By Chan Quan Min
Najib Abdul Razak
Malaysia Airlines will see wholesale change in the coming months, the result of a renewal process that could involve painful steps and sacrifices from all parties, Prime Minister Najib Abdul Razak said today.
This morning, Malaysia Airlines owner Khazanah Nasional took the “first step needed,” according to Najib, “to return our national carrier to profitability.”
“It is a step I wholeheartedly support,” Najib said in a statement. He was referring to the state investment fund’s RM1.38 billion corporate exercise to buy out Malaysia Airlines shareholders and de-list the company from the stock exchange
Khazanah currently owns a 69.4% equity stake in Malaysia Airlines or MAS and is seeking full ownership for “greater flexibility to execute a restructuring plan.”
Like Malaysia Airlines CEO Ahmad Jauhari Yahya who has called for radical or sweeping change, Najib wants to see “wholesale change to deliver a wholly different outcome.”
“Only through a complete overhaul of the company can we deliver a genuinely strong and sustainable national carrier. Piecemeal changes will not work,” he stressed.
“This process of renewal will involve painful steps and sacrifices from all parties. My instruction and my commitment to all concerned is that the process will be carried out professionally, with proper principles of fairness, transparency and compassion,” Najib said.
Mohsin Aziz
Aviation analysts such as Maybank’s Mohsin Aziz are of the opinion that significant cost savings can only come through job cuts.
Jittery Malaysia Airlines employees may need to wait for the detailed restructuring plan, which will only be made public at the end of the month.
“MAS is part of Malaysia’s history. It is a symbol of national pride, of our ambitions and our place in the world… So today we are making changes to ensure it is also part of Malaysia’s future story,” Najib said.
“Like all Malaysians, I am deeply saddened by the losses of MH370 and MH17. Seldom before has a company been subjected to two profound and extraordinary tragedies in such a short space of time.
“We pay tribute to the victims; we pray for their families; and we thank all those around the world for their support and their prayers in these difficult times,” he added.
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