Malaysia Airlines (MAS) may pick a foreigner as its chief executive officer and the person will be given the mandate to chart the restructuring of the ailing company over the next five years.

The foreigner is a person from the airline industry and is one of three who have been shortlisted, The Star reported today, quoting a source.

It is believed that the major stakeholder in MAS, Khazanah Nasional Bhd, has given its agreement to the candidate.

The new CEO will take over from Ahmad Jauhari Yahya, whose contract has been extended until September next year.

“Apart from the CEO, MAS will also hire another five or six key personnel who are knowledgeable in specific areas of the industry to cut costs.

“For instance, in the area of engineering, which is a major cost centre, a person will be hired to guide the committee on how to rationalise costs without impacting services,” the source told the MCA-owned daily.

Three-year contracts to be offered

It is learnt that the contract terms for the new appointments will be based on a three-year period, with a two-year extension period.

“The first three years are to fix the problems and put the structure in place. The subsequent two years are to make sure they deliver the results for MAS,” said a source.

Khazanah in August announced an RM6 billion plan to rescue MAS, aimed at returning it to profit within three years or by 2017.

The 12-point plan will involve the formation of a new company, that will to take over the assets and business of the old company and a cut of 30 percent of the workforce, or 6,000 jobs.

The move by Khazanah follows a difficult period for the airline since the disappearance of Flight MH370 on March 8 and Flight MH17, which was shot down on July 17.

Meanwhile, DAP's Jelutong MP Jeff Ooi Chuan Aun said his question on the restructuring of MAS was rejected by Parliament today.

Ooi said he asked the Finance Ministry to state Khazanah managing director Azman Mokhtar’s role in the MAS restructuring plan as he had had failed in the MAS-AirAsia share swap and through the Bina Fikir WAU, MAS’ first “restructuring”.

“The Speaker cited Standing Order 23(1)(c) in making the rejection,” said Ooi in his Facebook page today.