PhileoAllied Bhd which was later divested in a regulator-driven massive industry consolidation exercise.
He then set his eyes on building a media empire. He owns The Edge Communications Sdn Bhd (publisher of The Edge), which he eventually injected into then listed Nexnews Bhd.
In 2003, the ex-banker bought into builder Sunrise Bhd, emerging as its single largest shareholder, throwing out of the window the perception that post-PhileoAllied, Tong has chosen to remain in the backstage of Malaysia's corporate realm.
In 2010, Tong made even bigger news. In January, Sunrise teamed up with Sime Darby Bhd to develop a RM1bil integrated commercial property project in Bukit Jelutong, Selangor. Then in November, in what was deemed as a rare move, Khazanah Nasional Bhd's UEM Land Bhd planned a takeover of Sunrise Bhd to build a leading real estate company not just in Malaysia but the region.
Tongues wagged vigorously that this was part of a plan by Tong to exit his business interests in the country, but he has tirelessly quashed such talk. In fact, he has promised to stay on to help grow the enlarged business and “create value for shareholders and customers.”
He has admitted that he “will be partly responsible for the future UEM Land.” That may be easier said than done as the divergent cultures of these entities, not unlike most mega mergers, is expected to be highly challenging as well as arduous.
The usually buttoned-down T-shirt clad entrepreneur spends most of his time in Vancouver where he also has substantial business interests. He is the chairman of the board and executive committee of Taiga Building Products Ltd, listed on the Toronto Stock Exchange with annual sales of over C$1bil. Given Tong's insatiable appetite for corporate challenges, it would be interesting to watch his moves (and delivery) this year. -
By ANITA GABRIEL
Tan Sri Syed Mokhtar Al-Bukhary
Controlling shareholder of MMC Corp Bhd
Always an active businessman, Tan Sri Syed Mokhtar Al-Bukhary will certainly be someone to watch in 2011. As a perspective of how wide his business empire stretches, here's a quick look at Syed Mokhtar's businesses in the country.
Companies linked to him control the sugar and rice sectors, two ports (Johor Port and Port of Tanjung Pelepas), an airport (Senai Airport), the nation's largest independent power producer (Malakoff Corp Bhd) and water treatment plants (Aliran Ihsan Resources Bhd).
Expansion it seems, is still very much on the cards. Syed Mokhtar has been active last year. Going back just a bit, in late 2009, Tradewinds (M) Bhd, one of his vehicles, acquired a 31.5% stake in the country's sole rice distributor Padiberas Nasional Bhd (Bernas).
Then early in 2010, his DRB-Hicom Bhd received a letter of intent from the Government to provide armoured personnel carriers in a contract that could be worth some RM8bil. Interestingly, DRB-Hicom was also rumoured to be looking to acquire a stake in Proton Holdings Bhd. However DRB-Hicom had since denied such speculation.
Syed Mokhtar has also been in the news last year for the attempts by his flagship MMC Corp Bhd to buy over UEM Group and PLUS Expressways Bhd. It was said that a proposal was put to the Government for this but it was not accepted for reasons not clearly known. PLUS was eventually the target of a takeover by Khazanah Nasional Bhd and the Employees Provident Fund.
And the tycoon may yet pull off a major coup if MMC, and its partnerGamuda Bhd, are given the mandate to construct the country's mass rapid transit (MRT) project. Both companies are front-runners for the RM36bil MRT project, the largest construction job to be awarded under the 10th Malaysia Plan.
A company linked to Syed Mokhtar, Puncak Semangat, was awarded the next generation spectrum, commonly known as 4G or LTE (long-term evolution). The company will be assigned a 20Mhz block each at end-2012. This means that Syed Mokhtar now has the opportunity to enter into the mobile communications world, as LTE is touted as the next big thing in the wireless world.
Also, with Johor poised for new developments stemming from the joint property deals between the government's of Singapore and Malaysia and the progress of the Iskandar project, Syed Mokhtar is bound to feature in all of that, somehow. - RISEN JAYASEELAN
Tan Sri Halim Saad
Businessman and former executive chairman of Renong Group
Former executive chairman of Renong group Tan Sri Halim Saad has been in the news of late making a comeback in the mainstream corporate scene.
Since his exit from Renong Group, there has been little news about his manoeuvres until recently.
Halim recently made an offer to acquire Pizza Hut restaurant operatorQSR Brands Bhd's entire business that includes its controlling stake inKFC Holdings (M) Bhd.
However, his attempts to acquire QSR Brands flopped as Johor Corprejected both Halim and Carlyle Group's takeover bids. Many see his recent involvement in the takeover as an earnest attempt to propel himself back to the country's corporate stage.
Halim is believed to be linked to Asas Serba Sdn Bhd, the company that made a RM50bil bid to take over PLUS Expressways Bhd. That attempt to take over all the tolled highways in the country did not work out for him either after PLUS accepted the RM23bil offer by UEM Group Bhd and the Employees Provident Fund.
