By Sharen Kaur
sharen@nstp.com.my
Published in NST on October 26, 2012
MALAYSIA Airlines (MAS) has requested that Brahim's Holdings Bhd offer higher quality food served in-flight, in line with its aim to become the world's five-star value carrier (FSVC).
MAS' newly-acquired A380, the biggest commercial plane, will pave the way towards attaining the FSVC status.
With new and bigger aircraft, MAS wants to ensure that food served on all its flights, including the older aircraft, meet international standards and customer expectation, said sources close to the national airline company.
MAS has implemented a strategy to transform itself into an FSVC in a bid to become profitable. The five steps that make up the FSVC virtuous cycle of profitable growth include reducing structural and operational costs, providing competitive fares, network building, and offering high quality products and services.
Brahim's group executive chairman Datuk Ibrahim Ahmad Badawi clarified
that this was among the issues MAS raised in a letter to LSG Sky
Chef-Brahim's Sdn Bhd (LSGB) in its intention to renegotiate the terms
of the catering agreement.
"After clarifying with MAS, we were told that it wants the food served in-flight to have an impact on passengers, and for LSGB to offer a variety of cuisine to meet customer demand. MAS is not cancelling the catering agreement," Ibrahim said.
LSGB, which operates the in-flight catering business, has a 25-year concession starting 2003, to provide catering and related services to MAS at Kuala Lumpur International Airport (KLIA) and the Penang airport.
LSGB is 70 per cent own by Brahim's-LSG Sky Chefs Holdings Sdn Bhd (BLSG) and 30 per cent by MAS. BLSG is 51 per cent owned by Brahim's and 49 per cent by LSG Asia GmbH, which is owned by Deutsche Lufthansa AG.
Brahim's is proposing to buy LSG Asia's stake in BLSG for RM130 million cash but shelved the plan in September, as it was seeking clarification from MAS on what it meant by the term "renegotiate".
"MAS has clarified and given us the approval to acquire the remaining shares in BLSG," Ibrahim said, adding that he expects to conclude the acquisition by end of December this year.
Ibrahim was speaking after a seminar on "Issues and Challenges in Airline Catering" by Professor Peter Jones. The seminar was organised by Brahim's-Dewina Group.
He said Brahim's will hold an extraordinary general meeting (EGM) early next month for shareholders approval. The EGM held in September was adjourned to consider the viability of the proposed acquisition.
"With full ownership of BLSG, we will have better control over the operation," Ibrahim said.
sharen@nstp.com.my
Published in NST on October 26, 2012
MALAYSIA Airlines (MAS) has requested that Brahim's Holdings Bhd offer higher quality food served in-flight, in line with its aim to become the world's five-star value carrier (FSVC).
MAS' newly-acquired A380, the biggest commercial plane, will pave the way towards attaining the FSVC status.
With new and bigger aircraft, MAS wants to ensure that food served on all its flights, including the older aircraft, meet international standards and customer expectation, said sources close to the national airline company.
MAS has implemented a strategy to transform itself into an FSVC in a bid to become profitable. The five steps that make up the FSVC virtuous cycle of profitable growth include reducing structural and operational costs, providing competitive fares, network building, and offering high quality products and services.
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"After clarifying with MAS, we were told that it wants the food served in-flight to have an impact on passengers, and for LSGB to offer a variety of cuisine to meet customer demand. MAS is not cancelling the catering agreement," Ibrahim said.
LSGB, which operates the in-flight catering business, has a 25-year concession starting 2003, to provide catering and related services to MAS at Kuala Lumpur International Airport (KLIA) and the Penang airport.
LSGB is 70 per cent own by Brahim's-LSG Sky Chefs Holdings Sdn Bhd (BLSG) and 30 per cent by MAS. BLSG is 51 per cent owned by Brahim's and 49 per cent by LSG Asia GmbH, which is owned by Deutsche Lufthansa AG.
Brahim's is proposing to buy LSG Asia's stake in BLSG for RM130 million cash but shelved the plan in September, as it was seeking clarification from MAS on what it meant by the term "renegotiate".
"MAS has clarified and given us the approval to acquire the remaining shares in BLSG," Ibrahim said, adding that he expects to conclude the acquisition by end of December this year.
Ibrahim was speaking after a seminar on "Issues and Challenges in Airline Catering" by Professor Peter Jones. The seminar was organised by Brahim's-Dewina Group.
He said Brahim's will hold an extraordinary general meeting (EGM) early next month for shareholders approval. The EGM held in September was adjourned to consider the viability of the proposed acquisition.
"With full ownership of BLSG, we will have better control over the operation," Ibrahim said.
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