SEPANG: Malaysia Aviation Group (MAG) is banking on three key pillars – catering, engineering, and digitalisation – to strengthen its position in the regional aviation ecosystem, with long-term targets stretching into 2030.
Malaysia Airlines chief operating officer Capt Nasaruddin A. Bakar said the airline’s on-time performance (OTP) has been a bright spot, averaging 82% year-to-date and about 88% monthly.
“Currently, our average year-to-date OTP is about 82%. But the monthly OTP, I would say is about 88%. We have scored No. 2 and No. 3 before in the Asia-Pacific region,” he told StarBiz on the sidelines of the MAG Annual Airline 101 event here yesterday.
He explained that the carrier has set an internal benchmark of 85% for OTP.
“We set ourselves at above 85% for a simple reason, because we believe at 85%, chances are the management of the operations are acceptable.
“Because we don’t have many delays. So, if there are many delays, there will be a lot of other impacts. At 85%, it is a number that we believe that we are able to control the operations as a whole,” he said.
Nasaruddin acknowledged that the airline had faced challenges early last year due to supply chain issues, leading to delays and cancellations.
“Hence, we had to cancel certain flights because of our supply issue. But those have been resolved. So, we are quite positive moving forward,” he added.
On its catering business, MAG is preparing for a major expansion with a new site under MAG Catering Services (MAGCS), targeted for completion in 2029.
“Today we produce about 26,000 meals daily. With the new facility, that will double to about 50,000 servings.
“At present, our catering capacity is sufficient for Malaysia Airlines, with support from partners. With the new site, we will be able to cover our full network and still have a surplus to serve other carriers. It will be one of the biggest in Asia,” Nasaruddin told reporters.
While the investment figure has yet to be finalised, he said the business rationale is clear.
“We have run the analysis. It makes sense for us to do it because it is our own requirement and our own needs. We believe there are also opportunities of driving it as a business where we can sell to other airlines.
“The margin is quite high for catering. For the MRO (maintenance, repair and overhaul) business, the catering business, the margin can reach double digit,” he said.
He stressed that food is “core in our airline business,” adding “at least we can turn around in case of any changes of menu.
“We can control the time of the caterer. So, that’s why we need to have catering as part of our core business.”
MAGCS was set up in 2023 after Malaysia Airlines ended its long-standing partnership with Brahim’s. Nasaruddin said the transition was swift.
Beyond catering, MAG is also eyeing growth in its engineering arm. The group aims to become a Top 10 player in the MRO segment by 2030, measured by market share in the Asia-Pacific region.
He noted that partnerships with technology giants such as Google will support this ambition.
