In the news: MAS’ leadership change, new agreement between AirAsia’s and Travelport, charitable project from ZUJI and MasterCard, Accor’s gender equality programme
Leadership change in MAS – commercial director resigns, new CIO appointed
The shakeup in Malaysia Airlines (MAS) begins as new chief executive officer, Christoph Mueller, takes over the reins of the beleaguered airline on May 1 to steer it to profitability under MAS NewCo that will start operations on July 1. (MAS NewCo is the new company set up to take over the old Malaysia Airlines Bhd).
Mueller was originally to assume his post on July 1 but MAS’ sole shareholder, Khazanah Nasional Bhd (the country’s sovereign fund), decided to accelerate the leadership transition to enable him to be in the executive capacity to lead the overall restructuring of the airline.
One of the first tasks the new CEO has to undertake is the trimming of the 20,000 strong staff force to 14,000 as part of the airline’s 12-point recovery plan. Many of the employees are expected to receive termination and appointment letters (latter to join MAS NewCo), which will be sent to their residential address, starting May 27.
Changes at the top are also on the drawing board as Mueller, in a three-page email dated May 5 to all employees that was obtained by a few media outlets, said to grow and regain lost grounds “sometimes we have to retreat and regroup before growing again. That is the ultimate target, we want to grow again in the last phase of the restructuring”.
The first of this “regrouping” came with the airline’s announcement on May 12 of the resignation of its director of commercial director, Dr. Hugh Dunleavy, effective August 31.
MAS said a search to identify a suitable successor, both internally and externally, is being conducted.
Mueller will take over responsibilities as chief commercial officer on June 1 “to ensure a smooth transition until an individual has been identified for the role.”
Dunleavy joined MAS in January 2012, and was brought in to lead the national carrier’s new network, alliance, strategy and planning division at the time. He was to help leverage strategic partnerships with other airlines.
Dunleavy’s extensive experience in the airline industry, having previously worked for Lufthansa, Star Alliance and Air Canada, made him suitable for this role. Before joining MAS he was WestJet’s executive vice-president, commercial distribution, having joined the airline in 2005 as vice-president of revenue.
In a related development, MAS also appointed a new chief information officer (CIO), Tan Kok Meng, who takes up the post on May 18.
Mueller said that Tan brings with him over 20 years of experience in the IT and management capacities and “will be assisting the company in developing enhanced IT structures and support moving forward.”
Prior to his appointment, Tan was the group CIO & head, regional shared services of Malayan Banking Berhad and had served as programme director, finance transformation of AstraZeneca (Malaysia).
There will be more changes as Mueller tackled the tough task of turning an airline that, in his words in the email, “was suffering badly from a damaged brand in important overseas markets.”
The “damaged” image was partly due to the twin disasters suffered by the airline in 2014 – the mysterious disappearance of flight MH370 on March 8 with 239 on board enroute from Kuala Lumpur to Beijing (search for aircraft is ongoing in the Indian Ocean), and the downing of flight MH17 flying from Amsterdam to Kuala Lumpur over Ukraine, killing all 298 on board.
Mueller does not have an easy task ahead. He has to ensure the new business plan works and shows results for, as he said in his email to the staff, Khazanah would only inject funds if there was proof of the airline presenting a plan that could show profit.
But he is optimistic. His vision for the “new” MAS is one that is safe, on time and friendly. He is also looking at a uniform change, a new common building to work in, new processes and teamwork system-wide.
Watch this space for the changes to come.
AirAsia enhances product delivery with Travelport’s merchandising technology
AirAsia, Asia’s largest low cost carrier, has inked a deal for Travelport’s Rich Content and Branding solution, making it the first low cost carrier to sign up for this feature.
This new pact supplements the distribution agreements that Travelport already has with seven carriers within the AirAsia group.
The merchandising technology allows airlines to market and retail their products more effectively by controlling how their products are visually presented and described to travel agents.
The solution is designed to enable partner airlines to use more sophisticated retailing techniques to drive sales of core fares, as well as ancillaries and “optional extras” such as selected seating and lounge passes.
Spencer Lee, AirAsia’s head of commercial, said with this solution the airline could now present its products in the same manner to Travelport’s global network.
More than 100 airlines have signed up for the Rich Content and Branding solution including China Eastern Airlines, Delta Air Lines, British Airways, Singapore Airlines, easyJet, and Ryanair.
ZUJI, MasterCard team up to support under-privileged students in Singapore
ZUJI Singapore and MasterCard have entered into a partnership with The Straits Times School Pocket Money Fund (SPMF) to provide resources and experiences for Singapore’s under-privileged students.
The partnership is part of ZUJI’s “A Lot Like Love” campaign to give back to the less fortunate.
ZUJI said in a statement that SPMF was “an ideal partner given its worthwhile cause of helping children get the right start – whether it be ensuring they have enough money for a proper breakfast or to sustain their day in school, or easing the family’s financial burden in providing for their children’s education and school needs.”
Chua Hui Wan, CEO for ZUJI Singapore, said: “All children deserve the right to experience special events and see unique places. The joy of travel is for everyone, and through this partnership with MasterCard and SPMF, we hope to create bright and worldly possibilities for students in need.”
ZUJI will donate S$0.50 for every new Facebook like on ZUJI Singapore’s Facebook Page until November 1, and S$2.50 for every booking made with a MasterCard during selected periods.
In November, ZUJI will celebrate the joy of travel by giving two low-income families from SPMF, who could not afford to go overseas, with all-expense paid holidays.
Women at the helm in Accor
Accor promotes gender equality for women through its Women at Accor Generation (WAAG) programme, which has seen many women appointed to the position of hotel manager or general manager.
The hotel group plans to reach 35% of women general managers by 2017, and 50% in the long-term.
Currently Accor’s hotels in South and North America lead the way in terms of gender equity with 42% of hotels being run by women general managers.
Across Asia Pacific there are currently around one in five women in hotel manager or general manager positions compared to men, but the group has introduced a range of policies to make it easier to identify high-potential women and ensure they enjoy equal access to the company’s senior positions.
A large part of this goal is the creation of the WAAG network, which is designed to inspire and support women to evolve within the group.
Asia Pacific has one of the strongest WAAG networks, with over 1,050 members (or over 39% of global membership), showing there is a real push for change in the region, with both men and women represented in the network.
A number of women are holding managerial positions in Accor properties in APAC. Among them are: Julie Tham, hotel manager of ibis Jaipur (India); Dona Yohana, general manager, of Ibis Jakarta Cawang (Indonesia); Shamila Rolfe, General Manager, Mercure Bali Legian (Indonesia); and Amery Burleigh general manager of Sofitel Gold Coast (Australia).
• Featured image credit: (MAS A380 aircraft): Malaysia Airlines