HUGE changes await the beleaguered Malaysia Airlines (MAS) as it restructures into a new “start-up company”, including a rebranding and revisions to its fleet and routes.
MAS parent company, Khazanah Nasional, said its third quarterly progress update of MAS’ restructuring that the national carrier will be “principally commercial” while remaining “a full-service international airline, maintaining current domestic routes”.
Khazanah is porting over MAS’ assets and liabilities to Malaysia Airlines Berhad (MAB), the new company that takes over MAS operations on September 1, according to an article byReuters.
At the centre of MAS’ attempt to reinvent itself is MAB’s managing director and group CEO, Christoph Mueller, who has been credited with turning around carriers such as Lufthansa, Irish national carrier Aer Lingus and Belgium’s Sabena.
Said Mueller to Reuters: “It’s not a continuation of the old company in a new disguise, everything is new.”
Khazanah’s press statement said the revamped airline will be like a “start-up company” – equipped with a “refreshed Malaysian-centric brand”, young fleet and updated products on all longhaul flights, including flat beds in Business class and a better in-flight entertainment system. A new catering concept and more customisable flight experiences will also be on offer.
The new MAS will serve destinations in South-east Asia, China, India, Japan, South Korea, Australia, New Zealand, UK and Saudi Arabia, and is exploring potential partnerships that will see Africa, the US and Europe covered within its network even as it mulls further route rationalisation.
It has already suspended flights to Frankfurt, Kunming, Krabi and most recently, Kochi in India.
The airline’s costs are 20 per cent above its rivals and Mueller was reported as saying that it will take three years to close the gap and return to profitability.
Furthermore, despite having denied rumours of aircraft sales not a month ago, Mueller also confirmed to Reuters that MAS has been trying to sell two of its Airbus A380s.
Revamped MAS will likely have a smaller fleet, but retain all of its current types of aircraft.
