Malaysia Airlines finalises Sale of 70% Share of its Catering Subsidiary

Malaysia Airlines today finalised the sale of 70% share of its catering subsidiary, MAS Catering Sdn Bhd (MCSB) to Gubahan Saujana Sdn. Bhd., a joint venture comprising Bumiputra food entrepreneur Fahim Capital Sdn Bhd (Fahim) and LSG Lufthansa Service Holding AG (LSG Sky Chefs), the world's largest provider of in-flight catering, through its subsidiary LSG Asia GmbH.

At a ceremony in Subang, formal agreements were signed for operational handover to Gubahan Saujana Sdn Bhd to be completed by early December 2003.

Malaysia Airlines was represented by Managing Director, Dato' Md Nor Yusof, Fahim by Chairman Dato' Haji Ibrahim bin Ahmad, and LSG Sky Chefs by Chairman and Chief Operating Officer Mr. Hanns R Rech.

Under the new equity structure, all parties to this deal will be represented at Board level of the company. Malaysia Airlines, which currently owns 100% of MCSB, will continue to maintain 30% equity in the company.

MCSB, operating from Kuala Lumpur International Airport (KLIA) and Penang, currently produces more than 28,000 in-flight meals per day for the national carrier and other airlines, matching the demand for the highest catering service quality standards. The new arrangement allows the assembling of potentials from the three parties to explore new opportunities in the catering business.

Commenting on the deal, Dato' Md Nor Yusof said, "Today's announcement is another step in the turnaround programme started in 2002. The national carrier will continue to retain its strategic presence in MCSB, both as a shareholder and an anchor customer, whilst pursuing its quality strategy by outsourcing supporting services to accredited industry experts."

He added, "There will be something for everyone. The passenger experience will be enhanced and the stakeholders can look forward to better returns with employees having access to international career opportunities with the company that will now be part of a global network of almost 200 catering locations."