Going green

Malaysia Airlines Launches Voluntary Carbon Offset Scheme
June 06, 2008 20:59 PM

PETALING JAYA, June 6 (Bernama) -- Malaysia Airlines Friday launched its voluntary carbon offset scheme, allowing its customers as well as those of its subsidiaries, FireFly and MASwings, to pledge contributions towards reducing the effect of carbon dioxide.

Under the scheme, proceeds from both the customers' contributions and the three airlines would be channelled to a trust fund managed by the Forest Research Institute of Malaysia (FRIM).

Natural Resources and Environment Minister Datuk Douglas Uggah Embas said through the scheme, customers, staff and the general public could become part of the efforts and contribute to the fund.

"This contributions will then be channelled directly to projects, programmes or activities involved in protecting and conserving Malaysian forests, reforestation efforts and promoting the use of solar energy," he said.

His text of speech was read by his deputy Datuk Maznah Mazlan who also witnessed the signing of an agreement between FRIM and Malaysia Airlines to formalise the arrangement under the scheme.

Malaysia Airlines Managing Director Datuk Seri Idris Jala said the project was part of the national airlines' commitment towards promoting environmental responsibility.

Golden Assets

Golden assets

By ANDREW SIA

IT began as Malayan Airways Limited (MAL) in 1947, became Malaysia-Singapore Airlines (MSA) in 1967 and then into Malaysia Airlines System (MAS) and Singapore Airlines (SIA) in 1972.

After its take-off, MAS steadily climbed the commercial aviation stakes in its first 20 years.

Then it encountered serious turbulence after being privatised to Tajudin Ramli in 1994. The turmoil continued until late 2005, when new CEO Datuk Seri Idris Jala pulled MAS out of its nosedive.

In this second and final part of our report on MAS in conjunction with its 60th anniversary, we pay tribute to the airline’s greatest asset: its staff.

IN 1972, the bulk of Malaysia-Singapore Airlines (MSA) staff were based in Singapore and efforts were made to persuade the Malaysian personnel to return to Kuala Lumpur and help set up MAS. But fewer than 200 returned and indeed, this was an unsung act of patriotism on their part because the yet to be launched Malaysia Airline System (MAS) was an uncertain prospect.

“Initially, there were some expats. But we eventually trained thousands of Malaysians as pilots, engineers, flight operations, finance and sales people,” says Lee Shu Poh, 77, who served as MAS customer services manager and then director of operations from 1972–1988.

Faridah Abdul Rahman (in jacket) was a MAS crew trainer for 17 years after serving 12 years as a stewardess.

Bernard Thomazios, 65, who joined in 1972 before retiring as deputy managing director in 1992 adds, “We trained Malaysians to operate our own airline.”

One senior executive who returned says: “I came back as Malaysia needed me. But my former colleagues (who went on to join SIA) all retired as multi-millionaires. Over the years, our salaries in MAS were not that high.”

Nevertheless, MAS has made immense contributions to Malaysian human capital. This included the training of commercial pilots.

And as Captain Hassan Ahmad, 71, the first Malay civil aviation captain, recalls, the route to pilot-hood was long and arduous.

Crowds lining up for MAS job interviews in KL, 1972.

At 16, he was an air cadet and had to cycle from one end of KL to the other for flying lessons (from his home in Sentul to the Sungai Besi airport). After that, he became a teacher based in Tanjung Malim, Perak.

“I had to take the bus or train down to KL every other weekend to do my PPL (private pilot’s licence),” says Hassan. “Later, I managed to get a Colombo Plan scholarship to take my CPL (commercial pilot’s licence) in Jakarta.”

He joined MAL as a pilot in 1962, as one of only two Malay pilots then. By the time he retired in 1992, MAS had trained some 500 pilots.

“By the 1990s, MAS pilots were a proven product,” says Hassan. “We could speak pretty good English. In fact, many of our pilots were taken by other airlines, especially SIA, since the routes were almost the same. Many also joined Air Asia .”

Captain Ahmad Zuraidi Dahalan, 50, the current senior general manager of flight operations, says that many of his colleagues have also left to join airlines in Korea, China (in the 1990s) and the Middle East (in the past few years).

“The pay is better,” he reveals.

To demonstrate how advanced the training is, several journalists are invited “on board” the Boeing 777 flight simulator.

