This is the final point to the long painful restructuring of Malaysia national carrier Malaysia Airlines. On Thursday, Malaysia Airlines Bhd CEO Christopher Mueller unveiled to the public the establishment of the Malaysia Aviation Group (MAG), a global aviation group with subsidiaries and equity investments. The new group is organised into four distinct business segments: Air Transportation Services, Ground Services, Aircraft Leasing and Talent Development.
The group structure will drive better transparency and focused management across the respective operating subsidiaries, creating profit centre subsidiaries of the company’s separate businesses. This will ultimately unlock the value of the various assets by driving new levels of operational efficiency. The more process oriented Group will also have beneficial effects for customers being more focused on their specific needs.
Malaysia Aviation Group CEO, Christoph Mueller said, “We are very pleased to announce the new group structure into separate and distinct companies. This will align structures and processes more consistently to the needs of our customer groups and raise the Group’s overall efficiency and focus, reduce complexity and increase decision-making speeds. Looking forward the new structure will support every business unit’s capability to access the capital market with its own value proposition.”
Apart from ensuring better transparency and governance, across the operating subsidiaries via management of their respective accounting statements, the newly established group will also have the added advantage of allowing flexibility of the individual companies to explore collaborative opportunities and agility for capital raising opportunities making the subsidiaries more competitive and responsive, strengthening the position of the Group in its various markets and business segments.
The largest contributing business segment in the Group will be Air Transportation Services which houses Malaysia Airlines Berhad, Firefly and MASwings, network carriers serving the global and domestic markets and all passenger segments. Also under the umbrella is the division MAB Kargo providing standard, express and special cargo. This division will apply for its own Airline Operating Certificate and will operate as separate company as of 2017. The group will also include ground handling services, engineering, training facilities as well as a dedicated aircraft leasing company to provide customized and competitive aviation leasing solutions to the Group.
The team of board members of MAB, who remain unchanged, will also sit on the board of the Malaysia Aviation Group.
Malaysia Airlines Berhad
Malaysia Airlines Berhad is the national carrier of Malaysia, offering the best way to fly to, from and around Malaysia. The airline flies 40,000 guests daily on memorable journeys inspired by Malaysia’s diverse richness. Malaysia Airlines embodies the incredible diversity of Malaysia, capturing its rich traditions, cultures, cuisines and warm hospitality on board, while opening up more of Malaysia’s destinations than any other airline.
Incorporation date : 7 November 2014
Projected revenue 2016 : RM8,600 million
Employees : 8,146
Destinations : 53
Fleet : A380-800: 06, A330-300: 15, B747-400: 01, B737-800: 54
Firefly, operating out of the Penang and Subang hubs, provides connections to various points within Malaysia, Southern Thailand, Singapore and Sumatera of Indonesia. The airline aims to bring communities closer by overcoming geographical constraints through its network of point-to-point flights and link the world to its communities.
Incorporation date : 13 June 1995
Projected revenue 2016 : RM400 million
Employees : 914
Destinations : 15
Fleet : ATR 72-500: 12, ATR 72-600: 06
MASwings, East Malaysia’s first commuter airline, caters to the air travel needs of Sarawak and Sabah’s travelling population by providing affordable fares, convenient schedule and connections within the two states in Borneo. As a subsidiary of the Malaysia Aviation Group, MASwings also links with Malaysia Airlines Berhad for greater connectivity globally.
Incorporation date : 17 May 2007
Projected revenue 2016 : RM300 million
Employees : 370
Destinations : 23
Fleet : ATR 72-500: 10, DHT: 6