Published on : Saturday, May 21, 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.
Source:- Malaysia Airlines