MAS CEO Says Excess Allowances And Abuse Of Overtime Claims Caused Its Financial Woes

Christoph Mueller has been tasked with turning Malaysia Airlines around.

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MAB takes over the operations of the national carrier from MAS

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CEO Christoph Mueller was on the ground early this morning to welcome in the new MAB, taking ground staff and flight crews by surprise as well as making it a point to welcome the first MAB flight into the country as well as the last outgoing MAS flight

Previously…

According to The Star, some 180 types of allowances paid out by Malaysia Airlines, including a monthly bicycle allowance to one employee, contributed to the airline's financial woes. It quoted MAS CEO Christoph Mueller as saying that huge overtime claims, over-priced contracts and salaries also added to the airline's costs.

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Mueller, however, said that MAS was not alone in its predicament, adding that this phenomenon was also prevalent in many airlines

Image via The Star

Tasked with turning MAS around, Mueller also said the airline suffered a lot from "abuse of overtime", adding that the overtime payments were at times higher than salaries

To move away from all this, MAS Bhd, the new airline which will take off on 1 September 2015, will have a reward system for staff who finish work on time, he told while speaking with The Star

He said that the employment terms for MAS Bhd were benchmarked with several airlines or specialised companies, adding that the new base salary will take into account the current cost of living in the various locations where MAS is based, including Malaysia, and also the seniority of an employee

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The Star also quoted an anonymous source who said the salaries of some senior executives was an issue with some unions, with some earning more than RM100,000 a month

MAS is preparing to terminate one third of its workforce, and some 20,000 MAS employees will know their fate this coming Monday. Here's what MAS CEO has to say about its mass lay-offs:

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