Outgoing Malaysian Airlines Bhd (MAS) CEO Christoph Muller
said he had to cut 6,000 jobs because many of the 20,000 employees were “doing
nothing”.
He said when he first took over MAS, he was not impressed
with the state that the Malaysian flag carrier was in.
"Despite all the announcements by the government, a
turnaround wasn't initiated by the time I became CEO.
"Many of the 20,000 employees who worked for the
airline had nothing to do. In fact, when I walked through the hangars, people
were sleeping. That's why I had to radically cut 6,000 jobs," Muller told
German broadcaster Deutsche Welle (DW) on its web portal.
He said the reasons MAS was in dire straits before he took
over was because of poor personnel management and a bloated workforce.
He said that was why he laid off 6,000 workers and
streamlined the firm's operations.
Muller said MAS also suffered from a bloated and overpriced
supply chain, partly because the airline bought products from suppliers at
prices 20 to 25 percent higher than the market value.
"Everything from pens to US$200-million aircraft were
purchased at these rates. I am not saying that we were bad negotiators, and in
any case corruption is punishable also in Malaysia," he told DW,
delicately explaining the matter.
Muller also pointed out that MAS had about 20,000 supliers
and, as a result, the glut made it difficult for the airline to get a volume
discount from anyone.
"Since I took over, we have managed to downsize the
number to about 4,000 suppliers. But our goal is to cut it further to some
2,000. By doing this, we've reduced our procurement costs," he said.
He noted that the airline has had a spate of bad luck in
recent years – the disappearance of MH370 and shooting down of MH17 that gave
it bad press – but expressed incredulity that the carrier could have been in
the red at all.
"Malaysia Airlines has a proud heritage. It's known as
the epitome of Asian customer service. Given the country's macroeconomic
conditions, with economic growth averaging over five percent for 55 years now,
it's difficult not to make money with this airline," he said.
He observed that the previous so-called turnaround plans
announced for the airline were half-hearted at best.
However, Muller is confident that with the management
reforms he has put in place, MAS will be in the black again by 2018.
Source -MKini-
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