KUALA LUMPUR: Brahim’s Holdings Bhd said its in-flight catering unit had been hit hard by the Covid-19 crisis, forcing the company to lay off hundreds of workers.
"Strategies, planning and action has been put in place for new business exploration and adoption to innovative ways of doing things," Brahim's said in its update on its business today.
The company, through its 51% equity interest in Brahim’s SATS Investment Holdings Sdn Bhd (BSIH), owns 70% of Brahim’s SATS Food Services Sdn Bhd (BSFS).
The remaining 30% equity of BSFS is owned by Malaysia Airlines Bhd (MAB).
"Facilitation from the government and financial institutions have also become the agenda for the management of BSFS to pursue," it said.
BSFS is the principal in-flight catering service provider at KLIA, KLIA2 and Penang International Airport.
The catering company serves 35 international airlines with MAB remaining as the major customer.
BSFS business had dropped drastically following the closure of international borders to control the spread of the pandemic.
The company had recently implemented a mutual separation scheme that reduced its staffs from 1,400 people by about half.
"This MSS is expected to significantly manage BSFS cashflows and reduce the losses," Brahim's said.
Brahim's had posted annual losses since 2014.
"The aviation and tourism industries have been severely affected by this pandemic and the salvage is unlikely to happen anytime soon," it said.
"People are still sceptical and having concern over travelling even after the MCO is uplifted."