Transition To Restructured Airline To Be Complete By September 1

Malaysia's national airline has been placed in receivership, resulting in the loss of as many as 8,000 jobs as the carrier completes its restructuring program.

Khazanah Nasional Berhad (Khazanah) announced the voluntary appointment of an Administrator for MAS on Monday. The company said in a statement that the appointment "reflects the continuing and considerable effort" leading to MAB becoming operational under a new business model and a new management team on September 1, 2015. That team will be led by Christoph Mueller, Chief Executive Officer of Malaysian Airline System Berhad (MAS) and CEO-designate of the new airline.

The appointment by Khazanah, Malaysia’s sovereign fund and the sole shareholder of MAS, is backed by the Malaysian Airline System Berhad (Administration) Act 2015 (MAS Act) enacted by the Government of Malaysia. Under the MAS Act, the Administrator plays a critical role to facilitating the transfer of selected assets and liabilities to MAB, which will replace MAS as Malaysia’s new national carrier.

Mueller said in a statement posted on the company website that MAS operations continue as normal with the appointment of the Administrator. “I assure you our operations are very much business as usual," he said. "All MAS flights, schedules, and reservations continue to operate as normal. We remain committed to serving you with our world-class Malaysian Hospitality, and look forward to welcoming you on board Malaysia Airlines.”
 
“This appointment does not affect our daily operations or existing reservations. You can continue to make reservations in full confidence that our flights and schedules are operating as normal, that tickets sold will be honoured, and that our Enrich frequent flyer program continues with Miles and status preserved," Mueller said.

The airline may shed as many as 6,000-8,000 of its workforce of 20,000 people, according to CNN Money. A company spokesperson said that "All employees will get the termination letters and either a letter to join the new company, or to register ... [for] outplacement."

Mueller said in a statement earlier this month that exploring fleet options to enhance viability of long haul sectors is one area being looked into, “as such, recent speculations on the airline offering some of its fleet for sale or lease is too premature when nothing concrete has been achieved.”

“MAS needs to operate and utilize its fleet at an optimum level besides maximizing revenue on the route it flies. The market needs to give Malaysia Airlines room to explore various options in determining the most viable strategy,” Mueller said.

(Image from file)

FMI: http://www.malaysiaairlines.com/