State investment fund Khazanah Nasional Bhd should get its hands off Malaysia Airlines (MAS) or any other airline, the National Union of Flight Attendants Malaysia (Nufam) said today.

Since taking over MAS in 2002, Khazanah has had little to show for, except a succession of management changes and short-lived chief executives, Nufam president Ismail Nasaruddin said.

Ismail called for MAS to be placed under another party that is familiar with the running of an airline – even through privatisation, if necessary.

“How much losses has MAS suffered over the past 20 years? Billions! That’s why the workers are suffering.

“For this reason, we are requesting Khazanah Nasional: Please stay off. And we hope the cabinet and the government will transfer the assets of Malaysian Airlines to a party that can look after the airline. A party or an individual.

“We don’t need Khazanah, seriously. They have claimed to have presented CEOs from the top to bottom, and none of them have proven themselves to be the best,” Ismail told reporters in Subang.

He was speaking at a press conference ahead of Nufam’s handing-over of a memorandum to the Transport Ministry and Human Resources Ministry tomorrow afternoon, where Khazanah’s removal from MAS is among the issues raised.

Asked who should take over MAS, Ismail said there are several talented Malaysians who are possible candidates, such as AirAsia CEO Tony Fernandes, National Aerospace & Defence Industries Sdn Bhd president Ahmad Johan and Weststar group managing director Syed Azman Syed Ibrahim.

Another issue to be raised in the memorandum is the severance packages of the 6,000 MAS staff who had been retrenched as part of the airline’s efforts to return to profit, which he said was less than what was promised.

Ismail added that it is ‘extremely wrong’ for MAS to splurge some RM20 million on new uniforms at a time when it had just managed to turn a profit, and with the severance packages yet to be settled.

RM14 million profit ‘rubbish’

He also spoke dismissively of reports that MAS recorded its first quarterly profit in years – RM14 million in the first quarter of this year.

In comparison, he said, Singapore Airlines had raked in S$804 million (RM2.38 billion) last year, and someone with the calibre of outgoing MAS chief executive Christoph Mueller (photo) should be able to bring in at least RM100 million.

“What is RM14 million? Savings? After 6,000 workers have lost their jobs? After contracts of 4,000 vendors had been terminated?

“And within a span of 10 months - not even a year - you claim to be successful. That’s rubbish to me. Utter rubbish,” he said.

Mueller took over as MAS chief executive in May last year, and is currently serving a six-month notice period until he leaves in September this year, citing "personal reasons".

On another matter, Ismail said former airline workers are jittery when looking for new jobs following Rayani Air’s suspension.

Retrenchment fund

He said under Malaysia’s ‘Open Skies’ policy since last year, more and more companies are applying to set up their own airlines, but not all would have the resources to do so or appreciate the complexities involved.

In the Rayani case, he said, some 200 workers had been asked to stop work. Salaries at these new airlines are also much lower compared to their former jobs, with few benefits and allowances.

Ismail urged the government to ensure that new airlines set up a retrenchment fund for their employees, prior to being issued Air Operator’s Certificates (AOC).

“If you don’t have enough funds, can you really run an airline? If you don’t have enough experience, can you really run an airline?

“But can the minister ensure that the workers they engage or employ are being given a form of guarantee, that this airline that wants to open would set up a retrenchment fund beforehand.

“That means the company must have a retrenchment fund, in case it gulung tikar, then you all get paid,” he said.

The troubled Rayani Air suspended operations last month following a pilot strike. The Department of Civil Aviation then suspended its AOC for three months for suspending operations without consulting the department.