“OK, let’s fly to Port Dickson,” announces Captain Tan Poh Keat, 52, while his son, Tan Chun Wei, 23, is the assistant pilot.

Shortly, we “take off” from KLIA, glimpse the “beach” through the cockpit’s “windscreens”, and return for a perfect landing. It’s the ultimate “video game” (with a180-degree screen) except that the whole cabin tilts and jerks – just like a real flight!

This simulator, one of five that MAS has (they cost between RM40mil and RM50mil each), is a crucial tool in training.

“The training standards are high,” says Zuraidi. “We have a good safety record as certified by IATA (International Air Transport Association) in its Operational Safety Audit. It’s not easy to get that. There are stringent checks.”

What about the air crash of 1995 in Tawau, Sabah?

“That was due to human error. We study human performance, and learn from flight accidents around the world. Airlines share their experiences,” he says.

The pilot's life

One perk for Zuraidi is that his family has seen the world (captains are entitled to free/discounted family tickets) .

“But it's also a tough career as you are often away from home,” he says. “My wife was very understanding and she had to take care of the children by herself. She is the pillar of the family.”

Zuraidi's only son, Johan, used hide his father's cap.

“He was a small boy then and he didn’t want me to go away. He didn’t like my uniform much.”

Both father and son, now sitting side by side in their MAS pilot uniforms, smile at this recollection.

“The pay is good and you get to travel,” says Johan, 22, a first officer. “But we have not flown together yet as my father flies Boeing 747s while I am handling the Airbus A330.”

“Maybe one day,” quips Zuraidi. “My daughters also tease me about they wanting to be pilots.”

At present MAS does not accept female pilots but he thinks that “it’s a matter of time” before this policy changes.

Zuraidi has had to deal with engine failure (luckily, the other three were still functioning!) and even a mentally unbalanced passenger who once tried to open the aircraft door – in mid-flight.

Another father-son pilot team in MAS are the Tans. The elder Poh Keat joined MAS after 17 years in the Royal Malaysian Air Force.

“I used to be a limousine chauffeur (in the sky),” he jokes. “I was piloting the executive jet for VIPs in the Air Force so it was not difficult for me to convert to flying passenger aircraft.”

His son, Chun Wei, has served as a MAS pilot for just three months.

“I was always interested in flying and when my father showed me the cockpit, I was amazed. ”

In attendance

The first interviews in 1972 for flight crew saw hundreds of applicants. Some girls who were barely above the minimum height of 5ft 1in (155cm) resorted to wearing the highest heels and even hot pants beneath slashed maxi skirts, according to Airborne, the 45th anniversary commemorative book of MAS.

Lee, who was then director of customer services, recalls that he would mildly provoke his interviewees.

“ Sometimes I would tell the girls that `Your lipstick colour does not suit you.’ And then we would see how she responded. Some were clever and diplomatic. Others were offended and defensive.”

Alice Nazareth, 54, joined as a stewardess in 1973.

“When I was in Form Six, I saw this MAS van stopping at the traffic lights. Inside, were smiling stewardesses all dolled up in their vivid kebayas. I knew then what I wanted to be.”

The first uniforms, by local designer Andy Chiew, were a navy blue sarong kebaya for air hostesses and western style jackets and skirts (above the knee, ahem) for ground hostesses.

By the 1980s, the shorter skirts had gone maxi and Alice recalls how stewardesses had a choice of brown or green kebaya tops. In 1986, the full kebaya with stylised jasmine flowers and kelarai leaves (which continues till today) was introduced.

Another pioneer was Edmund Read, who joined MAS in 1972 (at a salary of RM250 a month) and worked his way up to Flight Services Manager in the 1990s.

In Airborne, he recalls the early days when barefoot passengers with spears and parangs would sometimes board the aircraft in Sarawak.

“Those were pre-hijacking days. They often brought all their worldly possessions along.”

Other passengers would board the aircraft with ringgit notes, sometimes in baskets, and dole them out to the in-flight crew.

“What else could we do but get ground services to issue them tickets on the spot,” he says.

Faridah Abdul Rahman, 50, who was a stewardess for 12 years (after joining in 1977), remembers that on some flights in Sabah, people would bring whole coops of live chickens on board.

“We were flying (48-seater) Fokkers then and the cargo would be at the back. Sometimes the coops would break and little chicks would be running among the seats.”

“It would be our duty to go and catch them!” chips in Mazlan Mokty, 48, who has been a steward since 1980.