He has remained relatively quiet and despite the failed attempts, he may have other plans up his sleeve. Many wonder what he could be eyeing next.
The very well-connected businessman and corporate high-flyer left the defunct Renong in late 2001 following the takeover of Renong/UEM Group by Khazanah Nasional Bhd.
The New Zealand-trained accountant was highly regarded back then not only locally, but also in the international arena. In December 1994, Time International put him on the Global 100 list of under-40 leaders for the next century to watch.
Halim ascended to the throne of government-linked Renong, the parent company of then United Engineering (M) Bhd, which has since evolved into the present UEM Group, in 1990 and remained there as its boss until he was forced to resign in 2001.
When Renong and UEM Group were found to have amassed a staggering debt amounting to almost RM30bil, Khazanah Nasional had to step in. Prior to the rescue, though, it was alleged that Halim could not fulfil a put option of RM3.2bil that he owed UEM for the purchase of Renong shares following the onslaught of the Asian financial crisis.
Group managing director
Gamuda Bhd
Gamuda Bhd group managing director Datuk Lin Yun Ling is surely going to be one busy man this year as the company together with its joint-venture partner MMC Corp Bhd, is a strong contender for the tunnelling works of the RM36bil mass rapid transit (MRT) system.
The tunnelling works is estimated to be worth about RM13bil and the MRT system project is expected to be rolled out as early as July. In fact, the comprehensive plan of the MRT system was jointly prepared and proposed to the Government by the Gamuda-MMC JV.
The JV stands a good chance given Gamuda's track record in undertaking the STORM flood mitigation project in Kuala Lumpur. Gamuda is also the sole Malaysian contractor to date that has delivered an MRT system in Kaoshiung, Taiwan.
While one thing is taking off quite smoothly for Gamuda, another is in a deadlock for nearly two years. The Selangor water restructuring exercise has yet to find any consensus as the disagreements largely hinge on who is the rightful party to consolidate the state's water assets and have control over its operations.
As it stands, the state's water assets are parked under four concessionaires Syarikat Bekalan Air Selangor Sdn Bhd, Syarikat Pengeluar Air Selangor Sdn Bhd (Splash), Puncak Niaga (M) Sdn Bhdand Konsortium Abbas Sdn Bhd. Gamuda owns 40% in Splash.
Apart from this hiccup, the outlook is quite bright for Gamuda as of Malaysia's biggest construction groups, locally and abroad. It plans to bid for more work in the Middle East after recently completing its third project there a RM650mil causeway.
In property development, Gamuda is set for a new era of growth via developments in Vietnam, which have a total gross development value of RM12bil.
Lin joined Gamuda in 1978 as senior project manager and later join the board as managing director in 1981. As a key pioneer founder of the group, Lin brings more than 32 years of experience in civil engineering and construction to Gamuda.
Under his leadership, Gamuda expanded its business focus from construction into infrastructure and property development, all sectors in which the group has dominant positions, both locally and internationally. - By SHARIDAN M. ALI
Azran-Osman Rani and Datuk Eddy Leong
AirAsia X chief executive officer and Firefly managing director
Azran-Osman Rani
There's never a dull moment in the country's airline industry and much of that has to do with the personalities who sit atop these airline companies.
As the battle ground in the sector expands, it would be interesting to watch (another) two key personalities long-haul budget carrier AirAsia Xchief executive officer Azran-Osman Rani and the national carrier's community airline Firefly's managing director Datuk Eddy Leong.
While both airlines operate in different markets, a common denominator for the two chiefs would be the year the companies were formed in 2007. And not just that, the core challenge in 2011 for both men is to up their respective average revenue per passenger per kilometre (yield) and hold load factors up in an environment bursting with more capacity and challenged by rising fuel costs.
Datuk Eddy Leong
For Azran, there's a whole new dimension to the challenge. AirAsia X plans to make its debut on the stock exchange in the second half. As for Leong, Firefly will begin its jet aircraft operations in January. Currently, Firefly only operates turbo-propeller planes out of Subang airport.
It remains to be seen whether the listing of AirAsia X takes off as planned. The capital raised from the listing exercise will be used to buy planes. AirAsia X needs to secure its own financing now, having restructured itself mid last year to become a stand-alone company fromAirAsia Bhd.
AirAsia X has also struggled to secure the rights to several lucrative routes, resulting in a battle of words between Azran and Malaysia Airlines (MAS) managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin last year over the distribution of air rights, specifically for flights to Seoul and Sydney.
The new year looks promising for AirAsia X in terms of securing the much desired Kuala Lumpur-Sydney route, going by the airline's launch of several new routes including Seoul, Paris, and Christchurch over the past few months.
Firefly, a wholly-owned unit of MAS, announced in November that it will take up to 30 B737-800 aircraft from 2010 to 2015 and operate out of Kuala Lumpur International Airport as part of its expansion into east Malaysia now and into the regional markets in future.
