RISING PRESSURE: Will MAS chief Ahmad Jauhari continue to lead as issues cloud national carrier?
Ahmad Jauhari Yahya’s position as the head honcho of Malaysian Airline System Bhd (MAS) looks uncertain as his contract expires soon.
His position as managing director and group chief executive officer came under pressure after the powerful MAS Employees
Union (Maseu) said it has lost confidence in his ability to run the national carrier.
Maseu president Alias Aziz told Business Times that it had written to the Prime Minister to appoint an internal candidate to helm the airline.
Minister in the Prime Minister’s Department and CEO of Performance Management Delivery Unit Datuk Seri Idris Jala’s recent statement that MAS should have been sold when he (Idris) was CEO has also added to the pressure.
His position as managing director and group chief executive officer came under pressure after the powerful MAS Employees
Union (Maseu) said it has lost confidence in his ability to run the national carrier.
Maseu president Alias Aziz told Business Times that it had written to the Prime Minister to appoint an internal candidate to helm the airline.
Minister in the Prime Minister’s Department and CEO of Performance Management Delivery Unit Datuk Seri Idris Jala’s recent statement that MAS should have been sold when he (Idris) was CEO has also added to the pressure.
When Idris Jala was CEO, MAS’ share price peaked at RM6.20. The stock now trades at below 50 sen. Yesterday, it fell one sen to close at 33 sen.
Ahmad Jauhari’s contract is believed to end next month. The engineer by training was appointed to spearhead MAS on September 14 2011.
It is a fact that Khazanah Nasional Bhd contracts for government-linked companies’ bosses come with a two-plus-one option.
As at press time, MAS officials were not able to deny or confirm Ahmad Jauhari’s contract term.
For Maybank Investment Bank Bhd (Maybank IB) analyst Mohshin Aziz, it does not matter who leads MAS, nor whether he is an internal or external candidate.
"The key is to find the best man for the job. The thing that matters most is whether the person is able to instil a sense of teamwork in the airline, increase employees' productivity level and ensure that services are on par with the world's best," he told Business Times yesterday.
A check on MAS' latest annual report shows a few likely internal candidates for the top post.
They include current acting director of finance and director of corporate services Mohd Sukri Husin, director of operations Captain Izham Ismail and director of customer services Datuk Mohd Salleh Ahmad Tabrani.
"There are good and qualified senior staff in MAS on the top management position already.
"Mohd Sukri, for example, has been with the airline for almost 30 years," Mohshin said.
Nevertheless, he feels that it is not a good idea to replace Ahmad Jauhari now as there is "no clear successor".
There will also be a lot of time wasted should a new CEO from outside is appointed and who may have to spend more time to learn MAS' business and culture, he added.
"MAS is heading in the right direction. There is proof that Ahmad Jauhari is doing something to save the ailing airline.
"Its performance in terms of products and services is getting better and there are improvements in its load factor which, at 81.3 per cent, is higher than Singapore Airlines," Mohshin noted.
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