German precision to steer Malaysia Airlines to clear skies

PETALING JAYA: Just a week after Khazanah Nasional Bhd gave its first update following the unveiling of its 12 point plan to turnaround Malaysian Airline System Bhd (MAS), it has appointed German national Christoph R. Mueller (pix) as the new CEO-designate of the new company, Malaysia Airlines Bhd (MAB).
Mueller is currently the CEO of Aer Lingus Plc.
In a statement released last Friday, Khazanah announced that both Mueller and, worth noting, Celcom Axiata Bhd's CEO Datuk Seri Mohamed Shazalli Ramly will join the board of MAS on Jan 1, 2015 as non-executive directors. Mohammed Shazalli will remain as CEO and director of Celcom Axiata.
"Christoph (Mueller) is the best candidate, and he has two equally important tasks: to lead the turnaround of our national carrier and to build local succession," Khazanah managing director Tan Sri Azman Mokhtar said.
The nomination of Mueller and Shazalli to the MAS board follows the appointment of Mohd Izani Ashari as non-independent non-executive director on Sept 12, 2014.
Khazanah also announced the appointment of Tan Sri Bashir Ahmad Abdul Majid as chairman of the Corporate Reskilling Centre (CRC), while Shahryn Azmi will be appointed as CEO, and Datuk Boonler Somchit as non-executive director and adviser, respectively.
Bashir is currently adviser at Malaysia Airports Holdings Bhd and will remain so, in parallel with his role as CRC chairman.
Khazanah said Mueller's contract as CEO with Aer Lingus, the national airline of Ireland, ends on May 1, 2015.
"Discussions are on-going for Mueller to assume the post of MAS NewCo CEO at a date prior to May 1, 2015, but no earlier than March 1, 2015," Khazanah said.
Khazanah had previously announced that MAB will commence operations on July 1, 2015.
Mueller has been CEO of Aer Lingus since 2009 and brings more than 25 years of relevant experience in the aviation, logistics and tourism sectors to MAS.
According to the statement 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.
This includes implementing change programmes and adopting new technology, distribution and retail solutions decisively.
At Aer Lingus in the last four-and-half years, Mueller turned around the loss-making airline within a year, in a declining Irish market and tepid European market conditions.
Aer Lingus' sustainable profitability and cash generation are built on a new strategy and business model that enabled the 78-year-old carrier to compete in a difficult market environment with both traditional legacy airlines and low-cost carriers.
It has also developed Dublin to become one of the leading hubs for North Atlantic long-haul traffic.
Under his watch, Aer Lingus, ventured into new markets and business models, and successfully repositioned itself from primarily a business-to-business model to a business-to-consumer model with a 90% online distribution, according to Khazanah.