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Mueller unveils a flat MAS structure

 

PETALING JAYA: Malaysia Airlines Bhd unveiled a structure that is flat and having several new faces at the apex management team.
Christoph Mueller (pic), the current Malaysia Airlines (MAS) chief executive officer and CEO designate of the new airline has broken the operations of the loss-making airline into eight divisions.
Out of the eight divisions, the top positions in four are still vacant, meaning that the new airline is still undertaking the search to fill up the slots.
The four positions are the head of commercial, chief financial officer, executive counsel and head of strategy and PMO, according to documents sighted by StarBiz.
Of the four positions that have been filled, three are new to the airline. They are chief operations officer Peter Bellew, chief information officer Tan Kok Meng, interim chief human resources officer Claudia Maria Cadena Tarazona.
The head of corporate safety oversight Datuk Capt Badrul Hisham Yusoff is from the old MAS.
This is also the first time the airline will have a chief operations officer in Bellew, formerly of Ryanair.
Apart from the eight divisions the new airline will have four subsidiaries which are FireFly, MasWings, Mas Ground Handling Sdn Bhd and MAB Engineering Sdn Bhd.
Former head of MAS restructuring Mohd Nadzir Mohd Basir is the CEO of the new MAB Ground Handing while Azhari Mohd Dahlan (now head of engineering services) is CEO of MAB Engineering Services Sdn Bhd.
Firefly and MAS Wings remains headed by Ignatius Ong and Capt Ritzerwan Rashid respectively.
More: www.thestar.com.my/Business/Business-News/2015/07/03/Mueller-unveils-a-flat-MAS-structure/?style=biz

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RM 2 million compensation for the pilots and they still have a chance to earn money with EK/QR/EY etc. They have nothing to complain about to be honest especially when you consider rank & file executives, even those who've worked for the company for decades wouldn't get even close to half that amount. And why can't the 400 pilots be put on furlough instead like airlines in America? That'll certainly cost less than RM 800 million.

As for sacking those close to retirement - how close is close? One year, two years, three years? Why should they keep those close to retirement as dead weight, especially those in senior position who certainly is raking in high pay? Might as well take a one off charge & be done with it.

 

Meanwhile with regards to the paycuts I don't think it applies to all. My ex-colleague has her pay maintained with no changes whatsoever and she's mid level in terms of experience 5 years working with the company. It probably affects those more senior whose salary is beyond the new ceiling for that particular position.

Edited by Mohd Suhaimi Fariz

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Update at 0500GMT 09JUL15

 

Malaysia Airlines this week continues its network changes, due to take place from August 2015. Latest service changes as follow.

 

Kuala Lumpur Delhi eff 01SEP15 Reduce from 2 to 1 daily, MH172/173 cancelled

Kuala Lumpur Denpasar Further revision to planned service changes, which will be in effect from 01SEP15. MH851/850 operated by 737-800 instead of 777; MH715/714 continues to be operated by Boeing 777-200ER (Overall 2 daily 737 and 1 daily 777, instead of planned 3 daily 737)

Kuala Lumpur Jakarta eff 15AUG15 Reduce from 8 to 7 daily, MH849/848 cancelled

Kuala Lumpur Istanbul eff 25AUG15 3 weekly service CANCELLED

Kuala Lumpur Mumbai eff 01SEP15 Service increases from 12 to 14 weekly; MH194/195 operates with 737-800, replaces 777-200ER (Overall 2 daily 737-800)

Kuala Lumpur Tokyo Narita eff 10AUG15 MH070/071 Airbus A330-300 operating, replacing 777-200ER (all 10 weekly service operated by A330)

 

Previously reported service changes:

Kuala Lumpur Adelaide eff 09AUG15 Reduce from 7 to 4 weekly (Day x237 from KUL, Day x134 from ADL). A330-300 operating

Kuala Lumpur Brisbane eff 09AUG15 1 daily service cancelled

Kuala Lumpur Guangzhou eff 15AUG15 Reduce from 2 to 1 daily, MH380/381 cancelled

Kuala Lumpur Ho Chi Minh eff 15UAG15 Reduce from 4 to 3 daily, MH760/761 cancelled

Kuala Lumpur Hong Kong

eff 01AUG15 MH072/073 Boeing 737-800 replaces 777-200ER (overall 4 daily 737-800)

eff 15AUG15 Reduce from 4 to 3 daily, MH448/449 cancelled

 

Kuala Lumpur Male eff 23AUG15 1 daily service cancelled

Kuala Lumpur Manila eff 15AUG15 Reduce from 5 to 3 daily

Kuala Lumpur Medan Kuala Namu eff 09AUG15 Reduce from 3 to 2 daily, MH846/847 cancelled

Kuala Lumpur Melbourne eff 02AUG15 Reduce from 3 to 2 daily, MH147/146 cancelled

Kuala Lumpur Paris CDG eff 04AUG15 Boeing 777-200ER replaces A380, 1 daily

Kuala Lumpur Perth eff 15AUG15 Reduce from 12 to 7 weekly, MH127/126 cancelled

Kuala Lumpur Shanghai Pu Dong eff 18AUG15 Reduce from 2 to 1 daily, MH386/387 cancelled (However MH386/387 will operate on certain dates from 18AUG15 to 24OCT15)

Kuala Lumpur Siem Reap eff 17AUG15 Reduce from 7 to 5 weekly, Day 14 cancelled

Kuala Lumpur Sydney eff 03AUG15 Reduce from 3 to 2 daily, MH143/142 cancelled

Kuala Lumpur Taipei Taoyuan eff 15AUG15 Reduce from 2 to 1 daily, MH408/409 (and MH407) cancelled

Kuala Lumpur Yangon eff 18AUG15 Reduce from 14 to 11 weekly, MH742/743 operates Day x235 instead of daily

Edited by kandiah k

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With the latest round of reduction, what are they planning to do with B777 fleet? Only operating on AKL, CDG, AMS?

