Malaysia Airlines is now under the command of former pilot Izham Ismail. rob finlayson

A smooth transition

MAS looks for leadership stability with new local CEO

When the heads of Asia’s major airlines gathered in Taiwan’s capital Taipei late October for their annual talkfest, the Association of Asia Pacific Airlines (AAPA) Assembly of Presidents, there was one notable absentee.

With good reason. The now former chief of Malaysia Airlines (MAS) Peter Bellew was instead heading back to his Irish homeland to take up a new job as Chief Operating Officer of budgeteer Ryanair after accepting what everyone is convinced was an offer he couldn’t refuse.

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From an AAPA point of view he was sorely missed. Not only was Bellew supposed to have participated in a panel session discussing “Evolving Business Models” in the airline industry, during his brief tenure at MAS he had become a favourite speaker at meetings and conferences because of his deep industry knowledge and Irish wit. He was more than a raconteur. At the Assembly a year earlier in Manila he delighted delegates at the traditional event-ending Gala Dinner by getting on stage and rocking the audience with a few songs delivered in a more than professional manner.

The question now is: where does Malaysia Airlines go after his departure? This is the only airline in the world that has had four chief executives in three years. It is in the middle of a major restructure aiming to get it from bankruptcy to profit by next year.

Surprisingly, since it is a process that usually takes months, the airline’s board moved quickly to appoint a replacement. He is Captain Izham Ismail, a long-time employee of the carrier with 38 years of experience. He started with MAS as a pilot and rose through the ranks to be director of operations, later chief executive of subsidiary MAS Wings and until now, chief operating officer of MAS.

Not so surprisingly, he is a local. After losing German Christoph Mueller – a turnaround specialist known as “The Terminator” – prematurely in 2016 just a year into his much-vaunted plan to bring MAS back to financial health, Bellew hit the road after only 18 months in charge.

With two foreign chief executives departing surprisingly early there was no way the carrier was going to look overseas for a replacement. Many insiders believe these repeated changes in leadership bode ill for an airline that has a financial record that would give any self-respecting business owner nightmares. It has, with stunning regularity, plunged from record profits to bankruptcy over the years. Hardly helped by the twin air disaster in 2014, the mysterious disappearance of MH370 in the Indian Ocean and the shoot-down of MH17 over the Ukraine.

There is, however, some reason to hope the future still looks reasonably bright. While Mueller (now with Emirates Airline) and Bellew have gone to greener pastures, they have left in place a solid transformation plan. Bellew especially has instilled a new culture of optimism amongst staff.

“Bellew’s departure, if anything, has merely accelerated our plans to localise the leadership of Malaysia Airlines group,’’ MAS chairman Nor Yusof said in an e-mail to the entire workforce.

Indeed, the 12-point MAS Recovery Plan (MRP) envisioned a return to leadership by local talent eventually. Besides, Izham has been deeply involved in the restructure from the beginning and will certainly be able to power on with what needs to be done with little interruption or change.

Nevertheless, the airline’s Board is well aware some local chiefs have had problems in the past gaining the confidence of all sections of the workforce. Chairman Nor has urged the staff to rally support for the new group CEO, saying MAS flights must continue to take off and land on time, and continue to provide sincere and genuine Malaysian Hospitality across every customer touch points.

“We have weathered many storms together as a family and we will come back stronger and better than ever… it is critical now more than ever that you all continue to focus and deliver what is required of each of you. The nation is counting on us all to make this airline the pride of the nation once again. We should not allow anything to derail us from achieving this,” he said.

To ensure a smooth transition, a board executive committee will be in place for up to six months. It will be led by Nor and two other directors. Bellew himself took to social media to give his successor some backing.

He used Instagram to congratulate Izham with an emotional tribute: “My friend Izham is new group CEO of MAS. A proud dad and granddad. Aviation professional. Technical geek. Outstanding pilot. But most important – a wonderful man. He will be a great leader of this special airline. I am very proud of you Izham. I’ll pray for your success. I hope you still have me on speed dial. God Bless You,’’ he wrote.

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