Malaysia Aviation Group, owner of the Malaysia Airlines, Firefly, MAS - Malaysian Airline System, and Amal by Malaysia Airlines brands, intends to diversify into non-aviation businesses over the next decade to future-proof the company, according to MAG Managing Director Izham Ismail. Ismail spoke at the Malaysian Association of Tour and Travel Agents (MATTA) on September 2 when he said MAG had set a target to diversify around 30% of its business into non-aviation areas. "MAG remains focused towards achieving financial breakeven this year," the Straits Times reports Ismail saying. He said the Group's reviving financial fortunes placed it in a position where it could start considering making investments. However, Ismail's areas of interest are not too far from the core aviation business. While he did not provide specifics, he did indicate an interest in the tourism, loyalty, and travel solution sectors. Ismail declined to comment on ongoing negotiations with Brahim's Holdings Bhd to buy their 70% stake in the airline catering business, Brahim's Food Services Sdn Bhd (BFS), who, until September 1, had supplied Malaysia Airlines with their inflight meals for the last 26 years. MAG already owns a minority 30% stake in the business. "I cannot divulge further on where we are in the negotiation," said Ismail, noting a non-disclosure agreement was in place. However, as reported in ch-aviation, Malaysia Airlines had proposed new contract clauses that BFS was not happy with, including termination clauses. The previous contract ended on June 30 but had been extended month-by-month while talks continued. But the last one-month extension lapsed on August 31, with no new extension in place, and MAG has implemented what it calls its business continuity plan (BCP).<br/>
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Qantas Airways said on Tuesday that long-serving CEO Alan Joyce would exit the company two months earlier than previously flagged as a reputational turbulence engulfs Australia’s flagship carrier. Joyce’s early retirement will see CEO Designate Vanessa Hudson, the first woman to lead the century-old airline, take charge on Wednesday. The accelerated departure comes after Qantas on Monday apologized for its service standards falling short and acknowledged it was suffering reputational damage, less than two weeks after it reported record annual earnings underpinned by strong travel demand. Australia’s competition regulator last week sued it for allegedly selling tickets for more than 8,000 cancelled flights between May and July 2022 without disclosing they had been cancelled. The airline had also faced scrutiny from politicians and the public over a decision to let nearly A$500m ($323.00m) of pandemic-era flight credits to expire by the end of the year, which it reversed shortly after the regulator filed its lawsuit. Controversies involving Qantas, including the granting of a premium airport lounge membership to Prime Minister Anthony Albanese’s son and its opposition to Qatar Airways adding additional flights to Australia have led to many recent newspaper headlines and editorials in the country. The airline’s share price had also taken a battering, falling 13% since the start of August amid questions over whether it had maximised profits at the expense of its longer-term reputation with customers. “In the last few weeks, the focus on Qantas and events of the past make it clear to me that the company needs to move ahead with its renewal as a priority,” said Joyce, who served as the airline’s CEO for 15 years.<br/>
Alan Joyce and senior Qantas executives should have millions of dollars in bonuses withheld, its board has been urged after the airline conceded its reputation has been flamed and as momentum builds to investigate the airline’s special relationship with government. The Australian Shareholders’ Association CE, Rachel Waterhouse, said that if the company is serious about restoring public trust after the surprise launch last week of legal action by the consumer watchdog there needed to be a more immediate response from the airline’s board. The Australian Competition and Consumer Commission shocked Qantas on Thursday when it announced litigation alleging the airline sold tickets to more than 8,000 flights it had already cancelled. Waterhouse said given the court action could take some time to resolve, the chair, Richard Goyder, needed to step up now. “It’s a reputational issue and the board is responsible for managing that,” Waterhouse said. “There’s deterioration in the brand and also the share price. They might need to make some decisions to put bonuses on hold or reconsider their remuneration.” The issues facing Qantas are fast growing into a big business challenge for the airline that resembles the problems faced by Commonwealth Bank in 2017 over its handling of money-laundering allegations. In response, the then CBA chair, Catherine Livingstone, immediately axed senior executive bonuses, while others had their remuneration cut.<br/>