Malaysia Aviation Group managing director Izham bin Ismail.
Malaysia Aviation Group (MAG) managing director Izham bin Ismail has hinted at “handsome results” for fiscal 2023, representing a turnaround coming out of the pandemic. The parent company of Malaysia Airlines expects good yields to hold until 2025 before they decline.
Izham added that one for the priorities for the carrier in 2024 is to maintain credibility moving forward, and all that was achieved in 2022-2023 “was not a fluke.” MAG is now reinstating its network with a strong focus on India, Australia and China. Already flying to three new secondary cities in India—Ahmedabad, Thiruvananthapuram and Amritsar—lzham said more will follow in the coming weeks.
He also called for Malaysian policy makers to work closely with the aviation industry on the redevelopment of the Subang Airport (SZB). The government is looking to transform Subang into a city airport that will see the return of narrowbody aircraft.
“Our call of action to policymakers is to really work with the industrial base and ensure they strike a very strong balance between what the country needs and what industrial needs. If you create unnecessary overcapacity [with the two Kuala Lumpur airports], you're actually making the industry race to the bottom,” he said.
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MAG has received three 737 MAX 8s and is optimistic Boeing will deliver eight more in 2024. In all, MAG placed an order for 25 of the type in 2016, but deliveries dragged until November 2023.
Malaysia Airlines will begin receiving 20 Airbus A330neos from 2026, which will be the group’s flagship product, and Izham said the company is now evaluating the possibility of exercising the option for more A330s.
MAG is now considering a second batch of narrowbody aircraft, a decision Izham said has to be made by Q3 2023 so that it can get the aircraft by 2033, or else the airline will be behind the curve.
The airline has benefitted from positive cash flow for 32 consecutive months and moving forward, MAG will be reinvesting in products such as inflight amenities and catering, a segment he said was neglected for 20 years.
Collaboration with other airlines has contributed to 17% of the airline’s topline revenue and the group continues to seek joint ventures with “airlines near and afar” to help it and the country connect to the world.
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