MALINDO versus AirAsia; parasitic UMNO targeting another fat host
Tony Fernandez and a few of his friends, Aziz Bakar from the music industry and the ex- Director General of Transport, Pahamin Rejab and another businessman Kamarudin Meranum bought over the loss-making, debt-riddled AirAsia from HI COM Holdings Bhd (now DRB-HICOM Bhd) for a token sum of RM1. The enterprising group quickly settled the airline’s debts and set about rebranding and re-launching AirAsia as a low-fare carrier. Note HICOM; Mahathir’s once proud creation.
Fernandez until now has manage to hold a tight grip of his control over AirAsia but at times has been a bit arrogant and disrespectful to UMNO who has tried very hard to take over AirAsia but failed. It is good that UMNO has failed to take over AirAsia because the business that Tony built will be destroyed within months of UMNO take over.
UMNO’s businesses failed but UMNO leaders become richer
HICOM has failed in its business endeavors and DRB-HICOM continues to fail until now. Mahathir had high hopes for the UMNOputeras to make it rich and successful and entrusted HICOM to undertake building up the heavy industries in Malaysia. This is a very viable and visionary endeavor but failed miserably because of greed and corruption which is synonymous with UMNO. UMNO people simply do not get it; you are corrupt.
When even our God-given country with all the natural resources and strategic geographical location is now at the brink of bankruptcy, how on earth can a man-made business conglomerate withstand the onslaught of UMNO’s greed and plunder?
Even MAS the national carrier with years of experience owned by the UMNO/BN government through Penerbangan Malaysia Bhd (owned by the Ministry of Finance) and Khazanah Nasional (having about 17 percent control in MAS), failed, but those who were not in the airline business can succeed, UMNO leaders therefore are not happy because none of the UMNOputeras have made it thus far, not even Syed Mokhtar Albukhary whose group is now is in debt to a tune of RM34 billion according to Tony Pua and this story has been written before.
With the various successes of AirAsia under Fernandez that Malaysians are proud of, UMNO looked at Fernandez and AirAsia with jealousy and grudge. It has got nothing to do with the betterment of the Malays or even the country, but UMNO is thinking of the huge amount of money that they can siphon out form AirAsia.
When the share swap between MAS and AirAsia which was an attempt by UMNO to take control of AirAsia through MAS failed, UMNO has no choice but to take AirAsia head on, thus the formation of MALINDO.
UMNO/BN will fail again in business
MALINDO will fail because NADI is an UMNOputera company that is not capable to compete on its own accord without UMNO’s help. Please also remember that none of the UMNO/BN government involvement in any kind of business is successful and all of them need bailouts. But UMNO has no intention of making MALINDO really successful either. MALINDO is only an instrument for UMNO to continue enriching themselves.
There is a long track record of failures by UMNO/BN government taking over businesses and industries. The once successful subcontracting factory manufacturing electrical goods for famous brands owned by a Chinese family was bought over by UMNO/BN and formed the Malaysia Electrical Company (MEC). The now defunct MEC had incompetent top civil servants as its board members who knew nothing about manufacturing and business. They were just proxies for UMNO leaders to get some financial benefits from the company. UMNO is not using these opportunities to uplift the Malays but simply used them to enrich the UMNO leaders and cronies the easy way.
The same thing happened with the Gemas RM250 million NFC debacle where UMNO/BN award it to UMNO cronies and put incompetent civil servants as board members. Even the once hopeful Bank Bumiputera Bhd is now no more because of UMNO/BN.
Remember Perwaja Steel? It was also plundered by UMNO/BN. There was a shipping line owned by Mahathir’s son Mirzan that Petronas bailed out, to make sure that his son did not go bankrupt.
Telcos like Celcom and Emartel (owned by MRCB) too had to be absorbed by Telekom Malaysia. TV3, NTV7, TV8 and TV9 had to be consolidated because of losses. Even TV3’s so-called stable is not making huge profits and not able to contribute to MRCB which at one time owned TV3. So is the New Straits Times group more so at the advent of the internet.
The LRT companies, owned by UMNO cronies were bailed out too. You can bet everything that the KVMRT project from Kajang t Sungai Buloh will be bailed out too, but please do not bet on cutting your precious appendage.
See, it seems that now Proton has to be bailed out by DRB-HICOM who in turn will be bailed out by Maybank. MAS is a classic example of a never ending bail out.
The above list can go on.
Get into it, plunder and bail out; the UMNO way of doing business
The several steps taken by UMNO in doing business and enriching themselves are i) Create a company, award it with huge government contracts or take over a potentially successful business ii) Restructure the company and make it a bit complicated, iii) Siphon the money out by awarding all the procurements and contracts to UMNO people with exorbitant prices thus the huge losses iv) Laugh to the banks; Swiss banks of course v) Keep the company afloat as long as possible using tax-payers money and lie to the people about what is actually going on.
Use the poor Malays and Malay economic dilemma as excuses or the classic rhetoric for “Ugama, Bangsa dan Negara”. Then make sure protect those involved, thus nobody has really been taken to task.
The show the various video clips and montages with patriotic songs on all the pro-government television channels day and night exalting the development done by UMNO/BN government but never mention anything who got rich behind all these projects and developments. The ardent viewers will be fooled into voting for UMNO/BN again. It is very cunning of UMNO.
But now in AirAsia’s case, UMNO is getting a bit innovative by creating a proxy company as a tool to destroy and take control of AirAsia. UMNO will make sure that MALINDO will compete unfairly with AirAsia by offering lower fares and charges, bring AirAsia down and Tony Fernandez to his knees, then either buy AirAsia through MALINDO or let MALINDO fail, take over Air Asia using MAS (like Telekom taking over Celcom) and milk AirAsia dry, just like a parasite, living on another host. As for MAS, like the IPPs, it will be the established conduit to keep the tax payers money flowing into UMNO’s pockets. As for the Indonesian partner is MALINDO, who cares?