This article first appeared in The Edge Financial Daily, on April 20, 2016.

KUALA LUMPUR: Christoph Mueller, Malaysia Airlines Bhd’s first non-Malaysian chief executive officer (CEO) and managing director, will step down at the end of September, the national carrier announced yesterday. The airline’s parent Khazanah Nasional Bhd said it is on the hunt to find his replacement.

This surprise move has airline analysts wondering whether there is any hidden reason behind Mueller’s departure, who is resigning two years prior to the expiry of his three-year contract. The change in leadership, however, is nothing new for Malaysia Airlines, which has seen the appointment of six CEOs in the last 15 years.

In a statement yesterday, Malaysia Airlines cited “changing personal circumstances” as the reason for Mueller’s resignation. He will remain with the airline as a 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 executive director with immediate effect.

Mueller joined the board of Malaysian Airline System Bhd (MAS), which was reeling from two disasters in 2014, on Jan 1, 2015, and became CEO-designate of the new Malaysia Airlines on March 1, 2015. He replaced Ahmad Jauhari Yahya as MAS managing director and CEO on May 1 last year.

As CEO of the new Malaysia Airlines, Mueller’s primary tasks were to lead the turnaround of the loss-making national carrier with an aim to break even by 2018 and to build local succession after axing staff numbers by 7,000 to 13,000.

“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, Khazanah Nasional 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 will be undertaken through all necessary consultations 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 had been discussed and recorded at the Khazanah board meeting yesterday.

“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, which had lost RM5 billion since 2011, had posted a profit in February, and is on track to return to profitability by 2018.

Mueller reportedly said he was also considering a brand change to help improve the public image of the carrier, but said this was not likely to happen until it had revamped its product offering and operations.

The German aviation veteran’s tenure at Malaysia Airlines had its share of controversies. In January this year, the airline’s ban on checked-in baggage on some flights to Europe attracted widespread criticism. The temporary limits were lifted less than 24 hours after the unprecedented announcement.

The airline also entered into a partnership with Emirates which saw Malaysia Airlines withdrawing its daily services to Paris and Amsterdam, leaving London the only European destination it now serves directly. Nevertheless, the deal with Emirates gave Malaysia Airlines daily access to 38 European destinations.

Last week, the airline’s move to stop serving alcohol on flights under three hours’ long drew flak from netizens.