Choosing routes will be crucial for Firefly, since analysts say the jet routes may take 1-2 years to break even. Leong will likely focus on domestic trunk routes that have high load potential and are profitable.
Considering that Firefly's immediate competitor will be low-cost carrier AirAsia, it will be interesting to see how Leong will go up against AirAsia group chief executive officer Datuk Seri Tony Fernandes in terms of marketing strategies and pricing fares for similar routes plied by both airlines. - By JEEVA ARULAMPALAM
Shahrol Halmi
Chief executive officer
1Malaysia Development Bhd
AS chief executive officer of 1Malaysia Development Bhd (1MDB), Shahrol Halmi is very much in the driver's seat to steer initiatives for the long-term sustainable economic development and promote inflow of foreign direct investment to Malaysia.
With 1MDB tasked by the Government to act as the main vehicle to channel much-needed foreign direct investment into the economy, Shahrol is literally in the frontline to formulate and seal strategic global partnerships to promote new high-impact growth for the country.
The graduate of Stanford University, who was previously with Accenture Malaysia, is a specialist in value creation with over 13 years' experience in implementing large projects involving government-linked companies (GLCs) as well as financial institutions.
His achievements include a multi-year transformation programme at the Employees Provident Fund as well as planning and executing the merger of Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd to form the then Synergy Drive (now known as Sime Darby), the world's biggest plantation company.
At the helm of 1MDB, Shahrol's principal responsibility is to bring in foreign direct investment and catalyse projects that have high multiplier effects to steer Malaysia into a high economic growth path.
One of the most watched out projects will be the urban redevelopment of the old airport in Sungai Besi to support the Government's plan for Greater Kuala Lumpur to be a new engine of growth.
Named as Bandar Malaysia by 1MDB, the project will focus on liveability as a distinctive urban character for Greater KL as it competes for talent, wealth and investments in the global arena.
Another much-touted project by 1MDB is the Kuala Lumpur International Financial District (KLIFD) in the heart of the city. KLIFD will be a dedicated international financial district promoting Malaysia as an international and Islamic financial centre.
The 34ha real estate development will be an iconic destination and is intended to tightly cluster important banking and financial entities for a new growth momentum. In December 2009, 1MDB announced it would be investing US$1bil in a joint-venture company with Petro-Saudi International Limited. The US$2.5bil joint venture is to spearhead the flow of foreign direct investments from the Middle East and make strategic investments in high-impact projects in Malaysia.
This was followed by a joint agreement with State Grid Corp of China to set up hydro power plants and a massive aluminium smelter in Sarawak, which could involve investments worth US$6bil-US$8bil.
1MDB is also working with Masdar, a wholly-owned subsidiary of Abu Dhabi's Mubadala Development Company focused on renewable energy and sustainability, to jointly explore clean technology projects and investments, including the possibility of building Malaysia's first carbon-neutral city. - By ANGIE NG
Sunday, December 4, 2011
EDUCATION in Logistics & Transport
CILT Professional Qualifications & Standards
The Chartered Institute of Logistics and Transport is the pre-eminent international membership organisation for professionals in our sector. We have 33,000 members working in over 100 countries around the world. More than 5,000 students are pursuing qualifications associated with Institute.
The CILT promotes the highest standards of professional expertise and practice through education, career experience, a comprehensive qualifications framework and continuing professional development.
The Institute’s professional qualifications educate people coming into the sector and provide continuous professional development for those already working in business and government including, but not limited to, work in these areas;
o Supply Chain Networks o Transport & Fleet Management
o Sourcing, Procurement & Purchasing o Bus, Coach & Trolley Bus Operations
o Production Planning & Operations o Trains, Light Rail & Subway Networks
o Manufacturing & Assembly o Ferries, Liners & Cruise Ships
o Warehousing & Retail Distribution o Pedestrian & Cycle Management
o International Trade & Forwarding o Mass Urban Transit Integration
o Freight by Road, Rail, Air & Sea o International Passenger Movement
o Intermodal Integration & Operations o Community Access & Governance
o Inventory Management & Forecasting o Traffic Modeling & Management
o Humanitarian & Disaster Response o Transport Infrastructure & Planning
o International Supply Chain Planning o Highway Design & Maintenance
The professional education and training processes of the CILT are independent, integrated and designed to promote the highest standards of expertise and practice of those working in the Transport & Logistics sectors.
Internationally accredited CILT professional qualifications include;
! The Introductory Certificate in Logistics & Transport for people who have just started, or want to start, working in the industry.
! The Certificate in Logistics & Transport is designed for first line supervisors and managers already working in the field of Transport & Logistics.
! The Diploma in Logistics & Transport is a higher-level qualification aimed at those already working in Logistics & Transport at a middle management level. It is also suitable for professionals entering the sector who studied other disciplines at an undergraduate level.
! The Advanced Diploma in Logistics & Transport is an advanced course aimed at developing strategic decision-making skills in Logistics & Transport for aspiring senior managers. The level of attainment required is equivalent to that of an honours degree
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