MAG on track to return to profitability in 2023

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

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

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

See mentioned in the course of the group restructuring train, a substantive steadiness sheet restructuring had been executed to make it extra aggressive and resilient with lots of effort being taken to add variability to the core construction.

“The key to profitability is to diversify the enterprise, like our cargo enterprise which did fairly effectively in the course of 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 immediately.

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 Airlines 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 mentioned the airline group can be adopting methods resembling altering enterprise mannequin, widening the ancillary pool and having a completely new journey expertise by means of the Journify app.

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

“Ancillary income is pure margin for the group. Our value construction is 70 to 80 per cent mounted. Airlines’ enterprise is low margins. So it’s important for us to drive these all totally 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 need to get a bigger share of pockets from different components of journey expertise,” he mentioned.

Meanwhile, in a joint assertion, MAG and Sunway Group mentioned the two-year MoU was aimed to capitalise on one another’s strengths and robust presence as catalysts to revive the nation’s financial system in a variety of industries together with aviation, property, training, medical tourism and hospitality.

They mentioned the collaboration would enable MAG, a worldwide aviation organisation, and Sunway, one in all Southeast Asia’s main conglomerates, to discover broad collaborative initiatives which embrace 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 mentioned 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. Through 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 mentioned.

Through this MoU, he mentioned Malaysia Airlines can be appointed as the popular airline of Sunway, reflecting Sunway’s confidence in the airline’s premium and dependable providers throughout the airline’s community, each regionally and internationally.

At the identical time, he added that Sunway would give you the chance to faucet into new alternatives by means of the airline’s tour working arm, MHholidays, the airline’s digital scholar journey programme, MHexplorer, and a joint reward programme through the airline’s loyalty programme Enrich.

— BERNAMA

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



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