(Updated)

Malaysia Airlines parent Malaysia Aviation Group denies mandating Goldman Sachs to guide aviation group's long-term business plan

Captain Izham Ismail (Photo by Patrick Goh/The Edge)

Captain Izham Ismail (Photo by Patrick Goh/The Edge)

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KUALA LUMPUR (May 4): Malaysia Aviation Group (MAG) has denied hiring or giving a mandate to US investment bank, Goldman Sachs, to guide the aviation group's long-term business plan (LTBP 2.0) over the next five years.

MAG group chief executive officer Captain Izham Ismail said the entire plan, formulated in the fourth quarter of 2018 and implemented in 2019, was purely driven by MAG without hiring any external party.

"It is all false. The long-term plan was credible and we rebased it with the ground zero of 2020.

"There is no consultant or anybody else that is helping us. We are on our own except for the capital financial restructuring portion where we need advisers.

"That is the only part that we have advisers that help and tell us (what to do)," he said during a virtual media briefing on MAG's LTBP 2.0 today.

Izham was commenting on an article by an aviation consultant which stated that Goldman Sachs would help chart MAG's future direction and recovery efforts.

Under the LTBP 2.0, which was launched today, MAG aims to break even financially and be cash positive by 2023 amidst a subdued market, with recovery expected to take place only in 2022/2023.

The aviation group intends to have a more diversified portfolio, with digital and travel solution businesses playing a more pivotal role in driving growth for MAG going forward.

It would expand the fleet size to 83 by 2025 from 69 at present, with more Boeing 737-800 aircraft for regional and Asia-Pacific markets' growth.

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