Malaysia Aviation Group Bhd (MAG), the parent company of Malaysia Airlines Bhd, said it was on track to make a profit by 2023.
According to the company’s Chief Sustainability Officer, Philip See, they are targeting a ‘trajectory’ to make a profit by 2023 and are also working to ensure the business reaches pre-pandemic levels by 2024 and 2025.
He explained that group ticket sales during the pre-pandemic reached a value of RM10 billion of which between 3% to 4% were by-products.
The statement was made by See during the signing of a memorandum of understanding (MOU) between MAG and Sunway Group in establishing cooperation to open new business opportunities as well as joint marketing campaigns as well as branding and promotional activities.
The MOU was signed by MAG Chief Executive Officer (CEO), Captain Izham Ismail and Sunway Group CEO, Sarena Cheah.
Meanwhile, MAG stated its target to expand its by -products by 2025 following a partnership with Sunway Group.
MAG however, declined to disclose such ancillary expansion targets, yet according to notes reached earlier during the pre-pandemic, each share of the byproducts is a pure margin for the carrier as its cost structure is 70-80% fixed.
In addition, the partnership is seen to be able to leverage MAG by expanding airline ticket sales, gaining the bulk of other parts of the travel experience and changing certain business models.
