Malaysia creates new aviation group

Malaysia creates new aviation group

Malaysia Aviation Group (MAG) to handle airlines, cargo, aircraft leasing and staff training

Malaysia Aviation Group (MAG) to handle airlines, cargo, aircraft leasing and staff training

Malaysia Airlines will form part of Malaysia Aviation Group (MAG)
Malaysia Airlines will form part of Malaysia Aviation Group (MAG)

A new aviation company has been created in Malaysia that comprises a series of state-run assets, including national carrier Malaysia Airlines.

The new Malaysia Aviation Group (MAG) is being called a “global aviation group with subsidiaries and equity investments” and will be split into four segments: air transportation services, ground services, aircraft leasing and talent development.

Initially, the group will comprise Malaysia Airlines and its regional subsidiaries, Firefly and MASwings, plus MAB Kargo and the group’s existing ground handling, engineering and training facilities. It also plans to set up an aircraft leasing company in future.

The air transportation division will operate as separate company from 2017, and plans to apply for its own Airline Operating Certificate.

“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,” explained MAG’s CEO, Christoph Mueller. “Looking forward the new structure will support every business unit’s capability to access the capital market with its own value proposition.”

The creation of this new entity comes less than a year after the foundation of the new Malaysia Airlines, and marks the latest step in the loss-making national carrier’s turnaround strategy. According to the airline, the formation of MAG will “drive better transparency and focused management across the respective operating subsidiaries, creating profit centre subsidiaries of the company’s separate businesses”.

Mark Elliott
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Mark Elliott
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Airports & Aviation