Another Asian airline chief has fallen victim to poor financial results brought on in part by rising fuel costs.
Malaysia Airlines (MAS) managing director Ahmad Fuaad Dahlan was the second within two weeks in August, the first being Thai Airways International president Kanok Abhiradee.
Dahlan had only served as managing director of MAS since early last year. He resigned after poor quarterly financial results were reported in August and within weeks was replaced by Idris Jala, a career employee with global oil company Shell.
Jala, a 47-year-old Malaysian national, takes over at the beginning of December as head of the state-owned airline after serving since 2003 as managing director of Shell MDS (Malaysia). Previous positions with Shell starting in 1982 included senior roles in the UK, Sri Lanka and the Netherlands, MAS said in a statement to the Kuala Lumpur stock exchange.
Dahlan was a career MAS employee who spent 32 years with the airline. His resignation was announced as the carrier released its financial statement for the first quarter to the end of June showing a 17% increase in revenue but a sizeable net loss.
MAS chairman Mohamed Munir Abdul Majid called the results “a reality check”, and said the loss was “a result of several factors, not merely limited to fuel prices”.
He said the airline needs to have its management lines radically restructured, its operations simplified and its assets better utilised. He added that profits produced in previous years were only “accounting profits” due to financial restructuring efforts and “not from sustainable operational performance”.
“We recognise the issues that currently exist within Malaysia Airlines and we have a planned and systematic approach to address them,” said Munir.
NICHOLAS IONIDES/SINGAPORE
Malaysia Airlines (MAS) managing director Ahmad Fuaad Dahlan was the second within two weeks in August, the first being Thai Airways International president Kanok Abhiradee.
Dahlan had only served as managing director of MAS since early last year. He resigned after poor quarterly financial results were reported in August and within weeks was replaced by Idris Jala, a career employee with global oil company Shell.
Jala, a 47-year-old Malaysian national, takes over at the beginning of December as head of the state-owned airline after serving since 2003 as managing director of Shell MDS (Malaysia). Previous positions with Shell starting in 1982 included senior roles in the UK, Sri Lanka and the Netherlands, MAS said in a statement to the Kuala Lumpur stock exchange.
Dahlan was a career MAS employee who spent 32 years with the airline. His resignation was announced as the carrier released its financial statement for the first quarter to the end of June showing a 17% increase in revenue but a sizeable net loss.
MAS chairman Mohamed Munir Abdul Majid called the results “a reality check”, and said the loss was “a result of several factors, not merely limited to fuel prices”.
He said the airline needs to have its management lines radically restructured, its operations simplified and its assets better utilised. He added that profits produced in previous years were only “accounting profits” due to financial restructuring efforts and “not from sustainable operational performance”.
“We recognise the issues that currently exist within Malaysia Airlines and we have a planned and systematic approach to address them,” said Munir.
NICHOLAS IONIDES/SINGAPORE
Source: Airline Business
