Mueller to helm MAS NewCo
(NST) – ONGOING REVAMP: Aer Lingus head to be CEO-designate, says Khazanah
KHAZANAH Nasional Bhd has picked Christoph Mueller, the head of Irish flag carrier Aer Lingus, as chief executive officer (CEO)-designate of the new company (NewCo) taking over Malaysian Airline System Bhd (MAS) as part of the national carrier’s ongoing revamp.
The government’s investment arm, which owns 70 per cent of MAS, also yesterday announced the appointment of Celcom Axiata Bhd’s CEO Datuk Seri Mohammed Shazalli Ramly as MAS’ non-executive director.
It also appointed former Malaysia Airports Holdings Bhd’s managing director and its current adviser Tan Sri Bashir Ahmad Abdul Majid as chairman of MAS’ Corporate Reskilling Centre (CRC).
The appointments announced yesterday were deliberated and resolved at the meeting of the Khazanah board of directors chaired by Prime Minister Datuk Seri Najib Razak on Thursday.
“The appointments are part of efforts by the government and Khazanah to lay strong foundation for the future success of our national carrier.
“It is imperative that we have the best available talent with the expertise and experience to help drive the progress of the restructuring effort further forward, lead the airline to profitability, and groom a Malaysian successor to assume the leadership of the airline in the future.
“The government is committed to seeing through the complete overhaul of MAS to its successful conclusion,” Najib was quoted as saying in a Khazanah’s statement on the appointments.
Mueller’s contract with Aer Lingus EO ends on May 1 2015. However Khazanah said discussions are on-going for him to assume the MAS NewCo CEO post at a date prior but no earlier than March 1 2015.
A German citizen, Mueller took the helm of Aer Lingus in 2009 and initiated a turnaround strategy. He previously occupied top positions at German flag carrier Lufthansa and former Belgian carrier Sabena.
“Mueller has a strong record of transformation and turnarounds in the aviation industry.
“Among his key accomplishments, Mueller has demonstrated particular strength in strategic and financial planning, as well as structural repositioning of companies in difficulties, Khazanah added.
The government’s investment holding arm has launched a RM6 billion rescue plan to save the national airline, which suffered huge financial losses in recent years that were compounded by the losses of flights MH370 and MH17.
Khazanah is acquiring all remaining shares in MAS and take the carrier private in a bid to resuscitate it.
The appointments are key initiatives under the 12-point MAS Recovery Plan, which calls for the strengthening of the airline’s leadership as it transitions to MAS NewCo over the coming months to July 1 2015.
The nomination of Mueller and Shazalli to the MAS board follows the appointment of Mohd Izani Ashari as independent and non-executive director on September 12 2014.
The MAS board, effective January 1 2015,will comprise:
– Tan Sri Md Nor Yusof (non-independent/non-executive chairman);
– Ahmad Jauhari Yahya (managing director/group chief executive officer);
– Mueller (non-executive director/CEO-designate of MAS NewCo);
– David Lau Nai Pek (senior independent non-executive director);
– Tan Sri Dr Mohd Irwan Serigar Abdullah (non-independent/non-executive director);
– Mohd Shahazwan Mohd Harris (non-independent/non-executive director);
– Tan Sri Krishnan Tan Boon Seng (independent non-executive director);
– Tan Sri Mohamad Morshidi Abdul Ghani (independent non-executive director);
– Tan Sri Sukarti Wakiman (independent non-executive director);
– Dr Mohamadon Abdullah (independent non-executive director);
– Mohd Izani Ashari (non-independent/non-executive director);
– Datuk Seri Mohammed Shazalli Ramly (non-executive director); and
– Fauziah Yaacob (alternate director to Tan Sri Dr Mohd Irwan Serigar Abdullah/non-independent non-executive director).
Khazanah also yesterday announced the appointment of Shahryn Azmi as CEO of the CRC and Datuk Boonler Somchit as non-executive director and adviser to the CRC, which together with an outplacement centre, is intended to collectively provide reskilling, job creation and redeployment opportunities for employees not migrating to MAS NewCo. The CRC is to be launched by April 1 2015.
Khazanah’s managing director Tan Sri Azman Mokhtar said: “The Khazanah board in its deliberation took into consideration the critical nature of the MAS restructuring, which requires absolutely the best aviation management expertise, and, in particular, those with a strong track record of turning around national flag carriers.
“An extensive global search was undertaken that covered both international and local Malaysian talent. Mueller is the best candidate, and he has two equally important tasks of leading the turnaround of our national carrier and building local succession.
“Shazalli’s appointment to the MAS board as a non-executive director will also bring extensive experience and expertise in many areas, including marketing, branding and corporate turnarounds.”
