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Sunday 14 August 2011

Controlling shares of Malaysian Airline (MAS) will remain in the hands of Malaysians

 The Star, a Malaysian newspaper reported today that the Government guarantees the controlling shares of Malaysian Airline (MAS) will remain in the hands of Malaysians. Second Finance Minister Datuk Seri Ahmad Huzni Hanazlah said that the share swap was done in good faith to bring the national carrier back to its glory days. He noted that the decision to carry out the share swap was to enable MAS to compete globally in view of the current stiff competition it faced from other airlines.  MAS would concentrate on long-haul flights and premium services while AirAsia would focus on local and regional connections. In many countries including Singapore, a national carrier is a flagship company of the nation. It is imperative that the government must control their airlines. It is considered as a critical business backbone of the country. As such, the comment by Datuk Sri Ahmad Huzni Hanazlah is welcomed by all MAS stakeholders. The most important step now is to build up the image and performance of MAS.  

Obviously, the appointment of CEO is the most difficult decision faced by the government.
Whoever appointed should develop a power base because a CEO power depends primarily on maintaining the confidence of the board, the staff, and in some cases the broader membership as well. That implies serving them well and, more importantly, gaining and maintaining their confidence. This requires CEO to demonstrate that they are in command of the organization’s affairs. Managers respect CEO who has a reputation in their field of endeavor, especially who has the expertise to make press comments or give speeches that strengthen their position within their organizations. They gain a reputation by networking with co-coordinating groups and by building a profile in their field through writing or hosting seminars. Leaders should have a burning desire to achieve specific objectives. They must be clear about what they want the organization to accomplish and how they are going to help realize it.

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