Despite such misadventures, his daughter, Mazrynna Dyanna Mazlan, 26, has also signed up as air crew.

“In fact, about nine of our relatives, including Mazrynna’s brothers and sisters-in-law are flying,” says Mazlan. “There are also other people whose sons and daughters have joined as air crew.”

Nevertheless, there were times over the years when attractive terms of service had to be fought for. A major labour dispute began in December 1979 when staff boycotted overtime work. It grew worse until the Government directed the airline to suspend all flights in February 1980. Soon after, 18 union leaders were arrested under the ISA.

The strike ended in April when the Government raised its salary increment offer from 8.8% to 17.9% but not before the dispute gained international attention when International Transport Workers Federation members supported their Malaysian counterparts by refusing to service a MAS DC10 plane that landed in Sydney. It returned only after the Royal Australian Air Force refuelled it.

Alice recalls those times: “Initially, MAS was a small airline and could not afford so many benefits. But after a few years, we wanted to be on par with other airlines. I remember one of the biggest things we were fighting for was better meal allowances. Some destinations had a high cost of living and we had to pay just as much for food as crews from SIA or Cathay (Pacific).

“During the strike, we would spend time together at the airport and sing songs such as We Will Overcome (made popular by Martin Luther King while fighting for blacks in America during the 1960s),” says Alice. “After MAS gave us generous increments, it still reaped profits. To us, it was about looking after the staff as assets.”

The right stuff

And what assets they turned out to be. Selma Osman, who oversaw stewardesses in 1972, forecasted then that friendly in-flight service and winsome smiles would be the standout features of MAS.

“(It’s) not so much (about being) a sophisticated swinger but rather a sincere, pleasant girl,” she says in Airborne.

That vision has come to pass, what with MAS aircrew having won the prestigious Skytrax World’s Best Cabin Staff Award in 2002, 2004 and 2007.

“It’s not just about looking good and smiling,” explains Faridah, who became a crew trainer for 17 years after her flying days ended. “It’s also about the ability to care, to show compassion. Customers nowadays are more sophisticated and the ability to communicate and meet requests are important.”

In fact, as long as they are in uniform, crew members are expected to be on their best behaviour.

“When walking from the plane to the hotel, the stewardesses should walk in a brisk yet feminine and graceful manner. As for the stewards, they should walk tall, not slouch, with their noses pointed neither upwards nor downwards but straight-ahead,” says Faridah.

While the airline's aim of striving to provide friendly and professional service remains unchanged, times and attitudes, however, have changed.

“In the past, there were few aircraft and we were like a small family. Those were simpler times and we were always together. I remember how we all used to go to Chinese movies (when stopping over) in Taiwan even though some of us could hardly understand any dialogue,” recalls Alice.

“Now the airline has grown so big, and we don’t stick so closely together. There’s also the generation gap. The young are more sophisticated and independent minded.”

On the Tajudin Ramli era and the continuing freefall that MAS was caught in, none of the people interviewed would comment on it – which is telling in itself. Instead, they prefer to talk about the present and the future.

Mazlan, for example, says: “In the past two years, the morale has really gone up. We have a lot of faith in the new management.”

And Zuraidi sums it up nicely, “MAS has gone through ups and downs and we have weathered the storms. But we are here to stay.”

Flying High Once More.(The Star)

Malaysia Airlines has finally pulled itself out of a long tailspin of loss and mismanagement, in time to celebrate the 60th anniversary of its beginnings as Malayan Airways Limited.

By ANDREW SIA

From the “winged tiger” of Malayan Airways Limited (MAL) in 1947 through to the soaring Kelantanese wau kite emblem of today, it has been a momentous 60-year journey for Malaysia Airlines (MAS). And it has endured, for better or worse, as a national symbol through its triumphs and tragedies.

Bernard Thomazios recalls how MAS used to reduce costs by making its own nasi lemak.

After the break-up with Singapore in 1972, MAS had to rebuild virtually from scratch. By 1994, it had established itself as a respected and profitable international airline. And then it was privatised to tycoon Tan Sri Tajudin Ramli.

The airline incurred massive losses and six years later, the Government had to renation-

alise it. Even then, tales of mismanagement continued until MAS was on the brink of collapse in 2005 with losses of RM1.3 bil.

It was then that Datuk Seri Idris Jala was appointed as the CEO. And what a difference two years have made – the airline posted its highest ever profits of RM610mil this year.

