Khazanah Taps Christoph Mueller as Malaysia Airlines Chief Executive

By Gaurav Raghuvanshi 

Malaysian state investment fund Khazanah Nasional Bhd. said Friday Christoph R. Mueller, chief executive of Aer Lingus Group PLC, will join Malaysia Airlines as chief executive next year.

Mr. Mueller's term at the Irish national carrier ends May 1, 2015, but Khazanah is in discussions for him to join the unprofitable Malaysian carrier before that date. He will be nominated to the Malaysian flag carrier's board Jan. 1 and join as chief executive after Feb. 28, Khazanah said in a statement.

Khazanah, the majority owner of Malaysian Airline System Bhd., is working on a plan to delist the carrier and rename the company as Malaysia Airlines Bhd. The existing company's shares will be suspended from trading in Kuala Lumpur on Dec. 15 in preparation for its delisting.

Malaysia Airlines was already unprofitable when it suffered two serious aircraft incidents this year that left 537 people either dead or missing. Flight 370 disappeared in the small hours of March 8 while on a routine flight to Beijing from Kuala Lumpur. Search crews have yet to find traces of the Boeing Co. 777 jet or the 239 passengers and crew aboard.

On July 17, Malaysia Airlines Flight 17 crashed in eastern Ukraine, killing all 298 passengers and crew aboard. Investigators believe that the plane, also a Boeing 777, was brought down by a surface-to-air missile.

Mr. Mueller, a German citizen, has been the chief executive of Aer Lingus since 2009, Khazanah said. He brings more than 25 years of experience in the aviation, logistics and tourism sectors to Malaysia Airlines, it said, adding that Mr. Mueller helped Aer Lingus turn around within a year of joining the carrier as chief executive.

Khazanah also announced key appointments at the airline's Corporate Reskilling Centre, which will help retrenched Malaysia Airlines employees retrain and seek employment. As part the restructuring at Malaysia Airlines, Khazanah expects to shed a third of the airline's nearly 20,000 staff. Khazanah has promised to train the employees who will be retrenched.

Bashir Ahmad Abdul Majid has been appointed as chairman of the Corporate Reskilling Centre, while Shahryn Azmi will be chief executive of the facility, which will be launched by April 1.

Mr. Bashir, who is an adviser at Malaysia Airports Holdings Bhd., will retain his advisory role with the nation's airport operator, where he served as managing director for 11 years, Khazanah said.

Write to Gaurav Raghuvanshi at [e-mail]

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