Introduction of the Malaysia Aviation Group

Sepang, Thursday, 19 May 2016: Announcing the establishment of the Malaysia Aviation Group (MAG), a global aviation group with subsidiaries and equity investments, 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 ensure P&L accountability and 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.

Fact Sheet

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

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

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

MAB Kargo

MAB Kargo, the cargo division of the Malaysia Aviation Group, operates scheduled, chartered air cargo services, ground handling services as well as airport to seaport cargo logistics via ground transportation. It also delivers through freighter services and belly space capacity on Malaysia Airlines Berhad.

Incorporation date : 17 September 2015

Projected revenue 2016 : RM1,300 million

Employees : 775

Destinations : 15 Fleet, A330-200F: 2 (excluding 1 wet lease: A330-200F 9M-MUC)

AeroDarat Services

AeroDarat Services Sdn Bhd (formerly known as MAB Ground Handling Services Sdn Bhd), provides ground handling services in KL International Airport and 15 other airports across Malaysia, including ramp and cargo services. AeroDarat focuses on enhancing the efficiency and effectiveness of ground handling services to Malaysia Airlines’ passengers and aircraft as well as third party airlines.

Incorporation date : 22 May 2015

Projected revenue 2016 : RM300 million

Employees : 3,000

MAB Engineering

MAB Engineering is an internationally recognised Maintenance Repair and Overhaul (MRO) facility that carries out maintenance work for the Group as well as line and hangar maintenance services for international carriers, including some 100 third party customers.

Incorporation date : 22 May 2015

Employees : 554

MAB Leasing/MAB Pesawat

These are dedicated aircraft leasing companies established to provide customized and competitive aviation leasing solutions and asset management to the Group’s airlines. MAB Leasing and MAB Pesawat’s fleet include all owned and managed aircraft operated by the Group, featuring a range of narrow-bodied and wide-body aircraft.

Incorporation date: 30 November 2015

MAB Academy

MAB Academy offers quality education and training for the Malaysia Aviation Group as well as other international airlines, and organizations. The company is continuing established programs for cockpit and cabin crew and an ab ignitio training for aviation mechanics and engineers and is expected to commence operations as independent company in late 2016.

Incorporation date : 17 September 2015

Employees : 21

Other Investments

Malaysia Airlines further holds key strategic investments in other areas of the aviation industry, such as Brahim’s Airline Catering, GE Engine Services, Hamilton Sundstrand and various other companies.

The group will continuously evaluate its role and the commercial viability of its subsidiaries, associates and investments to ensure an appropriate balance between our commitment as the national carrier and the commitment for profitability.

-Malaysia Airlines.