WHEN Khazanah Nasional Bhd drafted a restructuring exercise for Malaysian Airline System Bhd (MAS), it contained many bold measures: massive job cuts, the renegotiation of contracts with suppliers and the hiring of a foreign CEO. However, there was no emphasis on rebranding because MAS, at that time, was still a strong brand.

This monumental task has now fallen on the shoulders of the national carrier’s new CEO Christoph Mueller. He has to bring back passenger confidence in the brand and, in turn, regain market share that was lost as a result of the double tragedies of MH370 and MH17 last year.

It is noteworthy that MAS had one of the best safety records in the aviation industry before these tragedies.

During a media briefing last week, Mueller acknowledged that the airline’s brand image had been badly tarnished in its major international markets of Australia, China and Europe.

“Our reputation comes from a Skytrax five star and we have demonstrated to the world that we can deliver that. We cannot go down and lower our ambitions than we have done in the past,” said the man who managed to turn around the beleaguered Aer Lingus.

When asked if there would be a change of logo for the national carrier, the German chief said, “I think I am the least entitled person to participate in that debate. It should be a Malaysian debate but taking the views of customers in other markets into account. It needs to be a broad debate.”

“But we have to do something,” he added.

When the time comes, it would be hotly debated whether the wau should remain the national carrier’s logo. But would a rebranding without a change of logo help fill the seats on MAS aircraft again?

That being said, brand management executive Ibrahim I Omar believes the national airline still has strong brand equity. He does not think MAS needs a rebranding but rather a marketing campaign so that people will have a better perception of it.

“What people have right now for MAS is empathy due to the double tragedies last year. While the tragedies would have affected confidence, people still have fond memories of the airline,” says Ibrahim, who was involved in MAS’ “Going Beyond Expectations” campaign that ran from 1990 to 2007.”

“There is no need to rebrand MAS. What the company has to do is improve its products and services, which will contribute to the improvement of the brand,” he adds.

Mueller too talked about enhancing MAS’ services last week. For example, he plans to introduce full flat beds in business class as opposed to the current angled beds in the Boeing 777s and Airbus 330s, improve the in-flight entertainment system and refresh the cabin interior.

Newco Malaysia Airlines Bhd (MAB) should be innovative in its products and services to project the new identity of the airline, says Ibrahim, adding that mismanagement must be eliminated as it affects the quality of services.

Considering the significance of service in the airline industry, eyebrows were raised at the retrenchment of 6,000 of MAS’ employees as that would affect the airline’s operations.

While not denying the need to slash the workforce to cut costs, Shukor Yusof, founder of independent research firm Endau Analytics, says the termination of senior cabin crew could cause the service level of the airline to drop. “MAS has won several accolades for its cabin services, thanks to its senior staff. If it terminates many of the senior cabin crew, there will be a loss of invaluable experience, which a young cabin crew cannot duplicate.

“It also raises the question of whether MAS has groomed any staff to take over the mantle. When you hire fresh graduates, you have to give them a sense of hope about their future. You have to train and groom them so that one day the top management can come from their rank and file.”

While The Edge has not sighted any of the offer letters to future MAB members of staff, word has it that the remuneration package has been lowered to a basic RM1,500 a month for cabin crew, excluding overtime and allowances.

As Mueller put it, the national airline has always been more than a company to Malaysia. It is the pride of Malaysians and a representative of what the country has to offer the world.

Thus, it is paramount to help the brand regain its former glory as one of the most respected airlines in Asia. If rebranding the airline means giving it a new name and logo while the service level is not improved, it will be an uphill task for Mueller to regain public confidence.

This article first appeared in The Edge Malaysia Weekly, on June 8 -14, 2015.

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