PETALING JAYA: As widely anticipated, Malaysia Airlines (MAS) has appointed Tengku Datuk Azmil Zahruddin managing director/chief executive office (CEO) succeeding Datuk Seri Idris Jala, who resigned yesterday.

Jala has been appointed minister without portfolio in the Prime Minister’s Department and CEO of Performance Management and Delivery Unit.

Azmil, who was MAS executive director/chief financial officer (CFO), joined the national carrier in 2005 from Penerbangan Malaysia Bhd.

Prior to this, he was attached to PricewaterhouseCoopers in London and Hong Kong.

Jala said in a statement he had worked with Azmil through thick and thin. “He (Azmil) is absolutely the right man for the job and I am confident that he will steer MAS to greater heights.”

“I am grateful to the MAS board, management and employees for the support given. I am delighted to see how far all of us have come,” he added.

Jala said his appointment as a minister was an honour and opened a new chapter for him. “Hopefully, I will be able to take my experience in transforming corporations into the civil service.”

In a statement yesterday, chairman Tan Sri Munir Majid said Azmil and Idris had worked very closely over the past four years in steering the airline out of its financial crisis and setting the vision for MAS’ transformation to becoming the World’s Five Star Value Carrier.

Munir said Jala’s vision and drive, passion and his indefatigable energy coupled with his transformation principles, had changed MAS. “He leaves behind a strong legacy and people transformed. MAS wishes Idris all the best and knows that he will do a remarkable job in his new position,” he added.

Azmil said he had enjoyed working with Jala. “His guidance and wisdom have been invaluable and his push to have the entire organisation anchored on the profit and loss gives us a headstart.

“The new few years will be challenging and we need to continue to build on the momentum that is already in place,” he said.

While analysts lauded Azmil’s appointment, they were also interested to know the new management line-up.

MAS in its filing with Bursa Malaysia did not say who would be replacing Azmil as CFO or identity of the new team.

Credit Suisse said Jala’s departure came at an inopportune time as the operating environment was still tough.

“This reinforces our negative view on the stock,” the research house said, adding that it maintained a “underperform” rating on MAS.

OSK Research analyst Ng Sem Guan expects a “smooth transition” with no or minimal interruption as Azmil had been with the national carrier since 2005.

He said Azmil had much longer experience than Jala in the aviation industry and was one of the masterminds behind the transformation plan introduced by the latter.

“We think his (Azmil) knowledge and experience will certainly help ensure a smooth transition,” Ng said.

“With the aviation industry is still mired in uncertainty in the aftermath of the global recession and volatile crude oil prices, we suspect Jala’s departure may be viewed negatively by the market despite the fact that his experience may be better utilised for the nation,” he added. OSK maintained a “sell” call on MAS.

Meanwhile, ECM Libra Investment Research viewed Jala’s exit as negative news. “We are negative as Idris was instrumental in turning around MAS’ fortunes from its worst loss in financial year ended Dec 31, 2005 (FY05) to a record profit of RM851mil in FY07,” it said.