MAS – the flag carrier of Malaysia – which was once an airline of repute has been reduced to a loss-making entity because of political appointments, corporate indiscipline, conflict of interests, union interference and a series of bad deals. Although MAS losses, political interference and financial-cum-administrative lapses were far less acute than those that afflict PIA, the Malaysian government has decided to totally restructure the airline before it becomes technically insolvent.
It sacked the top management and appointed a new CEO with full powers of hiring and firing. The first thing he did was send letters of termination to all 20,000 MAS employees, with the exception of himself, and simultaneously offered 12,000 employees fresh appointments in a new airline called Malaysia Airlines Bhd which is due to start operations in September. The new CEO plans to sell two A380s and ensure that more than 80 percent ticket sales are done online so that customers get the benefits of sales commission. He has cancelled all commercial contracts, most of them awarded to suppliers with political connections.
G Zaman
Selangor, Malaysia