Malaysia Airlines will be fully owned by Malaysian Government


August 9, 2014

MAS Restructuring : Leave no stones unturned

by Din Merican

Azman MokhtarWell done, TS Azman Mokhtar for making this strategic move at this time, when Malaysians of goodwill are with our government following MH370 and MH17 tragedies where lives were lost. We look forward to know the details of your plan to restructure our national flag carrier.

We hope you will be tough with the MAS Staff Union, and not allow it to dictate what Khazanah should do in the national interest. So reduce staffing. Deal with crony contracts. Review the routes and financing of aircraft; and appoint competent professionals to manage the airline, and have a truly independent Board of Directors,  and finally please seek the advice of MAS elders like Tan Sri Rama Iyer, Tan Sri Saw Huat Lye, Tan Sri Aziz Abdul Rahman and Dato’ Kamaruddin Ahmad.

All of us want MAS to succeed but the restructuring must be comprehensive so that the rot that has plagued our national flag carrier in recent years can be eliminated. Let us face the moments of truth with a healthy corporate culture. Therefore, make use of this opportunity to start on a clean slate. Let us hope Prime Minister Najib has the political will to make a new beginning for MAS.

Malaysia Airlines will be fully owned by Malaysian Government’s Khazanah

by Thomas Fuller@www.nytimes.com

http://www.nytimes.com/2014/08/09/business/international/malaysia-airlines-to-be-taken-over-by-government.html?ref=asia

BANGKOK — Mired in debt and reeling from two aircraft disasters this year, Malaysia Airlines will be fully taken over by the government as a prelude to a restructuring, the Malaysian government said Friday.

MASKhazanah Nasional, the investment arm of the Malaysian government, formally requested the delisting of the airline in a letter to the Malaysian stock exchange on Friday and offered to buy back shares at a price 12.5 percent higher than Thursday’s closing price.

Malaysia Airlines had been losing money for several years when five months ago, a flight bound for China disappeared, and no trace of the aircraft or its 239 passengers has been found. Just over three weeks ago, another Malaysia Airlines plane exploded over Ukraine, killing almost 300 people.

Khazanah was vague about its plans for the airline, saying only that it intended “to undertake a comprehensive review and restructuring” and that the airline had “substantial funding requirements.” Malaysia’s Prime Minister, Najib Razak, said a “holistic restructuring plan” would be announced by the end of the month.

“This process of renewal will involve painful steps and sacrifices from all parties,” he said in a statement that specifically mentioned the need for support from, among others, the airline’s creditors, raising the possibility of a debt write-down.

The share buyback, which would cost Khazanah about 1.4 billion ringgit, or $437 million, still needs approval by private shareholders, who own about 30 percent of the company. Khazanah’s offer price of 27 sen, 0.27 ringgit, a share appears favorable to stockholders: That price was last reached in February, before the company’s two tragedies.

The disappearance in March of Flight 370 from Kuala Lumpur to Beijing remains a mystery, and a search in the southern Indian Ocean is still underway. On July 17, 298 passengers on a Malaysia Airlines flight from Amsterdam to Kuala Lumpur were killed when a company Boeing 777 was shot down over Ukraine.

The disasters aggravated what was already poor financial performance by the airline, which has lost money for the past three years and has been squeezed by nimbler rivals, like Air Asia, the privately owned, low-cost airline also based out of Malaysia that has grown exponentially since beginning operations more than a decade ago.

Malaysia Airlines, which began as Malayan Airlines, in 1947 during the British colonial period, has suffered a number of sharp losses in recent decades. It has often been managed by business executives close to the governing party, the United Malays National Organization, and was bailed out by the government at least once. Like many other government-linked companies in Malaysia, the airline is saddled with ties to influential contractors connected to the party, which has governed the country since independence in 1957.

The Malaysian government sees the carrier as a national strategic asset. In a statement Friday, Khazanah said the goal of the restructuring was to make the airline profitable but also for it to “serve its function as a critical national development entity.”

Khalid’s Shameful Stonewalling


August 8, 2014

Khalid’s Shameful Stonewalling

“A man’s character is his fate.”– Greek Philosopher Heraclitus. So shall it be with Khalid Ibrahim

by Din Merican

KHALID IBRAHIM

Reasonable men should be disgusted (and Khalid obviously is not) to read that Khalid continues to hold on to the post of Selangor Menteri Besar, despite the fact that his own party, Parti KeADILan Rakyat, wants him to be replaced by Dato Seri Dr. Wan Azizah.