How was the rabbit pulled out of the hat? But it was no sleight of hand, just a solid demonstration of what Malaysians can achieve with proper leadership, hard work and thrift.

What a ride, or rather flight, MAS has been.

Lee Shu Poh says, “We developed a culture of thriftiness.”

The early years

Malayan Airways began modestly in 1947 with propeller planes such as 21-seater DC3's with flights from Singapore to Kuala Lumpur, Jakarta, Medan and Saigon. By the early 1960s, jets such as the Comets were added.

Two name changes followed, first to Malaysian Airways Ltd in 1963, and then to Malaysia-Singapore Airlines (MSA) in 1967. The latter was equally owned by both countries and was highly profitable, with destinations including London, Rome, Bombay, Taipei and Perth.

Yet, the two countries had different priorities.

“Singapore was an island and wanted to promote itself through international flights while Malaysia was more interested in domestic services,” Bernard Thomazios, 65, explains in an interview. He was seconded from the Transport Ministry to MAS in 1971 and retired 21 years later as its deputy managing director.

The differences became so bad that the directors were quarrelling like “cats and dogs”, recounts one-time MSA chairman, Robert Kuok in Airborne, the MAS 45th anniversary book published in 1992.

Finally, Malaysia and Singapore agreed to split the airline. According to Airborne, Malaysian Airline System (MAS) inherited 12 smaller aircraft while the five larger Boeing 707s went to Singapore Airlines (SIA). More crucially, Singapore inherited the rights from MSA to fly international routes. In later years, this division was criticised, by former Prime Minister Datuk Seri Dr Mahathir Mohamad and others, as a raw deal from Singapore.

Hassan Ahmad was the first Malay civil aviation captain.

“We only took the 50-seater Fokkers,” says Thomazios. “As for the larger planes, we told Singapore we didn’t want them. We did not have the traffic and were not sure we could translate the planes into profits.”

Captain Hassan Ahmad remembers how, just before the split, the Government sent people to persuade Malaysian staff of MSA (based in Singapore) to return to KL.

“In their briefings, it was clear they (the government officials) were more interested in domestic flights. They didn’t even talk of regional routes. It was a mindset. I realised it was no way to plan a national airline but we were just employees,” says Hassan, 71, the first Malay civil aviation captain who retired as director of flight operations in 1992.

“We even lost the KL to Bangkok route,” recalls Thomazios. “The Thais stopped us from flying because they said it was a Singapore to KL to Bangkok route (belonging to SIA).”

Take off

So were we simply outmanoeuvred due to inexperience and lack of know-how?

“The head office as well as the management, engineering and financial people were all in Singapore,” reflects Lee Shu Poh, 77. He joined MAL in 1949 as clerical staff and worked all the way up to become MAS operations manager (1982-88).

“In 1972, I was the most senior Malaysian at MSA in Singapore. I was also at the Mandarin Hotel briefings to persuade other Malaysians to return. But most chose to remain in Singapore (as they felt they had better prospects).”

Malayan Airways crew of the 1960s.

Despite the handicaps, MAS soldiered on, investing in engineering facilities and six new Boeing 737s. The board of directors was made up mostly of civil servants and, as Airborne recalls, “few believed that this motley team ... could actually create and run a viable commercial airline.”

“We had to buy tables and chairs for our first office,” recounts Thomazios, which comprised two rented floors of the Police Co-op building with two telephone lines.

Airborne quotes Tan Sri Saw Huat Lye, the first chief operating officer (1972–1982):“We were the underdogs.... We had to do everything ourselves, design our logo, decide on toothpicks, learn to create a flight kitchen ... our families did not see us for almost two years. Our home was our office. Every Sunday, every holiday, we worked.”

The slogging paid off. With help from Qantas experts, MAS took off three months ahead of schedule. On Oct 1, 1972, the pre-dawn darkness of Subang Airport’s rubber tree-lined road was lit up by many, many cars and buses carrying VIPs and ordinary citizens eager to watch history unfold.

The airfield became a spectacular stage featuring the new aircraft. At 5.30am, to the beat of rebana drums and rapturous applause, Deputy Prime Minister, Tun Dr Ismail, launched the first MAS flight to Singapore.

