Ultimate aim should be to revitalise MAB, not who does it, says ex-chairman

It has been reported that AirAsia Group Bhd co-founder and former chairman Pahamin Ab Rajab as well as several foreign companies, including those from Europe, Asia and the Middle East, have shown interest in the national carrier.

KUALA LUMPUR: Getting a foreign partner to revitalise Malaysia Airlines Berhad (MAB) should not be made into an issue as long as the turnaround plan can see the national carrier perform better, said Munir Majid.

Munir, who was Malaysia Airline System Bhd chairman for seven years, said after a series of failed turnaround plans, Malaysians should be more realistic and aware that the airline business was an international industry.

He pointed out that the strategic partnership model had been practised at the global level and had proven successful in placing several airlines in a good position.

Citing British Airways and Spanish-Iberia, as well as KLM and Air France as the best examples, Munir said under a strategic partnership structure, two airlines can join together under a holding company.

However, it also hinged on what the strategic partners brought to the table to make the airline function better.

“For example, they could consider opening up new destinations or routes while rationalising fleet ownership.

“There will be some issues in terms of political interference (at the global level), but it is alright as long as it is working for the airline,” he told reporters on the sidelines of the Asean Roundtable Series on “Asean 2040: The imperative collective leadership, integration and centrality in uncertain times” here today.

Munir Majid.

At the same time, Munir suggested that it was best to eliminate political and government interference.

“Nobody will tolerate such interference if a strategic partner comes in and it wants to manage,” he said, adding that the management would take full responsibility for any decisions made.

“If something goes wrong, the government does not have to do anything about it. The airline management should be professional and strong.

“Government interference should be minimised or better yet eliminated.”

He also emphasised that Malaysians must consider accepting the fact that Malaysia may not be the majority shareholder at the holding company level, but “ if the airline works better, your returns will be better”.

“It’ll be good for the airline and good for the shareholders.”

Commenting on the possibility of a collaboration between MAB and AirAsia, Munir noted that the business model was not the issue, but it was more about cultural differences.

“In any kind of a merger in a business, the thing that can screw it up is the cultural integration — the people integration.

“If that does not exist, how can the merger work?”

Previously, Prime Minister Dr Mahathir Mohamad was reported as saying that the government had received four proposals from interested parties to turn around MAB.

It was also reported that AirAsia Group Bhd co-founder and former chairman Pahamin Ab Rajab as well as several foreign companies, including those from Europe, Asia and the Middle East, had shown interest in the national carrier. - FMT