Former CEO of Malaysia Airlines (MH, Kuala Lumpur International) Abdul Aziz Abdul Rahman has strongly criticised the current restructuring plan, pointing out that despite MYR6 billion (USD1.45 billion) capital injections since 2014, the flag carrier has so far failed to post a profit.
"From 2015 to 2017, [the airlines] had failed. The fourth year - we don't know yet. We have to look at the end of this year to see the results. If it shows remarkable improvements than last year, then there is hope. But if they do just as bad in 2018, then the government must relook at the team. The government's money is the people's money. The capital given to MAB is the people's money and can be questioned. In terms of losses, this turnaround has failed," Abdul Aziz said at a press conference, as reported by Bernama.
He further criticised high salaries reportedly paid to foreign top executives at Malaysia Airlines. Abdul Aziz also slammed the carrier for buying six A380-800s, which are, according to him, ill-suited for Kuala Lumpur International-based operations. He also recommended setting up a "board of experts", preferably local, who would evaluate the company's standing and develop a new growth strategy for its passenger, MRO, cargo, and catering businesses.
He added that at its current state, Malaysia Airlines is not fit to be listed again at the Bursa Malaysia as law bars loss-making companies from going public. The government earlier suggested it would try to relist the flag carrier at the stock exchange.
State-owned sovereign wealth fund Khazanah Nasional is currently the airline's sole shareholder.
Malaysia Airlines was delisted at the end of 2014 after the formal dismantling of its legal predecessor, Malaysian Airline System. The restructuring and nationalisation were prompted, among others, by the fatal loss of two B777-200(ER)s earlier in 2014. In March, 9M-MRO (msn 28420) operating as MH370 disappeared and presumably crashed into the Indian Ocean; in July, 9M-MRD (msn 28411) was shot down by Russian-backed separatists over eastern Ukraine.
Abdul Aziz retired from Malaysia Airlines in 1991 and has since been involved in aviation policy-making in Malaysia.