Having lost his Klang divisional post and  having been defeated by his main rival, Azmin Ali, in the contest for the post of Deputy President (official results pending), he shamelessly hangs on to his post. Not to be cowed, he lobbied PAS’ Hadi Awang and Nik Aziz for support  and used the media to vent his frustrations. In the process, he has created a crisis of sorts in the state. Both Hadi and Nik Aziz should know that Khalid’s disagreement with PKR leadership is an internal matter and therefore, they should abstain from making public statements that can put the Pakatan Rakyat coalition at risk.

How desperate can anyone be to cling tenaciously to the post that is no longer his, having lost the confidence of his own party. Khalid conveniently forgets that he was chosen for the job in 2008 and reappointed in 2013 by the party leadership and its members. In our system of parliamentary democracy, we don’t elect the Menteri Besar directly as Americans do in the election of their President. So Khalid cannot claim that he is the Menteri Besar by choice of voters in Selangor. He is, in fact, now a party dissident and his continued defiance of the party and unwillingness to face PKR’s Disciplinary Board to answer charges against him should be dealt with firmly.

Selangor Menteri Besar Abdul Khalid Ibrahim has hit back at PKR, warning the party not to victimise him as its disciplinary board's recent demands "are unreasonable and suspicious".

Selangor Menteri Besar Abdul Khalid Ibrahim has hit back at PKR, warning the party not to victimise him as its disciplinary board’s recent demands “are unreasonable and suspicious”.

Why this defiance? Constitutional lawyer, Tommy Thomas says that “[T]he continued refusal by Khalid Ibrahim to tender his resignation as Menteri Besar of Selangor after losing support of his own political party demonstrates ambition and stubbornness to cling on to office at all costs.”(The Malaysian Insider)

There is more this than just “ambition and stubborness.”  PKR said that as Menteri Besar, Khalid had acted without consulting party leaders on a number of issues, such as water rationing, and the takeover and restructuring of water concessionaires in Selangor, the Selangor Islamic Religious Department (MAIS)’s seizure of Malay-and Iban-language Bibles as well as Khalid’s push for the Kinrara-Damansara Expressway (KIDEX), which was awarded to an UMNO crony company. KIDEX went against Pakatan’s election manifesto to abolish tolled highways.

His Bank Islam loan settlement also became an issue, as party insiders thought he had compromised himself.  The party report stated that Khalid’s  refusal to give a logical explanation or to act transparently in the matter of settling his RM70 million debt to the bank, especially after his rushed actions in the month following Bank Islam ending its legal action, only strengthened the PKR leadership’s conclusion that there was reasonable doubt about his integrity.

In March, a month after Bank Islam dropped its loan settlement suit against Khalid, two business deals worth hundreds of millions of ringgit were signed between the Selangor government and Eco World Berhad, a company controlled by Tan Sri Rashid Manaf, whom PKR said was an ex-lawyer of former Finance Minister Tun Daim Zainuddin. Tropicana Corporation Berhad reportedly announced on March 19 that it sold 308.72 acres of land bought from the Selangor government last year to Eco World.

PKR also noted that the Selangor government’s sale of 1,172 acres of land to Tropicana in April 2013 for RM1.3 billion had appeared to favour the company as Tropicana had 20 years from the date of the agreement to pay the state government in full. On March 25 this year, less than a week after Tropicana’s announcement on its land deal with Eco World, Khalid reportedly awarded Eco World a contract to build 2,400 affordable houses in Sungai Sering, Ukay Perdana, estimated to be worth RM591 million.

PKR also said Selangor was on the losing end in its controversial water industry restructuring agreement with Putrajaya, pointing out that the federal government obtained Selangor’s approval to construct the Langat 2 water treatment plant, while Putrajaya was not obligated to force a takeover of the water concessionnaires that refused Selangor’s offer.

It is time for Khalid Ibrahim to own up to these charges and face the consequences of his actions as Selangor Menteri Besar. If it can be proven beyond any reasonable doubt that he had acted against the interest of the interest of the state, thereby bring discredit to his party and Pakatan Rakyat, he  should step down. But it would appear that he is not likely to do so.

