New CEO for Malaysia Airlines by end 2014

Khazanah Nasional, the majority shareholder and strategic investment fund of Malaysia Airlines (MAS), has issued an update on the airlines' ongoing restructuring efforts, stating an announcement on the company's leadership is in the works.

"Encouraging progress has been made in the global search of leadership talent for the NewCo. Khazanah expects to make a key announcement on the leadership of the NewCo by the end of the year, as previously stated," it said.

The "NewCo" refers to Malaysia Airlines Berhad, which was incorporated last month to serve as the vehicle to house the new national carrier. It is targeted to be operational by July 2015.

In addition to the CEO search, the efforts also encompass strengthening leadership across the organisation’s governance structure, including the board of directors, senior management, and other key positions.

A talent assessment process has also been rolled out at MAS to identify the workforce required by the NewCo, estimated at 14,000 employees.

The assessment is being facilitated by an external independent advisory firm, and the top 500 management personnel have been covered to date.

"This is in line with the principle of prioritising the necessary changes to be made to the MAS leadership and top management, before the airline’s other employees," Khazanah stated.

In the meantime, the framework for the proposed Corporate Reskilling Centre and Outplacement Centre, has been developed and is targeted for launch by April 2015.

It is intended to collectively provide reskilling, job creation and redeployment opportunities for the employees who will not migrate to the NewCo.

The MAS recovery plan is being directed by a restructuring management office staffed with close to 50 personnel, led by MAS' former CFO Mohd Nadziruddin Mohd Basri.

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