 

Even NRT will be all A333 soon.

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With the latest round of reduction, what are they planning to do with B777 fleet? Only operating on AKL, CDG, AMS?

 

Even NRT will be all A333 soon.

They own 4 of them - so these are probably paid for and will be refurbished with a new cabin first. They may keep a few more (maybe another 4) of the leased aircraft (and refurbish them too) for these three destinations. The balance of the leased aircraft might be returned to lessors. So the B777 fleet will be cut by half.

 

I think that any future expansion (maybe in 3 or 4 years' time) will see new aircraft joining the fleet - a good time for MH to look at the B789 and/or A359/A35J. The previous talk of D7's A359s being passed on to MH may now look quite feasible since D7 is actively seeking buyers for their aircraft delivery slots these days.

Edited by flee

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Its official now: 2 Route cuts

 

KUL-BNE: Route axed from 09AUG

KUL-MLE: Route axed from 23AUG

Looks like AK will replace MH on the KUL-MLE route soon.

 

Now I wonder if D7 might be considering running a KUL-BNE-AKL service. They were talking about serving NZ via Australia.

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Looks like AK will replace MH on the KUL-MLE route soon.

 

Now I wonder if D7 might be considering running a KUL-BNE-AKL service. They were talking about serving NZ via Australia.

D7 might need to get the both Oz and NZ approval for this, which I think will be pretty easy noting that RBA did it before.

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Dont look as far as RBA, MAS used to operate KUL-BNE-AKL circa 2002!

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Looks like 777 refurbishment is in full swing! I really hope that their product will be 'industry leading' as promised

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MH to use A333 on 3 out of 7 flights to Auckland starting 2 Sept 2015. @airlineroute

 

The A333 is much more comfortable than the aging B777. Unfortunately I booked my AKL flight for coming Nov with Emirates thru MEL. Even though there is 6 hours lay over in MEL, the fare was much cheaper than MAS at the time of booking and the MEL-AKL leg is on A380. Since we are not pressed for time the savings was worth it in a way! :acute:

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The A333 is much more comfortable than the aging B777. Unfortunately I booked my AKL flight for coming Nov with Emirates thru MEL. Even though there is 6 hours lay over in MEL, the fare was much cheaper than MAS at the time of booking and the MEL-AKL leg is on A380. Since we are not pressed for time the savings was worth it in a way! :acute:

Looking forward to your trip report if you do one. Usually transit flight is cheaper than direct flight.

Dont look as far as RBA, MAS used to operate KUL-BNE-AKL circa 2002!

Nice info, didn't know about this. :)

Looks like 777 refurbishment is in full swing! I really hope that their product will be 'industry leading' as promised

One can hope. I don't expect it to be like SQ's new J a la some airlines' F, but I would expect something decent like recent Cirrus seats that many airlines used nowadays.

 

Guess CM has been very busy recently meeting up with vendors....

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Looks like 777 refurbishment is in full swing! I really hope that their product will be 'industry leading' as promised

 

Can we expect the new product next month when they will downgrade CDG to T7?

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The A333 is much more comfortable than the aging B777

Not in Y, at least. The 772's thicker seats with 34" pitch beats the 333 hands down. Yes, the 772 has inferior IFE, but the more comfy seats outweigh it.

 

Even in J I don't find the two aircraft to be very different. If fact, there's a lot more legroom in J on the 772. Regardless, they're both angled flat products, so I don't really care if the flight is operated by either aircraft type.

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I guess the A333 would suffer from payload restrictions on KUL-AKL-KUL. Do you guys think that Y class on the B777-200ER would go 3-4-3? If new IFE is introduced, they would have to retrofit the aircrafts with new seats.

Edited by Jtnstar

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I think Y should be retain in 2-5-2 config. Great for couples and families. New seats should yield similar comfort with current ones (have to admit, those cushy seats from 1990s are still the best for for my back :D). MAS should go ALL OUT in revamping the business class, which CM said will be better than 'industry leading' standard.

Edited by Alif A. F.

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..... their product will be 'industry leading' as promised

 

..... which CM said will be better than 'industry leading' standard.

It seem the aspired/perceived standard is on upward momentum :D

Good :good:

 

Btw, doesn't that "better than industry leading" tagline sound like something recycled from days (not too long ago) when F cabin on the A380 was being built up as being the next fantasy in sky come true by the MH marketing team ? :)

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I am glad that the new CEO is someone from the airline industry (doesn't matter whether they are local or foreign).. He will have a good understanding of what it takes to ensure the hard product is of an appropriate standard.

None of this 'five star value carrier' bullcrap.

I was very disappointed when I saw photos of MH's much touted A380 first and business class. It was 5 years behind the competition (look at etihad, SQ and emirates)

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I was very disappointed when I saw photos of MH's much touted A380 first and business class. It was 5 years behind the competition (look at etihad, SQ and emirates)

I think we need to move beyond this bestest, largest, awesomnest mindset for the time being

The dire financial straits and poor staff morale at MH currently is hardly any secret recipe to be able to take on the perceived industry leaders

Not saying they should not, but now is probably not the time to strike the iron - when it's for sure not hot, barely at room temperature even :p

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How do you derive that amount of 2M each? Last pay multiply with number of years in service?

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For the pilots offered contract with Newco got 0.25x. Those not offered got the full 1.5x but even then the actual figure is nowhere near 2M.

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