The disappearance of Malaysia Airlines flight MH370 damaged the loss-making carrier’s brand and business reputation, its chief executive has admitted.
Ahmad Jauhari Yahya told the company’s annual general meeting that the tragedy was “accelerating the urgency for radical change”.
“In effect, MH370 created a critical point for deep reflection in our history,” he said.
“Undoubtedly, you will have followed the recent speculation in the media and among analysts suggesting fundamental changes to the business model of MAS.
“We know that there are many options to consider. But we also know that we cannot simply go on with incremental improvements.
“And I have no intention of standing here in front of all of you at next year’s AGM with further news on the results of piecemeal or ineffective change.
“Our only option at this point of our business evolution is radical or sweeping change.”
He added: “Fundamentally, it is about the rebuilding of the airline, so that it can meet the expectations of all those with whom we work and are associated.”
MAS lost 1.174 billion Ringgit last year – before the March disappearance of flight MH370.
Ahmad said the management was pro-actively addressing critical parts of the operations on revenue and cost.
“To achieve a turnaround of the business, we will need the support of all employees, unions and all stakeholders; to work together towards a shared vision for unlocking the competitiveness of the company.
“It is important to note that some of the current work rules are not conducive for this turnaround,” he added.