A Malaysia Airlines plane is parked on the tarmac at Kuala Lumpur International Airport.
When mentioning Malaysia Airlines, most people will think of the immortal mystery of the disappearance of flight MH370 ten years ago, and the tragic shooting down of MH17 a few months later.
Now, after posting its first net profit in more than a decade, chief executive Izham Ismail hopes to write a new chapter, moving away from the airline’s troubled past and transforming it into a well-run , airlines that remain profitable.
“The public perception is that this is a laid-back organization,” Izam, managing director of the airline’s parent company, Malaysia Airlines Group, said in an interview. “But the new Malaysia Airlines is different, we are creating an organization that is hungry.”
Izham Ismail, CEO of Malaysia Airlines
Izam said 2024 would be the airline’s “year of credibility” as it seeks to prove that consecutive years of operating profits were not a fluke caused by a post-pandemic surge in ticket prices and travel demand. He then aims to turn Malaysia Airlines into a premium airline by the end of the decade.
Malaysia Airlines has undergone five turnaround plans since the 1997 Asian financial crisis and was delisted from Bursa Malaysia after the twin disasters of MH370 and MH17, which killed 534 people, and was privatized by sovereign wealth fund Khazanah Nasional.
The airline had turned to two foreign bosses – Aer Lingus veteran Christoph Mueller and former Ryanair Holdings Plc executive Peter Bellew – — to revive its fortunes, but both men remained at their jobs for about a year and Izam has been with the airline ever since. 1979, took office in December 2017.
The former pilot, often referred to as “The Captain” by colleagues and peers, has led Malaysia Airlines Group, which generates most of its revenue from the airline, to a net profit of 766 million ringgit ($161 million) in 2023 , which is the first net profit since its establishment. year 2010. The company also posted an operating profit in 2022.
The airline signed a multi-year deal last month to become the commercial airline partner of English football club Manchester United, underscoring its resurgence. Izam said the deal was part of an existing marketing budget and was “very cheap,” but did not disclose the price.
The 63-year-old chief executive, now the longest-serving chief executive in the airline’s history, is at a “crossroads” over whether to stay on when his contract expires in December. “But we have a pipeline of successors ready to step into my role,” he said.
Izam built a C-suite leadership team with an average age of 46, which he counted on to provide “continuity” to his business plan.
The plan aims to put Malaysia Airlines into the world’s top 10 by the end of the decade, although Izam admits its current product is “inferior” to premium aviation leaders such as Singapore Airlines and Qatar Airways – which the airline is seeking to Follow these two companies. Both airlines posted record profits after recovering faster from the pandemic.
Malaysia Airlines ground staff at the check-in counter at Kuala Lumpur International Airport
With cash reserves of RM5 billion, or just over US$1 billion, the airline can start investing in its products, such as revamping its fleet, catering and upgrading seats, Izam said. It also has unused capital of RM2.3 billion from Khazanah Nasional Bhd.
Among other highlights from the interview, Izam said:
The airline plans to add at least 25 more narrow-body aircraft to its order by the end of 2024, with the winning bidder to be determined later this year
The airline also plans to add 20 more Airbus A330neo orders to its existing order of 20 aircraft.First deliveries will start this year
The airline currently expects to take delivery of 25 Boeing 737-Max 8 jets by 2026
Carrier aims to have a fleet of 50 narrow-body and 50 wide-body aircraft by 2033
There is no “urgency” to relist, with the company needing to achieve net profits for three consecutive years and “consistently perform well” before considering a move. “The benefit of being a private entity is that decision-making and execution are quick,” he said.
International market revenue share has grown from 55% to 85% since 2021, allowing the airline to hold 42% of US dollar cash reserves
The airline aims to increase flight frequencies to Australia, using Kuala Lumpur as a hub for passengers arriving from Europe
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