Tan Sri Abdul Aziz Abdul Rahman, the then company secretary, says in Airborne, “There were teething problems, delays, etc. It was to be expected.... But it was not long before Malaysians were able to acquire the necessary skills to operate the airline smoothly.”

However, MAS had to negotiate all its international routes afresh and Singapore’s head start as an international aviation hub was a hampering factor.

MAS crew of the 1970s

For instance, on the lucrative “kangaroo route” from Australia to London via South-East Asia, both SIA and MAS were fighting for market share. Thomazios, who spent “half his life” negotiating flight rights, explains:

“Qantas was only operating two KL-Sydney flights a week, so the rules said we were limited to two as well. Why should Qantas fly more when they were already making money from their seven Sydney-Singapore flights (and on to London)?”

“To get two extra flights to Sydney for MAS, I even had to offer Qantas half of the flight revenues. But it was okay because we could take (extra) passengers from Sydney and fly them on the more lucrative KL to London route.”

Making money

MAS managed to be profitable in all its first 20 years, except for 1981. It could even overcome the oil “price shock” (when it quadrupled!) of 1973.

“We watched every cost. Growth had to be planned and steady,” explains Thomazios. “You can’t say, 'Oh SIA is so profitable because they have 747s'. Doesn’t mean we go and order 10 747s also. Planes have to fit passenger demand. Otherwise, you leave them on the ground and you lose money every day.”

Lee adds, “It’s no point running a Rolls Royce when passengers will only pay Proton taxi fares.

Advertisement announcing the birth of MAS in 1972.

“We developed a culture of thriftiness. Buy what you need, not what you want.”

He continues to live by that culture. He shows me his RM45 Casio digital watch and 20-year-old leather shoes.

“They work fine. Why should we show off? Does the watch say who I am?”

Thomazios recalls that MAS kept costs down by doing everything in-house.

“We could make nasi lemak for only 10 or 20 sen per pax. And we sold it to other airlines for RM1 each!”

But other considerations also came into play that overturned good business practice: “The Los Angeles route was glamorous but we were losing our pants. We tried to anticipate growth but sometimes, because of diplomatic relations, we had to do 'national service’ and set up new flights.”

These breezy sarong kebaya uniforms appeared in the 1980s and, with slight modifications, are still worn today.

What about long standing complaints (especially from Sabah and Sarawak) that MAS should have had cheaper air fares to fulfil its objectives of “promoting national integration” and boosting tourism?

“Well, we did offer cheaper flights at night and for groups,” he says.

However, one much appreciated part of MAS was the (government-subsidised) Rural Air Service using small Twin Otter 12-seater aircraft that provided a critical link to isolated villages such as Bario, Long Semado and Ba Kelalan deep in the interior of Sabah and Sarawak.

“Everybody will be waiting for the plane next to the airstrip, as if the ice cream man was coming,” recalls Lee.

In fact, one of those who waited for the plane at Bario was a boy named Idris Jala.

Growth and decay

MAS continued to grow in strength from year to year in terms of routes, aircraft and staff. There were hiccups such as the 1977 crash (all 100 on board were killed) at Tanjung Kupang, Johor, (the hijacker shot the pilots) and the big strike of 1979 (which ended after 18 people were arrested under the ISA).

Nevertheless, by 1985 MAS was so self-assured that it could go for a stock exchange listing. Aziz, who was CEO from 1982–1991, proudly pointed out that 90% of flights departed on time (the rest were 15 minutes late) while profits had soared to RM132mil.

The shares, offered at RM1.80 each, shot up way past RM5 upon listing, a resounding public vote of confidence in the company. The additional funds were invested in expansion plans and by 1990, profits rose to RM224mil.

The company had grown from 900 people in 1972 to 19,000 in 1992, serving over 9 million passengers.

The then chairman, Tan Sri Zain Azraai, said, “We can take pride that no major allegation of financial wrong-doing has ever been made. (Besides that) I also mean intellectual honesty. Officers in MAS, in submitting their views, should not tailor them to what they think their seniors want.”

Zain’s words unwittingly forewarned of what was to come. In 1994, the Government privatised its controlling stake in MAS to tycoon Tajudin Ramli. By 2000, the airline was tottering under the weight of RM9.5bil in debt after a fourth straight year of losses.

The culture of thrift of the early years had been replaced by a spending spree. The MAS Executive Staff Association (Mesa) told the press in 2002, that third parties with “personal links” to certain corporate people were given lucrative contracts to handle services like air cargo, catering, insurance underwriting, a yacht business, off-shore aircraft leasing and IT.

