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.
"With potentially massive operating losses being incurred in FY09, it remains to be seen whether the current management team left behind by Jala will be able to guide MAS out of the woods and to greater heights," ECM Libra said.
Via The Star
His departure is viewed more negative than positive.
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