Malaysia Aviation Group to diversify about 30% of non-airline business as it future-proofs itself

Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has reportedly planned to diversify an estimated 30 per cent of its non-airline businesses over the next five to 10 years in an attempt to future-proof the organisation.

The company has managed to be cash-positive for 21 consecutive months since October 2021, recovering from challenges brought on by the Covid-19 pandemic, said Izham Ismail, MAG group managing director, according to Bernama.

MAG is currently close to achieving a growing cash balance of RM5 billion and is in a better position to make key investments that it previously could not, Ismail explained. As the company comes out of its restructuring during the pandemic, it also plans to focus on the international market which will bring a higher yield, he added.

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The investments include enhancing customer experiences and partnerships to expand network reach and product offerings. It will also work to maintain an agile workforce and incorporate sustainability, environmental, social and governance (ESG) practices across the business to name a few.

These investments will complement the group’s long term business plan 2.0 to help it become Asia's leading travel and aviation services group while also providing economic and tourism growth for Malaysia, said Ismail.

To bolster the growth of the tourism industry in Malaysia, MAG is expected to carry 20 million passengers annually over the next two years, generate RM 73 billion in economic multipliers and support 79,000 jobs on an annual basis, Ismail also added.

A+M has reached out for more information.

In fact, as MAG looks toward bringing more international tourists to Malaysia, Tourism Malaysia has already ramped up its efforts to attract tourists from the Oceania region with the launch of Batik Air’s latest route between Kuala Lumpur (KUL) and Auckland (AKL), New Zealand.

The new route is expected to broaden Batik Air’s footprint both in the Asia Pacific and global markets while tapping into the huge tourism potential offered by New Zealand, according to a statement by the organisation.

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