ON Monday, Malaysia Airlines Bhd’s first domestic flight — MH1138 — bound for Penang from the Kuala Lumpur International Airport marked a fresh start for the carrier and the country. As chief executive officer Christoph Mueller put it: “We start Sept 1 with a completely new setup. It is a new entity, new management team, new seats, everything is new.” It is an opportunity to start over without prejudice. Malaysia Airlines Berhad (MAB), which took over Malaysian Airlines System Bhd (MAS) in a restructuring programme to bring back the carrier to profitability, offers a vision for moving forward by providing the energy and resources necessary to do so. It is time to put the past behind and focus on the task at hand — ensuring the airlines’ competitiveness in an industry known for its brutal business cycles and regaining its reputation as one of the leading carriers in the world, if the many awards it received are any indication.
The past year has been tragic for Malaysia Airlines. The mysterious disappearance of Flight MH370 in March last year and the persistent negative publicity that followed left the airline badly bruised and vulnerable. The downing of MH17 over eastern Ukraine some four months later on July 17 further fuelled speculation that the airline’s days were numbered. A year on, Malaysia Airlines has defied predictions that it would collapse in the wake of the twin disasters. Indeed, MAB’s plan to turn around the troubled airline, saddled with debts for several years now, even before the MH370 and MH17 tragedies, suggests that the airline may soon be on the route to profitability.
The reforms include cutting its workforce, reducing fleet size and the frequency of some routes, as well as abandoning others, if necessary. Renewing the customer experience also figures prominently in the airline’s rebranding exercise. Mueller speaks of a “light brand refresh so that our customers and employees can feel the fresh start”. It is useful to remind ourselves that Malaysia Airlines is an award-winning carrier, grabbing prizes for the quality of its cabin crew, food and general excellence. World Travel Awards called it the best airline in Asia in 2013. Efficient check-in, helpful ground staff, good food and excellent in-flight entertainment plus the warmth of the cabin crew that looks after passengers during short- and long-haul flights turn a nice experience into a great one. Little wonder that the airline also won UK-based consultancy Skytrax’s Best Cabin Staff award nine times since 2001. That should motivate the revamped team to do the best they can.
Experts say the success of rebranding heavily depends on the employees’ motivation and involvement, and a fully integrated and cohesive workforce is crucial to a successful and positive rebrand. Mueller admits the challenge of putting together a winning team which will be “a combination of individuals, personalities and skills”. Still, the CEO has an impressive resume with more than 25 years’ experience as a turnaround specialist in the aviation, logistic and tourism industry. He was widely credited with the financial recovery of struggling Irish national carrier Aer Lingus. As Mueller himself said, the airline is “ready to rock and roll”.