Khalid will not quietly disappear into the night. He is under enormous pressure to hang on to his job because there are forces that want the Selangor crisis to remain as long as possible. The man who cannot do that for them is Khalid Ibrahim. The consequences are obvious. It could lead to the fall of the Pakatan Rakyat government in Selangor, PAS leaving the coalition, the political demise of Anwar Ibrahim who was the mastermind of the Kajang move, and snap elections.

READ ON: http://www.theantdaily.com/Outspoken/If-stalemate-persists-dissolution-of-Selangor-State-Assembly-looks-likely/

Tan Sri Halim Saad set to take Sumatec up the corporate ladder


July 31, 2014

Tan Sri Halim Saad set to take Sumatec up the corporate ladder

by Sharen Kaur@www.nst.com.my – 31 July 2014 @ 1:15 AM

ASSET INJECTION: Firm targeting more than RM1b profit by 2018, say sources

FORMER Renong Bhd Executive Chairman Tan Sri Halim Saad is scaling up Sumatec Resources Bhd, which is set to make more than RM1 billion in net profit by 2018.

Halim Saad3

Halim controls 24.9 per cent of Sumatec and has been maintaining his shares since last November as he believes that the company can grow fast. “He is not selling his shares any time soon. He plans to build up the company by injecting more assets into it. He is eyeing some oil and gas (O&G) assets in Central Asia,” said a source.

Sumatec expects to produce 30,000 barrels of oil a day in Kazakhstan by 2018. Sources say the company is targeting an average net profit of US$30 (RM95.30) per barrel. “This means it will make around US$900,000 a day from 30,000 barrels, or more than US$328.5 million a year, compared with less than US$20 million currently from existing operations,” said the source.

For the financial year ending December 31 2014, Sumatec is projecting RM69 million in profits. The firm is producing oil at the Rakuschechnoye field with Markmore Energy (Labuan) Ltd, which is 99 per cent-owned by Halim.

Sumatec expects to produce 5,000 barrels of oil and gas a day from this field in the next three years. It is also acquiring Borneo Energy Oil and Gas Ltd, which owns 100 per cent of Buzachi Neft LLP, for US$250 million in cash and shares.

Buzachi has two 25-year contracts  to explore and produce oil and gas in the Karaturun Vostochnyi and Karaturun Morskoi fields, also known as Buzachi Fields.

At a recent media briefing, Sumatec Chief Executive Officer Chris Dalton said he expects the acquisition to be completed by October. He said the two assets will contribute US$1.62 million to Sumatec’s profits in the fourth quarter.

Sumatec is targeting to produce 25,000 barrels of oil and gas a day from the Buzachi Fields.  Meanwhile, Sumatec is expected to move out of its  PN17 status by next month and will submit its application to the Securities Commission soon.

BOOK REVIEW: Shankaran Nambiar’s The Malaysian Economy: Rethinking Policies & Purposes


July 30, 2014

BOOK REVIEW: Shankaran Nambiar’s new book, The Malaysian Economy: Rethinking Policies & Purposes 

by Tricia Yeoh@ http://www.thesundaily.com.my

FEW writers and analysts are able to both identify precisely the challenges facing the Malaysian economy as well as communicate these in a manner easy to digest. Shankaran Nambiar’s new book, The Malaysian Economy: Rethinking Policies & Purposes does so with bold and relevant commentary. Dating from 2003 to the present, this compilation of writings focuses on six broad themes including the need to strengthen institutions, the importance of competitiveness, regional trade, fiscal reform and finally, the reality that is the influence of elections and politics over economic policy.

?????????????????????What is prevalent throughout the book is the clear economic position he takes, arguing for a more open and free economy, one in which companies and traders would be able to compete without the shackles of a large and interventionist government. He takes cognisance that our neighbours are moving at a rapid pace, and mentions specifically China in its ability to out-compete many in the region, but that Malaysia would need to “develop our human capital and readjust our institutional framework to align it with global requirements.”

Of course, on the economic ideological continuum, criticisms often abound of the far-right leaning liberal position. More specifically, public sentiment in Malaysia has weighed heavily against the free market and privatisation. This is not surprising, since the Malaysian version of “free market” and “privatisation” is anything but. It has been but a muddied example of what a free market could actually do to improve the quality of goods and services.

Nambiar does not shy away from this oftentimes-controversial debate. He states explicitly, “privatisation, in theory, implies giving markets a bigger role … privatised companies have to be efficient … and cannot rely on the government to bail them out.”

