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.