Malaysia Airlines to cut costs for non-critical parts by 15% under VDP plan


  • Aviation
  • Thursday, 14 Nov 2019

The MoU was signed by Malaysia Airlines Group chief operations officer, Ahmad Luqman Mohd Azmi and secretary general of Ministry of Entrepreneur Development, Datuk Wan Suraya Wan Mohd Radzi. The signing was witnessed by Malaysia Airlines head of engineering Eke Nazri Rahim and deputy secretary general of the ministry, Muhammad Razman Abu Samah.

KUALA LUMPUR: Malaysia Airlines Bhd, an anchor company under the vendor development programme, targets to save about 15% in expenditure for non-critical parts and components within the airline.

It said on Wednesday the VDP would reduce turnaround time and helping boost operational efficiency.

“An additional benefit of sourcing locally would be that Malaysia Airlines would be able to decrease its exposure to foreign exchange (forex) volatility, ” it said in a statement.

The national carrier has on Wednesday inked an MoU with the Ministry of Entrepreneur Development to carry out the VDP at the Vendor Innovation Partnership Programme in KL Convention Centre.

VDP is a programme that has been carried out by the government in order to develop small and medium enterprises (SMEs) among local entrepreneurs.

Malaysia Airlines said it would start with the engineering and maintenance and AeroDarat services.

There will be five initial pilot projects for the VDP programme within Malaysia Airlines, mainly in sourcing additive manufacturing, carpets, seat upholstery, aircraft cleaning materials and chemicals.

Malaysia Airlines group chief operations officer, Ahmad Luqman Mohd Azmi said: “Malaysia Airlines is already an important economic enabler for the country.

“By signing the MoU with the Ministry of Entrepreneur Development, we are also able to create a multiplier effect within the domestic economy by developing an eco-system for local vendors to support their businesses.”

Luqman said the VDP also helps to empower local companies to propel their businesses in Malaysia’s airline industry which is predominantly serviced by foreign companies.

The MoU was signed by Malaysia Airlines Group chief operations officer, Ahmad Luqman Mohd Azmi and secretary general of Ministry of Entrepreneur Development, Datuk Wan Suraya Wan Mohd Radzi. The signing was witnessed by Malaysia Airlines head of engineering Eke Nazri Rahim and deputy secretary general of the ministry, Muhammad Razman Abu Samah.


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