Staff need to sacrifice for MAS' success, says Don

After the government and people allowed the "sacrifice" of billions of ringgit to revive Malaysia Airlines (MAS) which began operations as a new company, Malaysia Airlines Bhd (MAB), on Sept 1, the national carrier's fate not only depends on its new management but also on the sacrifices of the 14,000 staff it has retained, says an academic.

Prof Dr Azmi Hassan, geostrategist at Universiti Teknologi Malaysia's Perdana School, reminded the staff that Malaysians expect good returns from the investments into MAS' restructuring and if the company fails again there probably will not be another rescue attempt.

He told Bernama that the people have given MAS another chance with its major shareholder Khazanah Nasional Bhd spending RM6 billion to revive it, saying "the RM6 billion is the people's money and shows the people's full support for MAS."

"The people are asking MAS' management and staff to give their highest commitment to making MAS a success just like other successful airlines.

"It means the 14,000 employees should show their gratitude and appreciation for being retained in the new company, and this is what the people want to see," he said, adding the reduction in operational costs and the laying off of 6,000 staff are the first signs of a successful revival.

In early May, the national carrier signed a settlement agreement with airline caterer Brahim’s Airline Catering Sdn Bhd (BAC), saving about 25 percent on its monthly bills.

BAC's contract is the largest among the 4,000 supply contracts under negotiation, part of the carrier's revival plan.

MAS' route rationalisation has also seen a reduction in routes and the scrapping of unprofitable routes.

"We want to see not only the reduced costs bringing in profits but also attracting more passengers, that is the challenge," he said.

But, he said, 70 to 80 percent of the burden rests on the shoulders of those outside the top management as they are the ones dealing with passengers.

"In the aviation industry, everything revolves around the passengers, what they say is what they feel," he said.

Azmi said as passengers will not be dealing with top management but with the 14,000 staff outside it, it is important that the latter show the same commitment as the management.

He expressed optimism that MAS CEO Christoph Mueller would be able to bring the airline back to profitability in three years.

"One of the CEO's responsibilities is to have on board a management lineup he is comfortable with, but what is interesting is that it includes his former rivals when he was with Lufthansa and Aer Lingus.

"Mueller's strategy is that although they are former business competitors, he wants their proven expertise," he said.

He said as the airline business is a service-oriented one, the management's expertise and experience would not mean anything if non-management staff do not change their "business as usual" approach, adding they should not complain if asked to work overtime and should realise that if MAS does not recover, they could lose their jobs.

"For me, MAS' plans could be brought down not by external factors but by internal ones," he said.