Malaysia Airlines to get its man


Malaysia Airlines was already under a big U.S.-dollar debt load before September 11 and the drop in tourism

By Alex Frew McMillan
CNN Hong Kong

KUALA LUMPUR, Malaysia -- Malaysian Prime Minister Mahathir Mohamad has reportedly picked the man to turn around the country's flagging airline.

Mahathir has tapped his top economic reformer, Nor Mohamed Yackop, to revamp Malaysian Airline System Bhd., according to The Wall Street Journal.

It's another key role for Nor Mohamed, Malaysia's former central banker and already the prime mover behind the government's taking control of Renong Bhd., Malaysia's largest conglomerate.

Mahathir told the MAS board that he had found the man for the job at a meeting in mid-December, the newspaper states, though the choice has yet to be made public.

Leader looking at running again

Separately, Mahathir, 76, said Tuesday he is considering running in Malaysia's next election, due by 2004.

The long-time premier said he would consider another candidacy "in certain situations," to ensure the success of his coalition.

MAS, parent of Malaysia Airlines, is struggling under a debt load of 9.2 billion ringgit ($2.4 billion).

That has been compounded by the aftermath of September 11, a slowdown in tourism due to the economy and concern about tourist safety in Malaysia, Asia's second-largest Muslim country.

Nor Mohamed is expected to sell off some MAS assets, as well as slash jobs. Insiders say attempts at turning the airline around have gotten bogged down due to internal squabbling among directors and executives.

Safest year ever for Asian airlines

Though Malaysian Airlines isn't at risk of going under, it has serious long-term problems, experts say.

Nor Mohamed will work with CEO Mohamed Nor Mohamed Yusof to sell the company's catering division, its Kuala Lumpur headquarters and a large complex at KL's new international airport, the WSJ says.

He is expected to trim the company's 21,000 work force.

2001 was an extremely tough year for Asian airlines, like their counterparts in Europe and the United States. But, with no commercial-airline deaths in the air, it was also their safest.

Pilots at Hong Kong's Cathay Pacific airline begin working to rule on Wednesday, a move they suspended in October.

They contend the company has been negotiating in bad faith in their long-running labor dispute.