Mahathir questions criticism of airline

Mahathir questions criticism of airline

KUALA LUMPUR (AFP): Recent criticism of Malaysia Airline
System's (MAS) declining performance could be part of a campaign
to topple its chairman, Prime Minister Mahathir Mohamad said in
remarks published Saturday.

Mahathir called for a halt to the "bad press" given to high-
flying entrepreneur Tajudin Ramli, saying it was a ploy to
discredit MAS management by those keen to take-over the national
carrier.

"It looks like a campaign to remove Tajudin. If there are
deficiencies, we can criticize but if a campaign is launched to
destroy the MAS management, then we will have an airline which
will fail," he was quoted as saying by The Star daily.

"It is like last year when we had cholera cases, we made such
a noise that people stopped coming and MAS lost 50 million
ringgit. Other countries have cholera all the time, it is
epidemic but it's not in the papers," he added.

MAS, owned 32 percent by Tajudin, has come under fire for
deteriorating standards of service compared to other
international carriers, including delayed flights, poor in-flight
service and meals.

Mahathir denied speculation that Tajudin wanted to sell the
airline as he could no longer manage it.

"I asked him myself and he said he has no intention to sell,
but there are people, perhaps those who are interested, who have
started this rumor to make it seem like Tajudin cannot manage the
company and should sell it," he said.

Mahathir said he was satisfied with MAS' performance and
efficiency since it was privatized and would continue to leave
the running of the airline to its management.

Tajudin acquired the 32-percent stake from the government for
1.79 billion ringgit (US$716 million) in August 1994.

"I have no problems with MAS. It is flying to more
destinations now than before and is making a profit unlike before
when it had to sell aircraft to do so," he added.

On the airline's crew shortages, Mahathir said it was
inevitable due to its rapid expansion, the good job market and
the tight labor situation.

The airline was reported to face staff shortages and personnel
problems over the past 18 months, forcing its 1,000 pilots to fly
additional flights.

On MAS' higher airfares than neighboring Singapore Airlines,
Mahathir said: "If so, then go and use Singapore's and bankrupt
our company."

Aviation analysts had said the MAS' woes were due to it going
through a "major transitional period" and had expressed
confidence that its services would improve over the next two
years.

MAS stock was five sen higher at 6.25 ringgit on the local
bourse Friday.