MAS appoints new CEO, restructures staff

Following tragic events for the carrier in 2014, Malaysian Airline System Berhad (MAS) has begun the restructuring process in preparation for its new company, Malaysia Airlines Berhad (NewCo), set to launch July 1, 2015.

Keeping true to statements of a complete overhaul of the carrier’s operations, including business model, finances, human capital and regulatory environment, the board of directors of MAS has appointed Christoph Mueller as managing director and group chief executive officer, effective May 1, 2015.

Ahmad Jauhari Yahya, the current managing director and group CEO, will step down from his executive position on April 30 and serve as a non-executive director on the board from May 1 to Dec. 31, 2015.

Mueller, currently a non-executive director on the board and CEO-designate of NewCo, will lead the overall MAS restructuring effort, as well as prepare NewCo to begin operations.

Following the leadership transition, NewCo will begin the migration of MAS’ operations, assets and liabilities on July 1.

NewCo employees will commence work on Sept. 1 with Mueller, who will officially assume the position of NewCo managing director and group CEO on that date.

NewCo will issue employment offer letters to selected MAS employees on June 1. On the same date, MAS will issue employment termination letters with a three-month notice to all its employees. This variation from the earlier schedule of April 1 was approved by Khazanah Nasional Berhad (the strategic investment fund of the government of Malaysia) on March 20.

The process of identifying the pool of staff that meets NewCo’s requirements are underway, following the completion of a comprehensive talent assessment exercise in February 2015.

Exiting employees will have access to the training and placement services provided by the Corporate Development Centre, which will be operational by the time of the issuance of the termination letters.

Khazanah invested $1.9 billion into the airline as sole shareholder following a comprehensive review of the airline earlier this year.

There has been no word yet on other possible changes alluded to in an online presentation in Nov. 2014, which included consideration for a different route structure for MAS, and codeshare agreements with British Airways, Cathay Pacific, and American Airlines.