Mesa claimed that the MASKargo scandal was just the “tip of the iceberg”.

The Government renationalised the airline in a highly controversial purchase of Tajudin’s MAS shares at RM8 each, though the market price was just RM3.62.

Tan Sri Azizan Zainul Abidin, the new chairman, frankly disclosed then that MAS’ culture had “fostered abuse, the plunder of the company for personal gains, high cost and inefficiency.” He promised new procedures to plug the “rampant leakages and stop the haemorrhage to protect it from predators.”

In 2002, the burdens of aircraft depreciation, various debts and unprofitable domestic routes were transferred to Penerbangan Malaysia Bhd, the Government’s airline holding company. MAS even lodged a police report against Tajudin for improprieties in MASKargo which had caused the airline to lose some RM1bil.

Even then the haemorrhage continued, and Dewan Negara senators queried the purchase of Botero paintings and asked why a foreign “consultant” was being paid RM7,525 a day.In the first nine months of 2005 alone, the losses were RM1.3bil. So what was to be done?

New helmsman

Enter Idris Jala, then a senior executive with Shell Malaysia, as CEO in December 2005. Relatively unknown, his appointment was somewhat of a surprise and he faced a monumental task: an overstaffed and demoralised MAS that was close to running on empty with the majority of its routes making losses.

Undaunted, he got to work. (See The Idris Jala way on SM6). When a local business magazine asked him last year how “MAS culture” had changed, he answered, “You change culture by doing.”

But some things may not be perfect yet. In mid-2007, there were rumours of employee sabotage apparently over alleged favouritism in giving out incentives, resulting in many missed and delayed flights (even Transport Minister Datuk Seri Chan Kong Choy was affected).

Idris' solution to tackling such residual problems was to have an open door policy and be transparent.

“There is no accountability without transparency,” explains Idris.

And it has gone down well. Says MAS staff trainer Faridah Abdul Rahman; “It’s fantastic. The CEO is online. He gives out his email address and staff can write to him directly. And he replies!”

“It’s the first time it has happened in the company,” testifies Alice Nazareth, a marketing executive, who joined MAS as a stewardess back in 1973.

Another factor is the CEO’s humility.

Mazlan Mokty, a senior steward, says, “When we see him, he doesn’t like us to call him Datuk. He prefers just plain Idris.”

Idris's upbringing must surely play a part. He grew up in the Bario Highlands of Sarawak’s interior, the home of the staunchly Christian Kelabit people.

There were (and still are) no roads and it took more than a week to reach Miri by jungle trail and riverboat.

“My father was a teacher and I followed him on jungle treks for days sometimes. Because of these hardships, we did not take things lightly. As a student I knew that if I wanted to see the world beyond our hills, I had to study hard.

“When the MAS Rural Air Service started flying to Bario, it was like a gift from heaven. If people were not working or at church, they would go to the little airstrip to wait for the plane. I grew up totally loyal to MAS.”

That steadfast belief in the organisation and its people has been rewarded. When Idris announced the turnaround plan in 2005, the business community was not convinced. Now just two years on, MAS has earned the highest profits in its history.

From a morass of low morale and abysmal losses, MAS' makeover – based on accountability, transparency, hard work and thrift –has been nothing short of magical.

The celebration of its 60th Anniversary has shown how Malaysians can aspire to greatness.

History of Malaysia Airlines

The beginning

Malaysia Airlines' humble origins began in the golden age of travel. A joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways led to a proposal to the government of the Colonial Straits Settlement to run an air service between Penang and Singapore. The result was the incorporation of Malayan Airways Limited (MAL) on October 12, 1937.

On April 2, 1947, the first fare paying passengers boarded an MAL Airspeed Consul plane in Singapore that was bound for Kuala Lumpur. By the end of 1947, Malayan Airways had engaged in an expansion exercise to cater to the growing needs of a growing nation. Within three months, MAL broke the borders of domestic service to offer flights to Jakarta, Medan, Palembang and Saigon. A dynamic team of visionaries saw the need for expansion for such a young airline. The era of international travel was coming to Asia and MAL was to be a pioneer in providing regional flight services.

Then, British Overseas Airways Corporation (BOAC - now British Airways), a technology pioneer and a majority shareholder of MAL, provided technical services such as repairs, spares and training, even initiating training for local crew members in the United Kingdom. The presence of BOAC also facilitated MAL's entry as a member of IATA.

