KUALA LUMPUR: Brahim's Holdings Bhd's turbulent relationship with Malaysia Airlines Bhd has reached its final chapter, putting an end to an in-flight catering partnership signed 25 years ago. 

Malaysia Airlines' parent company, Malaysia Aviation Group (MAG), it is learned, is ready to ditch its third-party catering service provider and operate its own flight catering service for the national carrier from next month.

Sources told the New Straits Times that MAG would start using its unit, MAS Awana, to handle the in-flight catering if the group and Brahim's unit, Brahim's Airline Catering Sdn Bhd (BAC), could not reach a deal to extend the latter's contract, which ends on June 30. 

Sources said some of the in-house catering work, such as transporting meals to aircraft, would be sub-contracted to a new vendor as MAS Awana did not yet have the full capacity to do all the work on its own. 

The new vendor is believed to be Pos Aviation In-flight Catering, a subsidiary of Pos Aviation Sdn Bhd. 

One of Pos Aviation's clients is MAB Kargo Sdn Bhd, the cargo unit of MAG. The former provides flight catering services to MAB Kargo crews. 

It is understood that the disagreement between MAG and BAC stemmed from a termination clause in a new contract that both companies were supposed to sign. 

This led to BAC issuing a letter to MAG, stating that it did not want to continue providing services to Malaysia Airlines once the current contract expires, sources said. 

"MAG takes it as a challenge to its credibility. (BAC) firmly believes that MAG can't do it on its own," a source said. 

It is believed that the contract between Malaysia Airlines and BAC runs every three months. 

The companies were supposed to sign a three-year deal, but it has not yet been concluded. 

Brahim's has agreed to share its side of the story with the NST today.  

MAS Awana, formerly known as MAS Catering (Sarawak) Sdn Bhd, has been catering in-flight meals for Malaysia Airlines, MASwings and foreign carriers at the Kota Kinabalu International Airport. 

The company also caters food and beverages for Malaysia Airlines' Golden Lounges at the Kuala Lumpur International Airport's Terminal 1. 

MAG group managing director Datuk Captain Izham Ismail recently told the NST that it wanted to invest its RM4.7 billion cash reserve to migrate some of Malaysia Airlines' services in-house and work with new third-party vendors. 

"We're looking at all options," he said, adding that the poor services provided by some of the national carrier's vendors were affecting its customers. 

"Those are the people who are pulling our reputation down... While Malaysia Airlines remains steadfast in driving customer experience, our service providers are not helping us," Izham said. 

Aviation consultancy Endau Analytics founder and analyst Shukor Yusof said the potential contract termination would offer an "excellent" opportunity for Malaysia Airlines to clean up and upgrade its catering services. 

"Cutting off Brahim's will improve Malaysia Airlines' (and Izham's) credibility to show the airline is serious about raising its global image and will not tolerate products that don't live up to its expectations," he said.  

On how this would affect the airline's passengers, Shukor said: "Good products inevitably come with a certain price point. Expect to pay more for better on board services and food."

https://www.nst.com.my/news/nation/2023/06/920182/malaysia-airlines-end-catering-deal