MAG on monitor to return to profitability in 2023

PETALING JAYA: Malaysia Aviation Group (MAG) is on monitor to return to profitability in 2023 and hit the pre-pandemic ticket gross sales stage by as early as 2024.

Chief sustainability officer Philip See stated the projection was primarily based on this yr’s first quarter efficiency towards the group’s funds plan.

He stated the group’s pre-pandemic ticket gross sales amounted to RM10 billion whereby between three and 4 was ancillary income.

See stated through the group restructuring train, a substantive stability sheet restructuring had been finished to make it extra aggressive and resilient with a whole lot of effort being taken so as to add variability to the core construction.

“The important thing to profitability is to diversify the enterprise, like our cargo enterprise which did fairly nicely through the pandemic. We hoped the momentum would proceed along with the restoration of air journey,” he advised reporters after the memorandum of understanding (MoU) signing ceremony between MAG and Sunway Group right here at this time.

The MoU was signed by MAG group chief govt officer captain Izham Ismail and Sunway Group govt director Sarena Cheah.

The ceremony was witnessed by the MAG group chairman and Malaysia Airways Bhd chairman Tan Sri Wan Zulkiflee Wan Ariffin, founder and chairman of Sunway Group Tan Sri Jeffrey Cheah and deputy chairman of Sunway Group Tan Sri Razman M Hashim.

See stated the airline group can also be adopting methods akin to altering enterprise mannequin, widening the ancillary pool and having a completely new journey expertise by way of the Journify app.

He stated the broader objectives of MAG enterprise are to widen the ancillary income, which the group anticipated to double by 2025 from the pre-pandemic stage, and broaden past promoting the flight tickets akin to journey packages, seat choice, meals and extra.

“Ancillary income is pure margin for the group. Our price construction is 70 to 80 per cent fastened. Airways’ enterprise is low margins. So it is necessary for us to drive these all completely different journey experiences that’s the reason Sunway is an important collaboration for us.

“The asset that MAG and Sunway Group had is so complimentary. We additionally wish to get a bigger share of pockets from different components of journey expertise,” he stated.

In the meantime, in a joint assertion, MAG and Sunway Group stated the two-year MoU was aimed to capitalize on one another’s strengths and powerful presence as catalysts to revive the nation’s economic system in a variety of industries together with aviation, property, schooling, medical tourism and hospitality.

They stated the collaboration would permit MAG, a worldwide aviation organisation, and Sunway, certainly one of Southeast Asia’s main conglomerates, to discover broad collaborative initiatives which embody new enterprise alternatives, joint advertising and marketing campaigns in addition to branding and promotional actions.

Sunway Malls and Theme Parks chief govt officer HC Chan stated the collaborations efforts would undoubtedly speed up Malaysia’s financial restoration and development that was hampered by the pandemic.

“Malaysia remained a touristic vacation spot that has a lot to supply. By way of this partnership with MAG, we believed that it’s time for revitalisation and restoration for these sectors as soon as once more, placing Malaysia on the map of the world,” he stated.

By way of this MoU, he stated Malaysia Airways could be appointed as the popular airline of Sunway, reflecting Sunway’s confidence within the airline’s premium and dependable providers throughout the airline’s community, each domestically and internationally.

On the identical time, he added that Sunway would have the ability to faucet into new alternatives by way of the airline’s tour working arm, MHholidays, the airline’s digital pupil journey program, MHexplorer, and a joint reward program through the airline’s loyalty program Enrich.


TAGS: MAG, profitability, ticket gross sales, Sunway, MoU, Philip See, HC Chan, collaboration


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