PETALING JAYA: Brahim’s Airline Catering Sdn Bhd (BAC) has entered into an extension agreement (EA) with Malaysia Airlines (MAS) which extends its new catering agreement (NCA) cut off date to April 30.
In a filing with Bursa Malaysia, Brahim’s Holdings Bhd said this was to facilitate negotiations for the NCA, with the cut off date extended from March 31.
“The EA is to give more time for the parties to negotiate and conclude the NCA with a common goal to expedite the signing,” said Brahim’s yesterday.
The company is currently renegotiating its catering contract with Khazanah Nasional Bhd under the latter’s rationalisation plan for the national carrier.
Brahim’s owns 70% of in-flight caterer BAC, which has a 25-year contract that expires in 2028 to serve meals and related services at the KL International Airport and Penang International Airport.
BAC currently services 37 airlines with MAS as its biggest customer.
Brahim’s shares tumbled to a two-year low on March 4 after it posted poor financial results as well as news that it would take a 25% cut in monthly bills pending the signing of the NCA.
Its shares fell 13.5 sen or 12.86% to 91.5 sen, the lowest since May 2013.
The downward trend has continued with its shares falling another 8.2% or 7.5 sen to close at 84 sen yesterday.