New MAS CEO to start May 1

PETALING JAYA: Christoph Mueller will assume his role as Malaysian Airline System Bhd (MAS) managing director and CEO effective May 1 instead of July 1 as initially planned.

Following the leadership transition, MAS had also decided to defer the date of new company Malaysia Airlines Bhd (NewCo) operational day from July 1, 2015 to Sept 1, 2015.

In a statement released last Friday, MAS said Ahmad Jauhari will step down from his executive position on April 30 and be appointed as a nonexecutive director from May 1 to Dec 31, 2015.

Mueller is currently a nonexecutive director on the board and CEO-designate of NewCo.

MAS said it decided to bring forward the transition to “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,” MAS noted.

It said that the new airline will be ready for the migration of MAS’ operations, assets and liabilities on July 1.

Hence, the NewCo employees will commence work on Sept 1, 2015 together with Mueller, who will officially assume the position of NewCo managing director and Group CEO.

To ensure a smooth migration, NewCo will issue offer letters to selected MAS employees on June 1, 2015. It will also issue termination letters with a three-month notice to all its employees at the same time. MAS said the decision to defer the date of the issuance of termination letters from the earlier schedule of April 1, 2015 was approved by its parent, Khazanah Nasional Bhd, last Friday.

In an email to employees last Friday, MAS chairman Tan Sri Md Nor Yusof said the additional time will allow Mueller to be part of the important talent assessment and selection process at all levels of the organisation.

“The board fully appreciates that this exercise is of paramount importance as it involves our own people who have been an integral part of this airline. The board reiterates our commitment that the process will be done in a fair and transparent manner.

“There will also be a session in early April where Christoph (Mueller) will share his first impressions of our group after spending his first month with us,” he said in the email obtained by SunBiz.