Reading the news on the latest happenings in the Malaysian aviation industry is really mind boggling. I am referring to the proposed establishment of Caterham Jet Sdn Bhd by Tony Fernandes to serve as super premium airline.

One may wonder what is going to happen to MAS. Three months after the share swap deal between Air Asia and MAS, wasn’t any consolidation done yet? Isn’t saving MAS the prime effort now by all its shareholders, including Fernandes, rather than to go and start yet another airline?

For record analysts’ latest comments on MAS said that the quarterly result of MAS is expected to remain in the red for 3Q FY11 ended Sept 30. Analysts do not rule out the likelihood of further losses in the coming quarters.

Initial comments from analyst were mixed on the above news. A fraction agrees that it will not hurt MAS as it is meant for super rich people to fly in a full executive airline. Another group still worries that it will at least hurt MAS’ business and first class sector.

According to normal practice, these two classes are a cash generator as they give higher yield. Thus, if it is cut, obviously that will eventually reduce the overall yield of an airline, which would be the case for MAS too if Caterham Jet comes to play.

People cum tax payers inevitably wonder what the benefit of the share swap deal between MAS and Air Asia as we yet to see or hear any. At the same time adversely what is happening on the ground is not in MAS’ favour.

The operation of Fire Fly is shrinking based on reports that certain routes and flights have been cancelled or abolished. Despite the bleeding situation of MAS, yet she strangely signed a sponsorship deal with the English League’ Queens Park Rangers (QPR).

None of these are helpful to MAS to improve her cashflow. Further on, one also could not resist to argue if the QPR deal is valid at all, taking into consideration that QPR is owned by Fernandes personally, at a time when he is also an executive director to MAS.

As I mentioned earlier that being shareholders of MAS effort should now been concerted to save MAS and this include Fernandes too. Yes, no doubt he is a businessman and hence free to go around entrepreneuring but MAS needs his attention and entrepreneurial expertise too.

So isn’t it more logical to not create any new competition to MAS at this point in time?