MAJOR ROLE: Executive chairman to help steer Malaysia Airlines back to profitability
MALAYSIA Airlines’ comprehensive restructuring may involve the re-introduction of the executive chairman post, which was abolished after the era of its former boss Tan Sri Tajudin Ramli in the early 2000s.
Business Times learnt that the position will highly likely be created to allow the person in charge to be involved in both MAS’ board and management.
The executive chairman will be directly involved in the day-to-day operations of the ailing airline.
“Of course the executive chairman will not be 100 per cent in control of MAS. He still needs to get the approval from MAS board of directors, but the good thing is he will have a say at the board and management levels,” a person familiar with the matter told Business Times yesterday.
The executive chairman will work hand-in-hand with the new chief executive officer to steer MAS back to profitability. The current chairman is not directly involved in the airline’s daily operations.
Should the post be re-introduced, the managing director post will be abolished, the source added.
Ahmad Jauhari Yahya currently holds the MD and CEO posts, but he is expected to leave MAS before his contract expires in mid-September.
Some of the names that are up for the executive chairman post are Minister in the Prime Minister’s Department Datuk Seri Idris Jala, the National Aerospace and Defence Industries Sdn Bhd director and president Tan Sri Ahmad Johan and MAS’ current chairman Tan Sri Md Nor Md Yusof.
The candidate strongly tipped to become head honcho of the national airline is Celcom Axiata Bhd’s CEO Datuk Seri Shazalli Ramli.
“MAS would want someone younger to become the CEO, and someone with vast experience in the aviation industry as the executive chairman. The two can work together to help steer the airline back to its glory days,” the source said.
Meanwhile, Ahmad Jauhari’s last day at the airline may be tomorrow, the day that parent Khazanah Nasional Bhd (Khazanah) is expected to announce the airline’s restructuring plan.
However, the appointment of the new CEO and possible executive chairman is likely to be announced later next month.
“The plan now is to present the restructuring plan first and get feedback on that. It is important to get the business structure right this time so that MAS can fly back to profitability,” the source said.
Sources, however, cautioned that things may change at the last minute and there is also a probability that MAS’s organisational structure may not change.
Business Times recently reported that the airline’s restructuring plan may include gists of the abandoned Project Sapphire and implementation could take place next year after the airline is delisted from Bursa Malaysia by December.
MAS is also likely to be broken up into standalone companies, with some being held under a new holding company.
A new business strategy for MAS, FlyFirefly Sdn Bhd (FireFly) and MAS Engineering Sdn Bhd may also be put in place.
This includes enabling FireFly to be in charge of MAS' domestic and regional network by reviving its jet operations while maintaining its turboprop operations.
This would then allow MAS to focus on its long-haul routes although a few routes in Europe and China may be axed in the near future, sources said.
Earlier this month, Khazanah announced a RM1.4 billion offer to buy all MAS shares it does not own under a selective capital reduction and repayment exercise.
MAS will subsequently be delisted.
Khazanah currently holds 69.4 per cent of MAS while the government holds one golden share.
Meanwhile, MAS is set to announce its second quarter financial results today.
Analysts are expecting the carrier to post net losses of more than RM600 million due to lower ticket sales and high number of flight cancellations after the MH370 incident as well as the quarter being a seasonally weak period for airlines.