Malaysia Airlines (MH, Kuala Lumpur International) leadership has appointed Christoph Mueller to the post of managing director and group chief executive officer (CEO) of Malaysia Airline System Bhd (MAS) with effect from May 1.
"The accelerated leadership transition will enable Mueller to be in a position to lead the overall MAS restructuring effort as it enters one of its most critical phases," MAS said in a statement issued last week. "It will also provide him with the executive capacity and an appropriate timeframe to prepare NewCo to begin operations. This will have a positive impact on the long-term MAS restructuring effort and provide the best possible chance for a successful turnaround."
Incumbent MD and group CEO, Ahmad Jauhari Yahya, is to step down on April 30 but will continue to serve the group albeit as a non-executive director from May 1 to December 31, 2015.
The move is in line with Malaysia's sovereign wealth fund Khazanah's plans to restructure MAS's leadership and business ahead of the launch of its successor, Malaysia Airlines Berhad (NewCo), on July 1, 2015. Malaysia Airlines Bhd, which was incorporated in November of last year, will act as a vehicle for the migration of Malaysia Airlines' relevant operations, assets and liabilities.
With NewCo's leadership in place with Mueller at the helm, so new employees will be sourced from MAS with contracts scheduled to start from September 1 onwards. NewCo's launch will also allow Khazanah to undertake a staff downsizing exercise with over 30% (or 6,000) of MAS' 20,000 existing employees to be laid off. Following the recent completion of a staff skills audit, those who are laid off will be given access to the Corporate Reskilling Centre, located in the Subang area.
Overall, Khazanah expects to inject a total of MYR6billion (USD976.67million) into the carrier which, once revitalized, is expected to turn its first profit by 2017. The fund also expects to relist the national carrier on the local bourse between late 2017 and late 2019.
