Management committee to steer MAS

KUALA LUMPUR: In a significant shift to boost the country’s aviation industry, a management committee comprising representation from all shareholders is expected to steer the direction of Malaysian Airline System Bhd (MAS) following a proposed shareholding tie-up between the national carrier and AirAsia Bhd.

Firefly, the low-cost carrier of MAS, is expected to focus on Turbo-prop operations flying out from the Subang Airport only.

Sources said the management committee will be headed by MAS’ newly appointed chairman Tan Sri Md Nor Yusof and will comprise representatives from AirAsia if the shareholding tie-up comes to fruition.

“It would comprise representatives from MAS and AirAsia to steer the direction of the national carrier as a premium airline,” said a source.

In addition to the management committee, Mohammed Rashdan Yusof is also likely to be appointed the chief operating officer of MAS. The national airline is at the moment managed by managing director and CEO Tengku Datuk Azmil Zahruddin.

Under the proposed shareholding tie-up, it is learnt that Khazanah Nasional Bhd, the single largest shareholder of MAS would take up a stake in Tune Air Sdn Bhd, the 26.26% shareholder of leading low-cost carrier AirAsia. Tune Air is controlled by AirAsia group CEO Tan Sri Tony Fernandes and deputy group CEO Datuk Kamarudin Meranun.

In an unconfirmed report, The Edge weekly reported that the major shareholder of MAS and AirAsia would undertake a corporate exercise. Under the proposal, Khazanah, which owns close to 70% of MAS, would take a stake in Tune Air and in return the latter would subscribe for new shares in MAS at a premium.The move is to help reposition MAS in the wake of increasing competition in the aviation sector particularly from LCCs. To compound matters, the high jet fuel price is also bogging down all airlines, including MAS.

It is learnt that Firefly would revert to its original role of operating turbo-prop planes from Subang Airport. Firefly started as a turbo-prop operator but later ventured into undertaking operations with jet airplanes, which were run from the Kuala Lumpur International Airport (KLIA) in Sepang.

The move to expand Firefly operations followed MAS taking delivery of new single-aisle jet airplanes to renew its fleet. As the additional planes arrived at the time when air travel declined, MAS deployed the new jets for Firefly operations as it saw growing demand.

Khazanah is expected to hold a conference today to reveal the full details of the corporate exercise.