Pulling out all the stops to rebuild the MAS brand

SEPANG: The executive committee for Malaysia Airlines (MAS) have agreed on two main issues - spare no cost in building back the Malaysia Airlines premium brand and focus on developing its people.

The committee met for the the first time on Thursday.

The Joint Collaboration Committee for MAS and AirAsia Bhd partnership met for the first time yesterday.

The Executive Committee and Joint Collaboration Committee have almost identical members.

Datuk Mohamed Azman Yahya, MAS executive director Mohammed Rashdan Mohd Yusof, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun are on both boards.

MAS chairman Tan Sri Md Nor Yusof is the chairperson for the Executive Committee while Azman is the chair for the Joint Collaboration Committee.

"The board decided that while we are looking at cost savings, we will not sacrifice the brand and the product. We will not hesitate to spend to make MAS better, if not on par with all the other existing legacy carriers," Kamarudin told Business Times.

AirAsia Bhd's co-founder and group deputy chief executive officer is also MAS' newest substantial shareholder.

The board will not hesitate to review some decisions which have been made.

For example, the committees are looking at a possible revamp of the airline's seats.

"While cost is of a concern, at the same time you wouldn't want to be penny wise and pound foolish. Why not sacrifice RM10 million, if you can make it back in six months for example," said Kamarudin.

AirAsia X had done something similar with its revamp more than a year ago, when it exchanged its stiff XL seats for Flat Bed ones, which have been a hit with passengers.

On whether the airline has the necessary funds for such an exercise, Kamarudin said he was confident that action could be taken to free up enough cash to fund it.

"I don't foresee a need for a rights issue. Yes there is a need for cash, but obviously there are many ways we can streamline and get a more cost efficient operation and therefore improve cash flow," he said.

On the matter of people, the board is also exploring further enhancements to incentivise employees of MAS.

The possibility of a Voluntary Separation Scheme has not been discussed.

"We are looking at the overall organisation chart, so we can realign the people and grow it. Not shrink it. We believe there is a lot of room for MAS to grow," Kamarudin said.