MARCH 20TH, 2015
MAS announces accelerated leadership transition
The Board of Directors of Malaysian Airline System Berhad (MAS) today announced that Christoph Mueller will assume the post of Managing Director and Group Chief Executive Officer (CEO), effective 1 May 2015
Ahmad Jauhari Yahya, the current Managing Director and Group CEO, will step down from his executive position on 30 April 2015, and be appointed as a Non-Executive Director on the Board, for a period from 1 May 2015 to 31 December 2015.
Mueller is currently a Non-Executive Director on the Board and CEO-designate of the new company Malaysia Airlines Berhad (NewCo).
The decision to bring forward the leadership transition was made by the Board at its meeting on 18 March 2015. Subsequently, the Board sought, via a letter dated 20 March 2015, and received approval on the same day from Khazanah Nasional Berhad (Khazanah), the sole shareholder of MAS, for Mueller’s appointment and related matters.
The accelerated leadership transition will enable Mueller to be in a position to lead the overall MAS restructuring effort as it enters one of its most critical phases. It will also provide him with the executive capacity and an appropriate timeframe to prepare NewCo to begin operations. This will have a positive impact on the long-term MAS restructuring effort and provide the best possible chance for a successful turnaround.
Tan Sri Md Nor Yusof, Chairman of MAS, said: “We are pleased to welcome Christoph and look forward to his leadership, as the new Managing Director and CEO, in driving the effort to rebuild and restore our national icon to its rightful status. We would also like to thank Ahmad Jauhari for his dedication and selfless service to MAS from the first day of his appointment on 19 September 2011. He will remain on the Board as a Non-Executive Director to help ensure a smooth transition to NewCo. He has our utmost gratitude and all of us at MAS wish him the very best.”
Christoph Mueller said: “I am honoured by the trust placed in me. MAS is not just the national carrier of Malaysia, it is a symbol of national pride, and loyalty and affection towards the airline runs deep among Malaysians. I look forward to working on the restructuring hand-in-hand with our employees, unions, management and the Board to restore the airline’s profitability. All these stakeholders will be asked for their contribution in a very ambitious turnaround plan, but with the continued support of the Malaysian Government, Khazanah, our loyal customers and the travelling public, we will ultimately be successful.”
Following the leadership transition announced today, NewCo will be ready for the migration of MAS’ operations, assets and liabilities on 1 July 2015.
NewCo employees will commence work on 1 September 2015 together with Mueller, who will officially assume the position of NewCo Managing Director and Group CEO on that date.
To affect the employee migration, NewCo will issue employment offer letters to selected MAS employees on 1 June 2015. On the same date, MAS will issue employment termination letters with a three-month notice to all its employees. This variation from the earlier schedule of 1 April 2015 has been approved by Khazanah on 20 March 2015.
The process of identifying the pool of staff that meets NewCo’s requirements is underway, following the completion of a comprehensive talent assessment exercise in February 2015.
Exiting employees will have access to the training and placement services provided by the Corporate Development Centre, which will be operational by the time of the issuance of the termination letters.