Meeting the needs of regional travel also meant expanding the fleet and providing for passenger comfort. Services on the five-seater Airspeed Consul were further enhanced by the acquisition of a 21-seater DC3. The DC3 also heralded the advent of in-flight service in MAL.

A year after the Independence of Malaya in 1957, MAL took the next step in becoming part of the new corporate scene in Malaysia. The participation of BOAC, QANTAS, the government of the Federation of Malaya, Singapore and the Territory of North Borneo launched MAL as a public limited company.

By 1958, the resources that were accumulated from being a public corporation allowed MAL to acquire five more Beaver aircraft and a new Douglas DC4 Skymaster, which went on to pioneer a route to Hong Kong. This was MAL's first flight beyond Southeast Asia.

The process of fleet expansion followed in 1959 when MAL entered the jet age with the purchase of the Vickers Viscount aircraft. The jet age brought about speed and new levels of comfort for travellers. By 1960, MAL had taken possession of a Lockheed Super Constellation, which propelled MAL into other far-flung regions of Asia.

The acquisition of an 82-seater Briston Britania in 1960 made mass transport by air a reality. This led to the first international non-stop service for MAL, which operated directly between Kuala Lumpur and Hong Kong.

Evolution

The sixties was a period of change for the world and for MAL. The formation of Malaysia in 1963 was the catalyst for our company to change its name to Malaysian Airlines Limited (MAL). The formation of a new nation also saw the need for MAL as a national carrier to integrate and connect the far corners of Malaysia.

The governments of Borneo and the Peninsular saw a need for more integration of the nation's transport system. This led to the amalgamation of Borneo Airways with MAL that same year. This resulted in closer ties being forged, and also further fleet expansion with the acquisition of five F27 aircraft.

In 1966, following Singapore's independence, the Governments of Malaysia and Singapore became the majority shareholders in the national carrier. Within 20 years, MAL had grown from a single aircraft operator into a company with 2,400 employees and a fleet operator using the latest Comet IV jet aircraft, six F27s, eight DCs and two Twin Pioneers. In 1967, a new branding exercise saw MAL changing its name to Malaysia-Singapore Airlines (MSA). That proved to be a watershed year -- apart from expanding its international routes to Manila, Perth, Sydney and Taipei, MSA also took delivery of three pioneering Boeing 707s and two F27s to service these new routes and finally set up its new corporate headquarters in Robinson Road, Singapore.

In the late 1960s, MSA strove to keep expanding its reach to even more destinations. MSA made its first flight to Tokyo in 1968 and started serving the route to Bali in 1969. Within a year, Madras and Colombo were also added to the list of international destinations catered to by MSA.

In 1971, the partnership between Malaysia and Singapore was dissolved and Malaysia Airlines Berhad was incorporated in April that same year. With an authorised capital of RM100 million, the company made a final revision to its name in November 1971 and Malaysian Airline System Berhad (MAS) was born.

Modernisation

By 1972, Malaysian Airline System was already servicing 34 domestic routes and six international destinations. In November 1972, Malaysian Airline System became a member of the Orient Airlines Association (OAA) after the 13th Presidential Assembly of the OAA in Sydney, Australia.

By May 1973, the company's rapid growth saw it carrying its one millionth passenger and, bolstered by development in air travel, Malaysian Airline System carried its two millionth passenger by the end of that year. Due to the early forces of globalisation, Malaysian Airline System started to service even more international routes. Popular business destinations including Tokyo, London, Madras, Manila and Sydney were soon introduced while services were added to Amman, Hat Yai, Jeddah, Perth and Taipei. In 1975, the in-flight magazine, 'Wings of Gold', made its debut on all Malaysian Airline System services.

In 1976, Malaysian Airline System entered the information age with the computerisation of its whole operation. The delivery of its first wide-bodied DC10 aircraft allowed Malaysian Airline System to offer new and exciting international destinations. The expansion of the European sector opened a corridor for Malaysian Airline System -- with new services to Frankfurt, Amsterdam and Paris, the passage to the East offered travellers and tourists a new dimension in travel.

In the 1980s, Malaysian Airline System became the first major government agency to be privatised. In 1985, Malaysian Airline System entered the corporate sector by offering 70 million shares for sale. This exercise raised Malaysian Airline System's paid-up capital to RM350 million and brought reserves up to RM227 million.

