I am quite shocked that the government has turned down MAS' application to increase its local fares. This is absurd if MAS is to function like a free enterprise. The new managing director must be given a free hand to deal with all issues.

Airline travel is not a critical sector, prices should not be controlled by government at all. This will tie the hands of the new MD in turning around this ailing local GLC. But that is not the only issue that concerns me.

I am puzzled as to why the government still continues to carry on with PMB (Penerbangan Malaysia Berhad) as this is a continuing form of subsidy and therefore a bail out.

PMB is still charging MAS less then the actual depreciation and interest costs and also absorbing the cost of the local operations. It is clear now that PMB is not working out and is costing taxpayer additional cost in terms of administration as well as incidental costs which are not required.

Many of us warned that PMB would not work as it goes against the principles of economic and business sense but it was pursued anyway. Now, nearly five years later, we are proven right but PMB is still being maintained.

PMB was supposed to pursue all sorts of financing as well as asset acquisitions but now that the MAS MD has been given free role to do all this as well as asset disposal, what is the purpose of PMB now?

If the government is serious about turning around MAS without bailing it out, it will have to keep to its word and close down PMB. The government wasted a jumbo-size plane load of cash setting up PMB with all the related advisory costs and incidental expenses. Please don't make the mistake of allowing it to carry on its functionless existence.

Let us not kid ourselves that free market is at play here as it still is not fully. I am sure the MAS MD will fully support this suggestion as otherwise he has no control over cost and strategic planning matters.