07.11.2023 - 04:46 UTC
Officials from the Malaysian state of Sabah have tempered expectations about it starting its own airline in the immediate future. The step back comes as the neighbouring state of Sarawak pushes ahead with its plans to take over MASwings (MY, Kota Kinabalu).
Last week, Sabah Air Aviation Sdn Bhd (SAASB) chairman Kenny Chau walked back comments made several months ago that Sabah was likely to use SAASB to start its own passenger airline. "Perhaps it will be five years from now […]. That is why it’s a long-term plan," he told local outlets. Chau had previously said the Sabah government would use his state-owned general aviation business to start scheduled passenger flights as early as 2024 using three leased aircraft.
Chau's cautious tone is reportedly due to the recent collapse of MYAirline. He says it reinforces the need for any new startup to have a solid business case. "What happened to MYAirline was due to financial difficulties. That’s why we need a well-thought-out business plan.”
Chau also remains open to doing a deal...
13.09.2023 - 02:30 UTC
Sarawak Premier Patinggi Tan Sri Abang Johari Tun Openg says his planned state-owned airline would likely fly to Brunei Darussalam, Indonesia, Malaysia, and the Philippines.
Speaking to local media on the sidelines of a September 6 transport conference in Kuching, the premier said the Sarawak state government was advancing its plans to takeover MASwings (MY, Kota Kinabalu) and establish it as a Sarawak-based airline. MASwings is currently owned by the Malaysia Aviation Group (MAG). The Malaysian government ultimately owns that entity.
"The strategic advantage of having a Sarawak airline will allow us control over route preferences," he said. “We will not be limited to the decisions of private airlines because we can tailor our flight offerings to cater to destinations in the Philippines, Indonesia and also to Bandar Seri Begawan."
Openg has campaigned for a locally-based airline for some time now. He argues Sarawak residents need better connectivity and more competitive airfares. However, Sarawak's capital, Kuching, is home to one of Malaysia's busiest airports. According to ch-aviation PRO airports...
05.09.2023 - 04:34 UTC
Malaysia Aviation Group (MAG), owner of the Malaysia Airlines, Firefly, MAS - Malaysian Airline System, and Amal by Malaysia Airlines brands, intends to diversify into non-aviation businesses over the next decade to future-proof the company, according to MAG Managing Director Izham Ismail.
Ismail spoke at the Malaysian Association of Tour and Travel Agents (MATTA) on September 2 when he said MAG had set a target to diversify around 30% of its business into non-aviation areas. "MAG remains focused towards achieving financial breakeven this year," the Straits Times reports Ismail saying. He said the Group's reviving financial fortunes placed it in a position where it could start considering making investments. However, Ismail's areas of interest are not too far from the core aviation business. While he did not provide specifics, he did indicate an interest in the tourism, loyalty, and travel solution sectors.
Ismail declined to comment on ongoing negotiations with Brahim's Holdings Bhd to buy their 70% stake in the airline catering business, Brahim's Food Services Sdn Bhd (BFS), who, until September 1,...
29.08.2023 - 03:04 UTC
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...
