Malaysia Aviation Group (MAG) will have to pay up to MYR129 million ringgit (USD27.72 million) to acquire the remaining 70% stake in in-flight catering entity Brahim's Food Services Sdn Bhd (BFS), according to the New Straits Times.

MAG already owns a 30% stake in the caterer, and majority owner Brahim's Holdings Bhd is reportedly prepared to sell the remaining 70%, along with its employees and airline customers. The sale price was arrived at by contracted consultants Deloitte Malaysia. Deloitte was brought in after MAG and BFS were unable to settle on an agreed price for any buyout.

However, the sale is not a done deal, with an inflight catering contract renewal between BFS and Malaysia Airlines (MH, Kuala Lumpur International) remaining unsigned amid disagreements over terms. The existing three-year contract expired on June 30 and has been extended month-by-month, with the current agreement set to end on August 31. Malaysia Airlines wants to insert a termination for convenience clause into the new contract, which BFS is unhappy about. BFS also wants the new contract to be for five years rather than three. BFS has catered for most Malaysia Airlines flights for the past 26 years.

In June, Brahim's group CEO Mohd Fadhli Abdul Rahman said his subsidiary had agreed to 12 of the 13 termination clauses inserted in the new contract by Malaysia Airlines but said the termination for convenience clause, which allows Malaysia Airlines to quit the contract with one month's notice and without reason, came "out of the blue" and was "insulting."

In the same month, Rahman said BFS provided 32,000 inflight meals per day (down from 55,000 before the pandemic), had 35 airline clients, and was actively tendering for four more. Nonetheless, the MAG airlines, which include Firefly, Amal by Malaysia Airlines, and MASwings, in addition to Malaysia Airlines, constituted 50% of BFS's annual revenues. Other BFS client airlines at KLIA include Cathay Pacific, Garuda Indonesia, JAL - Japan Airlines, Emirates, KLM Royal Dutch Airlines, and AirAsia.

The Straits Times reports that Malaysia Airlines has put in place contingency plans in the event the contract is not renewed, including setting up temporary in-flight kitchen at KLIA. MAG's Business Continuity Plan calls for their ground handling unit, AeroDarat, to ferry catering from the temporary kitchens to the aircraft.