Previously a government agency, Malaysian Airline System embarked on a system of corporate governance that would ensure the fulfilment of its role not only as a national carrier but also as a corporate citizen centred on being responsible to its shareholders. However, this change in business practice did not change the company's focus on being customer-driven.

As part of its modernisation and expansion drive, Malaysian Airline System also invested in a new maintenance hangar facility and the extension of its catering facilities in Subang. The final stage of the restructuring exercise saw Malaysian Airline System move into its new corporate headquarters on Jalan Sultan Ismail, located right in the heart of the central business district of Kuala Lumpur. The 36-storey building, which cost RM88 million to build, would become the hub of the company's future activities.

Global reach

1986, Malaysian Airline System offered its first flight service to the United States. The service, which ran twice a week to Los Angeles via Tokyo, also saw its first deployment of the brand new Boeing 747-300 Combi aircraft with stretched upper deck. By the end of 1987, Malaysian Airline System had established itself as an international carrier of choice, offering 34 domestic routes and 27 international destinations.

Malaysian Airline System has always been a customer-driven organisation. The introduction of its Esteemed Traveller loyalty programme in September 1987 demonstrated Malaysian Airline System's commitment to customer relationship management. A month later, Malaysian Airline System (MAS) changed its corporate identity and became known as Malaysia Airlines. This reflected its new objectives to create greater awareness of Malaysia and went in line with the government's efforts to make Malaysia an internationally acclaimed travel destination and trading nation.

By 1990, Malaysia Airlines extended its global reach to include more destinations including Guangzhou, Ho Chih Min City, Fukuoka and Pontianak. Flights were added to its London and Tokyo routes to cater to the increased passenger traffic.

In 1991, as part of its fleet modernisation programme, Malaysia Airlines invested RM9.6 billion to expand its fleet of aircraft.

On January 9, 1996, as part of its rationalisation programme, Malaysia Airlines announced the purchase of ten B777-200s, five B777-300s and ten B747-400s from Boeing Aircraft Company at an estimated RM10 billion. The B777s were powered by Roll Royce engines and the B747s by Pratt & Whitney engines.

On April 2, 1997, a new flight was launched to mark the 50th Anniversary of Malaysia Airlines. The newly acquired B777-200 broke two world records; one for the longest non-stop flight from Seattle to Kuala Lumpur, and another for the speed recorded for the journey. This aircraft was named 'Super Ranger'. On April 27, 1997, this aircraft was ferry flighted to Kuala Lumpur.

As of July 30, 2004, Malaysia Airlines has a fleet of 100 aircraft in its network. Currently, with its extensive list of over 100 destinations, passengers can be assured that their travel needs will be catered for when they are abroad. East or West, Malaysia Airlines is there for you.

Moving Forward: A Drive for Change

Breaking the barriers of the new millennium, our fleet of nearly 100 aircraft serves more than 100 destinations around the world. As a pioneer in the industry in more ways than one, we are able to demonstrate our commitment to our customers and partners.

In April 2001, Malaysia Airlines became the first airline in the world to pilot a twin-engine commercial jet through the newly opened polar routes, passing through the inhospitable regions of Russia and North Alaska. Malaysia Airlines' then Managing Director, Dato' Mohd Nor Yusof, together with a team of representatives from Boeing and Rolls Royce, two Russian Air Traffic Control management staff and senior officials from the Malaysian Department of Civil Aviation, journeyed on this historic flight.

These newly chartered routes provide a significant time-saving advantage for passengers who no longer have to travel east to west. Malaysia Airlines takes pride in being the first Asian airline to accomplish such a feat. As part of our expansion, we have recently allied ourselves with Cathay Pacific to provide a code-sharing agreement to enable more weekly flights to Hong Kong.

At a time when collaboration and partnership prevails, Malaysia Airlines has forged many agreements with regional and international airlines to provide various services including catering, maintenance and inter-airline passenger transfers. Malaysia Airlines' efforts have also received awards from various institutions including the Asian Institute of Management and the Boeing Aircraft Company.

Malaysia's former Deputy Prime Minister, Tun Dr. Ismail once echoed the need for Malaysia Airlines to become the foremost airline in the region at the official launch of the first Malaysia Airlines flight in 1972. Since then, the airline has come a long way. Today, Malaysia Airlines has clearly established it