KUALA LUMPUR: The Malaysia Aviation Group (MAG) is actively looking for investments in the non-airline business to grow its contribution to revenue to 30 per cent.
"Beyond the flying business, the group is actively pursuing key investments in the aviation services businesses covering maintenance, repair, and overhaul (MRO), catering, ground handling and cargo," MAG group managing director Datuk Captain Izham Ismail said at its financial performance briefing today.
He said these businesses have been identified as the core proponent in supporting the group's diversification strategy and are expected to contribute up to 30 per cent of the group's total topline by 2025.
Izham added that this strategic move is pivotal in mitigating revenue risks, particularly amidst the anticipated softening of air travel yields in the latter part of 2024.
Currently, the non-airline business source revenue stood at 22 per cent.
"Similar to MRO, our current hangar space is insufficient for us to make a quantum leap," he added.
On Sept 11 last year, MAB Engineering Services, a subsidiary of Malaysia Aviation Group (MAG), agreed to lease Hangar 4 airframe maintenance facility at Sultan Abdul Aziz Shah Airport, Subang (SZB) from Impeccable Vintage Properties (IVP).
"These are expansion plans as part of our strategy to strengthen our MRO business. For the cargo business, we have formed deep partnerships with other airlines to enhance our network connectivity from the east to the west," said Izham.
"Before the pandemic, approximately 95 per cent of our total revenue, which amounted to RM9.5 billion across all airlines, was derived from a single source.This made us highly susceptible to economic downturns and unforeseen crises such as pandemics.We established MAG with the intention of future-proofing our operations," he added.
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