Malaysia Airlines' caterer Brahim's agrees to new 25% lower contract

The reduction in cost for supply contracts is part of a 12-point initiative by Khazanah Nasional to bring MAS back to profitability

PETALING JAYA: Brahim’s Holdings Bhd in a detailed statement explained that delays in payment that caused it to face cash-flow problems and left the company with no choice but for its 70% subsidiary to enter into a new catering contract with Malaysia Airlines Bhd (MAB), that comes with a shorter term and lower in price by up to 25%.

The new catering agreement (NCA) is for a period of five years with an option for additional five years renewal, subject to Brahim’s 70% subsidiary, Brahim’s Airlines Catering Sdn Bhd (BAC) meeting several conditions with regards to its service levels.