KUALA LUMPUR – Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines Bhd (MAB), must be transparent with the public on its long-term plans to solve the catering debacle faced by the national carrier.
Amid public criticism over the “sub-par” in-flight food experience, following MAG’s decision to end the 26-year partnership between MAB and Brahim’s Food Services Sdn Bhd (BFS), a prominent corporate figure has urged MAG to reveal its upcoming plans.
Tan Sri Mohamad Salim Fateh Din said that MAG should address mounting public concern on the quality of food served on certain Malaysia Airlines flights.
“When they (MAG) terminated the contract with BFS, they must have had a plan (on how to face the implications of the move). Come out and tell the public what your plan is, the public deserves to know.
“Will (MAB) be willing to buy BFS and run its own catering services or are they going to get another partner, which will mean outsourcing their catering resources again?
“Passengers want to know whether, on their next flight, they will be getting a hot meal or just a box (of foodstuffs),” Salim, who is Malaysian Resources Corporation Bhd’s executive vice-chairman, told Scoop.
Aside from providing a business perspective on the matter, Salim’s comments also come from a sentimental place, as he was a former Malaysia Airlines cabin crew staffer.
“In those days, we had our own self-catering operations and we never had problems with an aircraft taking off without hot meals, drinks or refreshments.
“MAG shouldn’t have sold off its catering firm since it was one of the core businesses of Malaysia Airlines. What is an airline without its own catering services?”
In 2003, BFS’ parent firm Brahim’s Holdings Bhd (BHB) had paid RM170 million to acquire MAS Catering Sdn Bhd and had absorbed the latter company’s negative equity of RM240 million.
With the flag carrier’s reputation on the line, Salim also said that travellers should not be forced to put up with the airline’s apparent difficulties.
He added that while MAB has initiated self-catering operations involving the sourcing of pre-packed meal items as well as food and beverage supplies from about eight providers, such measures do not negate the need to inform the public of any long-term plans.
“It’s such a sad incident that will affect the name and image of the airline. How can MAB remain silent (on its long-term plans)? They’ve had 26 years to prepare for this.
“Whatever commercial contract they have with BFS, they should sort it out among themselves so that passengers do not suffer,” said Salim.
Despite leaving the industry to pursue his business interests, the entrepreneur has held Malaysia Airlines close to his heart and frequently spearheads efforts involving staff welfare, including fundraising following the 2014 double tragedies of MH370 and MH17.
On August 30, MAG said it would activate its business continuity plan (BCP) for in-flight meal services on selected routes under Malaysia Airlines effective September 1, following the end of its contract extension with BFS on August 31.
The aviation group said the activation of the BCP marked the discontinuation of the legacy partnership on catering services previously provided by BFS on selected domestic and international routes within the MAB network.
The long-standing contract between MAB and BFS reportedly ended after extensive negotiations between the two parties since the fourth quarter of last year did not result in an amicable agreement.
It is believed that the main point of contention was MAG’s request to include a new termination for convenience clause in the contract extension between MAB and BFS, which BHB claimed was something that had never been included with its other airline customers, including MAB.
Such a clause implies a contractual right to terminate an agreement for any reason by giving a written notice at least 30 days in advance.
On September 8, it was reported that BHB, which caters to 30 international airlines, is open to renegotiations with MAG for the continuity of the two parties’ business relationship. This came after MAG said that it is mulling over taking full control of BFS by buying BHB’s 70% stake in the company.
Until the airline sorts out its issues, fears are that passengers may continue to face boxed food and delayed flights.
Last Saturday, Transport Minister Anthony Loke said passengers can expect the gradual resumption of MH Signature Meals. – September 19, 2023