KUALA LUMPUR:THE RM6 billion to be injected into Malaysia Airlines (MAS) should be considered an investment rather than a bailout, says Prime Minister Datuk Seri Najib Razak.
He said this was because Khazanah Nasional, which is in charge of revamping the ailing national carrier, intended to recover the funds in full.
Najib, who is also finance minister, said the funds were injected to ensure MAS remained a commercially-viable entity.
“We would consider it a bailout if public monies were being used to buy MAS from somebody else.
“But in this case, Khazanah fully intends to recover every single sen and more,” he said after chairing the Umno supreme council meeting at the party’s headquarters here yesterday.
Najib was referring to Khazanah’s 12-point plan, unveiled yesterday, to revamp the troubled airline by 2017.
He expressed confidence that MAS would achieve the plan’s targets, although he conceded that full recovery of the RM6 billion could take longer than the three years set by Khazanah.
“God willing, in that three years, we will see a positive turnaround from MAS.”
Najib said Khazanah had agreed to set several guiding principles in the restructuring plan, including having MAS remain the national carrier.
It should also be based on the idea of MAS as a commercially-viable entity.
“If, for example, the government wants MAS to fly to a certain destination, subsidies should be provided at the developmental level.
“Whatever decisions made
by MAS must be based on commercial interests.”
He also stressed that the welfare of its staff should be considered a priority.
“We are looking at every aspect in detail. Whatever steps we take in this restructuring plan, including rightsizing, must be humane
and compassionate.
“That means we should prepare for, as an example, alternative employment or upskilling opportunities for (affected employees).”
He said plans were also under way to install a new chief executive officer after current MAS CEO Ahmad Jauhari Yahaya steps down next July.
“The new CEO must be someone with a proven track record and could be a foreigner or a local.
“If we decide to appoint a foreigner, he or she will will only be there for a temporary period until we find a Malaysian to take their place.”
He said Khazanah had proven itselfthemselves qualified for the takeover plan, given itstheir successful turnaround of UEM Berhad, which is now the country’s largest property development company by market capitalisation.
"The aviation industry is extremely competitive and if we do not carry out a thorough and comprehensive restructuring plan, then we will not be able to achieve a successful turnaround for MAS."
Earlier, in a statement, Najib urged all all parties to back Malaysia Airlines’ RM6 billion recovery plan.
He said only a wholesale change will deliver a genuinely strong and sustainable MAS.
“On August 8, I called on all parties to work together in support of a comprehensive and holistic restructuring plan for Malaysia Airlines – the first step needed to return our national carrier to profitability. I believed then – as I do today –that MAS is part of Malaysia’s history. It is a symbol of national pride, of our ambitions and our place in the world. In short, it is more than just a company to us.
“So as we prepare for our 57th Merdeka Day, I welcome the unveiling of “Rebuilding a National Icon – the MAS Recovery Plan,” Najib said in a message issued in conjuction with the plan’s announcement.
Najib said the announcement marks the first step towards ensuring that the carrier is part of Malaysia’s future.
“If we seek a different outcome from past experiences, we must have the courage to choose a different method. Piecemeal change will not work.”
He noted that the complete overhaul set out in the plan will ask much of everyone at MAS.
“But we will look to all those who work with Malaysia’s flag-carrier – and all Malaysians – to play their part in ensuring MAS future success.”
He added that MAS needed to be a new national compact for it to survive and thrive.
“Everyone has a role to play, and I give you my assurance that the Government is wholehearted in its commitment to supporting that compact. As we turn our minds to celebrating our independence, I ask that each of you consider how you can support this national effort. More than an airline, MAS is a national icon; much-loved, and steeped in our history. The plan before you today will ensure it has a bright future.”