MAG implements new target operating model

The new setup allows MAG to have a more dynamic reporting structure under each profit centre, including dedicated LTS and aviation services functions to drive revenue growth, says Capt Izham.

PETALING JAYA: Malaysia Aviation Group (MAG) has announced the implementation of a target operating model, resulting in a new organisational structure and enhanced senior leadership team for better reporting across the group and business verticals.

In a statement, the global aviation organisation said it will be operating as a full-fledged operating company overseeing group-level support functions and subsidiaries.

MAG’s subsidiaries are grouped into three dedicated profit centres, namely, airlines, loyalty and travel solutions (LTS), and aviation services.

According to MAG, the new operating model will enable it to deliver its long-term business plan 2.0 (LTBP2.0) in a more cohesive and unified manner, with greater emphasis on transparency and accountability through a clear profit and loss reporting structure.

Apart from that, the new model will not only empower each vertical to drive business growth, but also diversify the group’s revenue streams beyond its airlines business.

Group chief executive officer Capt Izham Ismail said the new setup allows MAG to have a more dynamic reporting structure under each profit centre, including dedicated LTS and aviation services functions to drive revenue growth.

He added that the new structure will promote better synergy as the group collectively works towards fulfilling its LTBP2.0 aspirations of becoming Asia’s leading travel and aviation services group.

“While the existing structure has enabled us to be futureproof, we continue implementing a strong and flexible organisational structure that will set the group up for long-term success,” he said.

In line with the new structure, the leadership team at the op-co level will continue to lead the group, supported by the CEOs in the respective profit centres.

Under its airlines business portfolio, which oversees MAG’s global, domestic and segmented airlines, Ahmad Luqman Mohd Azmi will take on the CEO role, supported by the chief operating officers for the respective subsidiaries.

Meanwhile, for its LTS portfolio, which covers MAG’s end-to-end travel solutions and loyalty programmes, Philip See is designated as the CEO role, double hatting the role of group chief sustainability officer.

Finally, the aviation services portfolio, which covers cargo, ground handling, training, and maintenance, repair and overhaul, will be overseen by Mohd Nadziruddin Mohd Basri as its CEO.

Izham will continue to provide the steer on the entire MAG business support functions and operations as MAG’s group CEO, supported by group chief financial officer Boo Hui Yee

Izham will also be backed by group chief strategy and transformation officer Bryan Foong, group chief human capital officer Datuk Mohd Khalis Abdul Rahim, See and newly appointed group chief digital and information technology officer Clarence Lee.

MAG’s current airlines business portfolio that serves the global, domestic and segmented market comprises Malaysia Airlines – the national carrier of Malaysia, Firefly and MASwings – the regional airlines focused on serving communities across Malaysia, and AMAL by Malaysia Airlines – a leading one-stop pilgrimage travel solutions centre.

MAG’s aviation services business focuses on maintenance, repair and overhaul, cargo, ground handling and training that houses MAB Engineering, MASkargo (one-stop cargo logistic and terminal operations service provider), AeroDarat (one-stop ground handling solution provider) and Malaysia Airlines Academy (one-stop aviation and hospitality centre of excellence).

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