THE local aviation sector was mired in tragedy, mystery, controversy and drama during the year, hogging the global headlines.
The biggest casualty was national carrier Malaysian Airline System Bhd (MAS), which was hit by two shocking incidents just four months apart.
As the world was still scrambling to locate Flight MH370 from Kuala Lumpur to Beijing, which had mysteriously disappeared on March 8, MH17 was shot down over Ukrainian airspace en route to Kuala Lumpur from Amsterdam on July 17.
The whereabouts of MH370 are still unknown and its disappearance remains an international mystery. Meanwhile, identifying and punishing the culprit behind the downing of MH17 still hinge on the vicissitudes of international politics.
The repercussions of the twin tragedies will continue to be felt in myriad ways. MAS is on the brink of bankruptcy after losing billions of ringgit. With the national carrier faced with very uncertain prospects, caretaker-owner Khazanah Nasional Bhd has been forced to implement a drastic revamp of the company.
Along with efforts to turn around MAS have popped up several interesting figures, including German national Christoph
R Mueller, who has been hired to helm the airline, and businessman Feriz Omar, who initiated an RM8.75 billion offer to buy out Penerbangan Malaysia Bhd, which leased aircraft to MAS, from Khazanah.
In another development, budget carrier AirAsia Bhd refused to move out of the low- cost carrier terminal and into klia2 in May, citing outstanding issues at the new airport. Its request to continue operating from LCCT was rejected by the prime minister, who stood by Malaysia Airports Holdings Bhd.
But it was not an easy year for MAHB either, which faced repeated criticism for the delay in the opening of the new airport, cost overruns and, in particular, defects that include cracks on the taxiway and apron and water-ponding in some parts, the last of which happened not long ago and was much-viewed on YouTube.
Nevertheless, the issues surrounding klia2 may abate in 2015, although the same cannot be said for MAS with its painful restructuring exercise just about to begin.
Find out how the key protagonists in the above events have fared. - by Siow Chen Ming
Datuk Seri Hishammuddin Tun Hussein
Minister of Defence and former acting Minister of Transport
Hishammuddin was thrust under the limelight in March as the acting minister of transport when Flight MH370 disappeared.
He became the government’s key spokesperson and perhaps the only primary source of information, however little, in the days following the tragedy. While the government was heavily doubted and criticised for its initial handling of the crisis, Hishammuddin nevertheless managed to somewhat contain the PR disaster and gain credit for his handling of the international press. His human touch in comforting the victims’ families also added to his stature. The acting minister had a busy year, having also to deal with the various issues and criticisms of klia2, before Datuk Seri Liow Tiong Lai took over in the aftermath of the MH17 crisis in July.
Tan Sri Tony Fernandes
Chief of AirAsia Bhd
Fernandes constantly hogged the headlines due to a spat between AirAsia and Malaysia Airports Holdings Bhd over thorny issues related to klia2, notably his remarks that AirAsia would not move out of LCCT and into klia2 until such time as the new airport is prepared to receive it.
The serial entrepreneur, who has a sizeable Twitter following, suffered a setback this year. In May, AirAsia’s intention to stay on in LCCT was rebuffed by the prime minister. Then, after initial denials, he sold out of the troubled F1 team Caterham and pulled out of a sports car joint venture with Renault, although he still keeps the car manufacturing operation of Caterham.
Fernandes continues to soldier on with English Premier League football team Queens Park Rangers, but his long-haul budget airline, AirAsia X Bhd, has experienced persistent losses and uncertainty, which have forced him to reinforce his commitment to the company.
Ahmad Jauhari Yahya
Managing Director and CEO, Malaysian Airline System Bhd
AJ, as he is popularly known, has taken punch after punch following the unfortunate events at MAS this year. Had it not been for his high stamina as a regular triathlon participant, the 59-year-old might have crumbled under the immense pressure of dealing with two international crises of such magnitude.
AJ, who joined MAS in September 2011, will stay on as MD and CEO until Sept 19, 2015, to ensure a smooth handover to his successor and until the initial restructuring of MAS is over with a new management firmly in place.
With a managerial career spanning the newspaper industry (The New Straits Times Press [M] Bhd), the power sector (Malakoff Corp Bhd) and now aviation, AJ will be remembered as the CEO who presided over the most difficult moment in the history of MAS and the one who tried the hardest — only to be beaten down by unthinkable odds that consecutive tragedies would beset the national carrier.
Tan Sri Azman Mokhtar
Managing Director, Khazanah Nasional Bhd
Azman’s job at MAS has just begun. Khazanah, the controlling shareholder of MAS, unveiled a painful restructuring plan that will cost RM6 billion and cut 6,000 jobs or 30% of the airline’s workforce, a move that did not sit well with MAS’ powerful unions.
To ease their pain, Azman emphasised that the corporate reskilling centre and the outplacement centre, catering for redundant MAS staff, are a crucial part of the 12-point MAS Recovery Plan (MRP).
But the pressure has not stopped there for Azman with the recent hiring of German national and outgoing Aer Lingus CEO Christoph R Mueller as the new chief of MAS.
Under the MRP, the restructured MAS is expected to achieve profitability by the end of 2017, three years from the delisting of the current entity.
The new MAS is expected to be relisted between 2018 and 2020.
Christoph R Mueller
Incoming CEO, Malaysia Airlines
Mueller will be the first “white man” to helm Malaysia Airlines when he becomes CEO of MAS Newco on Jan 1, 2015. However, with many politicians protesting the hiring of a foreigner for the position, the German national will have a tough job ahead.
Mueller’s 25-year track record in the aviation industry includes nursing back to health the once financially troubled Lufthansa German Airlines between 1994 and 1999 as its senior vice-president for network management and corporate planning.
In 1999, he joined Sabena SA — which was part of Swissair Group — as its chief operating officer before becoming its CEO and led a major cost-cutting programme.
In 2009, he became CEO of Aer Lingus and took the Irish airline into new markets and repositioned its business-to-business model as business-to-consumer.
Feriz Omar
Managing Director, Jentayu Danaraksa Sdn Bhd
The investment banker grabbed the headlines by pitching through Jentayu Danaraksa an RM8.75 billion plan to buy Penerbangan Malaysia Bhd (PMB) — which leases aircraft to MAS — from Khazanah Nasional Bhd.
He plans to make PMB a full-fledged, Malaysia-based aircraft lessor called JD Leasing with an offer to include Khazanah as a strategic partner and set up a new premium economy airline called Fly JD.
He says his plan will absorb the 6,000 jobs that the national carrier is looking to axe.
At the time of writing, there are scant details of Jentayu Danaraksa’s plan or its potential investors and partners, although Feriz has been putting pressure on Khazanah via several press conferences. Jentayu Danaraksa’s team comprises, among others, former MAS CEO Tan Sri Abdul Aziz, former aviation analyst Shukor Yusof and former transport ministry secretary-general Datuk Seri Zakaria Bahari.
This article first appeared in The Edge Malaysia Weekly, on 22 - 28 December 2014.
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