Theoretically, yes. But in the execution of it – and Malaysia has done a poor job at this – privatisation has not been done in a fair, competitive way. In fact, what took place in our context is that when public entities were privatised, instead of improving efficiency, things got worse. Again, Nambiar hits it squarely on the head: “What was once a government monopoly now becomes a private monopoly. One form of inefficiency is substituted with another.”

Reading the book, one would initially conclude that he is a hard-hitting liberal – libertarian in American circles – and based on many principles, indeed this is so: his firm belief in competition, economic freedom, strong institutions and a legal framework, property rights and so on.

But what is refreshing to note is that he does not blindly accept what would typically be a liberal’s position, but views all subjects with a critical mind. Instead, he agrees with the need for a minimum wage because based on empirical research, this would transform the economy into one that is technologically advanced and contribute towards high value-added growth. A hardcore liberal economist would usually argue against the minimum wage as it is a false and forced imposition by government, which does put many small and medium companies out of business.

 

Finally, as many things seem to be in Malaysia, economic policy is subject to political influence, and this is evident in the many examples Nambiar provides, such as how the federal government transfers revenue to individual state governments, Najib’s electoral position determining whether or not the goods and services tax is introduced, and other “inappropriate policies” that are introduced “because of the polls”, which is “as if we have an economy balancing on the tip of a pin”, which is dangerously accurate.

Many proposals have been expressed elsewhere, on the need for fiscal reform and discipline, addressing structural issues (income distribution, corruption, crime, education), and so on. But the book’s beauty lies in its concise and deft articulation of problems and solutions. The commentaries are candid, and arguments tight. He also comes across as rational and fact-based, criticising or praising whenever necessary. This neutral, non-partisan position of analysing economic (or any other) conditions in the country is rare and must be valued.

As Malaysia enters into its final year of the 10th Malaysia Plan in 2015, and draws up its next set of policies for what would be the last five-year plan before the year 2020 – the 11th Malaysia Plan (2016 – 2020) – it is certainly worth examining Nambiar’s publication that spans the last decade or so. Where exactly are we going? Will the problems raised in his book 10 years ago start to manifest themselves in the next 10? What happens to an economy that pays little attention to such recommendations, and fails to strengthen its institutions?

Policymakers, politicians, academics and students ought to pick up this slim and thoroughly readable volume to gain a historical perspective of good and bad policy. History may not repeat itself, but its leaders may very well do – so it is up to the electorate like us to know which pressure points to press, well before the alarm bells start ringing.

Arrogance of Power and Some Shady Deals will lead to Khalid Ibrahim’s eventual political demise


July 29, 2014

Arrogance of Power and Some Shady Deals will lead to Khalid Ibrahim’s eventual political demise

“It needs now, in the intervening period before the PAS central committee meets, for light to be shed on the dubiousness of Khalid’s deal with Bank Islam for him to be painted into a corner. It’s a corner out of which not even the most powerful personages in PAS can credibly bail him out.”–Terence Netto

by Terence Netto@www.malaysiakini.com

COMMENT: A week is a long time in politics, former British Prime Minister Harold Wilson famously remarked. It’s less than a fortnight to the PAS central committee meeting that will finalise the party’s stance on the move to remove Selangor Menteri Besar Khalid Ibrahim.

AzizahThe PKR Top Team: Anwar, Saifuddin Nasution, Azmin Ali and Wan Azizah

Wilson’s musing on the passage of time on political events was to point up its effect as a solvent rather more than as coagulant. Time, as the wily survivor of many daunting wrangles in a faction-ridden British Labour Party in the 1960s was saying, has a bracing effect on political stances that at the outset may look more likely to bring disaster than relief.

Time’s solvent effect was perhaps the consideration behind PKR de facto Anwar Ibrahim’s statement of confidence the other day that the consensus-forging process within Pakatan Rakyat would prevail over the centrifugal forces let loose in the opposition coalition by the divisive matter of Khalid’s removal.

His ouster is desired by PKR and backed by DAP. The upper bracket of leadership of their Pakatan ally, PAS, has demurred though significant players in the Islamist party’s penultimate tier assented to Khalid’s removal.

Anwar and KhalidThe Winner is (?)

It looks like a fearful wrangle, but this is just the sort of twister that democratic politics exists to resolve, with its deliberative wheels of consultation and debate, all of which thrive on the attenuation from first – and often unreliable – impulses provided by the passage of time.

