KUALA LUMPUR: Malaysia Airlines Bhd’s parent company, Malaysia Aviation Group (MAG), is diversifying its business into non-airline non-passenger, namely aviation services and loyalty and travel solutions (LTS), in the next five to 10 years in order to future-proof the organisation.
MAG group managing director Datuk Captain Izham Ismail said the group has made commendable strides to recover from the unprecedented challenges brought on by the COVID-19 pandemic.
"We have managed to maintain our cash-positive position for 21 consecutive months since October 2021 with a growing cash balance close to RM5 billion.
"There’s still more work to be done and MAG remains focused towards achieving financial breakeven this year,” he said in a press conference here in conjunction with the Malaysian Association of Tour and Travel Agents (MATTA) Fair here today.
The fair runs from today until Sept 3, 2023.
Izham said coming out of restructuring during the pandemic combined with a shift in strategy to focus on the higher yield international market, MAG is now in a good position to make several key investments that it could not make in the past.
He said these included enhancing customer experience to meet the changing customer demand and expectations; leveraging on partnerships to expand our network reach and product offerings; sustaining financial discipline with clear targets and tight performance management; investing in its people to ensure its workforce remains agile to withstand any economic shock; as well as incorporating sustainability, environmental, social and governance (ESG) practices across the business.
Izham said in line with its aspirations of becoming Asia’s leading travel and aviation services group guided by the Long Term Business Plan 2.0, MAG remained steadfast in delivering its role in catalysing economic and tourism growth for Malaysia.
"The group is expected to carry 20 million passengers annually over the next two years, supporting the growth of the tourism industry in Malaysia.
"At the broader level, MAG’s operations are also expected to generate over RM73 billion worth in economic multiplier whilst supporting an additional around 79,000 jobs for the broader economy on an annual basis, hence, the airline industry is a key contributor to Malaysia’s economic growth as well,” he said.
Meanwhile, commenting on MAG in-flight food supplies, Izham said POS Aviation, MAS Awana and six other suppliers are supplying food for the airline following the end of its contract extension with Brahim’s Food Services (BFS) on Aug 31, 2023.
On BFS acquisition, he said he is not able to disclose the details as MAG has entered into a non-disclosure agreement (NDA) with the related parties regarding the 70 per cent remaining stake in BFS.
"I cannot divulge further on where we are in the negotiation, however, I would like to reiterate that MAG conducts fair business practices with all our local and international partners,” he added.
MAG owns 30 per cent stake in BFS. - Bernama