Tuesday, February 28, 2006

“The MAS Way : Business Turnaround Plan”

Addendum to “The MAS Way : Business Turnaround Plan”

This Business Turnaround Plan document is issued to staff and also external stakeholders with the following disclaimer in line with Bursa Malaysia ruling:

These headline KPIs in the scorecard are targets or aspirations set by the company as a transparent performance management practice. These headline KPIs shall not be construed as either forecasts, projections or estimates of the company or representations of any future performance, occurrence or matter as the headline KPIs are merely a set of targets/aspirations of future performance aligned to the company’s strategy.

Any financial figures referred to as ‘forecast’ and ‘estimates’ in the Business Turnaround Plan for all intent and purposes are KPIs (as defined in point 1 above). Therefore they should also be treated as targets or aspirations set by the company as a transparent management practice.
It is our view that because the airline industry is undergoing a tough business environment and MAS is not spared from it, it is only appropriate that we disclose information to the public as balanced and as fair as possible. It should be pointed out that when MAS announces its improvement turnaround amounting to RM 1.1billion in 2006, this does not necessarily mean that MAS will make a profit in 2006.

Finally, based on recent trends, it is our view that the information regarding our business turnaround is in all likelihood to leak, therefore issuing the document upfront to external stakeholders is a far better way to manage corporate information disclosure.

This Business Turnaround Plan and its targets have been approved by the MAS Board of Directors, but are not to be considered as forecasts reviewed by external auditors.

The reference to the 3 options for the domestic aviation sector on page 38 should be ignored as the Government is currently reviewing its policy.

27 February 2006

Managing Director’s Office , Malaysia Airlines, 1 st Floor, Admin Building 1, MAS Complex A, Sultan Abdul Aziz Shah Airport , 47200 Subang, Selangor Darul Ehsan , Malaysia . Tel : 603-7840 4801 Telefax : 603-7843 9400 SITA: KULDZMH


Post a Comment

<< Home

eXTReMe Tracker