First – and inevitably, destructive – impulses were on display in the debate in social media on the options open to the party as a result of the fallout from the Khalid issue.The discussion on WhatsApp among some PAS central committee members, a snapshot of which was posted by this web news portal, exhibited the strengths and drawbacks of this promethean tool called social media.

Social media is useful for galvanising action towards constructive ends. By the same token it an easy vent for the impulsive and the rash.The latter feature is not healthy when vexed issues are being deliberated. For counsel to be wise cool detachment from the madding crowd is vital.

Pakatan will be blown to vanishing if fraught issues, whose causes have not been adequately ventilated in advance, are left like washing hung out to dry on an extremely windy day.

‘Paint him into a corner’

Khalid the MoleThe End is Near for a Man who held lots of Promise in 2008

Khalid’s moral transgressions implied in the deal that settled his long standing dispute with Bank Islam over the Guthrie shares he purchased with a loan from the bank quickly became obvious to insiders but not to initiates. Subsequent to the deal, the alacrity with which the water agreement between the Selangor state government and the federal’s was signed was unseemly.

The water agreement, like Khalid’s dispute with Bank Islam, had been long held up. Both issues’ sudden and expeditious settlement had the odor of the illicit.

Worse, the green light he appears to want to giveto the Kinrara-Damansara (Kidex) highway project was a violation of the Pakatan promise before GE-13 that there would be no more toll roads in Selangor.

This series of misdemeanors is serious enough to get him indicted in the bar of informed public opinion in Selangor. But, save for the Kidex highway, most people find the issues connected to the water agreement opaque and are unaware of the facts behind the banking deal.

But as matters such as his loss in the PKR divisional polls and his almost certain defeat by Anwar loyalist Azmin Ali in the race for Deputy President of the party make clear that he is not exactly popular, the clamour for his exit as MB mounted in tandem with his shameless public resistance to the notion.

It needs now, in the intervening period before the PAS central committee meets, for light to be shed on the dubiousness of Khalid’s deal with Bank Islam for him to be painted into a corner. It’s a corner out of which not even the most powerful personages in PAS can credibly bail him out.

Can Malaysia Airlines survive after MH17?


July 19, 2014

COMMENT: Of course, our national airline can. With a bailout by Khazanah and thedinmerican Malaysian Government. There is too much pride and dignity for Malaysians not to have a national carrier to fly the Jalur Gemilang (our Flag). It will need large amounts of money to save it.

And we have little choice as far as I can see it. But this funding should only be made at the cost of a total revamp of the airline including a corporate culture change, new competent and accountable Board and management, the dismantling of the MAS Employees Union that has been an albatross to MAS management, and renegotiation of all contracts with UMNO crony companies and other parties.

The question is whether the Najib administration has the stomach to proceed with such drastic measures. Tan Sri Azman Mokhtar, CEO of Khazanah Nasional, who I know well, can be very tough this time around.–Din Merican

Can Malaysia Airlines survive after MH17?

by in Beijing @theguardian.com(07-18-14)

http://www.theguardian.com/world/2014/jul/18/malaysia-airlines-survive-mh17-disaster-mh370-disappearance

MH17 Crash site 2

 Malaysia Airlines was still reeling from the impact of flight MH370’s March disappearance when news of MH17’s crash in Ukraine broke on Thursday. Now many question whether the carrier can survive a second disaster in such a short time.

“It is a tragedy with no comparison. In the history of aviation, no airline has gone through two tragedies of this magnitude in a span of four months,” said Mohsin Aziz, an aviation analyst at Maybank. “Even before the second incident, I have been very sceptical over the company’s ability to survive beyond the second half of 2015. They are making huge losses … This is probably going to hasten that.  It doesn’t matter who is at fault. The perception to the customer is ‘I don’t want to fly Malaysia Airlines any more’, and to battle that is not easy.”

Shares in the carrier fell sharply on Friday, down 11% by the midday break in trading in Kuala Lumpur, as already negative investor sentiment deepened. In all, it has dropped by 35% this year.

Questions were also raised about the airline’s choice of route, after it emerged that some other carriers had avoided the area for months – though many companies were flying in the same area, rerouting only after Thursday’s disaster.

