Brahim’s says would return to talks with Malaysia Airlines for catering deal, now open to exit clause
KUALA LUMPUR, Sep 8 — Brahim’s Holdings Bhd (BHB) said it was ready to reopen negotiations with Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines Bhd, to provide catering service to airlines.
BHB founder and executive chairman Datuk Seri Ibrahim Ahmad said his firm was ready to continue working with the national airline if the two could reach an agreement, The Edge Malaysia reported.
“Yes, certainly. We would be happy to continue the relationship if we can come to terms on the agreement,” he was quoted as saying.
On August 31, MAG terminated the national carrier’s catering contract with Brahim’s Food Services Sdn Bhd (BFS), a 70:30 joint-venture between BHB and Malaysia Airlines.
The negotiation had become stuck after MAG asked to include an early termination clause in the contract, which BHB said was unprecedented in its contracts with other customers.
BHB founder and executive chairman Datuk Seri Ibrahim Ahmad said his firm was ready to continue working with the national airline if the two could reach an agreement, The Edge Malaysia reported. — Bernama pic
Ibrahim said BHB was now willing to include the clause provided that there the “compensation terms are fair.”
“Regardless of the meals and handling rates, the new clause will have to be properly defined to cover the circumstances applicable or with an acceptable compensation,” Ibrahim was quoted as saying.
He said that BFS currently produces some 12,000 meals per day following Malaysia Airlines’ exit as a customer since Sept 1. BFS, which has the country’s largest in-flight catering kitchen, has a maximum capacity to produce approximately 70,000 meals per day.
“Pre-Covid-19, we produced about 53,000 meals per day,” he was quoted as saying.
The long-standing partnership between MAG and BHB ended after a “thorough and prolonged” negotiation period.
Following the discontinuation, MAG resorted to self-catering from September 1, where it would explore “diverse” strategies to ensure business sustainability, including partnering with “reputable” food and beverage providers.
MAG is reportedly relying on eight service providers for its in-flight meals, including its lounge operator MAS Awana Services Sdn Bhd and POS Aviation Sdn Bhd.
