KUALA LUMPUR: Khazanah Nasional Bhd has unveiled a 12-point plan to enable Malaysia Airlines (MAS) to achieve sustained profitability within three years of de-listing, by the end of 2017.
Its managing director Tan Sri Azman Mokhtar said the plan involved a comprehensive overhaul of the airline.
“At its core, the plan involves the creation of a new company, (NewCo) which will house the ‘new MAS’ and the migration of the right-sized workforce and work practices and contracts into NewCo,” he told reporters at a special briefing at Khazanah headquarters on Friday.
The plan, entitled “Rebuilding A National Icon – The MAS Recovery Plan”, has four categories which are governance and financial framework, operating business model, leadership and human capital, and regulatory and enabling environment.
Azman said this plan followed a review of all relevant aspects of MAS’ operations and operating environment that commenced in February this year.
He said current MAS chief executive officer Ahmad Jauhari Yahya would continue to lead the old company during the transition period over the next 10 months to July 1, 2015.
“Khazanah has commenced the search process for the CEO of NewCo and we envisage that the conclusion of this search will be announced in due course, expected to be before the end of 2014,” he said.
Azman said it was estimated that NewCo would require a workforce of approximately 14,000, representing a net reduction of 6,000 or 30% from the approximately 20,000 current staff.
He said Khazanah would invest in a Corporate Reskilling Centre to address the reskilling of the appropriate MAS staff who did not migrate to NewCo.
“MAS and Khazanah are committed to helping each exiting employee minimise the negative impact to their livelihoods and quality of life,” he said.
On Aug 8, Khazanah announced it would undertake a selective capital reduction and repayment exercise at an offer price of RM0.27 per MAS ordinary share, representing a 29.2% premium to the 3-month volume weighted average market price at the time of announcement.