The carrier, and the Malaysian government, came under heavy criticism for its handling of MH370’s disappearance – particularly in China, which lost more than 150 nationals in that disaster. While any airline and any nation would have struggled with the extraordinary twists and turns in a mystery that remains unresolved, relatives complained of confused and contradictory information and insensitivity on the part of the government and company.

At Kuala Lumpur International airport on Thursday night, angry relatives demanded to see the passenger manifest, but could not find a Malaysia Airlines official, Reuters reported.

“We have been waiting for four hours. We found out the news from international media. Facebook is more efficient than MAS. It’s so funny, they are a laughing stock,” one young man told reporters angrily.

While the two Malaysia Airlines flight disasters are clearly very different, the uncanny coincidences are likely to resonate.

“This comes very close [in time]; it was the same airline; the same aeroplane type. It happened outside the more common way of crashing for big airlines; most accidents happen close to landing or just after takeoff. They both have an element of mystery and perhaps unlawful and external interference,” noted Sidney Dekker, an expert on aviation safety at Griffith University.

“If the public is willing to keep them separate and say they really have little to do with each other, and any common link is not Malaysia Airlines, you can probably survive with the brand relatively intact,” he said.

But that is a big if. Five years after Trans World Airlines flight 800 crashed into the ocean near New York in 1996 with the loss of 230 lives, the carrier filed for bankruptcy and was acquired by American Airlines. For an already troubled company, the disaster was the straw that broke the camel’s back, said Dekker. For others, a disaster may well mean “rebranding, rebadging, a new air operator’s certificate”.

The Malaysian Transport Minister, Liow Tiong Lai, declined to comment on the airline’s future at a press conference about the disaster on Friday, describing that as a separate issue.

Prior to MH370’s disappearance, Malaysia Airlines was making losses but seemed to be improving, said Mohsin; it was reducing operating costs and selling more tickets. But while its flights were increasingly full, it had not managed to bump up its fares.

Now the airline’s previously strong safety record has effectively been erased for passengers by two such losses. According to the International Air Transport Association, there were an average of 517 deaths annually in commercial aviation incidents between 2009 and 2013. Now a single airline appears to have surpassed that death toll in a single year.

“People are only willing to fly with Malaysia Airlines if the ticket price is really, really cheap,” said Mohsin. The airline has also faced additional costs, such as supporting the families of victims and increasing its spending on marketing.

Reuters reported earlier this month that Malaysian state investor Khazanah Nasional Bhd planned to take MAS private as the first step towards restructuring the company, citing two unnamed sources.

“For it to completely disappear would be too much of a loss of pride for Malaysia,” said the Maybank analyst. “It is more realistic or probable for the government to intervene directly or via Khazanah.”

One key question is whether the airline should have chosen another course for the Boeing-777, given that two aircraft had been downed in the region that week.

Malaysia Airlines said early on Friday: “The usual flight route was earlier declared safe by the International Civil Aviation Organisation. International Air Transport Association has stated that the airspace the aircraft was traversing was not subject to restrictions.”

Cathay Pacific, Australia’s Qantas and Korea’s two major carriers are among airlines that stopped flying over Ukrainian airspace months ago due to concerns.

“Although the detour adds to flight time and cost, we have been making the detour for safety, and until the Ukrainian situation is over we will continue to take the detour route for our cargo flight out of Brussels,” an Asiana Airlines Inc spokeswoman told Reuters.

But many major players were still flying through the area, though Malaysia Airlines, Singapore Airlines and others, such as China Eastern, have stopped using that airspace in the wake of the disaster.

“‘What’s wrong with Malaysia Airlines?’ is completely the wrong question to ask and will lead us down a rabbit hole of entirely useless thinking,” said aviation expert Dekker. “It is pure chance. I flew through Ukrainian airspace on Monday with my daughter. It could have been us.”

While pilots ultimately have the discretion to refuse to fly along a particular course if they have concerns, they do not make the routes. Those are based on a multitude of factors, including airspace charges and wind speeds that affect journey times, but also, of course, safety.

While the US Federal Aviation Authority had cautioned American carriers not to fly over the Crimean peninsula, there was no such warning for the area where MH17 came down. Ukrainian officials had closed airspace to 32,000ft (9,750 metres), but MH17 was flying 1,000ft above that.

“What I have heard raised in various guises is the broader question: can we come to more efficient international agreements about where to avoid flying and where to fly?” said Dekker.