KUALA LUMPUR (April 19): Malaysia Airlines Bhd's chief executive officer (CEO) and managing director Christoph Mueller has resigned after one year at the helm. This follows his request to depart before the end of his three-year contract.
In a statement today, Malaysia Airlines cited "changing personal circumstances" as the reason for Mueller's resignation. He will remain with the national airline as non-executive director.
It said Mueller will serve a six-month notice period until September to facilitate an orderly transition.
"The board has acknowledged Mr Mueller's plan to leave ahead of time, which is due to his changing personal circumstances, and has commenced a search for a new CEO, which will encompass both internal and external potential candidates," said Malaysia Airlines.
"We are very disappointed to lose Christoph as CEO, but we fully understand his reasons and respect his need to do this," said Malaysia Airlines chairman Tan Sri Md Nor Yusof in the statement.
"In the meantime, the board is actively working to search for a new CEO, after which Christoph has indicated his intention to stay on as non-executive director of the board to facilitate an orderly transition," he added.
Meanwhile, Malaysia Airlines chief operations officer Peter Bellew has been appointed as executive director with immediate effect.
Mueller joined the board of Malaysian Airline System Bhd (MAS) on Jan 1, 2015 and became CEO-designate of the new airline on March 1, 2015, replacing Ahmad Jauhari Yahya as managing director and CEO of MAS on May 1, 2015.
As CEO of the new Malaysia Airlines, Mueller's primary tasks were to lead the turnaround of the national carrier and to build local succession, for which he has laid firm foundations with a strong management team in place.
"Unfortunately, personal circumstances will make it difficult for me to complete my full term. The airline has been restructured and repositioned to regain its leading position in customer experience and to continue to connect Malaysia with the world.
"I am confident that the company is now on the right track to succeed in its next phase of growth under a new CEO. I remain fully committed to do everything possible to facilitate the continuing turnaround of Malaysia Airlines," said Mueller.
In a separate statement, the airline's parent Khazanah Nasional Bhd said it will, in consultation with the Malaysia Airlines board and the government, through the Minister of Finance, undertake the succession planning for the new CEO of the airline.
In accordance with the provisions of and conditions contained in the five-year 12-point MAS Recovery Plan (MRP), it said the final decision on the new CEO of MAB will be undertaken through all necessary consultation and approvals before the end of Mueller’s term in September.
Khazanah noted that the implementation of the MRP is on track and on schedule over the 20-month period since its announcement in August 2014.
It also said Mueller's departure has been discussed and recorded at the Khazanah board meeting earlier today.
"While we would have wanted Mueller to continue as planned, we also respect and ultimately agree to his decision to leave ahead of the end of his three-year contract, due to a change in his personal circumstances," the sovereign wealth fund said.
"We note that Mr. Mueller has laid the groundwork, put in place a strong management team, and undertaken the necessary measures and initiatives that have produced encouraging signs of progress on Malaysia Airlines' path to recovery, as called for under the MRP," it added.
Earlier this month, Mueller was reported as saying that Malaysia Airlines has posted a profit in February, and is on track to return profitability by 2018.