Nearly a year into the job of chief executive, Malaysia Airlines chief executive Azmil Zahruddin can finally start turning attentions to growth amid the improving economic picture in Asia and the arrival of new aircraft beginning this year.
Azmil took over as chief executive last August after Idris Jala left to take a post in the Malaysian cabinet. Azmil, who had worked closely with Jala in the airline's business transformation since joining as chief financial officer in 2005, notes that while he took over during the toughest of times for the industry, the carrier's continuity in strategy has helped during this transition.
"It's been manic," he says, summing up as he approaches his first year in charge. "I probably have had an easier time in terms of transition as the problems I am worrying about are the same ones I was worrying about before. [The difference is] before there was probably someone who was worrying more than I was, but not any more.
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"It has been extremely exciting, but also very tough. In August 2009 we [the industry] were still in a very tough position. It wasn't clear there was light at the end of the tunnel"Azmil ZahruddinChief executive, Malaysian Airlines |
"It has been extremely exciting, but also very tough. In August 2009 we [the industry] were still in a very tough position. It wasn't clear there was light at the end of the tunnel." He says one of the priorities on taking over was to make sure the leadership transition did not distract from the business transformation work and the immediate economic challenges facing the sector. "So I was keen to emphasise stability and continuity of strategy. Normally when you see a new chief executive, everything changes. But all the things we needed to do before, we still needed to do.
"We are at quite a good inflexion point in time of the business transformation," he adds, of the carrier's own progress. "Every year we have shrunk the network since 2005. We were not going to try and grow ourselves out of trouble. You have to earn a licence to grow." But, while stressing the business transformation work is far from over, he believes the airline has now started to reach that point. "For 2010 we will have a bit of growth," he says. The airline has added a couple of new destinations this year and expects to add a couple more before the year end. "For 2011/12, we are looking at positive growth in terms of the network," he says.
The growth ties into fleet renewal plans. These include Airbus A330s and A380s over the next two years, but begin later this year with delivery of the first of 35 Boeing 737-800s on order. These will replace its 737-400s, but also opens up the opportunity to develop new routes beyond the range of its 737-400s but for which its Airbus A330s are too large. "These [routes] will be the key focus for growth," he says.
All of this comes as Malaysia Airlines faces an expanding and high profile low-cost carrier in the form of AirAsia and its long-haul arm AirAsia X. "It's like being on a treadmill, you have to keep running," he says. "With AirAsia we have been competing for quite a while. We are both co-existing and I believe will continue to co-exist. We just have to make sure we are strong in what we are doing."
Source: Flight Daily News
