KUALA LUMPUR – In what has been said to be a shock move, two senior Malaysian Aviation Group (MAG) executives have exited the company that runs the national carrier.
MAG chief executive of airlines Ahmad Luqman Mohd Azmi and Group Chief Branding & Customer Experience officer Lau Yin May’s contracts were not renewed. It is unclear if their departures were mutually agreed upon.
Luqman’s departure raises eyebrows as he rose from the ranks in the span of decades and was among those tipped to succeed MAG managing director Datuk Capt Izham Ismail.
However, Izham who has helmed the national airline since 2017, had his contract extended by another year in 2024. This was after plans to seek a foreigner to head the airline were shelved.
It is understood that the departures were greenlit by Khazanah, MAG’s sole shareholder.
MAG is the parent company of Malaysia Airlines Bhd (MAB) which operates the national carrier.
Izham announced the departures of Ahmad Luqman and Lau in an email message to employees.
In the email sighted by Scoop, Izham said he will serve as the Acting Chief Executive Officer of Airlines while Bryan Foong who is the current Group Chief Strategy & Transformation Officer will oversee Yin May’s portfolio while the Group initiates the search process for both the roles.
“On behalf of the Group, I express my deepest appreciation to Luqman and Yin May for their steadfast leadership, particularly during the unprecedented challenges of the Covid-19 pandemic and the Group’s restructuring. They have been instrumental pillars of strength for MAG, and their contribution will always be remembered,” Izham said in the email.
Notable achievement for Luqman came when he was the chief executive of MASkargo as he led to improve financial performance and positioned MASkargo as the country’s leading air cargo carrier.
Following the Groups’s restructuring, Luqman played a crucial role in achieving operational and commercial synergy across all airlines under the the Airlines business pillar, ensuring their robust contribution to the Group’s financial performance.
At the same time, Yin May played a critical role in the success of key initiatives such as Project Orion and the progression towards Destination 2030.
These changes come at a challenging time for MAG, with Malaysia Airlines grappling with operational issues and scrutiny over safety protocols.
In August, a surprise audit by the Civil Aviation Authority of Malaysia (CAAM) uncovered critical problems at MAB and its engineering arm, MAB Engineering Services (Mabes). These included a shortage of skilled workers and aircraft parts, leading CAAM to reduce MAB’s air operator certificate (AOC) validity from three years to one.
The audit findings coincide with a series of service disruptions affecting Malaysia Airlines.
In August alone, three flights were forced to return to Kuala Lumpur International Airport (KLIA) due to technical issues, including cabin pressurisation problems.
However, in fairness, these issues also affected other airlines such as Cathay Pacific and Singapore Airlines.
Regardless, MAG faced its most severe criticism in 2023 following the expiry of a 26-year partnership with Brahim’s Food Services (BFS) without contingency plans.
This led to some flights offering only pre-packed food instead of hot meals, where in the worst case scenarios, some flights even took off without proper meals.
This resulted in Izham and the Board as well as Khazanah facing public backlash and calls to step down.
Scoop has reached out to MAG for comments. – January 2, 2024