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Assignment1



INTRODUCTION OF THE COMPANY



Konsortium Transnasional Berhad is the largest operator of public bus transportation in Malaysia. Its stage and express bus operations provide the most extensive coverage throughout Peninsular Malaysia, covering all major cities and towns as well as Singapore.

The nationwide network is serviced by a fleet of more than 1,500 buses that covers more than 250 routes, generating more than 1,000 trips daily and this translates to around 60 million passengers a year.

To date, KTB commands the largest market share, with ‘Transnasional’ being the leader in the express bus industry in Peninsular Malaysia. Besides ‘Transnasional’, KTB also operates ‘Cityliner’ stage buses, ‘Plusliner’ economy express buses and luxury bus services under the ‘Nice’ brand.

Behind this luxurious company there are negative side effecting the company for a period of time from 2008 to 2010.This company having a few problems involving their workers and also their financial problems. 

 PROBLEMS

1. ONLINE BOOKING
Online booking is not systematic and not synchronize with the system. The seat is randomly given when booking is done online and customer still need to collect their ticket at the counter.  The customers complain that there is no reason to book online since they still have to go to an agent to collect the tickets at least one hour before.

2. FINANCIAL
 Konsortium Transnasional Bhd (KTB) faces losses in 2008-2010. Chairman and managing director, Datuk Seri Mohd Nadzmi Mohd Salleh said the division continued to face losses to stiff competition which led to a price war which saw prices offered way below operation costs. This loss is also resulting from the closure of some routes. Based on the information obtained from an article, it is said that Konsortium Transnasional Bhd (KTB) incurred collective losses of RM78m from 2008-2010, coming mainly from its stage bus division. For the quarter ended March 31 on 2008 they had loss attributable to equity holders of MYR 6851000. The loss after tax recorded in current quarter as compared to the previous corresponding quarter is mainly due to steep rise in operational cost.


Income Statement (MYR '000)
2010
2009
2008
2007
Turnover
264506.0
282138.0
292026.0
261250.0
Operating Profit
-14024.0
-129.0
23300.0
26490.0
Profit/loss Before Tax
-26044.0
-14547.0
8093.0
13779.0
Taxation
-5096.0
-539.0
-4599.0
-4062.0
Profit After Tax
-31140.0
-15086.0
3494.0
9717.0
Extraordinary Items
0.0
0.0
0.0
0.0
Minority Interest
-263.0
275.0
-169.0
179.0
Net Profit/loss To Shareholders
-31403.0
-14811.0
3325.0
9896.0
Gross EPS (Sen)
-9.83
-4.90
1.10
3.57
Dividend (Sen)
0.00
0.00
0.00
0.00

3.CUT DOWN OF SUBSIDIZE
 KTB cannot subsidize stage bus service in some state. This is due to the increasing operating expenditure while the fares are controlled by the government. KTB executive director Tengku Hasmadi Tengku Hashim said the consortium, which owns 1500 buses, had over the years providing “social service” subsidized by its profitable express bus operations but the express bus operations were not making enough to subsidize our stage bus business. The article in The Star says that KTB stopped its stage bus services in Negeri Sembilan and this is proved by the picture below that shows that there is no more business by KTB in Terminal 1 bus station.       

4. WORKERS
There are some complaints being post by the customers of Konsortium Transnasional Berhad about their workers. Their workers do not treat their customers well and they do not trying to be patient and solve their customers problems.
Text that were taken from one of the customers complain :
When I complained to the agent at KL Sentral, here's what he said:
- That's because you did online booking - the system will assign you the seat, did you not read the terms and conditions?
- We are just the agent, it is not our fault, its the company and their system's faults, so don't complain to me, complain to the company.
- If u want us to change your seat, the system will charge you extra for the change.
Besides that their 25 drivers were put on ‘standby’as they are  halting more than 20 unprofitable routes in Selangor, such as in the areas surrounding Klang, Banting and Shah Alam.

REFERENCES









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