Turnaround for Malaysia Airlines ambitious but achievable

MUCH has happened at struggling carrier Malaysia Airlines since its sole owner, Khazanah Nasional, revealed a RM6 billion (S$2.12 billion) 12-pronged "complete overhaul" plan to rescue the tragedy-struck airline some nine months ago.

In December 2014, Malaysian Airline System Bhd (MAS) was delisted from Bursa Malaysia and taken private by Khazanah, the country's sovereign wealth fund, in an exercise that cost some RM1.4 billion. In February this year, landmark new legislation came into effect after it was passed by both houses of Parliament last year. The MAS Act is a lynchpin in restructuring the sick airline, as it enables the carrier to effectively tackle legacy issues that have long been a drag. These include addressing lucrative procurement contracts which disadvantaged the company and a bloated payroll. It also facilitates the smooth transition of the old MAS into the new Malaysia Airlines Bhd (MAS Bhd).

Then in March, new MAS chief and veteran industry insider Christoph Mueller, a German national, arrived in Kuala Lumpur, all set to tackle "the toughest job in aviation history". Mr Mueller's appointment is no less significant as it marks the first time in Malaysia Inc's history that a foreigner was picked to fill the top job at a government-linked company.