Trade awaits MAS' turnaround with new CEO

The travel trade is optimistic that ailing national carrier Malaysia Airlines (MAS) will turn around under the leadership of the newly appointed CEO-designate for MAS NewCo, Christoph R Mueller.

While Mueller’s contract with Ireland’s Aer Lingus ends May 1, 2015, discussions are ongoing for Mueller to assume the post of CEO prior to that date, but no earlier than March 1, 2015. MAS NewCo plans to commence operations on July 1, 2015.

Mueller’s role will be challenging, given that MAS were dealt two back-to-back blows earlier this year – one flight’s disappearance and another’s downing over Ukraine. The airline also posted net losses of RM576.1 million (US$165.98 million) in Q3.

Adam Kamal, deputy president 2 of the Malaysian Inbound Tourism Association, said: “Mueller is the first foreign CEO at the helm. I think we need someone with an international perspective. Hopefully the government will give him a free hand to perform his duties and turn the airline around.

“Industry players are still comfortable using our national carrier due to its all-inclusive fares and wide network. The airline will have no problem getting support from travel consultants.”

Malaysian Association of Tour and Travel Agents president, Hamzah Rahmat, said: “We expect our national carrier to turn around with Mueller’s vast experience. We want the airline to return to its glory days as soon as possible.”

Malaysian Indian Tour and Travel Association president, K Thangavelu, also said the government and politicians ought to give Mueller a free hand to revamp the airline, “otherwise it will be back to square one.”

Thangavelu pointed out that managing an Asian airline could be very different from Mueller’s current experience because of “differences in tradition, politics and cultures. “He has to adapt very quickly.”

Justifying the choice of candidate, Khazanah said in a statement that Mueller was the best candidate with a strong record of transformation and turnarounds in the aviation industry.

Among his key accomplishments, Mueller has demonstrated particular strength in strategic and financial planning, as well as structural repositioning of companies in difficulties, including implementing change programmes and adopting new technology, distribution and retail solutions decisively.

The line-up of key leadership in NewCo will also include Malaysia Airport Holdings advisor, Bashir Ahmad Abdul Majid, as chairman of the Corporate Reskilling Centre scheduled to be launched on April 1, 2015.

-TTG Asia.