In the past month speculations were rife that Malaysia Airlines Bhd (MAB) group managing director and chief executive officer Peter Bellew would return to his former employer Ryanair, but he dismissed them as just that and instead expressed “his commitment to Malaysia Airlines”.
But the speculations have become a fact, as Bellew has now confirmed he is rejoining Ryanair as its chief operations officer on December 1. He cited the reasons for his decision as love for Ireland and a “national duty” to help the Irish low cost carrier resolve its current crisis brought on by errors in its pilot rostering practices.
The news of Bellew’s decision in the Irish Times report on October 17 was thus a surprise for the MAB board, the airline’s owner sovereign wealth fund Khazanah Nasional and the transport ministry as they did not see it coming.
MAB immediately issued a statement in response to “the unexpected announcement by RyanAir Holdings PLC to the London Stock Exchange regarding CEO Peter Bellew.”
The statement pointed out that Bellew had publicly expressed his commitment to the airline when asked by Malaysian and international reporters at a press conference on September 27 to comment on speculations that he would rejoin RyanAir.
“He said that he was happy to be in Malaysia and that the turnaround of Malaysia Airlines would be ‘the greatest achievement of my life’.”
This plus Bellew’s sudden resignation had led to reports in the Malaysian media that political interference in the running of the airline had played a role in his, and that of his predecessor Christoph Mueller’s departure.
Love for Ireland pulls Peter Bellew back to Ryanair (Image credit:Peter Bellew LinkedIn)
The Irish man, however, refuted such reports saying, in a personal statement, that there had been no interference from Khazanah Nasional or the government in his managing the national carrier.
“People always ask me how do I cope with government interference. There has been none for me. Zero interference.
“So why am I leaving. Negaraku (my country). Love for country is pulling me back to Ireland,” he added.
Although he initially declined the offer from the Irish low cost carrier Bellew said he changed his mind as “it (Ryanair) is Ireland’s greatest company. They need my help and there is a big challenge. It is a form of national service.”
On MAB, he said the brand is now revived and is confident it can reach 5% + revenue growth (needed to turn the corner). He also hopes the airline would maintain its brand as “people love what Malaysia Airlines stands for”.
Bellew joined MAB as its COO in September 2015 after nine years with Ryanair and was appointed CEO in July 2016, replacing Mueller. The latter quit suddenly in April 2016, just a year after being hired to oversee MAB’s transformation and turnaround, citing family matters, but joined Emirates a few months later as its chief technology officer.
With two foreign CEOs leaving in just over two years the Malaysian flag carrier now has to start hunting for a new chief executive again. This latest development may revive calls (yet) again for Khazanah to appoint a Malaysian to fill the post. Two CEOs leaving in such a short span of time is not healthy for the airline, especially as it is in the midst of its revival programme, and a Malaysian at the helm may just bring more stabiltiy, some may argue.
Speculations on again as to who will head Malaysia Airlines as it new CEO
Speculations have already started as to who may fill Bellew’s shoes, with the New Straits Times reporting the chief executive officer of Mass Rapid Transit Corp, Datuk Seri Shahril Mokhtar, as one of the leading contenders for the post.
Beleaguered MAB was delisted from Bursa Malaysia (formerly the Kuala Lumpur Stock Exchange) and privatised in August 2014 following the twin disasters of the disappearance of MH370 and the crash of MH17 in Ukraine. Khazanah then instituted a five-year transformation plan for MAB to turn it around and return to profitability in 2018.
Meanwhile, MAB board of directors said it would meet and made an announcement in due course. It assured customers that “our operations and services continue as normal, and our commitment and priority remains with our customers. The turnaround of Malaysia Airlines remains on track and on schedule, as per the MAS Recovery Plan.”
UPDATE: Capt Izham Ismail is Malaysia Airlines new CEO
Malaysia Airlines Berhad’s (MAB) current chief operating officer Captain Izham Ismail will replace Peter Bellew as executive director and group chief executive officer (GCEO).
Capt Izham is presently the airline’s chief operating officer.
Izham Ismail takes over as Malaysia Airlines group CEO on Dec 1 (Image credit: Malaysia Airlines)
“Captain Izham will assume the role of GCEO on December 1, 2017 upon the departure of Peter Bellew who is currently on administrative leave,” said the airline in a statement issued on October 20.
“Captain Izham has been integral to the airline’s ongoing turnaround effort. As COO, he was responsible for the operations division, which includes flight and airport operations as well as engineering. He led the restructuring of the engineering division for more efficient and leaner operations, and was also responsible for the airline’s fuel savings initiative.”
MAB said Capt Izham’s appointment “is in line with the succession plan that MAB has put in place as part of the 12-point MAS Recovery Plan (MRP)”, which provides for the “development and succession of Malaysian leadership talent in the company”.
The statement added that to ensure a smooth transition, a Board Executive Committee will be in place for up to six months and will be led by MAB chairman Tan Sri Md Nor Yusof.
• Featured image credit: 01010011portfoliolab/iStock-GettyImages
