WHILE recent news reports centre on the appointment of a new chief executive officer (CEO) for Malay-sia Airlines (MAS), more crucially it is learnt that majority shareholder Khazanah Nasional Bhd is mulling with the idea to re-introduce the executive chairman post for the revamped national carrier.
Business Times learnt that some changes were made to the previous shortlisted candidates with two new names being added for the new post after the announcement of MAS’ new business plan in August.
The three names currently bandied about are National Aerospace and Defence Industries Sdn Bhd director and president Tan Sri Ahmad Johan, Malaysia Airports Holdings Bhd adviser Tan Sri Bashir Ahmad and Celcom Axiata Bhd CEO Datuk Seri Shazalli Ramli.
“MAS is currently weighing the idea of reintroducing the post of executive chairman. The appointed person will work hand-in-hand with the new CEO as he will be involved in the day-to-day operations of the airline,” a person familiar with the matter said yesterday.
The executive chairman post was abolished after the era of the airline’s former boss Tan Sri Tajudin Ramli in the early 2000s.
It would make a comeback after over a decade should the airline decide to reintroduce the post next year.
The post will be recreated to allow the person in charge to be involved in both MAS board and management, said the source.
Meanwhile, talk has been rife that a foreigner is likely to be appointed as the new MAS CEO as the search for the right candidate continues.
“Khazanah has been mulling with the idea to appoint a foreigner for quite some time now and three names have been shortlisted,” source said, adding that it would possibly announce the new appointments of CEO and executive chairman by year-end.
The sovereign wealth fund company’s managing director Tan Sri Azman Mokhtar did not rule out the possibility of appointing a non-local to helm the ailing carrier during the briefing on MAS’ new business plan recently.
Under the new business plan, Khazanah will inject up to RM6 billion into MAS to help the struggling carrier stand on its feet and re-listed under a new company (NewCo).
The NewCo is expected to be operational by July 1 next year with 14,000 total workforce size. It is also expected to be re-listed between 2018 and 2020.
Meanwhile, another source said the most important thing for Khazanah is to appoint someone who is qualified and able to helm MAS back to profitability.
“The new CEO also needs to be able to ensure that the airline is sustainable in the years to come because Asia Pacific has the toughest operating environment for airlines,” added the source.
According to an online news portal, Aer Lingus CEO Christoph Muller is likely to be appointed the CEO.
The German aviation veteran will step down as the airline’s CEO and director effective May next year, based on Aer Lingus’ announcement in July.
However, Khazanah yesterday said that it is undertaking a global search for a new MAS CEO from among Malaysian and foreign leadership talents.
“At this point in time, no person has been appointed as the new CEO and the search is still ongoing.”
“The final decision on a new CEO will be made after due consideration and in consultation with the special shareholder, Minister of Finance Incorporated. The outcome will be announced in due course, within the time frame indicated previously,” Khazanah said in a statement.