Transforming the business “The MAS Way”

Executive Summary

• Radical changes in the global airline industry• Fy2005 MAS reported a loss of over 1.3billion

RM.• Current business assumption, MAS will likely run

out of cash by Apr 2006 & report a 1.7 billion RM loss

• Early Dec 2005 the management team started to develop a plan to reverse the loss and turn MAS to profitability.

“Business Turnaround ”

“Impact of the MAS Business Turnaround Plan”

“How we will do it”Our Business Turnaround Plan

• Flying to Win Customers

Action for 0-9months--Cash & Revenue……….

Action for 9-24months--Cost & Building Capability..

Action for 24-36months--New Opportunities………..

“How we will do it”Our Business Turnaround Plan

• Mastering Operational Excellence

Action for 0-9months--Supplier Contracts……...

Action for 9-24months--Redesign Crew-work…...

Action for 24-36months--Sourcing Opportunities….

“How we will do it”Our Business Turnaround Plan

• Financing and aligning the business on the P&L

Action for 0-9months--Improve cash flow……..

Action for 9-24months--Redesign revenue accounting.

Action for 24-36months--Spin Off….

“How we will do it”Our Business Turnaround Plan

• Unleashing talents and capabilities

Action for 0-9months--New leadership teams………

Action for 9-24months--Launch ESOS……...

Action for 24-36months--Formalise leadership development program…………..

“How we will do it”Our Business Turnaround Plan

• Winning Coalition

Action for 0-9months--Work to manage social obligation……….

Action for 9-24months--Co brands

Action for 24-36months--Partnership with regional airlines………..

The full execution of this plan will take 3 years ----- and continue

beyond