KUALA LUMPUR: Malaysia Aviation Group (MAG) is currently working with eight services providers for its in-flight meals following the end of its partnership with Brahim's Food Services Sdn Bhd (BFS) effective from today (Sept 1).
MAG group managing director Datuk Captain Izham Ismail said the group believes that the various in-flight meal caterers that it has would provide more choices to its passengers onboard the Malaysia Airlines flight.
The current meal suppliers for Malaysia Airlines include MAS Awana Services Sdn Bhd, Pos Aviation Sdn Bhd and six other suppliers which were not named by Izham.
"If you ask me whether it is a smooth transition from our caterer to our new Business Continuity Plan (BCP), definitely not.
"It'll take a few days for us to resolve teething problems and I'm very confident that we'll get it right in the next few days," he said, adding that MAG did not currently prepare its own in-flight meals.
MAG has established a temporary distribution centre at Kuala Lumpur International Airport (KLIA) to deliver the meals onboard its aircraft via its ground handling company, AeroDarat Services.
Responding on a query regarding the possibility of buying a 70 per cent stake that Brahim's Holdings Bhd owns in BFS, Izham said the group was not able to reveal the details due to the non-disclosure agreement (NDA) signed between the parties.
"With regards to the 70 per cent, MAG entered into the negotiations and we signed an NDA between all parties, and to uphold confidentiality, the discussion especially regarding the contract details, we cannot divulge into that.
"However, MAG conducts fair business practices with all of our local and international business partners. We have a common process in our contracts that is consistent with international standards," Izham added.
On Aug 23, the New Straits Times (NST) reported that Brahim's was ready to sell its 70 per cent stake in BFS, its in-flight catering unit.
The whole of BFS was believed to be valued between RM162.8 million and RM184 million by an independent consultant Deloitte Malaysia.
MAG currently owns 30 per cent stake of BFS.
The contract between MAG's airline subsidiary Malaysia Airlines and BFS officially ended on Aug 31 this year following a two-month extension in July.
BFS had previously served in-flight meals to all Malaysia Airlines' flights out of KLIA except to Tokyo and London. The in-flight meals for the two destinations are provided by Pos Aviation.
The NST had first reported on June 15 that Malaysia Airlines and BFS were ready to put an end to their turbulent 26-year partnership due to a disagreement in their new contract.
The disagreement was due to the "termination of convenience" clause that the national carrier had added into the agreement.