Business – Page 4

MALAYSIA Aviation Group (MAG) has unveiled its Long-Term Business Plan 3.0 (LTBP3.0), aiming to double topline revenue to more than RM24 billion and position Malaysia Airlines among Skytrax’s Top 10 global airlines by 2030.

LTBP3.0 marks a shift from stabilisation to scaled and disciplined growth. It sharpens our premium position and deepens the value we create across our broader aviation ecosystem… Our ambition to see Malaysia Airlines ranked among Skytrax’s Top 10 Global Airlines by 2030. It is a bold aspiration, perhaps a distant dream to some, but one we are fully committed to realising…,” group MD Datuk Captain Izham Ismail said in a statement today.

Under LTBP3.0, MAG expects to grow third-party revenue across aviation services by more than 60%, expand capacity by over 50% at an average annual growth rate of 8.5%, and modernise its mainline fleet to 116 aircraft by 2035, including 40 A330neos, 43 Boeing 737-8s, and 12 Boeing 737-10s.

The plan is guided by four strategic pillars: delivering premium end-to-end travel experiences, building deeper partnerships to extend global reach to over 1,100 destinations, developing talent and operational expertise, and strengthening financial resilience through non-airline operations such as cargo and in-flight catering.

The five-year roadmap builds on LTBP2.0, which helped MAG reduce liabilities by over RM15 billion and eliminate RM10 billion in legacy debt.

Since then, the group has achieved three consecutive years of operating profit, two years of positive net income, welcomed 22 next-generation aircraft, expanded regional connectivity with new ASEAN routes and the realignment of Firefly’s jet operations to KLIA Terminal 1, and grown non-air revenue to 18% of total revenue in 2024, including leasing Hangar 4 at Subang Airport to expand maintenance, repair and overhaul capacity.

MAG has also strengthened its digital capabilities, deploying an in-house middleware system to enhance website and mobile app performance, rolling out dedicated phone lines, improving live chat support, and introducing an AI-powered chatbot.

These initiatives have helped raise the Customer Satisfaction Index to 84% year-to-date, with the contact centre scoring 91%, up from 80% in 2024.

MAG said the roadmap will deliver disciplined growth, elevate customer experiences, and reinforce its role as a leading aviation and travel services group in the region under the broader Destination 2030 vision.

“The progress we have made under LTBP2.0 reflects the capability and resilience of our people across the group, and it gives us the confidence to move into our next chapter with greater ambition,” Izham said. — TMR

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by NURNABIHAH DINI

MALAYSIA’S aviation sector experienced significant milestones and operational challenges in 2025, including fleet expansions, new international routes, and the announcement that the search for Malaysia Airlines (MAS) flight MH370 will resume on Dec 30 next year

Bernama reported that passenger demand surged this year, with Malaysia Airlines reinstating Paris and Brisbane routes, and British Airways resuming London-KL flights after a five-year hiatus.

AirAsia expanded into Darwin, Taipei, Pontianak, and Kunming, while newcomer Ascend Airways Malaysia began operations in November.

Several Chinese carriers, including Jiangxi Air, Juneyao Air, China Southern, and China Eastern Airlines, also increased services to Kuala Lumpur.

Fleet expansions supported growth, with Malaysia Aviation Group (MAG) receiving seven A330neo and eight Boeing 737-8 aircraft, while exercising options for an additional 50 aircraft.

Capital A secured 50 Airbus A321XLR jets in a US$12.25 billion deal, alongside finalising its PN17 exit strategy. AirBorneo, the rebranded MASwings, is set to operate independently across Sabah, Sarawak, and Labuan from January 2026.

Airport upgrades and privatisation reshaped the sector. Malaysia Airports Holdings Bhd (MAHB) was delisted in February and is now under the Gateway Development Alliance consortium.

KLIA’s aerotrain resumed in July after a RM456 million upgrade, achieving 98.41% operational availability, while Terminal 1 received RM30 million in enhancements.

The Vehicle Access Management System was enforced in December to reduce kerbside violations, and Airport FastTrack services were expanded.

The sector also faced disruptions, including international airspace closures in Pakistan and the Middle East, London Heathrow power outages, and a cyberattack demanding a US$10 million ransom, which the government rejected.

According to MAHB, resilience measures have been strengthened ahead of Visit Malaysia Year 2026 (VM2026).

IATA Asia-Pacific vice-president Sheldon Hee said Malaysia is well-positioned to capture the next wave of aviation demand.

“With the RM50 million in matching grants under Budget 2026 and strengthened bilateral agreements, the country can further expand connectivity and attract new carriers,” he said.

Regulatory reforms included the merger of the Malaysian Aviation Commission (Mavcom) into the Civil Aviation Authority of Malaysia (CAAM), creating a single regulator overseeing technical, safety, and economic functions.

International recognition came with Malaysia’s re-election to the ICAO Council (2025-2028 term) and KLIA ranking among the world’s top 10 airports for terminals handling over 40 million passengers.

Despite operational challenges, Malaysia’s aviation industry is poised for further growth in 2026, underpinned by expanded connectivity, upgraded infrastructure, and stronger regulatory oversight.

The post From new routes to renewed MH370 search: Malaysia’s aviation sector reaches new heights in 2025 appeared first on The Malaysian Reserve.